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Old 07-14-2012, 11:35 AM
 
7 posts, read 15,825 times
Reputation: 10

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This is kind of complicated, but not really.
I am a sales rep who works for a repping group -- or sometimes called A Multi-Line Rep group. Traditionally, these rep groups have several product lines from various manufacturers and they hire sub-reps like me... to sell the products out in the field. My product line is in the commerical textile world and I call on Interior designers.

As it turns out, the Lady I work for is a repping company with just one Line --Textile company ABC. Lady owns the company and she hired me. I thought she would work the line with me in New York, where all our accounts are,, but she moved to Florida and is basically retired. The manufacturer of the Textile Company ABC gives her 20% of each of our sales, and we spilt that 50/50, so I end up with 10% of each sale.
A few months ago, I told her I thougth this was unfair since she does nothing, and I do everything, so I now get 12% of an order and she gets 8%.

By the way, I talk and deal directly with the manufacturer on all the time, as Lady does not care or get involved. I told the manufacturer, I wish I worked directly for you, but I know you hired Lady. They understand but say they cannot get involved and I shoudl talk to Lady.

I spoke again the Lady and she adamant that the deal stays the way it is.
I told manufactuerer if you are willing to continue giving Lady 20%, then I would like her to split it so that I get 15% (which is standard if I worked directly for manufacturer) and Lady gets 5%, and they could save 5% for themselves...
I know Ladyt will not do this, and If I threaten to leave, she could hire someone else-- VERY NOT EASY TO DO, AND SHE WOULD NEVER FIND someone with my relationships and knowledge as I was let go from a similar company after working there for 24 years-- and she knows it.... Or she could give me the 15%/5 split. I am trying to get some sort of commitment from ABC company to hire me if Lady fires me, but they say as much as they love amd treasure me, they would like us to work it out toegther.
I feel they would be very disappointed to see me fired by Lady, but I can get no committment from them.
Your thoughts

thank you
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Old 07-14-2012, 11:52 AM
 
Location: The Triad
34,090 posts, read 82,975,811 times
Reputation: 43666
Quote:
Originally Posted by barb1948 View Post
I told the manufacturer, I wish I worked directly for you, but I know you hired Lady.
They understand but say they cannot get involved and I should talk to Lady.
I spoke again the Lady and she adamant that the deal stays the way it is.
Your thoughts
You're stuck as it appears that the company has a contract with the lady.
Are you also bound by a non-compete contract with this lady?

If not... find a competitor to work with/for.
If so... find something else to do for the time that the contract defines.
(All of these are time/distance limited in some way.)
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Old 07-14-2012, 04:02 PM
 
Location: On The Road Full Time RVing
2,341 posts, read 3,497,278 times
Reputation: 2230
Quote:
Originally Posted by barb1948 View Post
This is kind of complicated, but not really.
I am a sales rep who works for a repping group -- or sometimes called A Multi-Line Rep group. Traditionally, these rep groups have several product lines from various manufacturers and they hire sub-reps like me... to sell the products out in the field. My product line is in the commerical textile world and I call on Interior designers.

As it turns out, the Lady I work for is a repping company with just one Line --Textile company ABC. Lady owns the company and she hired me. I thought she would work the line with me in New York, where all our accounts are,, but she moved to Florida and is basically retired. The manufacturer of the Textile Company ABC gives her 20% of each of our sales, and we spilt that 50/50, so I end up with 10% of each sale.
A few months ago, I told her I thougth this was unfair since she does nothing, and I do everything, so I now get 12% of an order and she gets 8%.

By the way, I talk and deal directly with the manufacturer on all the time, as Lady does not care or get involved. I told the manufacturer, I wish I worked directly for you, but I know you hired Lady. They understand but say they cannot get involved and I shoudl talk to Lady.

I spoke again the Lady and she adamant that the deal stays the way it is.
I told manufactuerer if you are willing to continue giving Lady 20%, then I would like her to split it so that I get 15% (which is standard if I worked directly for manufacturer) and Lady gets 5%, and they could save 5% for themselves...
I know Ladyt will not do this, and If I threaten to leave, she could hire someone else-- VERY NOT EASY TO DO, AND SHE WOULD NEVER FIND someone with my relationships and knowledge as I was let go from a similar company after working there for 24 years-- and she knows it.... Or she could give me the 15%/5 split. I am trying to get some sort of commitment from ABC company to hire me if Lady fires me, but they say as much as they love amd treasure me, they would like us to work it out toegther.
I feel they would be very disappointed to see me fired by Lady, but I can get no committment from them.
Your thoughts

thank you
It is her company and not yours, but you want it all,
and she gets the leftovers or nothing. ...

