From the beginning, a precognition of the manufacturers' representative's value add was a deciding point in their favor when one manufacturer opened U.S. operations 25 years ago.
When Suspa, Inc., an international manufacturer of lift, support, damping and adjustment devices, opened its doors in the United States a quarter of a century ago, its original intent was to produce gas cylinders for the automobile industry's hatchbacks. The Grand Rapids, Michigan, location for the business is convenient to Detroit - a strong influence on the decision to locate there.
Soon it became apparent that Grand Rapids had other advantages. Although once known as the 'Furniture Capital of the World' for fine residential furnishings, by the 1980s it became better known as the center of the office furniture industry. Soon, more than half of Suspa's annual sales were directly related to this industry.
Early on, it became clear that a network of representatives would be necessary to expand the reach and volume of Suspa sales. Other markets were ripe for Suspa's gas cylinders. Residential and commercial washing machines are manufactured in the Midwest, while the electronics, health care equipment and recreational vehide industries beckoned.
To expand its reach, Suspa decided to seek representatives, according to Mike Dunlap, director of the chair components group, 'in order to have field salespeople who are intimate with their regions and the customers in those localities.' In considering the value of representatives compared to direct salespersons, Suspa officials leaned toward the rep concept for several reasons:
Manufacturers' representatives provided a consistent cost for field sales as a percent of total sales.
Suspa management recognized that representatives know their territories - they live and work there.
With representatives, there was a valid opportunity for crossover sales resulting from other (related - but not competitive) product lines.
Once the rep organization had been founded, a rep council was established in 1987. Suspa management believed that it could better understand different views of customers through a rep-based advisory-like board. Guidelines were set up and a mission statement was devised by the council. The statement charged the group with acting as a communication channel between customers, representatives and the factory, as well as reaffirming all around ethical business practices and good corporate citizenship.
To this day, membership on the rep council is rotated among the sales firms, and the council is convened approximately once a year, or more often if necessary. Meetings are conducted at the Suspa, Inc. offices. Sales policies, communications, commissions, new products and services, training, credit policies and competitive advantages are regularly discussed. 'We believe representatives provide a filter through which new ideas, approaches and concepts can be screened,' says Dunlap. 'There are no magic answers, but these meetings provide for the communication of ideas, concerns and interests for all members of the team - agents and manufacturers alike.'
With the assistance of a skilled, solid, stable representative organization, Suspa has been able to achieve and maintain leadership in a variety of industries suited to the utilization of lift, support, damping and adjustment devices. To Dunlap, it was an adventure recruiting these professional salesmen, and 'it is a pleasure to see them succeed and profit from the qualities that have made Suspa an ongoing pacesetter in the industries it serves.'
If those words serve as one manufacturer's endorsement of the use of manufacturers' representatives, the feelings are mutual. On the opposite page are words from several agents concerning how they view their relationship with Suspa.
All of these positive manufacturer and representative feelings came to the fore last fall when Suspa, Inc. marked its 25th anniversary in the United States with a two-day celebration at its plant and offices in Grand Rapids.
In opening remarks during the celebration, Erina Hanka, president of Suspa, noted that the success of the company was due to the people of Suspa. Following her remarks, one of the founders of the company, Hans-Peter Bauer, conveyed congratulations from Suspa's parent company in Germany. Additionally, Neil McDougal, representing the holding company that owns the Suspa organization, had words of commendation - citing the leadership of Suspa - for all those attending, including suppliers and customers as well as dignitaries.
Suspa, Inc. was established in the United States in November 1974. By the following January the company had leased 18,000 sq. ft. of space, and in April its third employee, Erina Hanka, was hired. In January 1976, production of gas springs began for the domestic auto industry, specifically for American Motors' Pacer and Gremlin cars. By July 1978, sales had reached $1.5 million. By 1981, sales were $7.5 million and the company moved to its present location, at that time encompassing 64,000 sq. ft. By the end of 1989, sales were $40 million and by the end of the next decade sales exceeded $57 million, the company employed 245 and facilities had expanded to 134,000 sq. ft.
Representatives became part of the Suspa sales effort in 1982, when Andy Andrews was the first to sign a contract. The process of selecting reps continued, with concentration on regions of the country where a market had been identified and some customers existed. Growth of the rep organization was guided by Mike Dunlap and Steve Garvelink, who now are product directors managing groups of products within the company. At present, the company has achieved total coverage of North America (including single and multi-person agencies) .
Suspa joined MANA in 1984 and has continued its membership ever since. Most of the current representatives are MANA members who participate in various MANA seminars and regional meetings. All of the representatives were invited to the 25th anniversary celebration, and more than 20 were in attendance.
As part of the anniversary activities, the company's representatives collectively created an award that was presented to Erina Hanka by Tom George, who represents Suspa in the Indiana/Kentucky area. The text of the plaque presented read: 'Congratulations on 25 years of serving your customers and on the high level of customer satisfaction you have provided. Nothing happens until a sale is made.'
[Sidebar]
How several agents view their relationship with Suspa:
'The management team is excellent and the good business practices by everyone are appreciated.'
- Andy Andrews, H.F Andrews, Stone Mountain, Georgia.
'Commitment to customer and quality are both the best.'
- John Shuler, John Shuler & Associates, High Point, North Carolina.
'There are good communications and a willingness to consider rep suggestions.'
- Rob Lang, Lang & Associates, Hillsboro, Oregon.
'Consistent vision with excellent employee involvement and input create excellence in manufacturing and customer service.' - Tom Leslie, Special Metals Supply, Inc., Fremont, California.
'Exceptional continuity in management; the inside sales staff matches demands of the growing rep network and customers; commissions are paid on time; and the people of Suspa enjoy what they do, and it shows.'
- Tom George, Formed Metals, Inc., Indianapolis, Indiana.
'There is very high loyalty to the reps, and they have always asked for rep input regarding new products and features.'
- Bill Jared, Formed Metals, Inc.
'Suspa always has been willing to face challenges openly and head,on, and our customers know that Suspa will do what it takes to meet or exceed their expectations in terms of quality, delivery and competitiveness.'
- Bob Schauer, McClure Associates, Inc., Arlington Heights, Illinois.
'Suspa is consistent in commitment, honesty, integrity, partnership, respect, quality and enthusiasm.'
- George VanDerBosh, McClure Associates, Inc.
'The professionalism and courtesy Suspa has shown their customers and suppliers make them a great corporate citizen.'
- Scott Weaver, Marktech, Inc., Quebec, Canada.
'There is excellence in customer support, technical leadership and support of the reps.'
- Dave Schueller, Schueller & Associates, Pittsford, New York.
'Suspa has a customer focus, and this makes customers' engineers eager to work with Suspa.'
- Allen Schweriner, Handy Tech Group, Inc., Chapel Hill, North Carolina.
'Technically competent engineering support makes it great to work for Suspa.' - Tom Burton, Handy Tech Group, Inc.
'Suspa has a focused management which is empowered by Erina Hanka, and this inspires a unique corporate culture with all who work in Grand Rapids and each of the reps in the field. The rep council has been effective and has provided direct communication with the president - reps are included as part of the Suspa family.'
- Ross Johnson, Winokur Sales Corp., Burnsville, Minnesota.
'Outstanding rep support and customer satisfaction with quality products are the driving forces at Suspa.'
- Sumner Bryant, Sumner S. Bryant Jr., Wayne, New Jersey.
