© Ivan Nikulin | stock.adobe.com

My rep agency was founded in 1975. Communicating with customers and manufacturers was by telephone and “snail mail.” There were no internet connections, emails, or cell phones.

During my high school and college years, I worked for my father’s construction subcontracting business each summer. My father had business friends who were independent manufacturers’ representatives. They each earned excellent incomes and enjoyed the freedom of owning their businesses. Since my father owned his company, I thought I would also like to own my business. The independent manufacturers’ rep business intrigued me.

After graduating from Lehigh University with a degree in industrial engineering and from the University of Michigan with an MBA I held sales positions with two Fortune 500 companies and two small companies to develop my sales and business skills. One of the Fortune 500 companies transferred my family to Sao Paulo, Brazil, for three years, where I was the sales manager for Brazil, Uruguay and Argentina. This international experience broadened my capability of dealing with all types of people.

In 1974 my father’s company offered me a position to represent their services in Virginia. One of my father’s manufacturers’ rep friends offered me a sub-rep agreement to help him expand his rep territory from Ohio to Virginia. This was my chance to start my own business. My sales and business experience with other companies during the previous 10 years gave me the skills I needed to be successful.

To launch a rep agency, you need at least two of the following four components:

1. Capital to carry the business, if necessary, for one to one and a half years.
2. Customers who agree to purchase the products of the manufacturers to be represented.
3. One or two manufacturers to represent.
4. A territory with at least one of the top 30 metropolitan areas.

Additionally, you need to have confidence in yourself to deal with the risks and responsibilities of operating a small, commission-income-based business.

I had capital because I would be earning a salary from my father’s company to represent them. Additionally, I had three manufacturers to represent with my sub-rep arrangement. My territory was to be the State of Virginia excluding the northern Virginia counties surrounding Washington DC. Although I made a short visit to Virginia to perform a quick market survey, I had no customers. My territory initially did not include one of the top 30 metropolitan areas. I had two of the four components. My family and I moved to Richmond, Virginia. I launched what was to be a multi-person agency. The agency began as a C Corp.

Although my territory was small, few construction material reps lived in Virginia. In 1975 most manufacturers serviced customers in Virginia with reps or direct salespeople from North Carolina or Washington DC. Because Virginia customers preferred reps living in Virginia, I had the opportunity to sign contracts with leading construction material manufacturers. In the first five years, rep contracts were signed with five manufacturers. All were one of the top three leaders in their product group. Sales and commissions soared! I dropped my affiliation with my father’s company and canceled my sub-rep agreement.

Two additional outside sales associates and two inside support people were added to the staff. Through networking with my Rotary affiliation and friends I found my accountant and lawyer for support. My accountant remained with me throughout my 46-year career.

After 17 years in business, due to challenging economic conditions in the construction industry and the loss of one manufacturer who contributed more than 20 percent of annual commissions, I transitioned to a single-rep agency. Based on advice from my lawyer and accountant, I changed the corporate structure to an S Corp.

During the next 30 years, I reengineered my agency three times. I added the largest worldwide manufacturer of insulated metal wall panels. My territory expanded to include Washington DC and its Virginia suburbs; Baltimore, Maryland; and Delaware. The customer base expanded with larger customers. Profit far surpassed any generated with my multi-person agency.

I semi-retired in 2014 to try out retirement. My work schedule included 20-25 hours per week to serve three manufacturers, including two of the manufacturers I had represented for most of my career. During semi-retirement until full retirement at the end of 2021, my wife and I traveled, I started playing tennis again and began to read more. I started a blog on my website to cover all my experiences as an independent manufacturers’ representative.

Although at the age of 80, I still had excellent health and the same energy and enthusiasm for my business I had for 46 years, for my manufacturers it was time for me to retire.

I look back on my 46-year career cherishing the hundreds of friends I made with customers and manufacturers. My independent manufacturers’ rep career was fun and rewarding.

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