Category Archives: Department

Boosting Membership Value

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October marks the founding of MANA, a milestone we celebrate by enhancing the benefits and content available to our members.

Beginning this month, Agency Sales magazine readers will notice a new addition: a curated list of relevant trade shows. A new contributing author, Robin Copple, makes his debut. And you will also start seeing more relevant and useful advertisements, such as the productivity tool called RescueTime.

Our association’s loyal membership base allows us to secure significant discounts on products and services that benefit both your business and personal life. In this edition, you will find a few pages previewing these exclusive benefits, along with the next steps we encourage you to take.

Regarding this publication, we have heard your feedback that you enjoy receiving it each month, but that you are not exactly reading it cover-to-cover. You will soon see new features and better content that is more consumable.

Our monthly email newsletter will continue to have the timeliest information on innovative programs and benefits. For example, in September we included a link where MANA members get a 15 percent discount on a database solution from a national vendor. This database is a lead generation tool enabling you to reach customers by serving up comprehensive company and contact data.

And just for fun, we are anticipating December’s holiday gift-giving season. You will see instructions (only in Agency Sales) on how to get a free personalized gift from MANA starting in December!

Where Does All the Time Go?

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Recently a conversation I had with a few fellow reps resulted in an interesting and useful exercise — examining how I, as a rep, spend my days. This exercise was really an outgrowth of the larger question: “Where does all the time go?”

Well, here goes! Here’s a partial list of what I do on a given day:

Selling — Speaking directly to customers obviously remains the number-one activity that a rep must perform. Some conversations are short and others, depending upon the details, are quite lengthy. Many of the conversations I have with customers … Read the rest

Take Time to Communicate

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At least that was the view of one manufacturer who explained, “I can’t count the number of times that I’ve heard my fellow manufacturers say that their reps claim they didn’t know what the manufacturer wanted out of the relationship.”

He went on to explain: “I’d maintain that it always comes down to keeping open the lines of communication. And to accomplish that goal, what has to be done? I’d maintain that it’s not all that difficult, but it does take some time and effort.

“In my opinion, here are some things to keep in … Read the rest

More Clarity on When the Procuring Cause Doctrine Can Garner Post‑Termination Commissions

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Shocking but Not Uncommon Abuse of a Salesman

A genetic testing company and a sales/marketing specialist sign a contract naming the individual as VP of sales and marketing. The two-page contract provides for an annual base salary of $145,000 and for “at-will” employment. It also states: “Your commission will be 3.5 percent of your net sales.” The contract is slim and is absolutely silent on the issue of further commission rights upon termination.

The VP (as specifically requested by the company) negotiates a supply contract amendment with the number-one purchaser of the company’s products, to greatly extend … Read the rest

MANA In-Person Meet Up

Steve McClure and Mark Hogan
Steve McClure (left) and Mark Hogan, right, MANA’s CEO and president, at the Advanced Manufacturing Expo 2024.

MANA members gathered at the Advanced Manufacturing Expo in Grand Rapids, Michigan, on August 7-8, 2024, for some friendly face-to-face conversations. Manufacturer members seeking outsourced sales solutions had insightful conversations with experienced reps. Reps also engaged with member associates, exploring potential collaborations. Additionally, reps shared their outlook on future market conditions within their industry and beyond.

MANA’s mission is to foster strong connections between manufacturers and independent manufacturers’ reps. We’ve heard the feedback: manufacturers really appreciate hearing back from reps, even if a … Read the rest

Tools, Information, and No Hassle

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Novick cover

Don’t judge a book by its cover, right?
The content is still relevant today!

When I was implementing process improvements on the manufacturing floor many years ago, it became clear that each worker wanted just three things: tools to do their job, information to do their job, and no hassle. Over the years, I’ve realized that this notion holds true for every working person, regardless of their title or industry.

