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President’s Message
By Mike Kowalczyk, 2005
President
I hope everyone’s first quarter of the year was a prosperous one.
We are seeing signs of a strengthening market – good news for all of us.
In this issue of the E-Newsline we are
upgrading the Lines Available
information (see end of the newsletter for full descriptions).
We also feature an article on “Connect and Stay Connected”
– 10 ways to keep in front of your customers. Also this month we have the
second excerpt from the book, “A Sales Reps Guide” by
Randall Gillary, where he discusses how to determine if you are receiving
your full commission.
Finally, the good news is that AIMRA
membership is up over last year – but we can’t get lazy and complacent.
Director, Dan 'Bubba' Peterson, writes a reminder to each of us to
keep both eyes open for prospective members and to help close the deal.
We’re Gaining – But More Is
Needed
By Dan ‘Bubba’
Peterson
At last month’s, mid-year Board of Directors meeting we were
informed that AIMRA has 96 rep members and 19 associate
members. While these numbers are up about 10% from 2004, more is needed.
We are going in the right direction but still have a ways to go.
We’re doing everything we can
to keep costs in line, but we need everyone’s help to go out and recruit
new members, especially the large, untapped source of associate
(manufacturer) member. Just around the Board of Directors table last
month we identified close to 20 manufacturers who we work with who are
not associate members. With the annual dues at just $275 we should be
able to get every manufacturer who uses an AIMRA member
to join.
Membership is the primary source of revenue for the
association. No one, including myself, wants to see dues go up in 2006.
So, if each of us commits to signing up just one associate (manufacturer)
member it will take us a long way toward solving our budget dilemma.
Please take 15 minutes today and call a couple of your
manufacturers and tell them why they should become an AIMRA
Associate Member. If you or your manufacturer needs additional
information have them call our executive director Jim Manke at
866.759.2467 ext 114.
Thank you.
Are
You Sure You Are Being Paid the Proper Amount of Commission?
A Sales
Representative’s Guide, By Randall J. Gillary
This may sounds incredible,
but some manufacturer’s representatives have no idea whether they are
being paid the proper amount of commissions by their principal. I was
personally involved in at least three situations recently in which my
client was receiving substantial commissions, sometimes at the rate of
$60,000 to $70,000 per month, and they did not know whether the checks
were in the correct amount. Mediators, arbitrators, and judges who are
involved in these cases have a tendency to react with disbelief when they
are told that in some instances the representatives have no real ideas as
to whether they are being paid the proper amount of commissions in any
given month. The unfortunate reality is that it happens probably more
than many manufacturers’ representatives are willing to admit.
The typical response by the
manufacturer’s representative when this type of problem is discovered
generally falls into one of three categories:
- I trusted my
principal to properly calculate my commissions.
- I do not have the time or staff to audit every commission
payment.
- I did not want to antagonize my principal by questioning the
amount of the payment.
The problem, which is created when the manufacturer’s
representative does not verify his commission payments, is that it can
become very difficult to contest the payment at a later date.
In many instances, the fact
that the commissions are not being properly paid does not necessarily
mean that the principal is knowingly underpaying the representative’s
commissions. In some cases,
there may be legitimate differences of opinion as to whether certain
items may be commissionable or whether some costs may be deductible from
the sales price. Often the automotive industry, the automotive
manufacturer who is dealing with a Tier One supplier will prepare a
monthly remittance advice and include this with the monthly payment to
the supplier. Typically included with that remittance advice is an
adjustment register with charges for credit, pricing adjustments,
expenses, and other items. Some supplier may take the adjustment register
and subtract the adjustments from what otherwise would be the net sales
price and then pay a commission on the adjusted balance. The problem is
that some of the adjustments, which are taken by the automotive customer,
may be properly credited against the sales price before calculating the
commission, and others may not.
For example, typically pricing
adjustments and returns for credit are properly subtracted from the gross
sales amount before calculating the commissionable net sales. Other
expenses, which are charged back, may not be properly deductible from the
gross sales for commission calculation purposes, such as reworking
expenses and premium freight expenses. The reworking expenses may be
charges incurred by the automotive customer for sorting parts or
conforming the parts to specification and should be the responsibility of
the principal. Premium freight
expense may be charged back to the supplier when the supplier is unable
to meet production requirements on time. These expenses are not
necessarily chargeable against the gross sales price for commission
calculation purposes. The manufacturer’s representative should not
generally have his commissions affected when the principal is unable to
meet quality or delivery requirements. More importantly, many sales
representatives agreements do not allow for these adjustments.
Many manufacturers’
representatives do not sufficiently review adjustments that are taken
against the gross sales price to determine whether all of the adjustments
are properly deductible for commission calculation purposes.
About the Author:
This article is excerpted from the book "Protecting Your
Commissions: A Sales Representatives Guide" by Randall J. Gillary.
