Insights on Manufacturers' Representatives

I have experienced every incentive plan devised by manufacturers to get their reps to sell more. I have seldom seen these plans produce desired results. Agencies are businesses that provide sales and marketing services; they are not simply salespeople paid on a commission basis. As businesses, they operate from a profit motive. Reps know that selling is like planting a vegetable garden; they know that some of the vegetables will come up, but when and how many depends upon conditions over which they have no control. At the same time, reps have to deal with their cash flow.

Dealing with Split Commissions

“Tinkers to Evers to Chance” were the words Chicago Cubs fans once chanted to dig their team out of a hole in a baseball game. When it comes to manufacturers’ representatives facing the specter of dealing with split commissions, perhaps a similar chant might be “Vigilance, due diligence and a good contract.” At least that’s what two reps who regularly deal with split commissions recommend.

Identifying Sales Barriers

Manufacturers’ representatives can achieve double-digit growth with low risk and no additional sales/marketing costs if they identify and overcome what the Industrial Performance Group, Northfield, Illinois, calls the five common barriers to peak sales performance.

Understanding Contracts

A number of recent court decisions dealing with manufacturers’ representatives point out the dangers lurking in failure to understand a contract with your principals. Post-Termination Commissions Chase v. Matsu Manufacturing was decided by the 6th Circuit Court of Appeals in August 2005.

Retirement Planning

Many of us start our careers believing we’ll retire as millionaires, but we do little to help make that belief a reality.

Adapting to New Eras

We live in a new era. The way things were done before do not necessarily count today. This new era has different rules.

Communication in Business

If there is any one attribute in the manufacturer-rep relationship that is emphasized more than others, it’s probably the importance of communication — whether from the manufacturer to the rep or the rep to the manufacturer.

Expanding into New Territories

It’s no small task for manufacturers to locate manufacturers’ representatives in any territory they’re looking to impact. The difficulty of that task is multiplied, however, when considering how to meet that challenge in Mexico.

Successful Business Relationships

If there were ever a principal and a manufacturers’ representative that are reading and working off the same page, it would appear that Genesee Stamping and Fabricating, Inc., and Premier Components, Inc., are the two.

Importance of Life Insurance

Acquiring life insurance has become an increasingly more important step to take towards financial security.