The importance of having the right tools and information to achieve sales results is straightforward. However, friction can arise in the rep-principal relationship when each party has a different view of what tools and information are necessary. This friction, the feeling of an irritating inconvenience, is what I would label as a hassle. Many sales professionals can relate to examples such as priorities that change unpredictably, excessive data entry requests, and constant spreadsheet reporting requests.

What can reps do when these hassles reach a breaking point? If you want to maintain the relationship and not end it entirely, two methods have served me well over the years: 1) Quantify the issue, and 2) Make time-based suggestions for improvements. For instance, you might say, “Updating spreadsheets and your sales software system takes six hours away from prospecting and selling. For the next two months, can we touch base weekly on the phone to share information?” It’s also worth noting that hassles tend to increase when sales numbers are unfavorable. An obvious way for a rep to minimize these hassles is to continue doing the right sales activities that lead to orders.

In the spirit of providing Agency Sales readers with tools and information, scan the code below to get a PDF copy of Harold J. Novick’s classic book Understanding the Outsourced Sales Professional. This book remains relevant in managing the interdependent relationship between reps and principals. If you prefer, skip to Chapter 7. The QR code below takes you directly to the file, but you will need to log in to your MANA account first. This is also a good opportunity to review and update your MANA profile.

2024-09_Novick_QR-code

Your MANA RepFinder Profile

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I help many of our manufacturer members do RepFinder® searches to create lists of manufacturers’ representatives they can contact to see if they are interested in selling their products or services.

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Most, but not all, of the results that come up look attractive but I also see a fair number of results that are unlikely to be contacted by the manufacturers.

For example, when the manufacturer downloads the results into an Excel file, a number of cells in the “ProdSerDesc” column are blank. The first thing the searcher does is to delete those with blank “ProdSerDesc” cells. If you … Read the rest

Dance With Who Brought You

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When one manufacturer was asked what he liked best about his top‑performing reps he pointed to a saying he had heard often and recently become re-acquainted with thanks to a book that crossed his desk.

According to the manufacturer, in the book How to Be a Sales Superstar, by Mark Teward, the author emphasized how important it was to remember to “Dance with the one who brought you.” He pointed out that the author said, “Most salespeople and businesses totally ignore this notion. They make a sale, forget the customer, and then move on as quickly as possible.

“Our … Read the rest

The New Beneficial Ownership Information Report: What a Small Business Needs to Know

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A civil fine of up to $591 per day. A criminal fine of up to $10,000 and imprisonment for up to two years. Or both.

On January 1, 2024, new federal reporting rules went into effect that affect millions of small businesses in the United States. In 2024, it is estimated that over 32 million business entities will be affected by these new rules and five million new companies with the same obligations each year thereafter. The overwhelming majority of manufacturers’ representative businesses, formed as corporations or limited liability companies, are affected by the new rules.

This article will highlight … Read the rest

886.1 Pounds of History

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Eight hundred eighty-six point one pounds of magazine archives arrive at the new MANA storage facility.

It is both a literal and figurative heavy responsibility to be the new curator of the MANA archives. When I collected 39 boxes from my predecessor, Mr. Charles Cohon, I couldn’t help but wonder exactly how much they weighed. To my surprise, the total weight was a staggering 886.1 pounds, equivalent to the size of an adult moose!

I am determined to take the bull by the horns and make these archives as useful as possible to our members.  The plans for these archives are straightforward yet crucial: to keep them safe and sound while making their valuable contents accessible to our members.

“The more you know about the past, the better prepared you are for the future.” — Theodore Roosevelt, 26th president of the United States from 1901 to 1909.

Early Agency Sales magazines, originally named The Agent and Representative.

Early Agency Sales magazines, originally named The Agent and Representative.

The archives contain all the magazines from 1947 onward, full of insight and history. If there is a particular year you’re interested in, please let me know, and I’ll make it a priority to provide you with access to the content of those specific magazines.

Email me at: mhogan@manaonline.org.

