Consumer Reps Encounter Similar Trends and Challenges

Insights from Consumer Goods Representatives

For the independent manufacturers’ representative serving the consumer goods segment of the marketplace, there are more similarities than differences when comparing their business climate and accompanying trends and challenges to those of their peers in other industries. This perspective is based on conversations with reps who serve that consumer segment.

During the initial phase of Agency Sales’ interviews with three consumer-oriented reps, the question was posed, “What’s the same and what’s different between your experiences and those of reps serving electrical, electronic, industrial and other markets?” Collectively, the reps responded, “Tell me what’s going on in those industries and I’ll let you know if similar trends are impacting me and my agency.”

Here are their responses regarding whether they’ve been impacted by:

• Merger or consolidation activity? — “Yes”
• Increased pressure on commission rates? — “Yes”
• Manufacturers asking/requiring their reps to perform added services without necessarily having their commissions adjusted? — “Yes”
• Impact of foreign sources of supply? — “Yes”
• Benefits in belonging to more than one rep association? — “Yes”
• Optimistic or pessimistic about the future? — “Optimistic”

Steve Grossman's Journey

More than 25 years ago, Steve Grossman faced a pivotal career decision. With nine years of experience as a buyer of general merchandise, he chose to become an independent manufacturers’ representative. Today, he leads GM Partners in Arlington Heights, Illinois, providing professional representation for housewares manufacturers.

Merger and Consolidation Activity

Grossman notes a major trend impacting the industry: consolidation. This has led to fewer regional chains and consequently, fewer contacts for sales calls. He emphasizes the importance of being proactive in scheduling appointments and adapting to extended lead times, sometimes planning as far ahead as a year.

Challenges with Manufacturers

Manufacturers are increasingly offloading tasks onto reps, often without adjusting commissions. Grossman highlights the need for clear communication and negotiation regarding these additional responsibilities.

Dual Association Membership

Grossman values his membership in both MANA and the International Housewares Representatives Association (IHRA), citing the broad educational resources and networking opportunities they provide.

Peter Bang-Knudsen's Adaptation to Market Changes

Peter Bang-Knudsen, head of Bang-Knudsen, Inc. in Seattle, Washington, also notes the significant impact of consolidation. His firm has adapted by focusing on high-end gourmet grocery stores and expanding into internet retailing and specialty stores.

Importance of Relationships

Despite changes, Bang-Knudsen believes in the enduring need for sales reps to assist and reassure customers during the buying process, emphasizing the importance of relationship building.

David Friedman's Perspective

David Friedman of The Northeast Group, Inc. in Needham, Massachusetts, echoes similar experiences with consolidation. His agency has diversified its client base to include businesses like Staples and CVS, which were not previously a focus.

Friedman remains optimistic about the future, viewing challenges as opportunities to innovate and improve business practices.

These insights from experienced reps highlight the evolving landscape of the consumer goods sector and the resilience and adaptability required to thrive in this dynamic environment.