Rules for Negotiating Representative Agreements That Last


There has never been a relationship between a supplier and a manufacturers’ representative that survived forever. With proper attention to detail when negotiating your next representative agreement, however, you may diminish the likelihood of a premature end to the relationship or costly litigation upon termination. Here are five rules to focus on when negotiating your next rep agreement.

Balance Pays Dividends

Sales reps and manufacturers sometimes seek to gain advantage over their partner by incorporating a bias into the rep agreement favoring the author and placing the other party at a disadvantage. This technique rarely enjoys the benefits desired. The … Read the rest

Proven Techniques Improve Supplier Relationships


Relationships between manufacturers’ representatives and their suppliers are rarely static. Those relationships proceed through a life cycle. They are born, often during a period of euphoria. They grow and develop.

A prudent rep is always keenly aware of what stage its relationship is in with each of its suppliers. Implementing proven techniques can help reps grow and optimize relationships with suppliers, reverse decline, and convert the relationship to one of growing sales and profits. Those techniques, although simple, demand attention and energy. Routine implementation of the techniques helps to improve the success and health of a rep.

Measure Value

A … Read the rest

Best Practices for Handling Sales Reps’ Split Commissions


As a follow-up to an article examining split commissions that appeared in the February issue of Agency Sales, this month consultant Glen Balzer discusses best practices for both manufacturers and their agents to consider.

Until recent time a manufacturer was a self-contained entity. A company would design, develop, manufacture, and market a product in a single facility. That company would design a product in one corner of the facility, develop the product close by, place orders for materials in another corner, and manufacture finished products in the rear of the same facility. A salesman calling on the company would … Read the rest

Achieving Better Results From Your Manufacturer-Representative Relationships


Have you ever been sitting in a business review with your rep or supplier partner and thought, “What can I do to energize my partner to grow sales and market share?” Or, have you ever thought, “Why can’t my partner just grow sales or ship products faster so that we can beat our sales target?”

There are ways to use your supplier-rep partnership in order to achieve your personal or corporate objectives with respect to rep sales. There are several techniques you can learn and implement in order to achieve greater sales, faster sales growth, improved market share, or any … Read the rest

Creating a Sales Presence in the Global Marketplace


Companies operating only in their home market or in a limited number of global markets understandably worry about entering a foreign market. Risks are many and opportunities for problems are enormous. There is an additional risk of taking the corporate eye off the core business and revenue stream. What should a company planning to enter a foreign market do in order to protect itself from failure and improve its chances for success?

A company can create an eight-step plan that includes:

  1. Properly setting expectations.
  2. Developing a bank of resources.
  3. Studying local market norms.
  4. Hiring a country manager.
  5. Selecting a manufacturers’
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Representative Agreements Must Be Rewritten Annually


Relationships between manufacturers’ representatives and suppliers often unravel when a dispute arises that cannot be resolved.

When this happens, the parties turn to courts, teams of attorneys, or arbitration. All three alternatives are expensive in terms of time and financial resources. Relying upon legal alternatives should be considered the solution of last resort. Representative agreements can be drafted in such a way that the likelihood of involving courts, attorneys or arbitrators is minimized.

This article explains that by ensuring that there is a provision for annual renewal of the agreement, termination can be accomplished without any legal involvement.

Annual Renewal: Read the rest