The Future in Question

Here's a question: How can this industry grow and flourish if it can't get enough good sales reps to make that happen? We have no idea. Do you? We know, you're used to coming to this column and this magazine for answers, such as how to launch new lines, how to best utilize time at trade show, how to manage key accounts and house accounts, etc. But that sales rep question is one that we've been pondering for months, and frankly, the answer is getting more blurry than clear.

An industry that can't recruit young, vibrant sales reps is doomed to become an industry of seniors. And honestly, we're not ageists. We love the people we've worked with for years (and years). They are friends, mentors, confidants, and teachers. But when a recruiter calls us looking for an up-and-comer, it's difficult to come up with many (any, sometimes) names. This industry is sorely in need of some hungry young reps, especially because anyone who works as hard as most of us do deserves to retire at some point.

Frankly, we worry sometimes. What are we reps going to do in our old age if there's no one to replace us? Are we going to have to tack on an extra half hour before appointments — just so that we can get our wheelchairs out of the van and into stores? We've been around computers long enough that arthritic handwriting won't be an issue, but when a buyer asks our opinion of a new rock band or supermodel, will we be able to give an answer? Will manufacturers begin offering contests to win free chiropractic sessions or a free walker? Honestly, we worry.

Why can't rep groups and manufacturers find and keep great young reps? We've posed that question to principals, reps, and manufacturers over the past several months and the answers are both interesting and depressing.

One principal said that because she can't offer a guaranteed annual income, benefits, and clear growth projections, she just can't get reps. One told us that many young reps — male and female — are either single or the breadwinner in a growing family. "They can't afford that unavoidable, difficult first year," she says. One principal used the word "entitlement." He said too many young people are not willing to work as hard as you must work as a rep to make the kind of money they want. "They want easy money. They don't want to pioneer a new territory or new lines. They want the sure thing."

Don Haberman, longtime rep principal of Markwest, Minneapolis, attributes the problem of attracting new talent to a commission rate that has remained the same or shrunken in the face of the rising costs of business for principals as well as for reps.

Another rep recently e-mailed us with an entirely different point of view. "Not a lot of companies want to give a new rep a chance! They all want reps with gift experience. And it's hard for new reps to make it because companies are looking for immediate production." He went on to say that new reps should do four things: read our column (really, he said that), utilize tapes and books on selling (he recommends Tom Hopkins), take a communications course, and finally, "Don't job hop, stay with a company for at least five years."

Certainly there are principals who have managed to bring reps on as employees, offer benefits, and even offer training, support, and great information. Unfortunately, they either lose those reps due to sales managers who continually hound and berate without offering help or ideas, or to manufacturers who, equipped with up-to-the-minute reporting, insist on micromanaging and have expectations that are unattainable in even the best economic setting.

Yes, efforts have been made to come up with an answer. Most recently, an organized group of rep principals decided to turn their "reps only" group into an organization that welcomes both reps and manufacturers. It's called USA — United Sales Association — The Association of Gift Industry Professionals. Its Web site (www.unitedsalesagents.org) explains their goals: "The mission of USA is to support, promote, and improve the role of the manufacturer's representative in the gift industry."

So far, so good. It goes on to say, "The key benefits of United Sales Association are to create a visible, vocal voice of representatives in the gift industry and to provide a mechanism for representatives to become more professional through educational and networking opportunities. If manufacturer representatives are to gain more respect, we need to show manufacturers and retailers we are ready and willing to deal seriously with the issues we face. It is also important that we start educating both our manufacturers and our customers about our issues and how they affect our ability to do a better job for them. That will only happen if representatives and their manufacturer partners work together to accomplish these goals."

This group certainly seems to understand our concerns. Will it work? Our fingers are crossed.

What else can our industry to do? Any pearls of wisdom? Reasonable ideas? Any examples or advice from other industries? We're interested, and here's your chance to help. E-mail us at lisa@sqreone.com and we'll accumulate all your ideas and use them in an upcoming column. (Let us know if you want us to use your name or not!) We look forward to your feedback … and to some great ideas.