She gave you a job with pay you agreed on, and then a raise after that,
and now you are not satisfied, and want more so you try to stab
here in the back ,and cut here out. ...

If it was me, and I saw what you wrote here in this post,
I would personally FIRE YOU ! ! ! ...

Oh by the way you are not irreplaceable, but If you die or quit
she will get someone else not so greedy, and would be
much better off without you ! ! ! ...

Go out and start your own business and have employees
and if they treat you like you want to treat her
then you will know and feel how crooked your ideas are ! ! ! ...
.
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Old 07-14-2012, 06:59 PM
 
491 posts, read 2,290,664 times
Reputation: 541
You sound woefully ignorant about business, I'm sorry to say. Lady owns her business for many years, has developed relationships, spent a lot of time and money to keep those relationships and add to them each year, developed and marketed her product line, etc.

You can't bypass Lady to sell her line directly, now can you? No, you can't, and as you see, the buyers aren't having any of that idea. It doesn't work that way. Trying to do an end run around Lady in order to sell HER product line and get more money? That's not going to work. Please move on.
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Old 07-14-2012, 08:06 PM
 
11,555 posts, read 53,182,360 times
Reputation: 16349
Going behind the back of the sales agency owner that hired you directly to the manufacturer is simply one of the worst things that you can do in the rep business.

The manufacturer has an established, most likely contractual, relationship with the Lady.

What you are now doing is highly unethical. I'm not saying that I've not seen this type of behavior in the past in other product lines ... and I had it happen to me with one of my reps ... but the manufacturer's first call after they were contacted by my rep seeking the product line in my territory was to me to notify me of the rep's behavior. My next phone call was to the rep, notifying them that their termination or our memorandum of understanding would be in their mailbox the next AM and that any business closed today would not be processed before they were terminated, hence, no earned commissions that month (they'd closed no other business in the month, were holding it back hoping that they'd get the entire commission as the new agency).

If I were you, I'd be very protective of my reputation and ethics in the rep business. Word does get around ...

If you want to go out on your own, then approach other manufacturers to offer your services and part company with the Lady in accordance with the terms of your contract ... which may have an enforceable non-compete clause.
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Old 07-15-2012, 10:10 PM
 
4,399 posts, read 10,671,195 times
Reputation: 2383
Quote:
Originally Posted by sunsprit View Post
Going behind the back of the sales agency owner that hired you directly to the manufacturer is simply one of the worst things that you can do in the rep business.

The manufacturer has an established, most likely contractual, relationship with the Lady.

What you are now doing is highly unethical. I'm not saying that I've not seen this type of behavior in the past in other product lines ... and I had it happen to me with one of my reps ... but the manufacturer's first call after they were contacted by my rep seeking the product line in my territory was to me to notify me of the rep's behavior. My next phone call was to the rep, notifying them that their termination or our memorandum of understanding would be in their mailbox the next AM and that any business closed today would not be processed before they were terminated, hence, no earned commissions that month (they'd closed no other business in the month, were holding it back hoping that they'd get the entire commission as the new agency).

If I were you, I'd be very protective of my reputation and ethics in the rep business. Word does get around ...

If you want to go out on your own, then approach other manufacturers to offer your services and part company with the Lady in accordance with the terms of your contract ... which may have an enforceable non-compete clause.
You beat me to it. What you are doing trying to solicit your employers clients will get you blacklisted from the industry(and in this case for good reason I might add).
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Old 07-17-2012, 11:01 AM
 
Location: Keosauqua, Iowa
9,614 posts, read 21,270,240 times
Reputation: 13670
Take what you can get while you can get it. Most independent reps do no more than make the initial contact between the manufacturer and the customer, then collect a commission on every sale even though they may not have any thing to do with the account. Therefore a lot of manufacturers are cutting out sales reps due to diminished value.

Not saying that you're one of the ones riding this gravy train, just that the ones who are are making the entire system seem like wasted money to many companies and that you'll eventually be cut with the rest. Or offered an inside job if the company recognizes your value.
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