From: "New Rep Firms Finding a Niche"

In case you missed David Gordon and Allen Ray's blog Electrical Trends, "New Rep Firms Finding a Niche", I am re-posting here. Is this economy good for the representative model? I think it is for the firms preparing for the future. The "variable cost structure" is strong motivation for manufactures to evaluate (or re-evaluate) their sales channel. http://electricaltrends.blogspot.com/2009/08/new-rep-firms-finding-niche.html Thursday, August 13, 2009 New Rep Firms Finding a Niche Recently we've been contacted by a handful of individuals, whom we've known or who have been referred to us, who have decided to start rep firms. Each of the individuals were either in sales / marketing management for manufacturers or distributors. And they've received commitments from major lines. The manufacturers are seeking individuals who are focused on: * Building the manufacturer's brands through specification work * Individuals who understand how to market to different audiences * Organizations that are focused on energy efficiency * Companies that are willing to focus on selected, complementary lines. In a few cases, the manufacturers are also seeking to change their sales organization (or at least some elements of it) to a variable cost structure. An element that is interesting is that these manufacturers are not talking to "established" reps. They are seeking "new blood" and perhaps a different thought process. The ex-manufacturer personnel understand what manufacturers are looking for in a rep and feel that they have a sense of distributors' needs. And with a plethora of small companies seeking representation, there are also plenty of lines available (albeit not all rep firms are easily found unless they belong to NEMRA) Looking ahead, what will the rep of tomorrow need to be successful? Why do you think manufacturers are willing to back start-ups / 1 man bands vs. established agencies? Are you hearing of others who are starting rep firms? Distributors, would you support a new rep firm or will you follow your manufacturers' lines? Manufacturers, why offer your line to a start-up? Posted by David Gordon & Allen Ray at 9:54 PM