If there is any one attribute in the manufacturer-rep relationship that is emphasized more than others in the pages of Agency Sales, it’s probably the importance of communication — whether from the manufacturer to the rep or the rep to the manufacturer. The importance of executing a truly seamless communication process can’t be understated. Recently an example of effective communication came our way in the form of a memo that Bo Anderson, president of Glens Falls, New York-based Danfoss Flomatic Corporation, sent to all of his manufacturers’ representatives and employees. With Anderson’s permission, we reprint that memo below:

“Dear … Read the rest

A recent court decision reinforced long-standing tenets of the rep-principal relationship. According to Tom Moore, an attorney with the Minneapolis, Minnesota-based Watje & Moore law firm:

• “An important lesson for the principal and the rep in this case is that if the rep successfully performs the work the principal asks him to perform, then he should be fairly compensated for his efforts.”
• Sometimes having only an oral agreement between the rep and principal is preferable to a written contract. Concerning the latter, Moore explained, “If a contract existed that was worded in such a way that the termination of the

One MANA member, Dean Baum of Southrep, Inc., Newnan, Georgia, has been reading the series of articles in Agency Sales devoted to the Perfect Principal. After carefully following the series, he’s come away with some thoughts that he generously offers to principals.

“The words ‘Perfect Principal’ sound like something you might hear in a ‘pep rally,’ and maybe they are. In this case, maybe you — the principal — are our source of ‘pep.’

“Remember, the rep is out in the field or alone much of the time. He has a tendency to work more for those who communicate and … Read the rest

While the conference was industry-specific — in this case the electrical industry — the National Electrical Manufacturers’ Representatives Association’s (NEMRA) 36th Annual Conference earlier this year included two presentations that were of specific interest to manufacturers in all industries who work with manufacturers’ representatives.

The first involved initial findings of a study of how reps and their manufacturers can eliminate waste in their channel, the second was an educational session attended by reps and manufacturers and included how the former evaluates the latter.

Electrical manufacturers report that they recognize and appreciate the fact that their reps develop and maintain strong … Read the rest

When a manufacturer complained how the lack of tenure among his direct sales force coupled with the expense of maintaining the factory salespeople was crippling his sales activities — not to mention his bottom line — he listened attentively when we cited the following study.

“One in five sales workers are not happy in their current positions, and 33% say they plan to change jobs by the end of the year, according to a recent CareerBuilder.com survey. Workers cite dissatisfaction with pay, increased workload and the lack of career advancement opportunities as the leading factors influencing their decisions to look … Read the rest

“No one shoe fits all.” That’s why whenever we hear from a manufacturer that he has specific criteria when selecting a new rep, we ask the inevitable question: “Why?”

One manufacturer that has been using reps for close to 75 years wasn’t going to budge from his belief that only small to mid-sized reps could do the job he was expecting. Here’s his reasoning: “Thankfully, we boast long tenure among our reps. We’ve got any number of firms that have been with us for more than 25 years. When the occasion does arise that we’ve got to replace someone, however, … Read the rest

Reps who attended Keystone 2005 in Louisville, Kentucky, got a sampling of what Bob Nadeau, Industrial Performance Group, has to offer when he made a presentation entitled “Selling Value.”

Now Nadeau has come out with information contained in a study his organization has done that reflects on the challenges that manufacturers face with getting the most out of their sales forces. Inherent in what he has to report is the fact that much of what the sales force faces isn’t always directly related to the face-to-face contact with the customer. Instead, much time and effort is wasted on other efforts … Read the rest

Over lunch following a MANA seminar that he attended, a manufacturer was asked what he had learned from the half-day program.

“I’m new to this business of using reps,” he explained. “When I took over the company 18 months ago, I looked at our figures and the first thing that hit me was that from a financial point of view, there was no way we could continue using direct salespeople to support our manufacturing effort. When I encountered some internal resistance, all I had to do was point to the bottom line and let everyone know that if we couldn’t … Read the rest