Line Card Profitability Analysis in a Parallel Universe

It’s a little bit like science fiction. What would a rep do if, one day, that rep woke up to find that the names of the companies on their line card were the same, but those companies were all subtly different? The people at the factory were subtly different. The products were subtly different. The service levels and policies were subtly different. Did this rep wake up in a parallel universe? Nope. The rep woke up to find out that their lines are just not the same after 18 months of Covid.

Some of the companies are grateful for the efficiencies they get from a commissioned sales force. Some of the companies have developed sharp elbows and started squeezing rep commissions. Some of the companies kept the experienced people who know how to keep production lines humming. Some of the companies cut staff too far, and everyone there is new and just learning how things work. What’s a rep to do?

Take the time to look at your line card and conduct a methodical Line Card Profitability Analysis. Does the commission earned from each line justify the time it takes to support each of those lines? Do all the lines fit my target market, or does supporting some of these lines pull me into areas that are not my core competency? How can I do that methodically? I’m glad you asked.

MANA’s 18-page Line Card Profitability Analysis Workbook is free to download in the members-only area of www.MANAonline.org. Inside you’ll find worksheets and step-by-step instructions on how to create a Line Card Profitability matrix that will tell you which lines deserve more of your time, which lines deserve less of your time, and which lines may not belong on your line card.

Having trouble finding the workbook on www.MANAonline.org? Members can email us at mana@manaonline.org, and we’ll respond with the file.

My dad was, and continues to be, a great mentor for this second-generation manufacturers’ representative firm owner. Over the years, he has imparted a great deal of wisdom gleaned from years on the road and refined by countless hours of reflective windshield time prior to the days of cell phones and satellite radio. One of those kernels of wisdom, along with one of his prognostications, have both been at the forefront of my mind when thinking about how to best do business in this brave new world in which we find ourselves post-Covid.

The wisdom is more of a mantra … Read the rest

Matt O’Grady’s Career Journey

Matt O’Grady’s father, grandfather and uncle were all policemen, so naturally — he became an independent manufacturers’ representative. While obviously not following the same career path as some other family members, today he sounds perfectly happy and content as president of CAM Associates, LLC, with locations in Itasca, Illinois and Delevan, Wisconsin. As he looks back on how and why he became a rep, O’Grady explains that as a student at St. Norbert College, De Pere, Wisconsin, “I majored in communication because I felt no matter what career I pursued, I would have to be an effective communicator. At the … Read the rest

CRM — Friend or Foe?

While it may be impossible to identify what follows as a trend, the fact remains there have been a number of MANA members who have recently contacted the association with their thoughts on what some term as “onerous” requirements that they provide regular updates to their principals on their principals’ CRM systems. At the very least, if it’s not a trend, it’s certainly an area of concern. Perhaps serving as a preface to a discussion of this subject are comments that have appeared recently in Agency Sales. For instance: “Maintaining a manufacturer’s CRM (often salesforce.com), rep salespeople lose time … Read the rest

Time Management for Salespeople

When I talk to sales reps who aren’t hitting their numbers, it usually comes down to a lack of activity; in other words, they aren’t making enough calls to get the prospects and ultimately make the sales. “I don’t have enough time” is the biggest excuse I hear regarding why they aren’t making the necessary calls. Not having enough time can be due to a few factors. Here they are and here’s what you can do about them.

Time Hurdle #1: There Really Isn’t Enough Time

This is the person being pulled … Read the rest

Monthly Management Makes Money!

A month can be long or short. In the rep business a month should be the key measuring point for running the business. Most of us have heard the expression, “work on your business — not in it!” Unfortunately, most reps are so far in the business that they are like frogs in a pot of boiling water, just swimming so hard to stay alive that they never think about the vital few things that make them successful.

The Vital Few

What are the “vital few” for a rep firm?

1. Time to think — as mentioned above, reps are … Read the rest