the value independent sign representatives bring to the sign industry

The Value Independent Sign Representatives Bring to the

Sign IndustryCharles Cohon, CEO, Manufacturers’ Agents National Association

[email protected]

Assessing Reps’ Value Based On:Assessing Reps’ Value Based On:Assessing Reps’ Value Based On:Assessing Reps’ Value Based On:

• Where reps come from

• A major rep success story

• Reps and Distributors

• Can they work together?

• Do I need both?

• What reps want you to know

• Quotes from your counterparts

Quotes From Your CounterpartsQuotes From Your CounterpartsQuotes From Your CounterpartsQuotes From Your Counterparts

• John Burkemper, President, Grimco

• Patrick Dooley, VP of Business DevelopmentNorth Shore Neon

• Joe Walsh, Sales Manager, Sign Products, Voltarc

• Jim Perritt, North America Sales ManagerProduct Assembly Adhesives, LORD Corporation

Where do reps come from?Where do reps come from?Where do reps come from?Where do reps come from?

“This constant travel is killing me,”

says Sam, Regional Sales Mgr.


“I can’t compete with that guy,” says Earl, VP of

Sales.

One Rep’s Story That CameOne Rep’s Story That CameOne Rep’s Story That CameOne Rep’s Story That CameWith With With With BBBBragging Rightsragging Rightsragging Rightsragging Rights

Hotels on Las Vegas Strip

33 hotels over 4.2 miles

Major league baseball stadiums

30

NFL stadiums

31 (Jets/Giants share MetLife Stadium)Source: Wikipedia


Disney World 2012 Attendance:

126,479,000(Disney's Hollywood Studios, Disney's Animal Kingdom, Epcot, Magic Kingdom)

Source: Wikipedia


Times Square: The most visited place globally

360,000 pedestrian visitors a dayOver 131,000,000 a year

Source: Wikipedia


http://issuu.com/signbuilderillustrated/docs/february_2015_signbuilder/24

February 2015

By Ashley Bray

Patrick DooleyVP of Business Development

North Shore Neon

On a project like this, if you don’t have a professional like Yorston, you’ll spend way too much of your time and energy researching something that Yorston already has the resources already at his disposal for.

Line Card SynergyLine Card SynergyLine Card SynergyLine Card Synergy

•Voltarc TriLight Max™ T8 Fluorescent Lamps

•Keystone Technologies Ballasts

•SignComp Ballast and Socket Raceway

Joe WalshSales ManagerSign Products

Joe Walsh

• 24 years at Voltarc, some current reps were there when Joe started.

• Reps=Relationships

• Complimentary products.

• Lamps lead to ballast sales.

• Extruded cabinets and power supply sales lead to lamp sales.

• One product opens the door for many more.

Joe Walsh

• What products to you currently have?

• What distributor relationships do you have?

• What sign company relationships do you have?

• What program manager relationships do you have?

When I look for a manufacturers’ representative, I want to know:

Joe Walsh• Easier to find qualified talent by hiring

a manufacturers’ representative company that has that talent on staff than it would be to track down an equally talented person to hire as a direct salesperson.

• With direct salespeople we have a good bit of turnover, while some of the manufacturers’ representatives I work with are the same ones I started with 24 years ago.

Joe Walsh

• Lots of the guys we have as manufacturers’ representatives now started as direct people before starting their own manufactures’ representative companies.

• Another benefit of manufacturers’ representatives is when you get a good one they start selling immediately because they have all the necessary contacts, relationships, and complimentary products to get started.

Joe Walsh

“We are way better off with manufacturers’ representatives than if we had tried to go with a 100% direct sales force. We have had some cases where we had direct salespeople and manufacturers’ representatives at the same time, but the manufacturers’ representatives have had the advantage because any time we hire a direct salesperson we have to start over with that person’s learning curve for the market and products.”

Joe Walsh

“One of the things I’ve learned about working with manufacturers’ representatives, they are all different. And I’m always looking to make sure they make some money, because the more they make the more we make.”

Joe Walsh

“Manufacturers’ representatives’ professionalism has increased dramatically over the years. So when I meet a manufacturers’ representative who knows every sign company in a six to eight state area, the ins and outs of what they are working on, and their typical customers, I know that’s a professional.”

Jim PerrittNorth America Sales ManagerProduct Assembly Adhesives

LORD Corporation

Jim Perritt• Our business is industrial adhesives sold mostly

through distributors who engineer applications. Some of them were selling into the sign market and we felt that there was more business in that market for us.

• Lord Adhesives had a long history of using manufacturers’ representatives in the automotive aftermarket and has been using reps in the sign market for over 20 years, almost as long as we have been using reps in the automotive aftermarket.

• Reps have established relationships with local distributors.

Jim Perritt

• Reps know the local end users for our products that are our distributors’ customers.

• Reps are more local to the distributors and the distributors’ customers.

• Reps understand the applications for our adhesives.

