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APC's Tom Fredericks participates as a "Manufacturer Task Force Champion" in the NEMRA Manufacturers Group Executive Committee. The NMG recently issued a comprehensive report entitled "Eliminating Wasteful Activities in the Representative and Manufacturer Sales and Marketing Channel." Below is an analysis of how APC perceives itself performing in regards to the most frequent complaints reps have about manufacturers, as revealed in the report:
- APC does not cut commission rates -- Rates are shrinking industry wide, but APC still pays the same high base rates as always: 8-10% plus special incentives (i.e., currently paying 20% on SPY Lube).
- APC does not require formal sales activity reporting (call reports) -- Instead, APC performs occasional informal mutual planning/sales analysis (orders would be nice).
- APC does not require systems integration -- APC adapts to your preferred method of order processing, be it mail, email, phone, fax, EDI, mule, smoke signal, or particle transporter.
- APC does not turn over sales personnel -- Tom: 19 years, Sharon: 18 years, others: average 7 years (compared to the industry average 2.5 years). APC believes in "Employment at Will," but hired Jack Kevorkian to execute the termination process. That and ESOP participation inspires longevity.
- APC does not slow your sales process with layers of pricing approvals -- APC account executives are empowered to make on-the-spot quotes in all but the most extreme cases.
- APC does not ignore communication requests -- APC returns all calls and emails. Examples otherwise should be brought to Tom's attention.
- APC does not do half-baked product launches -- Though probably guilty in the past, APC now strives for thorough introductions. Recent examples are RBG Rubber Goods and SPY Lube. Advance warning was followed by time-coordinated releases of lit, samples, demos, pricing, website update, video, sales plan, inventory, and PR.
APC understands its position on your line card and wants to be the easiest and most profitable line you represent. We're committed to manufacturer reps. We appreciate your efforts on our behalf and the challenges you face in balancing your time. |
