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News Release from: Electronics Representatives Association
Edited by the Electronicstalk Editorial
Team on 29 November 2005
Reps absorb higher operating costs in
2005
Electronics industry manufacturers' representatives are coping with higher operating costs this year, compared with 2004, according to a recent survey
Electronics industry manufacturers' representatives are coping with higher operating costs this year, compared with 2004, according to an October survey conducted by the Electronics Representatives Association (ERA) Among the 216 rep firm owners/presidents who responded to the online questionnaire, 87% say their costs are increasing, with most (60%) reporting cost hikes of 6 to 20%
This article was originally published on Electronicstalk on 8 Nov 2004 at 8.00am (UK)
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At the same time, 23% of survey respondents say their company income is decreasing in 2005 compared with 2004.
Another survey question asked if and how their principals are helping reps meet the challenges of rising operating costs.
Although most reps reported no such assistance, 23 (11%) listed a number of ways that some manufacturers are stepping up their support, including by: providing greater financial assistance with trade show costs; taking on more of the customer service function; paying more of reps' expenses for travel (even when not contractually specified); increasing split commission rates for design-in locations; allowing reps to serve as distributors; providing stronger, more efficient customer and application engineering support; paying monthly shared investment plan (retainer) fees for missionary lines or specific services required by customers; participating in co-op advertising; establishing better methods for offshore tracking; improving their online information flow to reduce the number of meetings reps must attend; reducing demands on reps concerning the number of personnel who must attend principal meetings; and contributing to the cost of rep-employed FAEs.
The complete results of this survey will be incorporated into a programme session for reps at the 2006 Electronics Industry Sales and Marketing Conference, to be cosponsored by ERA and the National Electronic Distributors Association (NEDA).
The conference is scheduled for 28th to 31st March 2006 at Saddlebrook Resort near Tampa, Florida.
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