WomenReps 2024 — Bringing Women Manufacturers’ Representatives Together

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For most of my career, attending one of my principal’s sales meetings or other rep-focused events meant that I was the only woman in the room. Later in my career, I began The Business Women’s Circle®, a collaborative peer business networking group with only women in the room.

But if you drew Venn diagrams of those groups’ attendees, I was the only union. So, I decided to launch a meeting where the Venn diagrams would overlap 100 percent, a rep-focused event with only women in the room.

With Jerry Leth’s help, MANA’s “A League of Their Own” (ALOTO) … Read the rest

Developing New Markets With Reps

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While there are no hard rules when it comes to independent reps requiring market development fees from their principals, chances are when there is no existing business in a territory that subject is going to be front and center in conversations between reps and manufacturers.

That was just one of the topics covered when several manufacturers got together on a MANAchat to discuss the subject of developing new markets with independent manufacturers’ representatives.

Ultimately, when that subject is raised during negotiations, the consensus among the manufacturers participating in the chat was:

  • It’s important to keep in mind that when there
… Read the rest

Arbitration or Litigation — Which Should You Choose?

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A common topic during negotiations for a sales representation agreement is whether the parties should agree to binding arbitration to resolve any disputes rather than litigation in court. Sometimes a principal will request that the parties choose binding arbitration contending that arbitration is less expensive. This may or may not be true as I discuss below.

Some Benefits of Arbitration

The benefits of arbitration can include the following:

  • A shorter docket. Arbitrations can often result in a resolution in 12 months compared to 24 to 30 months or more in many lawsuits.
  • The parties have more control over the process.
… Read the rest

Light Up Nashville

AIM/R 52nd Annual Conference on September 17-20, 2024, Nashville, TNAIM/R (Association of Independent Manufacturers’/Representatives, Inc.) will hold its 52nd Annual Conference on September 17-20, 2024, at the Renaissance Nashville Hotel, Nashville, Tennessee.

AIM/R will “Light Up Nashville” this fall. This year’s Conference Chair — Jon Wiggs, CPMR, CPSC, president, Wiggs-Haun & Bohan — and the Conference Committee are deeply invested in every detail from networking opportunities, critical topics for the industry, LOT/T experience, and off-site adventures, one of which is a private reception at the Country Music Hall of Fame® and Museum!

The educational program will not disappoint. Here’s the line-up:

  • Opening Keynote on Negotiation with Chris Voss, The
… Read the rest

Mentorship in Motion

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Jeff Witt May 30, 1945 – March 9, 2024

Jeff Witt
May 30, 1945 – March 9, 2024

I simply wish that my mentor, Jeff Witt, could witness my inaugural words as president and CEO of MANA. His recent passing weighs heavily on my heart. Jeff epitomized the quintessential manufacturers’ representative: thoughtful, diligent, knowledgeable, and ethical. Jeff set an exemplary standard as he assisted this young engineer 18 years ago.

We collaborated on several projects but then lost touch for about a decade. When I embarked on establishing my own rep firm in 2016, Jeff was the first person I called. His introduction to the Manufacturers Agents of Cincinnati (MAC), a regional group of reps formed in 1971, proved pivotal. It is undeniable that I owed my career as a rep to Jeff›s simple yet profound gesture of introduction. I first heard of MANA at this regional meeting of reps and it’s also where I met my business partner.

In 2017, John Davis, former MANA chairperson of the board, attended a MAC luncheon searching for a business partner. We discovered that my engineering and sales background aligned with his needs for selling technical motion control automation products. My tenure as a sub-rep during those years proved fruitful and enjoyable.

Serving on the MAC Board and subsequently being elected president in 2021 provided the experience I need to run an effective association. I am fascinated by the extensive histories of both MANA and MAC. While I may not have had the privilege of knowing past MANA executives like Lionel Diaz and Joe Miller, I have had the pleasure of getting acquainted with Charles Cohon over the past few years. Cohon and the team have admirably maintained MANA’s relevance and utility to its members, and I am honored to serve in this leadership role.

