What's Average?
Staff -- Gifts & Decorative Accessories, 2/1/2001
Sales rep firms that feel the urge to compare themselves against their competitors have a new set of benchmarks. In December, the Manufacturers Agents National Association (MANA) released the results of its 2000 MANA Agency Profile Survey. Although the survey was limited to MANA members, who cover a gamut of industries, the findings still present a useful overall picture for gift industry sales reps.
According to MANA's research, the average rep agency represents 10.45 manufacturers in 5.87 states. The average length of an agency's longest relationship with a manufacturer is 19.19 years. The average agency has annual gross sales of roughly $11,052,900 and an annual gross revenue of about $708,400. The average agency owner is roughly 55 years old and makes an annual gross income of about $144,100.
Only 7 percent of the agencies that responded have their own showrooms. A full 46 percent plan to add to their sales staffs this year. A full 59 percent of the owners have succession plans that involve selling the business to either employees or heirs.
On the technological and training front, 96 percent of the respondents use personal computers and an equal percentage use cell phones for work. A full 42 percent of the agencies have their own Web site. Interestingly, 3 percent of the respondents had completed the Manufacturers Representatives Educational Research Foundation certification course (mentioned in this column in August 2000) and become Certified Professional Manufacturers' Representatives (CPMRs).
MANA also compared the agencies' responses in 2000 with their 1997 answers, and discovered that the gross sales average has increased by roughly 24 percent and the average gross revenue has increased by about 23 percent. The number of offices and the number of states covered by the average agency dropped slightly, while the average number of manufacturers represented rose slightly. In light of these findings, MANA pronounced the sales rep profession stable, healthy, and profitable.