Jim Perritt

• Reps help us achieve a lower cost of doing business than we could achieve with direct salespeople

• Reps have line card synergy. Substrate lines drive adhesive sales and my adhesive line drive substrate sales.

• Reps have a better understanding of the special needs of the sign market. They are our experts in the field and experts in that market.

• If we move into another market we will absolutely look for reps in that market. I really believe in taking our products to market with manufacturers’ representatives.

Jim Perritt• Direct Regional Managers cover all of our adhesives

businesses, reps more effectively cover market segments like the sign market and automotive aftermarket

Rep/Distributor Partnerships• Says one rep: “For my principals there is great value in

selling through distributor not around them. We push everything we can through distributors.”

• “I’ve been doing this for 18 years so the distributors know that I am their partner and look out for their best interests.”

• “In the rare case where one of my principals has to sell directly without a distributor involved, we negotiate a finder’s fee for distributor, paid the by principal and administered by the rep.”

“I have had many firms introduce us to a product only to leave the next day and everything is up to us at that point. The folks at Value Add tell us about the size of the markets for each product they sell and then tell us how to profit in each space. They have been very proactive in training our people in multiple locations. Most importantly they have taken the time to teach our people about the competitive advantage of every product they sell. They are the best.”

John Burkemper, President

Grimco

I have distributors.I have distributors.I have distributors.I have distributors.Why do I need reps too?Why do I need reps too?Why do I need reps too?Why do I need reps too?

•Distributors may have several brands of foam board and be able to source brands they aren’t franchised for.

•Printer: “I want brand X.” How hard is it for a distributor to say no to an order for a brand they don’t sell but can get?

•Who works with the printer or end user to decide if paper-based or styrene-based board is the best for their application?


•Who can tell the customer the nuances between brands for silk screen or UV flatbed printing?

•Who drives brand specification?


•Says one rep: “We know when Bed Bath and Beyond or Staples is re-imaging before the distributor does so we can launch outreach before final design decisions are made.


“I don’t want to relocate,” says Pat, Regional Sales Mgr.


“I have got to get out from behind this desk,” says Joe, Chief Engineer.

Reps want you to knowReps want you to knowReps want you to knowReps want you to know

•There is a rep who touches every niche in the sign industry from point-of-purchase displays to mega-signs on Times Square.

•Call on every size customer from “Mom & Pop” shops to sign franchises to large production facilities.

•We also rep Fortune 500 companies.

•We’re close to the local market so we can help you sort out channel conflicts.


• If your product can’t be inventoried, we can help you make rational decisions about distributor participation.

• Advantage: Rep can be a distributor’s point of contact with multiple manufacturers


• Challenge: Delicate balance with line conflicts for distributors who don’t sell all the rep’s lines.

• Advantage: Rep often knows what the sign builder or printer customer buys and how the custom splits his business between distributors.

• The biggest value is the relationship..


• Direct employees’ get promoted to “better” territories so they move territories or companies more frequently. Reps stay put and get raises by selling more.

• Family owned, privately held distributors talk to each other, reputation is very important.

• “When Macy’s sends out an RFQ for a big point-of-purchase display job, it may go to four or five different printers who may get material quotes form four or five different distributors. Some of those distributors will be in my territory and some will not.”


• “But it still makes sense for me to call on the specifying influences in my territory and for other reps to call on the specifying influences in their territory. Eventually, it all evens out”

Reps often work in hybrid rep/direct sales teams.

“We perform up to the same level as direct sales

forces. Some pay us more than their W2 employees

due to the value we provide.


• More demands for reporting from mfrs.


• We are much more focused on closing.

• Some reps carry principal’s business cards.

• Assist on job site no fee.

• Could buy from distributors out of our territory.

• Rep Advantage: Push and Pull Selling

Push vs. Pull sellingPush vs. Pull sellingPush vs. Pull sellingPush vs. Pull selling

One rep’s story: “I see direct factory salespeople all the time when I call on distributors. They tend to load the distributors’ shelves with product and it becomes the distributor’s job to sell it.”

Push vs. Pull selling Push vs. Pull selling Push vs. Pull selling Push vs. Pull selling –––– One Rep’s StoryOne Rep’s StoryOne Rep’s StoryOne Rep’s StoryI don’t see direct factory people as often:

• Explaining to printers how their products give better throughput than competitors.

• Calling architects and design groups that specialize in corporate identity.

• Holding lunch and learn events at fabricators.

Where do reps come from?

“I want to be my own boss,” says Suzi top distributor salesperson.

Where do reps come from?

Hector, the subject matter expert.

Questions?Comments?

Thank You! And Special Thanks To:

• Bill and Adam YorstonYorston and Associates

• Chris ThompsonValue AddedSales and Marketing Inc.

• Ken Davis, Davis Marketing Associates, Inc.

• Matt DriscollMatt Driscoll and Associates, Inc.

the value independent sign representatives bring to the sign industry

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