Kenneth Russell-Murray

As Ken Russell-Murray looks back over the history and growth of his agency, he recalls that when he opened his doors in 1995, “I wasn’t apprehensive or nervous at all.” That’s probably the best frame of mind to have when making a major career change — and the years of success that have followed have proven him correct.

According to Russell-Murray, who heads ElectraSpec, Inc., “When I made the decision to open my own agency, for nine years I had been traveling throughout Canada and the Eastern United States as the sales manager for an electrical manufacturer. When the company I was working for was sold to a larger company I made my decision. I was 35 and had two children aged four and two. I had often thought that if I ever was going to have my own business, being a rep is what I wanted to do and now was the time to do it.”

He explains, “As a manufacturer’s sales manager I had been working extensively with rep firms so I certainly had a sense of what I was getting into. Thanks to a colleague in the industry I started with just one product line and like so many other new reps had not much in terms of revenue.” He adds that the first principal he worked with — “a very innovative start-up with just five products” — now has 250 products and is his agency’s “A” line.

Today, 25 years later, ElectraSpec, headquartered just north of Montreal, Canada, is a bilingual manufacturers’ rep agency specializing in the representation of electrical specialty tools, automation and electrical wire, cable, and security industrial products. Russell-Murray explains that the primary reason he specializes in the above products is “largely due to my past employment and having established a network of contacts within these industries. Having said that, I felt I could expand on this to build an agency.”

Owing to his previous experience working for an electrical manufacturer, Russell-Murray explains that he was able to move forward with establishing and operating his agency without the aid of any mentors. “I had been working independently for years in my home office. I felt I never really fit into the typical nine to five office schedule. I believe that experience of working alone contributed to my ability to operate as a rep.”

Attracting Principals

He adds that from the beginning he’s been able to attract new principals via his membership and participation in MANA, the National Electrical Manufacturers’ Representatives Association (NEMRA), the Canadian Electrical Manufacturers’ Representatives Association (CEMRA) and the Electro Federation Canada (EFC). The agency’s information appears in the directories for all of those associations. “I’m currently the vice president for the province of Quebec for EFC and have been elected to serve on the MANA Board of Directors. In addition, my daughter Katelyn, our director of sales, serves as the vice president of EFC’s Young Professional Network. We also participate regularly in trade shows and various distributor events.”

When it comes to attracting new principals, he notes, “Prospective principals have also been able to locate us via our website. When it comes to communicating with prospective and new principals, we’ve been very selective about taking on new lines. We want to make sure that they complement our current lines.” In addition, he notes that in the past “we’ve spent some time working on pioneering new lines that have resulted in zero revenue for us. That’s why now when it comes to taking on any new line, we require a retainer fee of no less than $2,500 per month.”

A Question of Retainers

At the point when he communicates the retainer requirement to a principal, he explains, “Some manufacturers have been receptive, others not so much. I’ve found that the manufacturer that is serious about working with reps is willing to make an investment in the effort. Others feel that they want to simply see what they can get out of the market.

“Our message to any manufacturer is that everyone’s time is valuable. When it comes to putting a rep out on the road, there is an investment and expenses have to be paid. Obviously the reactions we get from manufacturers are a mixed bag.”

That’s where some education comes in and Russell-Murray is quick to note, “Manufacturers that want to pursue a relationship with us want to know a great deal about the agency. They want to learn about our knowledge of the market, or whether the product is sold direct or through distribution. In addition, they want to know about our contacts in the market.

“Business today is all about contacts and relationships — and we’ve got to show that we’ve established those relationships. Any rep knows how difficult it is to get an appointment today. So many customers no longer have receptionists and rely more and more on email and other means of communication. If you’ve established the needed relationships, however, you can overcome hurdles to get to the people you need to see.”

Supporting their efforts in building relationships in the field, Russell-Murray explains that he and his agency make use of social media. “We use Facebook, which is linked to our website, for updating our clients, i.e., advertising a new product, publishing our participation in an event, etc. We also use LinkedIn to connect with various principals and as a way of locating people/principals.”

Social Media

The agency’s use of social media is certainly related to one of the more important changes that Russell-Murray and his agency have experienced in the past 25 years. “If anything has been a major change in how we perform our job, it’s the impact of technology. When I started in sales more than 30 years ago, we called into the office to get those phone messages that were left on little pink message sheets. Then we’d look for a phone booth that had an extra-long cord so we could talk on the phone while we were seated in the car. Compare that to today when you can easily use your phone ‘hands-free’ while driving, take notes on your tablet and participate in a webinar from either of these devices.”

If there’s a positive in his words describing the impact of technology, Russell-Murray also recognizes there can be a downside. “While it may be easier for us to do our jobs today, customers now want their answers immediately. That’s why you’re working 24/7. On top of that, it’s more tempting to stay on your phone than ever before. In the past it was fairly normal for you to get out and see four or five customers a day in person. Now, with everything right at your fingertips, you can get bogged down by just staying on your phone. That’s something you’ve got to work to avoid.”

Given the current business climate, when Russell-Murray is asked if there’s anything that might be considered as a major concern, he notes, “At times I am concerned with the merger and acquisition activity that’s going on. This could be detrimental to an agency. In other words, often times this kind of economic climate might lead principals to consider the justification for working with manufacturers’ agents.”

If that thought enters a manufacturer’s mind, Russell-Murray offers that there’s something very important the manufacturer should remember: “There’s virtually zero risk for a manufacturer to work with a rep. Some manufacturers may ask the question ‘Why am I writing such a large check to a rep?’ They’re not keeping in mind that while the rep may be well compensated, so is the manufacturer. The more the rep makes, the more the manufacturer makes. At the same time, they don’t have to support their direct sales force in the field. Bottom line is that they want to see growth, and that’s what we provide them.”

In conclusion, when he’s asked if there will be any changes in his agency in the near future, Russell-Murray says “Two years ago I was surprised that my daughter, Katelyn, voiced an interest in joining the company. I never thought she’d want to work with her father. So as time passes, I certainly would expect that she’ll be even more involved in the agency. Also, if you come back in five years or so, I expect we’ll be larger than we are today. I don’t want to be the largest agency there is, but I do want us to grow. There are a lot of changes going on in the industry today. There are a number of people involved who are getting older and retiring. Agency principals are selling their businesses or dissolving them. At the same time, there are going to be any number of principals who continue to look for reps to go to market with them. We’ll continue to be here, to play by the rules and do our jobs well. We have a vested interest in continuing to grow the business.”

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