As I step into this new role, I carry with me the profound lessons and values instilled by my mentor, Jeff Witt. His legacy of integrity, dedication, and mentorship will continue to guide me as I endeavor to lead MANA with the same passion and commitment.

Do you have a mentorship story to share? Email me at mhogan@manaonline.org.

What Do They Think of Us?

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A European perspective of the American rep

The world of commerce is getting smaller and it is becoming quite commonplace for overseas manufacturers to seek out American representatives. For this editorial, I interviewed a number of European sales managers who have been in charge of worldwide sales for several decades and I asked for their unfiltered opinions on their experiences and opinions on using American manufacturers› representatives. While the discussions were wide‑ranging and covered much of the same ground as one might expect from any global sales managers, some were specific to the uniqueness of working with a North American … Read the rest

Defining Value

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In a recent conversation with Agency Sales, the national sales manager for a Midwest-based manufacturer offered his take on what he considered is the rep’s value proposition. “After several years of working with a high level of success with a rep network, I’ve learned even more how valuable independent reps are for a manufacturer. The rep brings value to the manufacturer’s table.

“The rep has the sales organization in place in the territory that the manufacturer doesn’t have to create for himself. On top of that, perhaps the most valuable asset the rep has to offer is the relationships … Read the rest

The Future of Sales: Trends and Innovations to Watch

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The sales landscape is undergoing a seismic shift, with emerging trends and technological innovations transforming how sales professionals connect with customers and close deals. This evolution is driven by advances in technology, changing consumer behaviors, and the increasingly digital nature of business interactions.

As we look to the future, several key trends and innovations stand out, promising to reshape the sales industry. This article delves into these developments, exploring what’s next for the world of sales and how professionals can prepare for the changes to come.

Artificial Intelligence and Machine Learning

AI and machine learning are at the forefront of … Read the rest

How to Win Your Case: Be Reasonable About It

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Disputes among principals and sales reps are inevitable. Some lead to lawsuits, mediations or arbitrations.

Contrary to popular belief, winning your case does not usually depend on hiring the most aggressive lawyer. Winning your case starts much earlier, when you negotiated your contract and when you and the principal were performing it. Like succeeding in sales, winning your case starts with preparing to win it.

One general principle that has been reaffirmed over my 40 years of litigation practice is that the reasonable party usually wins. You want to be perceived as the reasonable party. That is the person with … Read the rest

MANA Chairperson Awards Past CEO Plaque for His Service to MANA

Tommy Granett presenting the plaque to Charles CohonIn acknowledgement of his 13 years serving as president and CEO of MANA, Charles Cohon (right) was presented a plaque by the association’s Chairman of the Board Tommy Garnett, CPMR, CSP. In making the presentation during a Board meeting, Garnett said, “It has been my distinct pleasure to work closely alongside Charles Cohon for the last five years. Charley is considered an industry leader and one of the most professional individuals I have had the pleasure to meet in my many years in the industry. I consider him a mentor as well as a friend and the rep industry as … Read the rest

Succession Planning

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The time has come for me to take the succession planning advice I have often given to manufacturers’ reps.

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It has been my honor to serve as MANA’s CEO since 2011 and to help celebrate MANA’s 65th, 70th, and 75th anniversaries. But MANA’s future anniversaries, and there will be many, will be celebrated with a new CEO at the helm.

My thanks to MANA’s Board of Directors and staff for making it possible for MANA to support our community of reps and manufacturers with activities like:

  • Developing the industry-leading platform for connecting reps and manufacturers.
  • Championing Market Development Fees to both manufacturers and reps.
  • Challenging 30-day termination clauses as a standard way to work with reps.

It is a bittersweet reality that my goal as a retiring CEO is to leave the association in such good hands that I will be remembered fondly but not missed organizationally. Your new CEO will take MANA to the next level. No one will be cheering more loudly from the sidelines than me.

