Category Archives: Department

Spelling Out Expectations

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When there’s been a strain in the relationship between principal and rep, the cause of any friction may often be traced to a failure in communication. That’s the view of one manufacturer who noted, “I can’t count the number of times I’ve heard my fellow manufacturers say their reps claim they didn’t know what the manufacturer wanted out of the relationship.”

He explained, “I’d maintain 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 … Read the rest

Help Your Small Business’s Sales Force Meet Goals On the Go

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When it comes to the importance of taking your sales team mobile, the numbers speak for themselves. Did you know that outside sales reps are now spending 89 percent of their time selling remotely? And it’s no wonder why. Studies show that mobile customer relationship management (CRM) tools can increase productivity by nearly 15 percent.

Mobile CRM technology can certainly work magic — but not without a magician at the helm. After all, implementing a mobile sales strategy is no easy task. It requires planning, proper execution, and the right mobile sales tools.

Growing your business through mobile sales can … Read the rest

My Thoughts on Buy‑Sell Agreements for the Manufacturers’ Representative Sales Agency

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I am a lawyer and not an accountant, so my approach to this topic may differ from attorneys who are also accountants or those who specialize in agreements for the sale of a business. Although this is a serious topic, I tried to have a little fun with it.

The Question

Occasionally in my law practice I am consulted by manufacturers’ representatives and their corporate lawyers with the request that I help them regarding the establishment of the value of an interest in a manufacturers’ representative sales agency for purposes of a shareholder buy-sell agreement or for the outright sale … Read the rest

Fantasy Football and Portfolio Management

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As strange as it sounds, there are many parallels that can be made between savvy investing and fantasy football.

While it’s fun to piece together these make-believe teams and compete amongst friends, there’s a lot to be learned about controlling emotions and managing expectations through fantasy football, and how that ultimately relates directly to investment habits.

Allow me to set this scene: At the end of August you’ve drafted what you believe to be a stellar group of football players who together comprise the best team in your fantasy league — at least on paper.

But when it’s early November … Read the rest

News From the Territory

Visit to University of North Texas.

MANA CEO Charles Cohon recently visited the University of North Texas to confer with Ph.D. student Trond Bergestuen and his academic advisers Professor David Strutton and Professor Kenneth Thompson about an academic paper and Bergestuen’s Ph.D. thesis; and to speak to Lecturer Terrence Suber’s Professional Selling class.
Left to right: MANA CEO Charles Cohon, Ph.D. student Trond Bergestuen, Department of Marketing Chair Jeffrey Ogden, Lecturer Terrence Suber, Professor David Strutton, Past MANA Director John Sandifer, Professor Kenneth Thompson, and TTI Inc. Field Sales Manager Jon Cowley.

MANA’s 2018 Manufacturer Seminar

Ingram speaking

Right: Charlie Ingram, vice president, sales & marketing, Eriez Magnetics, … Read the rest

“Is My Rep Getting Too Rich Off This Order?”

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© ashva73 | stock.adobe.com

It’s a question I hear all too often.*

“I’m the sales manager for a manufacturer, and my boss thinks our rep is getting too rich off a new order. I don’t know for sure whether I agree with my boss or not,” said the sales manager.

“I can see the argument that the rep should be rewarded for bringing in a huge order that took five years to close, but the rep’s check last month was bigger than my boss’ check — that is not sitting too well.”

My reply?

The sales manager made the most obvious argument himself. The rep worked for five years before any commission was earned. Now the rep is being compensated for the five years of unpaid work leading up to the order he or she earned for your company. Each commission payment the rep receives covers both payment for that month’s shipments and an installment payment toward reimbursing the rep for all the unpaid work during the past five years.

But there is more to it than that. It will be easier to explain if I use an example.

Let’s say you invested in 50 risky stocks five years ago. Most of the companies went out of business. Some of them earned you a modest profit, and one of them was a big winner.

What was your five-year profit?

Is the gain on the big winner your five-year profit? Of course not. You calculate your net profit by totaling all your losses and all your gains.

Consider that the rep had many losses on prospects in which he or she invested time and effort that never returned a cent of commission.

