Working w/Mfr. Reps & Distributors MultiAd Builder

Working w/Mfr. Reps & Distributors Does a “0” on an Accrual Report mean no funds are available? NO, NO, NO

Working w/Mfr. Reps & Distributors There are many opportunities that are available to you when the Accrual Report comes back with any of the following responses: Manufacturer stated that all advertising assistance is set up on an individual basis with the Manufacturer Rep. (Negotiable Plan) Manufacturer does not offer co-op advertising assistance. (No co-op plan) Manufacturer has no record of account by name or vendor number, please contact distributor directly for advertising assistance. (Distributor Plan)

Working w/Mfr. Reps & Distributors

Manufacturer Reps sell on commission. If you can show the rep that there is an opportunity to increase their sales by providing advertising assistance to a local dealer, they will most likely participate. As an example: Janie Pace, Co-op Manager at the Ft. Worth Star Telegram, gets co-op funds over 50% of the time from manufacturer reps. This includes negotiable plans and No co-op plans. The Main Goal of a Manufacturer Rep is to Sell Product!

Working w/Mfr. Reps & Distributors How do I do this?

Working w/Mfr. Reps & Distributors Step 1 The media rep/co-op manager should put together a schedule of ads and a promotion to present it to the advertiser.

Working w/Mfr. Reps & Distributors Step 2 Explain to the Advertiser that money may be available, but we have to work with the manufacturer rep they buy their product from, to get advertising assistance.

Working w/Mfr. Reps & Distributors Step 3 After presenting the opportunity to the Advertiser, ask him/her to sign off on the plan pending manufacturer rep approval. Step 4 Now, present the opportunity to the Manufacturer rep.

Working w/Mfr. Reps & Distributors What do I present to the Manufacturer Rep?

Working w/Mfr. Reps & Distributors An Advertising plan Schedule of ads that will run Cost of the advertising schedule Reimbursement requested Spec Ads Different looks Different Products to be advertised Promotion to go along with Schedule (if applicable) Mother’s Day Jewelry Promo Father’s Day Sporting Goods Promo

Working w/Mfr. Reps & Distributors Step 1 Don’t ask if they will participate… assume they will want to participate. The advertiser is their customer…they should WANT to help. You are asking for the sale, but you are using an assumptive close. Step 2 Present the Proposal… To see the sample proposal, go to AdBuilder, Co-op Training, Co-op 201 “Negotiable Co-op”, “Building Proposals Using Negotiable Co-op”, click on the link for “View a sample proposal”.

Working w/Mfr. Reps & Distributors Don’t be afraid to mention to the Manufacturer rep that the advertiser’s other vendors offer co-op advertising assistance!!

Working w/Mfr. Reps & Distributors How do I go about presenting this to the Manufacturer Rep?

Working w/Mfr. Reps & Distributors Your advertiser should have a business card from the rep…send it to their address and follow-up with a phone call a day or two later.

Working w/Mfr. Reps & Distributors How do I know how much to ask for? What determines how much the manufacturer rep will give the advertiser? Where do I send the Claim?

Working w/Mfr. Reps & Distributors How Much do I Ask for? If the account does $10,000 per year with the manufacturer, you will ask for a dramatically different amount than if they do $100,000 in business each year with the manufacturer. The dealer that does $10,000 per year can expect roughly $300 in advertising assistance from their supplier while the dealer that does $100,000 has potential for $3,000 and more with the right approach.

Working w/Mfr. Reps & Distributors How the Amount is Determined… This would be based on an average accrual of 3%. You can ask for more, you can ask for less, but ultimately the manufacturer rep will decide whether to participate, and for how much. Your job is to give them a fair proposal that is easy to say yes to.

Working w/Mfr. Reps & Distributors What reimbursement percentage should we ask for? You can ask for 100%, you can ask for 50% or anything in between…but remember, the manufacturer rep is not going to offer more than what you ask for, so go high and see what happens.

Working w/Mfr. Reps & Distributors Where Do I Send the Claims? Be sure to ask the manufacturer rep where to send the claims. Most likely, they will be sent directly to them since they are the one approving the advertising assistance. ***Recas software can send claims directly to manufacturer rep!!!

Working w/Mfr. Reps & Distributors Important tips and reminders: 1Be sure to get the manufacturer reps approval of the proposal IN WRITING!!! 2Be sure to get approval of the spec ads! 3Make sure the advertiser is aware of the extra funds you were able to get them. 4Remember, the Manufacturer Reps main goal is to move product…if you can assist them with that, they will be more agreeable to help you.

Working w/Mfr. Reps & Distributors

Remember that co-op is essentially a game of "follow the money" and if the distributor is buying from the manufacturer, they essentially control any co-op funding. While some manufacturers with this 3-step distribution process (Mfr. – Distributor – Retailer) make accommodations for this with purchase reporting and direct dealer reimbursement, many do not.

Working w/Mfr. Reps & Distributors Some distributors will give their dealers advertising assistance. Some distributors will NOT give their dealers advertising assistance. How do we know?

Working w/Mfr. Reps & Distributors Ask… …if you know the dealer buys from a distributor (hopefully the media sales rep asked this when doing the original co-op audit), then you can call the distributor directly. Be sure to ask the advertiser who his contact is at the distributor.

Working w/Mfr. Reps & Distributors Call… When calling the distributor, remember, you are in selling mode. You must sell the distributor on your product, and the importance of supporting his dealer’s advertising efforts.

Working w/Mfr. Reps & Distributors Types of Distributor Co-op Opportunities: Direct co-op reporting to the Manufacturer (Pass through) Distributor offers their own assistance of some type Proof of purchase with Manufacturer No co-op available

Working w/Mfr. Reps & Distributors Direct Co-op Reporting to the Manufacturer: (Pass Through) In this case, the distributor reports the purchase information directly to the Mfr and the retailer can get co-op balances direct from the mfr. The distributor allows the co-op to pass through to the retailer.

Working w/Mfr. Reps & Distributors Distributor Offers Their Own Assistance: Some distributors will offer a “co-op” plan of their own to their dealers. The dealer will send the claims directly to the distributor for reimbursement. The distributor may or may not be taking advantage of the co-op money available from the manufacturer by doing their own advertising also.

Working w/Mfr. Reps & Distributors Proof of Purchase with Manufacturer: There are times when a distributor may or may not be using their co-op from the manufacturer, but they do not offer any type of assistance to the dealer…the dealer can then contact the manufacturer directly and request co-op assistance based on their invoices from the distributor as proof of purchase. Asking the distributor for assistance with the manufacturer at this point may be beneficial.

Working w/Mfr. Reps & Distributors Distributor Offers No Assistance…uses all of their co-op from the manufacturer. The distributor uses the co-op from the mfr and the mfr will not offer proof of purchase assistance. You can make a pitch to the distributor for assistance again, but it may be time to go to the next opportunity.

Working w/Mfr. Reps & Distributors Remember… Everything is negotiable. Whether you are working with a manufacturer rep or a distributor, if you can show the contact that you are going to help them move product, the possibility always exists that you can get assistance for your advertiser.

Working w/Mfr. Reps & Distributors Questions?