Another Landmine in the Rep’s Path

2024	December	November	October	September	August	July	June	May	April	March	February	January
2023	December	November	October	September	August	July	June	May	April	March	February	January
2022	December	November	October	September	August	July	June	May	April	March	February	January
2021	December	November	October	September	August	July	June	May	April	March	February	January
2020	December	November	October	September	August	July	June	May	April	March	February	January
2019	December	November	October	September	August	July	June	May	April	March	February	January
2018	December	November	October	September	August	July	June	May	April	March	February	January
2017	December	November	October	September	August	July	June	May	April	March	February	January
2016	December	November	October	September	August	July	June	May	April	March	February	January
2015	December	November	October	September	August	July	June	May	April	March	February	January
2014	December	November	October	September	August	July	June	May	April	March	February	January
2013	December	November	October	September	August	July	June	May	April	March	February	January
2012	December	November	October	September	August	July	June	May	April	March	February	January
2011	December	November	October	September	August	July	June	May	April	March	February	January
2010	December	November	October	September	August	July	June	May	April	March	February	January
2009	December	November	October	September	August	July	June	May	April	March	February	January
2008	December	November	October	September	August	July	June	May	April	March	February	January
2007	December	November	October	September	August	July	June	May	April	March	February	January
2006	December	November	October	September	August	July	June	May	April	March	February	January

Major problems in your business come from many “little things.”

Avoiding disaster should be a primary task of every member of the rep company team. You have all worked very hard to build a successful agency and position that agency with very good principals. Unfortunately, the world of the independent rep business is full of landmines that cause temporary or permanent damage to your business.

To follow is a landmine for you to think about as you are planning the operation and functioning of your agency.

Major Changes in Agency Management

Major changes in agency management must be communicated effectively and clearly to principals.

A big change has been made. One of the founding partners is going to leave, retire, be bought out, or for any reason stop being a part of the agency.

Dennis has been there from the beginning. Everyone knows Dennis and many think he is a very effective seller on the rep agency team.

Unfortunately, Dennis is neither as effective as he should be nor is he as good as he thinks he is. Dennis is very well compensated as one of the owners, but he is not worth either the money or the aggravation of having him on the team.

Unfortunately, Dennis is good friends with several of the key people at manufacturers that provide quite a bit of the agency’s commission income. In addition, Dennis has a big mouth, and he could create negative thoughts at some of the agency’s best principals.

What to do as Dennis “exits”?

The first thing is to address the issue straight on. Dennis is leaving/retiring/moving on. The agency and especially his partner[s] wish him and his wife/partner well.

If possible, a big event/party is scheduled to pay tribute to Dennis and his many accomplishments. A gift is planned for Dennis. For example, if Dennis is a fisherman, a beautiful, engraved, reel and rod are going to be presented to him — beats a gold watch he would not wear.

Dennis’ customers? Again, straight on; the other principals of the agency and the key salespeople who are going to start handling his accounts are dispatched to visit the customers to review the changes and ferret out any issues or problems and get them straightened out immediately — with his help if possible.

The key is to make sure the customer knows their business is in very good hands — immediately. Nothing will slip through the cracks because of his retirement. Several customers may feel that things are improving because they were aware that Dennis was “slipping,” and they were not getting the exceptional service they were used to from him.

Of course, every effort must be made to avoid embarrassing Dennis over the “lousy” job he has done in recent years.

Finally, the principals that Dennis is close with. In this case the agency should be able to demonstrate that the team is doing a good job for that principal. The agency team must address any problems or issues one at a time and make it clear to the principal that the agency will perform better this year and next. They will see the progress in orders and market penetration.

The agency should promise new business plans and new market penetration concepts to them. The regional manager, if there is one, will be very involved with the agency.

It is part of the plan to make the regional manager a promoter for the agency. Regardless of previous experience with the RM, the agency must now develop a “charm offensive” to the regional to show him or her how important they are and how they can look good reporting on the agency’s progress.

When asked what is going on the regional must always be positioned to show how well the agency is doing, how close their relationships are, and how solid the agency’s reputation is with the significant customers.

Bottom Line

Everything about Dennis’ retirement must be orchestrated by the agency. Nothing can be left to chance. Nothing can be left to rumor or innuendo. Nothing can be allowed to create doubt or fear in the principal’s mind.

The Agency

Control of everything is key to managing this type of operation. Again, the key is maintaining control. Saying goodbye to Dennis will help position the agency for growth and rid the agency of a burden.

MANA welcomes your comments on this article. Write to us at [email protected].