Intro:  

Broadcasting live from the Business Radio X Studios in Detroit, Michigan. It's time for Detroit Business Radio. Now, here's your host.

 

The Mag

 

Lee Canter here, another episode of Detroit Business Radio, and this is gonna be a good one. Today we have with us Jeff Hampton. And he is with an organization called Beta Sales and Marketing. Welcome, Jeff.

 

The Mag

 

Good morning to you. Happy Monday, everybody. Hope you're enjoying the sunny weather we have finally.

 

The Mag

 

That's right. Well, Jeff, before we get too far into things tell us about Beta Sales and Marketing. How are you serving folks?

 

Jeff Hampton:

Well, when people ask me, What do I do, I tell them that I manage relationships, Beta Sales and Marketing is the firm that I started after I broke off with an initial firm that I was with back in 19, was at 1994, that I've been out this, and we are an independent manufacturer's representative agency. And what that means is that I represent about five or six firms that make components for the automotive industry. And rather than being paid a salary, I'm an independent contractor, I work on commission only, somewhat similar to somebody that might be in, in real estate, where if they sell something, they get paid, they don't sell, they don't get paid.

 

The Mag

 

So now how did you get into this line of work? Like you were working with somebody else that had a similar business, and then you spun off on your own or you were selling an individual item and said, I can sell them, you know, three or four different things. So let me just start kind of building a portfolio of items to sell.

 

Jeff Hampton: 

Very, very good, appropriate and this is a long answer. So be patient with me. I graduated from Michigan State with a degree in mechanical engineering. And after graduating, I went to work for a firm. This is really going to take me American Motors. Have you ever heard of it?

 

The Mag

 

Is that the Pacer? Did they make the Pacer?

 

Jeff Hampton:  

That's exactly the Pacer the American, the AMEX, and other iconic cars, I went to work for them straight out of college and my father was a manufacturer's rep, working the west side of the state. And he knew that I was a gearhead growing up in the muscle car era. And he said, You know, I'd really like to do some marketing on the east side of the state that's heavily automotive over there. And you love cars, you love muscle cars, what do you think? Do you want to give it a shot? And at the time, I didn't know about other than to say yes. Which is what I did. So when the tender year of 1978, I started in the manufacturer's reps business for my dad. And when my dad decided to get out of the business in 1990, again, in 1994, I took the business over, and I'm handling primarily southeastern Michigan and selling to the large tier-one automotive supplier.

 

The Mag

 

So now what did you like? What did you like about it that it sounds like you get kind of get the best of both worlds. And that you get flexibility. And you can kind of work with lots of different people and you're not stuck with one type of product if you don't want to be but if you have a good relationship, you can stay with that. So it sounds like it has a lot of pluses in that industry.

 

Jeff Hampton:

You know what, when when we talk again, about my job I say has all of the absolute benefits of being in business for yourself. And it also has all of the disadvantages. You know, you're your own boss. And yes, you set your own hours you make the determination about which companies is it that you want to represent which companies do you want to call on to try to market, your products to? And as with a lot of other businesses, it's interesting how you as you poke around and make sales calls and whatnot, tend to gravitate to those that have similar interests. And yeah, it's again, it's a relationship business. And the beauty of it is, at least for me, is that rather than working for one company and selling widgets for XYZ company, and that's all I'm selling are widgets. I have the ability to sell die castings, injection molded plastics, metal stampings precision machining, Swiss screw Machine Products, forgings and so I'm, and so I have a lot of flexibility in the products that I sold to them to the customer justly.

 

The Mag

 

Now let's look at it through the eyes of the companies whose wares you're selling, what's in it for them to hire you rather than just have an independent in-house salesperson?

 

Jeff Hampton:    

Another good question? Well, I'll tell you what, you own a manufacturing firm and you sell said widgets. And typically the firms that are going to be drawn to manufacturers' representatives are small, to, I would say medium-sized companies that probably have less than $100 million a year in sales. And there's two ways for you, of course, to have a salesforce, you can go out and hire some people and pay them however much you have to pay them. And right from the start, you're going to be sending out checks to them on a weekly, by monthly basis. And there's going to be inexpensive for your, for your company, even though initially they might not be generating any sales. Now true, you're going to get there 100% of their time. But that startup period that you're going to have to wait before they generate any sales, there's going to be an expense there. 

 

Well, that's one way of doing it. Or you can get beta sales and marketing a call or a similar manufacturing manufacturer's representative, then you can say, tell you what, let's make a deal here. You can represent our company and be the sales and marketing for our company. We're not going to pay you a salary. But what we will do is we'll pay you a commission of let's just say 5%, on anything that you steal. And we understand, Jeff, that you aren't going to be representing just our firm, but you'll probably have three or four other firms that we're going to be in your bailiwick as well. So we understand we're not going to get 100% of your time. And the beauty of that is is that for you, Lee, and your firm, you're going to have a very firm understanding of what your overhead is going to be for sales, you know that for every dollar of sales that you have, there's going to be 5% that's associated with that. When you have direct sales working within your firm, that's a little harder to calculate. How do they do with that?

