The Representor, Feature Article, Spring 2008 How to use a master rep to successfully access the North American marketplace A brief case study for international manufacturers by Tim Worley, Powerstax, and Ron Josephson, Power Guide Marketing
How does a small, ambitious British Company, with limited resources, access the largest single market in the world? Tim Worley's principal story This was the question facing Powerstax back in 2002. We had an interesting, technically advanced and patented product; we had some knowledge of trading in the U.S. market but no residual sales or presence. Now what? For Powerstax, it began with strategic thinking, planning and commitment. We believed that a team of manufacturers' representatives would be the best way to access the U.S. territories but weren't sure where to start. Powerstax has a strong technical team and many years of combined sales and management experience in the power supply industry. We thought our core technology and products would be of interest to the right people, and if we could get them to share our vision of where we could take Powerstax in the North American market, then maybe they would invest time and energy in the inevitable pioneering work. So the kernel of a plan was emerging. Our first appointment had to be technically capable, able to see the potential of our products, based in a territory where our products could find homes and willing to do some pioneering work. A point often missed is the personal chemistry between the two teams or individuals. This should be easier between the U.S. and the U.K., but as Churchill warned us, we are "two countries separated by a common language." That needed to be a part of our equation. A further refinement of the sales channel model would be if our first appointment could act as a master representative and help us to appoint reps and distributors in other territories, thus increasing our chances of success. But why would a rep firm agree to do this? We surmised that it would be only if the rep firm could see that, within an acceptable time frame, a revenue stream would come from its investment of time and money. So we came up with a formula of paying a normal commission on "own territory" sales and, in addition, a smaller but significant commission on "other territory" sales. In return for this, Powerstax would obtain a base in the U.S., a technical and logistics support resource in U.S. time zones, and high quality advice on how to invest in promoting U.S. sales. Through mutual business acquaintances, we were fortunate to be introduced to a New England rep company, Power Guide Marketing.		About the Authors ... Tim Worley began his career at Eurotherm, Ltd. where he worked in production supervision, inventory and production control. He also held similar management positions at Rediffusion Computers, Ltd., before entering the world of power supplies in 1983 at Intelligence Power, Ltd. Worley became the managing director of Intelligence Power in 1985 and guided it through its acquisition to become Unipower Europe, Ltd. He departed Unipower in 2001 to establish Powerstax, a company specializing in DC-DC converter products. Ron Josephson is a veteran of the electronics industry who began his career at Raytheon as a designer of military radar receivers and systems for programs including the Patriot, Hawk, Aegis and SPS 49. He then joined Digital Equipment Corporation and designed power supplies and systems for DEC's flagship VAX computers. Josephson left DEC to enter the rep business and, after working for two different firms, established his own company, Power Guide Marketing, 11 years ago. The firm is based in West Boylston, Mass., and specializes in power supplies and related products.

Investment in brand awareness was essential, and we undertook a range of promotional activities, including attending regional and national trade shows, including EDS in Las Vegas, regular visits from Powerstax staff to the U.S., regular press releases, targeted advertising and a major training event for the manufacturers' representatives appointed in collaboration with the master representative.

The partners in Power Guide Marketing have all visited the Powerstax U.K. facility and have attended and worked the booth at Electronica, the major European electronics trade show in Munich, Germany, as this event attracts a significant number of U.S. visitors.

There is a definite feeling of buy-in to success with Powerstax in the U.S. from our manufacturers' master representative, and this translates to getting the best result for all parties — customers, reps and principal.

The proof of the pudding is in the eating, and Powerstax has seen year on year growth in the U.S. which now accounts for 30 percent of our company's total sales. We'd always like more, but we see this as a good result and strong evidence that this approach is working for us.

Ron Josephson's master representative story
My working life has been varied, from designing military weapon systems and power supplies for Digital Equipment Corporation to running my own rep firm. Through all this, I have always looked at new technology that would benefit what I was doing. When I first started Power Guide Marketing, I was on my knees, begging for any line to represent. Over a short time period, I was able to be much more selective and focused on what I know and enjoy — power supplies. However, as a rep, I always look for new or unique technologies that will help my customers and be very saleable.

While I was representing a West Coast power supply manufacturer, I made friends with the company's U.K. advertising specialist. Over the next few years, we kept in touch. One day I received a call from my friend asking me if I would be interested in talking with a man who had a unique and highly efficient DC-DC converter product. Since I could see the technical advantages in this new technology that existed nowhere else, I quickly became excited. After a very short period, Power Guide was under contract with this start-up company from the U.K. with Tim Worley heading it up.

From the time I entered the rep business, I'd been eager to explore the concept of master representative. In short order, Tim Worley and I agreed on Power Guide Marketing becoming his company's master representative for North America. This has been a learning experience which has helped me better understand the principal's point of view while also allowing me to look at the outsourced sales function in a new light and with continued respect.

I can only say that I encourage rep firms that engage in true technical sales to expand their horizons and look for leading edge technology to represent — not just products that carry residuals in their territory. Don't look only at today, but look at the future. I also encourage my fellow reps to open their horizons to non-U.S. companies that may need a master representative in the U.S., as long as their products excite you and make sense for your customers.

We saw a future that had long-range gains, with a lot of work in the short term with zero remuneration. But our philosophy has never been to be another "me too" to supplier that sold just on price alone. Rather, we sell more on advanced technology. We have always believed in synergistic selling, and this U.K. company filled a major need to have leading product in the higher wattage. We believe that some of our other lines have helped sell the Powerstax line, and it has also truly worked in reverse.

We have been able to take this U.K. Company that was totally unknown in the U.S. to its current status as a well-respected supplier of high quality, high efficiency power supplies and DC-DC converters. We now supply to some of the most respected names in the industry.

This fine U.K. Company would have ultimately accomplished this without us, but I am sure we have expedited the process. The master representative scenario proves that an outsourced sales force works! I must also add that we are very grateful for the support that the ERA has provided.

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2008 Electronics Representatives Association (ERA), Chicago, IL 60611
Originally printed in the Spring 2008 issue of The Representor
Cannot be reprinted without the permission of the Electronics Representatives Association (ERA)