These losses, which are an expected and normal part of being in the rep business, come from pursuing prospects where the rep’s principal ultimately can’t meet the prospects’ price, delivery, or performance standards.

Reps don’t expect their principals to be an ideal fit for every prospect. Quite the contrary. They expect that only a modest percentage of prospects will be a good fit for their principals and use the commission from the orders they do receive to offset the cost of making calls on prospects that turn out not to be good candidates for their principals’ products.

“Pursuing five to eight prospects for each order that eventually closes is part of the rep business,” explained one rep. “I came into this business with my eyes open. But when I do make a big win, I have to be sure to remind my principals that the commission I receive on each closed order has to cover my cost pursuing that order, and five to eight that didn’t close.”

* This article combines conversations with a number of MANA members. Their comments have been edited for clarity and brevity.

Why Should a Manufacturer Be a Member of MANA?

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“I’m a manufacturer, not a rep agency. Why should my company join MANA?”

I hear this all the time. It’s a legitimate question, really. After all, the name of the organization is Manufacturers’ Agents National Association — MANA, for short. Seems like it’s an association just for reps. While that may have been its foundation, MANA is much, much more. It’s a terrific organization for manufacturers, whether you’re just exploring the strategy of utilizing reps as your sales channel or have been working with reps for decades.

Our company, Eriez Magnetics, has enjoyed the benefits of selling through independent reps … Read the rest

Rep Councils: Two Are Better Than One

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Here’s how one manufacturer described his company’s experience with rep councils:

“We have 22 reps on our team. Early on we started a rep council and learned that it was a very effective way to build the cooperative links that have made us successful. However, we soon discovered that the work of the rep council was diverse and often time-consuming. It seemed to us that we were often asking the council members to do too much for us, although none of them ever complained. However, we thought a lot about this and came up with the idea of having two … Read the rest

Ways to Make Smart Use of Technology — Without Losing the Personal Touch

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Technology does a lot, but it can’t do everything. Sometimes we forget that. We can get so dependent on e-mail and social media that we lose sight of what people really need from us — especially in business. Yes, clients expect to connect with us in various high-tech ways, but they also crave the deep and meaningful connections that can only come from face-to-face (or at least voice-to-voice) connections. It can be tricky to walk that line.

Too little tech and you’ll seem out of touch, too much and you’ll lose the personal touch that keeps customers loyal and engaged. … Read the rest

The Principal’s Standard Contract vs. MANA’s Model Contract

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MANA members, principals and representatives can access the Manual for the Creation of a Rep‑Principal Agreement on the MANA website (MANAonline.org). Much thought has gone into this document, and it is a useful tool. This document has been generated by a team of MANA member lawyers who have represented both manufacturers and representatives.

Likewise, a good number of principals have a standard representative contract generated at significant cost and through years of favorable experience with other sales representatives.

So, which one should be used as a starting point? The answer, I suggest, is neither and both.

Too often a principal … Read the rest

Fire the Coach!

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“Fire Hue Jackson!”

The calls are flooding into the airwaves of 1480AM, WHBC in Canton, Ohio. Hosts Kenny “The Roadman” Roda and Jeff “J.T.” Turk are getting an earful from frustrated and angry fans. The Cleveland Browns are again in the basement of the AFC North and the overwhelming call is to fire the coach.

The team definitely needs to shake things up and send a message, but does firing the manager or coach really have any significant effect on a team’s overall performance?

The answer is a decisive, not really.

John Charles Bradbury of Kennesaw State University published a … Read the rest

A.O. Smith’s Margoni Receives Golden Eagle Award From AIM/R

One of the highlights each year during the AIM/R Annual Conference is the presentation of the Golden Eagle Award — one of the most respected honors in the plumbing industry and particularly within the Association of Independent Manufacturers’ Representatives. The name of the winner is not revealed in advance, leading to even more anticipation. Last month, at the Awards Lunch for the 46th Annual Conference in Napa, California, AIM/R Board member Brian Morgan of The Morgan Group had the pleasure of announcing A.O. Smith Water Products’ Senior Vice President of Sales Jim Margoni as recipient of the 2018 Golden Eagle … Read the rest

“If You Say You Sell Everything to Everybody Everywhere, You Sell Nothing to Anybody Anywhere.”

