Capital Equipment Reps Exchange Strategies During Conference
Time-tested Strategies for Securing Big-Ticket Lines
At MANA’s first CAPSIG (Capital Equipment Special Interest Group) conference in Louisville, Kentucky, a panel of experienced reps shared their strategies for effectively meeting the needs of their principals and customers. They focus on three main areas:
- Assessing and filling gaps in their current line card.
- Upgrading to top-tier product lines.
- Expanding their product offerings to reach new customer bases.
Effective Strategies for Locating Potential Capital Goods Product Lines
- Attendance at trade shows: An essential activity for spotting potential manufacturers.
- Networking: Leveraging contacts within industry associations like MANA to discover opportunities.
- Establishing financial stability: Conducting due diligence on potential manufacturers to ensure reliable partnerships.
Key points emphasized by the panel include the importance of exclusivity and avoiding house accounts to ensure optimal income and product representation.
Communicating Value to Principals
Reps need to demonstrate their cost-effectiveness and market reach, which are often underestimated by manufacturers. They also need to showcase their product knowledge and strong relationships within the territory.
Negotiating Contracts
Negotiating terms before signing a contract is crucial, as it sets the stage for a fruitful business relationship.
Proper Cash-Flow Management
Managing cash flow is critical, especially given the long lead times in capital goods sales. Strategies include:
- Securing progress payments from manufacturers.
- Negotiating shared territorial development costs.
Additional Insights from the Conference
Joe Miller, MANA’s president/CEO, highlighted the unique challenges and skills required in the capital goods sector compared to other markets.
What Makes a Good Rep?
A panel discussed the essential attributes of a successful capital equipment rep, such as carrying synergistic lines, having technical expertise, and understanding the sales cycle.
Planning for the Future
Bill Fitch discussed the importance of succession planning, emphasizing the need for a strategy that benefits both the buyer and the seller.
The conference not only addressed these critical topics but also provided a platform for networking and sharing best practices among reps specializing in capital goods.