As a reminder that CEO succession is the nature of things, I close with this 1949 message from the first person to have my role at MANA, P. Edwin Thomas:

The members of this National Association extend to you a sincere invitation to help make this Agent and Representative magazine* the “Common Meeting Place,” in the interests of “Economical Distribution” of the products of those who specialize in production but who, by size of circumstance, are not equipped, or prefer not to equip, to handle the selling function in all of its many ramifications and extenuations.

Manufacturers’ Agents, as “independent contractors and free agents,” are free from many of the restrictions applicable to private salesmen, in interstate and intrastate commerce, and their employment as a satisfactory sales outlet is every day being recognized by more and more producers and suppliers in every part of the country and in every industry.

* Later renamed Agency Sales magazine.

With Gratitude for a Job Well Done

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Charles Cohon, MANA’s president and CEO since 2011, retires at the end of June. As someone who works at MANA, I want to say that those who hired him in 2011 made an outstanding and excellent choice. Thanks to his leadership skills, the MANA of today differs significantly in a positive way from when he took over.

During his tenure, he created a long-term strategic plan with the help of a strategic planning committee. We retained Mary Byers, coauthor of Race for Relevance, to help in this process, and the implementation of the plan resulted in a significant improvement … Read the rest

MANAchat Takes on Challenge of Finding Reps

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While it can remain a challenge to find reps to represent their lines, manufacturers maintain there are steps to take when it comes to finding the right fit. That was a major takeaway from a MANAchat when manufacturers got together to discuss their challenges and successes when it comes to signing on with rep firms.

Setting the stage for the discussion, one manufacturer explained, “Typically, like just about everyone else, we generally go through the search and interview process, followed by a trial period in an effort to establish what the expectations and relationship would look like. We’ve had some … Read the rest

Better Termination Provisions for Sales Reps (And Why You Need Them)

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An electronics sales rep contacted our office and said he had been terminated after taking two years, and tens of visits with purchasers and engineers, to gain a lucrative design win from a new customer. Based on the rep’s prior dealings with this customer (on behalf of other principals) the rep was able to procure the key design win which had produced no sales as of the termination but would result in long‑term substantial sales after the termination. The win was clearly attributable to the rep, as evidenced by an attaboy email from the regional sales manager stating: “great design … Read the rest

Will Artificial Intelligence Be the End of Reps? — Part 2

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Last month I started a discussion about why Artificial Intelligence (AI) won’t be the end of reps. This month I share two stories that show why AI can’t replace reps.

AI Can’t Ask for a Favor

Someone at my principal in Europe decided to ship mounting hardware by ocean freight (eight-week delivery) instead of air freight (two-week delivery), so mounting hardware stock dropped to zero for six weeks. The factory’s message: “Tell your customers they have to wait.”

My principal’s products were useless without mounting hardware and customers’ production lines were shut down.

My largest customer was about to switch vendors. So I called another customer who had ample mounting hardware and asked for a favor. “I need to borrow 1,000 meters of mounting hardware for a month.” That customer let me borrow that hardware and I saved my largest customer. AI can’t do that.

AI Won’t Push Back

My largest customer had a rule. If you don’t increase your prices, you get to keep the business.

Every year my principal announced a routine 5 percent price increase. Every year I pushed back because prices in this product category actually were going down, and if the customer shopped around, they could get the same product for 30-40 percent less. Every year the factory backed off and this became one of their most profitable customers.

Then a sales manager who never met the customer took the account away from me and gave it to a direct salesperson 700 miles from the customer. And, when the factory announced its annual 5 percent price increase, the direct salesperson did exactly what he was told and insisted on the increase.

The customer found a new source for half the price.

AI is just like that direct salesperson. It does exactly what you tell it to do. Unlike AI, reps will push back when the factory does something foolish.

