FEDA News & Views

FEDA_MarApr2018

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March/April 2018 31 KANSAS CITY-BASED REP FIRM KAIN MCARTHUR IS A MEMBER OF PARADIGM, A COLLABORATION OF FIVE INDEPENDENT REP FIRMS THAT WORK TOGETHER TO PROVIDE NEARLY-NATIONAL COVERAGE TO ITS CUSTOMERS. communication and relationship needs," says Keck. "Now, three parties are offering brand and solution advice and we have to work much harder to coordinate our testing and chef services." e problem is even more significant because more than one manufacturer may be involved in a national chain's needs, each with a combination of reps and national account managers, or other senior executives involved—all fighting to win business. Poor coordination can confuse customers and put Concept Services' business at risk. Rep Compensation Can Be a Silent Deal Killer "In our industry, manufacturer reps can earn commissions on multiple variables including where the purchase order originates, specification work and destination credits," says Keck. "Working successfully with reps requires that we know each manufacturer's programs and that we do what we can to make sure reps receive their compensation." Opening the Denver office allowed Concept Services to ensure that the local rep was compensated fairly for their efforts. Keeping up with manufacturer rep policies requires an almost encyclopedic knowledge with detailed records and personal relationships. It's hard work and, for many companies, accomplished through memory, paper files and spreadsheets. "Failure to keep up can be a silent deal killer," says Keck, "meaning that you don't notice that you aren't getting the support from reps that you could, because the reps don't have the right incentives." "Many manufacturers allocate rep compensation according to where the sales transaction occurs," says Kelly McArthur, the president of the sales Many manufacturers are adding national account salespeople to work directly with large customers, even as they keep their manufacturer reps in traditional sales roles. "This trend more than doubles communication and relationship needs," says Concept Services Senior Vice President Michael Keck. "Now, three parties are offering brand and solution advice and we have to work much harder to coordinate our testing and chef services."

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