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© topvectors | stock.adobe.com

Here’s how one manufacturer explained it.*
“We find lots of good candidates to represent our line in MANA’s RepFinder® database.

“But once in a while we also find a rep member profile that is a real turn-off. It’s what I call the ‘I sell everything to everybody everywhere’ profile.

“One turn-off is when the rep claims to sell every one of the RepFinder’s 100+ product categories. Everything from Advertising Specialties to Veterinary supplies.

“Great rep firms focus on a few key markets and have great relationships with decision-makers in those markets. A rep who claims to sell in every market has no focus and will never get an interview to rep our line.

“Sometimes it gets even worse. Sometimes the rep claims to sell all of the product categories in all 50 states, and perhaps even in Canada and Europe. A pretty bold claim for a rep firm with just one or two salespeople.

“That’s why I said, ‘If you say you sell everything to everybody everywhere, you sell nothing to anybody anywhere.”

Want to be sure your MANA rep member profile isn’t a turn-off? Keep these rules in mind and update your MANA member profile today:

  • Manufacturers look for reps with focus. Choose only categories where your rep firm really shines.
  • Choose the product categories you sell, not the markets you sell to. If you sell castings to the pump industry, choose “castings” not “pumps.”
  • Your sales territory should make sense compared to the number of your firm’s salespeople.
  • Update your MANA member profile annually. Starting soon, manufacturers will be able to see if a profile has gone untended for more than year.
  • Seventy-seven percent of MANA rep members have a website. Don’t be one of the 23 percent who don’t.

Update your profile today in the member area of www.MANAonline.org.

Sound like too much trouble? Schedule a free telephone profile coaching session with Jerry Leth or with me. We’ll walk through the steps together.

Let manufacturers know that your rep firm’s profile says what you do, and you’ll do what it says. Update your MANA member profile today!

* Comments from more than one manufacturer have been combined and edited for clarity and brevity.

Reps Remain Hungry for Training From Their Principals

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I have been to so many manufacturer training sessions that the phrase, “Thank you for coming, we understand that time is your most precious asset” is ingrained in me.

I can’t disagree with that statement; however, I believe principals and their reps can use this as an excuse as to why not to get together for anything.

As an independent manufacturers’ rep, I always have an appetite to train further and to become the best possible rep when it comes to product knowledge and business acumen. I expect and appreciate training from my principals, but I also love to pay … Read the rest

Proactive Communication Saves the Day

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A manufacturer recently related to Agency Sales magazine how when one of his best performing reps erred in a personnel decision, a potentially disastrous situation was quickly defused.

Here’s how he described what happened: “A one-man operation that I’d describe as one of our very best reps had reached a growth point where he had to hire another rep to take some of the load off himself. Unfortunately, he made the wrong decision. From the first day the new rep started working, there was a falloff in performance from the rep firm. We noticed it right away when we didn’t … Read the rest

Be Relevant in Relationship Marketing — for Crying Out Loud!

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Stop it already! I don’t have time for yet another blog, news story, article, podcast, video on the Net, social networking meeting, blah, blah, blah. Yikes! I am inundated with so many choices that it drives me nuts.

Maybe you can relate.

We’re all swamped with so many things going on. Your customers are in the same place. They are swamped and can’t keep up with all the new information. Then you, as an aspiring new vendor of theirs, come bouncing in the door with your new Wonder Widget and they can’t handle any more. You call it rejection. They … Read the rest

Sub-Representative Contracts: Ensure Compatibility With Your Principal Agreements

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Contract Templates:
One Size Does Not Fit All

When using contract templates, sales agencies tend to think of them as one size fits all: Just insert the agency’s name, the other party’s name, the effective date, names in the signature blocks, and voila! You’ve created a ready-to-sign contract!

If Only It Worked That Way!

Contract templates are valuable; they address the issues important to a sales agency and incorporate “time-tested” language that defines what happens in case of a legal dispute.