AI can’t do jobs that require trust and independent thinking. Those jobs will always go to reps.

Relationship Reviews — Strengthening the Partnership Between Manufacturer and Rep

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One of MANA’s highest priorities is helping manufacturers’ reps and manufacturers develop mutually profitable, interdependent, and long‑lasting relationships. Part of the process includes relationship reviews — manufacturers’ representatives and principals should constantly be reviewing each other’s performance with the goal of improving the relationship.

Improving the relationship involves both of you. On our own, we fail to see how others perceive our performance. We think we do okay, but unless someone comments on how we do something, we never know. We may do something we think is fine and it drives the other party nuts. They do not say anything, … Read the rest

Evaluating Goes Both Ways

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Whether manufacturers know it or not, their reps are constantly evaluating the profitability of their lines. This can be done formally via a structured line profitability analysis or informally with the rep actually measuring how much time he spends on a line and then asking himself if it’s really worth the effort. Depending upon the analysis of accumulated data, what inevitably can result is a parting of the ways.

Two reps recently reported to us the results of their decisions concerning some of their lines. According to the first rep, “Ours was a fairly simple decision. We contacted two of … Read the rest

Best Practices for Virtual Selling

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Virtual selling is any form of selling that occurs without the buyer and the seller physically present with each other in the same room. Telephone, text, email, Zoom — it’s all virtual selling. Since virtual selling, in that sense, is longstanding, there’s no reason to think negatively about it.

The first key to successful virtual selling is to accept the fact that selling fundamentals don’t change just because you’re using a communication tool that is new to either you or the prospective client. The medium used to communicate with your target audience is just that — a medium. Your product … Read the rest

Never Agree to Go to Timbuktu to Collect Your Commissions

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The Problem

Many of my clients represent principals based in foreign countries. Most of them represent automotive parts manufacturers. The automotive industry is a global industry. Many principals are based in Europe, China, Japan, India, Korea, and other countries. One of the topics in the negotiation of the sales representation agreement is often the state or country that will have jurisdiction and venue in the event of a dispute. Many principals will attempt to include a provision requiring any disputes to be resolved in their home country. I strongly recommend that any sales representative located in the United States or … Read the rest

Will Artificial Intelligence Be the End of Reps? — Part 1

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© PrettyVectors | stock.adobe.com

A sonnet written by a machine will be better appreciated by another machine.
— Alan Turing, English computer scientist widely considered to be the father of artificial intelligence.

Will there always be reps?

That’s a question that I was asked when reps’ role delivering three-ring engineering binders was upended by online access to technical data on manufacturers’ websites.

That’s a question I was asked when online quotations and order entry processes eliminated many clerical tasks in reps’ offices.

And now it’s the question I am asked because Artificial Intelligence (AI) disrupts some services traditionally provided by reps.

What happened to reps when three-ring engineering binders faded away? Reps evolved! Reps became guides who helped customers drink from the fire hose of data suddenly available from manufacturers’ websites.

What happened when online quotations and e-commerce disrupted manual processes previously handled in reps’ offices? Reps evolved! Reps removed from their line cards some of the commodity product manufacturers who only valued reps for quoting and order entry services. Reps shifted their resources to launching CRM systems that let them give better information to their principals and better anticipate their customers’ needs.

What will happen as AI disrupts other aspects of the services reps provide?

AI will increasingly be adopted for roles that don’t require face-to-face contact. Reps will evolve and refocus their resources on roles that do require face-to-face contact.

  • Reps will spend more time doing site visits to help solve their customers’ problems by integrating multiple products from their line cards into custom solutions.
  • Reps will spend more time teaching and coaching their customers’ employees on the functions and applications of their principals’ products.
  • Reps will be the conduit for insights and expertise they developed while solving one customer’s problems to be applied to their other customers’ problems.

Yes, there will always be reps, because reps are customers’ trusted face-to-face resources. And that is a role that websites, e-commerce or AI never can provide.