Editorial. . .In The Field

Agency Sales,  Jun 2004  by Johengen, W Alan

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How many of us would enter into a major purchase such as a home, new car or boat without knowing all the details?

How many of us would contemplate entering into a marriage without knowing the other person very well, including their past, their family and their wants, needs, likes and dislikes?

I would guess most of us would agree that the more information we have, the easier our decision becomes and the more sound it becomes.

However, I never cease to be amazed at how many rep-manufacturer relationships are "solidified" at one-hour meetings in a hotel room or an airport. In my opinion, this is a road map for failure and neither party has any grounds for complaining when the relationship falls apart in the first or second year.

Approach every new rep-manufacturer relationship as if it will last forever, or at least a good, long time. Find out as much as possible about each other prior to the interview. We actually have a questionnaire we send to all prospective manufacturers which they are required to fill out prior to the first interview. If they refuse, this tells us they are probably hiding something.

But, the most important thing to do during the interview is to ask the "tough questions." Discuss the details of a contract, compensation and, yes, even termination issues. Ask about previous and existing manufacturer-rep relationships. Ask for recommendations from existing rep firms, customers and manufacturers, and check out each and every one thoroughly. Ask them what their shortcomings are and what they plan to do about correcting them. MANA has a great Special Report titled, "Selecting the Best Sales Channel Partner," that can guide you on this.

Remember that the business climate has changed out there. Forewarned is forearmed!

W. Alan Johengen, P.E

W. Alan johengen, P.E., MANA's district one director, has owned Johengen Sales for 22 years. They sell metal, plastic and rubber components to OEMs in Upstate New York and southern Ontario, Canada. Johengen has been a member of MANA for over 20 years and was the co-founder of the MANA Chapter in New York state, which he is still an active member of. He has belonged to many organizations over the years, including ASME, SAE and APAA.

Copyright Manufacturers' Agents National Association Jun 2004
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