 

The Mag

 

That's great. It's, it's becoming clearer for me. So now is this a common practice? So there are tons of independent manufacturer reps? Or is this kind of an industry that is in flux right now?

 

Jeff Hampton:   

Another good question. Whatever the good or service that you want to market, there is a manufacturer's rep out there that will specialize in selling your product. I specialize in selling, you know, the little components that go into a car, I can almost guarantee you in the car that you're driving Lee somewhere somehow on that car is a part that was supplied by one of my companies to one of the letters to more to one automotive suppliers that went to Ford, General Motors, Chrysler, you name it. And I have another friend, and we'll name this viewer his name, that he writes books. And he is not associated with one of the major publishers. And it's a specialty book. 

 

And so for his marketing, he went out, we talked and he found a manufacturer's representative that gets this specializes in selling books, to the education establishment. And my friend doesn't know where the front door is about how to sell his book that he knows was great, a great tool for students in high school. But he throws up his arms and goals. How do I start? Well, he found a manufacturer's rep that specializes in that. So whatever firm whatever type of commodity or service you're selling, there's a manufacturer's rep out there that's knocking on doors, and I'll tell you what, there's 1000s and 1000s of us, just in the state of Michigan alone only

 

The Mag

 

Now but it's not exclusive to manufacturers, that might be what they're called, but like you said that it could be a service as well.

 

Jeff Hampton:  

That's, that's exactly uh, you know, I call myself a manufacturer's representative, but I think probably the more appropriate would be an independent sales rep. would probably be more important. As I mentioned, my friend that sells the books, if you're selling a service if you're you know, to a certain extent if you're an in insurance, and you want to market your insurance agency, you can make a deal with an independent sales agent to go out there and generate leads and calls and things like that. So it doesn't matter at all.

 

The Mag

 

So now, let's look at this through the lens of a person that's considering hiring an independent manufacturer or sales rep. What are some things that are things you look for? And what are some red flags?

 

Jeff Hampton:   

Very good. Another good question Lee. I think I would start that with the suggestion, of a couple of organizations that specialize in connecting, connecting reps with people that are looking for services, and there's a couple of good ways. One of them is manufacturers, agents of North America, mana m a n a.org. And another one is an organization simply called rep search. So if you have a good or as you mentioned Lee, service and you're going, where to heck do I get started finding somebody that can help me with my marketing and my sales. Those are two pretty good organizations to start with. Because as the names imply, what they do as they specialize in doing an interview with you, kind of similar to what you're doing with me right now Lee, find out, what is it that you do? What are you looking for? What particular territory? Are you? Are you looking, to market? And do you want to be nationwide? Or do you want to focus in Southeast Michigan, you want to be in the entire Midwest. 

 

So there's things to consider about what you first of all, what it is that you're going to sell the market that you want to sell into. And then being very specific with the rep in regards to how it is you want them, to market you. There are a couple of other aspects of it as a man as a manufacturer's rep or as an independent sales agent. When I go in and sit down and talk with somebody, I will be making a mental determination about how long is it going to take to generate sales so that I'm actually putting money in my pocket Lee, and then the automotive industry. All industries are different. It can be three to four years before I'm generating any income from a company that I decided to take on. Because of the time that it takes. 

 

Right now I'm quoting for the model years 2023 and 2024. They weren't that far in advance. So you as a manufacturer, or keep seeing manufacturing,  I apologize, I should say service as well, you need to determine how long it's going to take realistically for that, for that rep to start generating sales. And in some instances, which you might have to do is give them a little upfront money, not not as not salary. But we would call it kind of a retainer or some scenario. And that would be essentially, to help the manufacturer's representative, the rep defray some of those costs that he's going to have over the first year or two years to market your product or your service.

 

The Mag

 

Because you want to sense. Yeah, because you want it's a partnership. Like in order for this to work, it has to work for both parties. And it has to be kind of a symbiotic relationship, it can't be just them going, Hey, go out and sell something and call me when the check comes in. Right? Like it has to be some back and forth.

 

Jeff Hampton: 

You know what, again, that's what you bring up excellent points. It's what motivates a salesperson, of course, are, you know, factors that motivate a lot of people, you know, reward. And to get that reward, you have to be motivated. To get out there and work hard and to be motivated enough to go out there and work hard, you have to feel good about the company that you represent. So if you are a person that owns a company and you're looking for sales, it's extremely important to make sure that you do everything that you can to develop a good relationship with your independent sales force. So a little bit different, you're not going to see them coming in, you know, every day and sitting around you know, the coffee cooler talking about the latest episode of Seinfeld or something like that. 

