Haskell: Compensating Reps for Time Most Important

Jason Sandefur

Haskell: Compensating Reps for Time Most Important
“Stability is one of the most important factors in selling to distributors,” rep agent consultant John Haskell told a rap session between Specialty Tools & Fasteners Distributors Association reps and manufacturers.
Haskell discouraged manufacturers from letting reps go and suggested that in most cases firing a rep means the manufacturer has done something wrong. “If you let a rep go, you failed.”
“Threatening to fire is not an answer either,” Haskell added.
“Are you dating or engaged to be married?” he asked.
“There are very few stupid people in our business,” Haskell commented. “They have been weeded out.”
Haskell acknowledged there is a need for an objective formal performance evaluation.

How should reps be paid? Haskell fielded suggestions of gross profit, dollars/units, knowledge of product and applications, growth in market share, contacts and knowledge base of the product.
“Time is most important,” and reps should be compensated for the time they need to devote to an account, Haskell suggested.
Haskell expressed skepticism about call reports. “How many ways can you write “it”s going to be swell tomorrow”?”
Know what the rep adds to the equation, Haskell urged. “When is the last time a bean counter called on a customer?”
Other Haskell suggestions:
Rep shouldn”t take on a line that doesn”t fit.
Lines need to yield 5% of income to have worthwhile potential but 20% is a maximum.
Avoid “line creep” because the market tightens up and you need business.
Haskell, noting that reps who stay in the business will eventually face every time of problem, urged reps to prepare themselves. “If you don”t plan in the good times you will have bad times sooner and longer,” Haskell forewarned.
Work with good manufacturers. “It is hard to get paid if product doesn”t get shipped.”
Reps who make forecasts should “prepare to eat ground glass.”
“Nothing will happen until both sides decide to stop running in place.”
“If you were right never let them forget about it,” Haskell recommended to reps.
Know what the rep adds to the equation. “When is the last time a bean counter called on a customer?
If you get into forecasting, “prepare to eat ground glass.”
Rep suggestions:
“Work with manufacturers who are easier to do business with. They ship on time, ship complete orders and bill properly.”
Another rep noted that “time spent fixing problems is not time selling. It takes time from other product lines.”
“Respond within 24 hours.”
Manufacturers should “let us know before the distributor calls us” of any problems such as delivery delays so the rep can “sooth the pain.”
Several reps questioned reports. “Too much time inputting.”
“We don”t get paid for forecasting.”
Haskell closed by observing, “Nothing will happen until both sides decide to stop running in place.” \ � 2006 FastenerNews.com