However, the very definition of a “template” is that it is a standard form; and when one ponders this, … Read the rest

Coatney Sales Adds Rep to Mid‑South Region

Aaron Johns has joined Fremont, Indiana-based, Coatney Sales, Inc., as a sales representative for Arkansas, Kansas, Missouri and Oklahoma. The independent manufacturers’ rep group specializes in OEM and aftermarket marine, RV, trailer, specialty vehicle, power sports, and sporting goods.

With a strong background in sales and engineering, and a bachelor’s degree in agricultural business from Missouri State University, Johns is an ideal match for Coatney Sales. Most recently, he was regional sales manager for Moeller Marine. Prior, he worked for Johnston Industrial Supply and North American Composites. Active in his community, he serves on his local school board and volunteers … Read the rest

The Beating Pulse of Opportunities MANA’s Female Manufacturers’ Representative Members Are Experiencing

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When I regularly speak to other female sales reps around the country, I can’t help but recognize the real sense of optimism and momentum that has grown out of the connections among female reps in the profession. There is a collective excitement in our conversations as we share solutions to problems and act as sounding boards for each other as we work through common entrepreneurial issues. We also get to celebrate the unique ways we lead our companies and bring value to our principals and customers.

Independent manufacturers’ reps have a chance at leadership roles by becoming part of ownership. … Read the rest

Letter to the Editor

Words of wisdom I would give:

  • Stay focused and never take “no” for an answer. You never know what that person you are talking to is going through that day and if you try back in a week/month, or so, they’ll probably forget they ever talked to you.
  • Never be too proud to learn from someone else or to ask questions.
  • Remember the only time you fail is by not trying.
  • Always find the positive in every situation you are in.
  • Be resilient, learn from your mistakes.
  • Network, network, network.
  • Always ask if there is anyone else you can talk
… Read the rest

Keys to a Working Relationship

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In the course of a conversation late this summer, a rep put forth his thoughts on the type of relationship he looks for with his principals.

“I’ve been in this business for more than 30 years and my agency has been in business a little over 50 years. During that period of time, I’ve learned to truly value working with new companies that have a continual supply of new and innovative products. On top of that, I’ve learned that any time I am able to locate a manufacturer that appreciates the synergy that exists between their products and all the … Read the rest

Sales Playbook and CRM Problems

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What the Data Tells Us

I can’t remember a spring where the pollen was worse than in 2018. You go to the car wash and an hour later your beautiful car is covered in yellow crud and you’re out $20. A waste.

Perhaps you have an irrigation system with a rain sensor that tells the controller that your lawn and flower beds don’t need to be watered today because it is pouring outside. Yet, when you look out the window you see that the sprinklers are running despite the existence of a rain sensor. A waste.

Did you ever spend … Read the rest

Protecting Your Contract and Post-Termination Commissions

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When a sales rep receives notice from the principal that the principal is terminating the contract, especially when this notice follows the placement of a sizeable purchase order from a customer before termination or the customer has established a multi-year program of anticipated future purchases that are not submitted as of termination, the sales rep will generally ask his lawyer a series of questions.

Typically, the questions will include, but not be limited to, the three questions below:

  • First, can my principal simply terminate my contract in bad faith to avoid paying me commissions on sales I have already made
… Read the rest

Nominating Committee Accepts Tommy Garnett Application

MANA’s Board of Directors is pleased to announce that the Nominating Committee has accepted Tommy Garnett’s application to appear on the January 1, 2019 ballot to run for a seat on MANA’s Board of Directors. Garnett is president & CEO of MANA member Garnett Component Sales, Inc. (GCS), Wake Forest, North Carolina.

This election will fill the Board seat that will become open when Danny Collis, president of Collis Group, Inc., Richmond Hill, Ontario, Canada, completes his second term of Board service on April 30, 2019. MANA’s Board of Directors is grateful to Collis for his insights and dedication during … Read the rest

Go Right to the Front of the Line

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At Universal Studios, an Express™ Pass moves you in front of everyone who only bought a standard ticket. At close to double the cost.