Mr. Gillary is one of the top legal experts in the field and works to
ensure that sales representatives get paid the commissions they so
rightfully deserve. Other excerpts will be reprinted during the year. The
book can be purchased by going to http://www.gillarylaw.com.
Connect
and Stay Connected
What distinguishes top-earning sales
professionals (like AIMRA Members!) from their run of
the mill competitors? That question is posed and answered by Chief
Operating Officer, Pamela Holland, of Brody Communications, Ltd.
Sales 'winners' fulfill the basics
spelled out in Salesmanship 101: a.)Target sales presentations to key
customers. b.) Use a good lead-in to grab their attention. c.) Identify
needs using open-ended questions. d.) Define products and services and
relate them to customer benefits. e.)Anticipate objections and respond to
them intelligently. f.) Close with agreed upon action steps. g.)
Follow-up appropriately. This is all well and good. Except that the super
pros go a giant step further. They focus on connectivity.
To connect and stay connected, Holland
says, stress two key words: RESPECT and EMPATHY. Here are 10 ways to put
these concepts into play.
- Value the customer’s time – don’t waste
it.
- Define the buyer’s communication
preference. Buyer A is bottom line oriented and wants to get down to
business. Buyer B enjoys a bit of lite banter first.
- Pinpoint and address the customer’s
priorities – don’t be focused on your own.
- Be up-to-date and knowledgeable about your
products and services, and the competitions’ as well.
- Act professionally in word, deed and
appearance.
- Strive for simplicity and understand the
difference between nice to know and need to know.
- Put yourself in your customer’s shoes.
- Define the buyer’s personal and
professional objectives. Make them your own goals as well.
- Probe and help meet challenges the buyer
faces.
- Finally, devote as much time and effort to
staying connected as you did to making the connection at the outset.
Lines Available
Maschio-Gaspardo USA Inc.
1300
19th Street, Ste 120
East
Moline, IL 61244
309-75503764
309-755-4345
preid@maschio.com
http://www.maschio.com
Patrick
Reid, General Manager
Territories:
SD, ND, NE, MN, WI, IL, IA, MS, KN
Product:
Rotary Tillers; Finishing, Sickle Bar & Boom Mowers; Planters;
Shredders
CAS Manufacturing
1924
E 4th Street
Grand
Island, NE 68801
308-384-9747
ext 475
308-384-8966
seimk@chiefautomotive.com
http://www.chiefautomotive.com
Kerri
Seim, Dir. Contract Services
Territories:
All US except Nebraska
Product:
Steel Fabricator, parts or complete products
SBC Reps
19327
Santa Rosa
Detroit,
MI 48221
313-833-2388
nbushell2004@hotmailcom
Natausha,
Owner
Territories:
Nationwide
Ransom Associates Systems
18943
Lawrence RD
Shawnee,
KS 66218
912-631-5131
ransomassociates@aol.com
http://www.ransomassociates.com
Ron
Ransom, CEO
Territories:
KS, MS, IA, NE
Product:
Lab Casework, Technical Furniture, Lab Equipment, Clean room &
Hospital Products
AIM-Joraco
347
Farnum Pike
Smithfield,
RI 02917
401-232-1710
alewis@joraco.com
http://www.joraco.com
Andrew
Lewis, Director of Sales
Territories:
North America, South America, Overseas
Artco Chemical Inc.
64
Hannay Lane
Glenmont,
NY 12077
518-436-4676
518-436-4703
demarco@capital.net
John
DeMarco, President
Territories:
Mid-west, South
Product:
Hay / Feed Preservatives and additives
HVAC Warehouse
429
Hill Street
London,
ON n6B 1E7
519-679-1415
519-642-4344
bcasdwc@yahoo.com
http://www.thehvacwarehouse.com
Dave
Crackel, President
Territories:
All of Canada
Product:
Sheet Metal Forming Equipment
Automated Systems of Rockford, Inc.
4792
Stenstrom Road
Rockford,
IL 61109
815-874-5038
815-873-8619
ckluzak@asrmfg.com
http://www.asrmfg.com
Charles
Kluzak, Vice President
Territories:
IL, WI, MI, IA
Product:
CNC Machining, Large Capacity Machining, Welding specializing in
Aluminum, Design & build custom automation
Temco S.A.
Av
Italia 5620 A
Montevideo,
AL 11400
598
2 6061151
juanfial@temcosa.com
http://www.temcosa.com
Juan
Fiol, Manager
Territories:
No limits
Product:
Canine Beverage, ‘Pet-Up’, is substitute for water that incorporates all
the necessary nutrients & vitamins. ‘Pet-Up’ has been tested for two
years in dogs of different breeds, ages and sizes and has demonstrated to
be a great benefit for the animal’s health.
AW Dynamomter, Inc.
131
E. Main Street
Colfax,
IL 61728
1-800-477-2511
309-723-4951
mike@awdyno.com
http://www.awdynamometer.com
Mike
Barclay, Sales Manager
Territories:
New England, NY, PA, ND, Part of MN & SD
Product:
PTO dynos
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