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President's Message, by Ron Reed,
2006 AIMRA President
Hi fellow reps,
By the
time you read this, for those of us who live in the north, summer is
over. Yes, we will still have some warm days, but the harvest is well
under way and frost is not too far off. That's what is interesting about
belonging to an organization with members from every corner of the U.S. and Canada. While one of us
talks about the drought they are experiencing, the next rep talks about
being so wet that they can't do anything: plant, make hay or harvest the
crop; they may even be cleaning up from flooding.
Recently,
I received a call from a member requesting the possibility of staying
with a relative in Minneapolis instead of at the
host hotel, the Hilton. I don't want to beat this to death, but if we
don't meet the minimum number of rooms that we book three (3) years in
advance, we all pay for it.
In
addition to all of that, the lost contact with both the manufacturers and
fellow reps is invaluable. I know we seem to base the value of attending
a convention on what new lines we acquire, but it is so much more than
that. The networking with fellow reps in gathering information about
manufacturers, products, and even dealers from reps that travel the same
territories can become the building blocks that make your business
flourish. I joined AIMRA in 1989 and have not missed a convention. Could
I afford to go in those early years in business? No, but I soon found out
that I could not afford to stay home. I can count on one hand the number
of speakers that I remember, let alone what they said, but I do remember
the many good conversations and business contacts that I made over the
years.
A board
member told me the other day that sometimes we should ask what we can
give back to AIMRA. To do that, we all can attend the convention in
beautiful, warm Minneapolis in two months.
Jim Manke promised me that it will be warm. Oh,
did he mean inside?
Good Selling!
Past President's Corner, by Bob Gutzman, CPMR
Dan
Peterson requested I write a meaningful article for this e-Newsletter.
(Obviously he doesn't know me well or he would have chosen a different
word for meaningful.) When you reach my age and stage in life, we all
say, Things are just not like they used to be and quite honestly, it is a
correct statement.
I started
reflecting about my resume as it related to the Agriculture business: I
have an Agriculture Economics degree from Kansas State University; was a Territory
Manager for a major manufacturer for eight years; a Product Development
Manager for Massey Ferguson/Hesston Corporation 11 years; and spent 25+
years operating as Independent Manufactures Representative. Surely I have
learned something of value; and they were right things are just not like
they used to be.
I have a
new slogan for you: 'Work Smarter not
Harder'. Not new you say? Well it is very positive advice for
today in my opinion. Inasmuch as there is no way for the independent rep
to add surcharges to our marketing tasks, we need to accomplish an equal
amount or more with less expense.
Here are a
few facts that I have to assume are happening in all areas of the
country: First, there are fewer dealers to sell to. Second, dealerships
are multiple operations and are functioning as a larger business than the
previous dealers. Third, major manufacturers are increasing pressure on
dealerships to decrease short lines. Fourth, the numbers of farmers are
decreasing and the ones remaining are much larger and more business like
in their operations. Fifth, farm shows are less productive in introducing
new equipment and the number of shows has made it very expensive for both
the manufacturer and the representative to participate in all.
The
dealers in my area are expressing to me that 90% of new goods sold
through their dealership are ordered early and only 10% are purchased off
the lots; so how do we market in this type of environment? Here are some
of the things that I am doing that have had some success as well as some
ideas that I believe might work to educate the end user and aid the
dealer with endorsements for his dealerships.
* Publish
a Newsletter to the dealerships in your territory. I have been doing this
for four or five years on a bi-monthly or quarterly schedule. Some sales
I have been able to trace directly to the newsletter. You will have some
dealerships that throw them away, but many of my dealers read it from
cover to cover. I announce programs (not details) in the newsletter and
some will alert me that they are interested in the program and this will
aid me in territory area concentration. The cost for each mailing of the
newsletter is in the amount of approximately $300 (or 4 tanks of gas).
* I
produce picture postcards of key products with features and benefits that
come from my manufacturers and use them as statement stuffers at the
dealerships. I also send them directly to key farming operatives in
a specific area. Success with this includes developing a marketing effort
within the dealership and educates the buying public.
* I have been
e-mailing new product pictures to dealers prior to getting there with
literature; it is typically read and receives a jump start on product
introduction. E-mail is inexpensive and the most difficult is logging all
the e-mail addresses for your territory.
* Manufactures all
seem to have web pages and progressive farming operations are aware of
the benefits of searching the pages for products of interest. Make sure
that the manufacturer lists the representative for each territory along
with his telephone number and/or e-mail address. I have received several
calls and e-mails from those manufactures listing me.
* If any
of these thoughts you would like to discuss with me, give me a call or
send an e-mail.
On another
subject, I wanted to indicate some of my thoughts on the AIMRA
organization. Like many of the problems indicated with being a
rep as well as the additional expenses occurred as a result of fewer
reps supporting the organization, I believe we should consider merging
with FEMA. It is imperative that we need to retain an association with
our fellow representatives. The successes I have achieved in the Rep
Industry can be traced back to ideas, counseling, new lines, etc. from
association with our own reps. I have discussed this merger proposal with
some FEMA members and believe a very workable contract can be developed.
More
members for the new organization would result in a better negotiating
position as it relates to convention activities etc. Although many of our
reps handle industrial products, farm equipment is still the higher
percentage of products for rep association members.
Our
programs can function as before. After a time we also would be eligible
to participate in the health program, which I know to be a key issue in
our organization over the last 25 years. And, from what I have heard, our
dues would probably be lowered. I do not want to give up an association
with my fellow representatives.
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