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© Dashk | stock.adobe.com

Now MANA manufacturers’ representative members can move to the front of the list manufacturers see when they search MANA’s RepFinder® database. And the cost is: Free!

How do you get free priority placement when manufacturers do RepFinder® searches? Update your member profile using these guidelines:

  1. Pick only product categories where your firm excels. Manufacturers tell us, “A rep who claims to sell everything really sells nothing.” Choose fewer product categories to get priority placement over reps who choose too many categories.
  2. Pick only the product categories you sell, not the markets you sell to. If you sell castings to the pump industry, choose “castings” not “pumps.”
  3. Pick only the sales territories your firm covers well. Manufacturers tell us, “A rep who claims to sell everywhere really sells nowhere.” The number of salespeople at your firm and the size of your territories should make sense.
  4. Check any boxes that describe your firm:
    ☐  My firm has a business plan.
    ☐  My firm has a succession plan.
    ☐  All our salespeople have taken professional selling courses.
    ☐  My firm has a professionally done website.
    ☐  We work with all our principals as Trusted Partners in Profits.

Need help updating your profile? Schedule a free telephone profile coaching session with Jerry Leth, [email protected], or with me, [email protected]. We’ll walk through the steps together.

Be among the first manufacturers’ representatives that manufacturers see when they search to fill an open territory. Update your MANA member profile today!

Should Principal Field Visits Be a Production?

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The old expression goes, “Don’t make a production out of this,” referring to the 1930s Busby Berkeley musical movies, when the centerpiece is a complicated, ornate dance routine, dominating the film, taking seemingly forever! Glitzy, showy, endless tapping and strutting — So don’t make a production number out of this, make it quick, keep it straightforward and simple. Always?

You should, in fact you must, make a production out of some key events because some don’t take care of themselves. Those times need the production values of excellent content, quality script, great participants, superior directing, and lots of post-filming work. … Read the rest

What’s Important for Manufacturers?

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Independent manufacturers’ representatives are hardly the only participants on MANA’s LinkedIn discussion page. A recent visit to that location on the Internet found two manufacturers weighing in on issues important to them and their peers.

For instance, in a contribution entitled, “What Do Manufacturers Look for in a Rep?,” Charles Ingram, vice president of sales & marketing for Eriez Magnetics, maintains that “The best manufacturer-rep relationships are those where both parties respect each other, understand their mutual expectations and have shared business values. While manufacturers may have some variations on the attributes of rep organizations they wish to represent them, … Read the rest

What You Should Never Do on LinkedIn to Conduct Business With Your LinkedIn Network

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I don’t know about you but for every benefit I get from LinkedIn, I get an equal amount of frustration. Some people, like me, have criteria for who they will invite and whose invitation they will accept on LinkedIn. How many times has this happened to you?

Someone invites you to join their LinkedIn network or asks if they can join yours. You accept. And then it happens….

In the first example, I received this message a week after I accepted this individual’s invitation:

“Hello Dave, I noticed we haven’t had a chance to talk yet having been connected now … Read the rest

Effects of the GDPR: Are You Ready?

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What Is the GDPR?

The European Union’s General Data Protection Regulation, or “GDPR,” came into effect on May 25, 2018, causing a scramble of companies to update their privacy policies. Sales representatives who believe the regulation does not affect them because they are not located in a European Union country are gravely mistaken. Another common mistaken belief is that the GDPR only affects heavily technology-based companies or processes. However, the GDPR is technology neutral and those that process data through physical paper are equally affected. Thus, the reach of the GDPR is much broader than many believe; it regulates anyone … Read the rest

The World Cup of Investing

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One of the world’s most popular global sporting events began earlier this summer. On June 14th the 2018 World Cup kicked off in Russia with much fanfare and anticipation. The World Cup is so popular, it’s been reported that in 2014 more than a billion television viewers worldwide watched Germany’s 1-0 win over Argentina in extra time at the Maracana Stadium in Rio de Janeiro.

For the uninitiated the World Cup begins with 32 national soccer teams competing for the cup. Like the Olympics, the World Cup is held every four years and alternates among different host nations across the … Read the rest