Steve VanDenBerg, president of the rep firm Complete Sales, Inc.

When he opened his agency doors 20 years ago, Steve VanDenBerg was hardly a stranger to the world of reps. As he recalls, “For several years, I was involved in inside sales for electronic distribution. I regularly met with reps and knew several older people who were reps. What was intriguing about what they did for a living was the fact they could go out there with complete freedom and do something they were interested in. I found that the reps I dealt with were free spirits who built their own customer base.”

Following that initial attraction, today VanDenBerg finds himself as the head of the three-person Waconia, Minnesota-based independent rep agency Complete Sales, Inc., that serves the industrial, medical, agricultural, aerospace, HVAC, security, computer, and heavy-duty off-road equipment markets.

According to VanDenBerg, “In 2003, I filed with the State of Minnesota and truly started from scratch. I dug up an old phone from storage, used a discarded dining table as my desk, bought and set up a computer and began searching for both lines and customers. Looking back now, it really seemed crazy. My original listed company was named ‘VTS Manufacturers’ Representative.’”

As he recalls those early days, he says, “My first objective was to partner with one capable manufacturer and try to find one sizeable customer for them. One customer evolved into six sizeable customers over 10 years, along with a few smaller pioneering lines.” He adds that when it came to finding prospective principals, both word-of-mouth and his membership in MANA proved to be surprisingly effective.

“In 2014 I expanded by acquiring a three-person local rep firm called Complete Sales, Inc., where today we still maintain a three-person footprint and represent a strong handful of principal relationships and a sizeable customer contact base.”

Kim McKimmy is in charge of new business development.

Explaining the emphasis on the markets his agency serves, he explains, “Our areas of expertise to represent include custom-engineered assemblies and custom components. It’s a complex and much longer selling cycle than off-the-shelf requirements, but it has proven more stable.”

Pioneering Lines

As VanDenBerg mentioned, at the beginning of his agency’s history, the presence of a few pioneering lines on his line card was not unusual. The subject of taking on pioneering lines is one that exists to this day. According to VanDenBerg, “Taking on those lines is more of a rarity than it was in the past, especially considering the enormous risk and effort required to launch pioneering lines. I’d maintain that it’s always the best situation for a rep to work with a retainer or some sort of shared territorial development fee. I’ve found, however, that there are very few manufacturers who approach me to represent them that see it that way. It’s a good practice to stay away from them.

“On the other hand, there are some manufacturers who understand that a shared fee is the best situation for both parties. And, if you’re able to find them and work with them, then that’s the best situation. It’s been my experience that if my principal has no skin in the game, they won’t do all that they should to support you. Even if there is an agreement for a retainer for a short period of time, that shows that they are investing in my opportunity to represent them. My experience has been that if you’re working with a retainer, those situations have always worked out well for both ourselves and the principals we work with. If they don’t share in the effort, then they’ll come up with all sorts of reasons to not support you.”

Michelle Jackson is the office manager at Complete Sales, Inc.

He adds, however, that if “I feel there’s enough demand for the product they manufacture, then I’ll consider working with them. But at this stage of my career, if they’re not willing to put the effort into it, I feel that I have other lines that expect me to perform for them. I’m not afraid to walk away. When I was younger, I would have been a bit more pliable, but now it’s easier for me to see whether they are serious or not.”

Video Movement

While his views on shared territorial development fees have remained fairly static over the years, VanDenBerg notes there are some other areas of being a rep that have changed over that period of time. For instance, consider how some of the changes that Covid brought to the profession may have some lasting effects.

At the beginning of the Covid lockdown, VanDenBerg maintains, “I think we were all at a point of disbelief with how quickly things had changed. Just think about the immediate impact that video meetings had when it came to replacing in-person sales calls. There was probably a sense of panic when we realized things weren’t going to blow over quickly, and we had better hurry up and adapt to a changing environment. Once we accepted the fact that we weren’t going to be able to get in front of the customer as easily going forward, it was just a matter of finding what video format we were most comfortable with. Thankfully, it wasn’t really all that difficult to adapt to having Zoom meetings. I think that change in particular is here to stay.

“While in-person visits remain the preferred method to interact with customers and prospects, video meeting abilities will be crucial to remaining engaged post-pandemic.”

In addition, “Mileage write-offs have of course dropped dramatically. Customer personnel are also changing positions at a very fast pace compared to just three years ago. That’s why tracking ever-changing decision makers has become a full-time effort; however, the payoff the rep provides really shows the value we bring to our principals.”

He adds that despite these changes that impact how the rep operates, “Because in-person visits are so important — and effective, I believe face-to-face visits will make a reasonable comeback once there is more of a balance in the business environment. As an example, I just had an hour-long meeting with a customer in a coffee shop, and both he and I agreed it was easier and most productive.”

Defining the Rep’s Value

Returning to the subject of the value that the rep brings to the manufacturer, VanDenberg stressed how important it was to partner with rep-ready principals. “I’ve heard from others that many principals struggle with the concept of the rep channel and how it serves all its participants. Many times, it’s up to the rep to virtually hold the principal’s hand to get them ready to work with reps. Whenever I have contact with a prospective principal, I’m sure to ask them whether they’ve worked with reps before. If not, I know there’s going to be an educational component to the relationship.”

Continuing to talk about that “educational component,” VanDenBerg explains that it’s important for manufacturers to be aware of the fact that “reps both develop and maintain market share for our valued principals. It’s the truly good suppliers that recognize the value the rep channel serves to maintain profitable customer relationships over the long run. I’ve fielded countless phone calls from inconsistent suppliers who both release and then try to re-establish a rep presence in our marketplace.”

As he looks back over his 20-year career as an independent rep, VanDenBerg is asked whether he would have followed a different business path or done anything differently. In answer, he says, “I really wouldn’t have done anything differently. What I’ve done has been a very rewarding experience, and there is much more to come.” At the same time, he points to MANA as an important contributor to his business success. “I was told by a colleague about MANA’s membership benefits years ago, and we couldn’t be happier with our association. What is valued most is our ability to call and speak directly with MANA personnel for guidance. The association is truly appreciated.”

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