 

So it's important that you keep them informed about what's going on at your front arm, tried to develop a good relationship with them. Because what makes independent manufacturers remise representatives like myself Successful is motivation. And I touch on this. And I know I might be rubbing some inside salespeople the wrong way, manufacturers, and representatives from independent salespeople tend to maybe be a little more aggressive. You know, we like being on our own, we like being responsible for every penny that goes into our pocket as a result, of our efforts. And the beautiful part of it is that the harder we work, and the more successful we are, the more money we make. So that is a tremendous incentive, that if you have a good relationship with the company that you represent, and you happen to get lucky enough to sell a lot of stuff, then guess what your commission checks can be quite attractive.

 

The Mag

 

And it's one of those things where you are, you have kind of a diversified portfolio. So you're Yes,  you're representing multiple manufacturers, so you can then like if one manufacturer, not in favor, or is not the hot thing, you still have kind of relationships with folks that are going to generate revenue for you, you're not beholden to one. And then if there's a problem, then you know, all your eggs are in that basket and you're out. Like, if you're the inside salesperson for that for, you've kind of got some diversity in your, in your more options.

 

Jeff Hampton:  

Have you done this before?

 

The Mag

 

I'm learning just like all of our listeners, we're just learning.

 

Jeff Hampton:  

No, that's That's exactly it. One of the benefits is that if I go into automotive, some supplier, you know, large tier one, we'll call them XYZ Corporation, that I will be talking with the person that is in charge of buying, let's say aluminum diecast teams. And on that same sales call, I will make sure to have an appointment with the person that's buying injection molded plastics. And then after I get done with that personnel, make sure to go call on the person that's buying the machine forgings. And then after that, I'll go and I'll go down the line. So you're at you hit it right on the head, that if you if I only had one, we call them the principle that I was selling into that firm and something went sour with that principle and I lost them, then I have no reason whatsoever to continue to go into the automotive supplier and see those people. So this way, you're absolutely right. If I have three or four arrows in my quiver, there's always a reason for me to be in there. And maintain those relationships, even though I might not have anything of interest percolating right at that particular time with the person that buys the aluminum die castings. So that is you brought up an excellent point. And I actually should have brought that up myself, Lee is that it? It allows you to maintain the continuity of relationships with the customers that you're calling on. If you have multiple, multiple firms which have representatives, and again, like I said, the principles.

 

The Mag

 

Now for you what's the most rewarding part? You've been doing this for a minute? Is it kind of nurturing those relationships? Because over the years, you must have fantastic relationships with a wide variety of folks in different organizations. But also, it's kind of the juice of getting a win or a sale. How do you kind of balance those two

 

Jeff Hampton:  

You brought up about two or three very good points in that. Most, as I mentioned, we've kind of alluded to it most independent representatives, again, whatever they're selling, are very ego-driven. It is you know, it's the thrill of the hunt. And there is a tremendous satisfaction of when you bring that sales home. That is a wonderful, wonderful feeling that is a that's what motivates us. And I can say that over the years I have had the opportunity to develop just some wonderful, wonderful relationships with people that I call alone. We have a guy's with the club, and it's a bunch of guys that go out. We see a movie, go have dinner, and then head off to somebody stuck to have a few cigars. Half of those guys are people that I have that I've met in the business calling on them like it's places like Gaddy and Wagner on SBS. So you really do have an opportunity to develop some tremendous Relationships with very with a wide and diverse range of people. 

 

And I would say this if you're planning to get into the business of you know, I want to become an independent agent then doesn't again, doesn't matter what field you're getting into. Really one of the first questions you need to ask yourself is, Do I like people? Do I like people? And that's not, you need to be able to answer yes to that. Definitely. I really do like people, I like meeting new people, I like going out to lunch and entertaining new people and finding out about them. And if you answer no to that, that's not a bad thing. Because there's, there's a proper place for every type of personality in this wonderful capitalistic market system we have here in America. But you do need to be able, to answer. Honestly, if that is short, if that is your personality, do you enjoy getting in a car and going over to the west side of Michigan, to call on a bunch of people there. And you're sad, is that something you really look forward to.

 

The Mag

 

And that's great advice is to really be true to yourself in the sense that if, if you're a people person, then explore this, but if you're not, don't, you'll be miserable. If this is what you're doing every day, you know, and this all you're thinking that you're not gonna have that really great quality of life. So kind of be have some self-awareness about your own personality.

 

Jeff Hampton:  

Yeah, and you said it better than I did, you know, be true to yourself. And that's where we have to do self-assessments, because most of the people that I've seen in sales that go into this line of work, and like I say, I keep being redundant, it doesn't matter what it is that you're selling if they're, if they're unsuccessful. A lot of times, if you have that self-introspection, you can say, well, maybe this just wasn't quite right for me. Now I understand there's things that can just wipe you out, my wife and I, I'm off on another tangent, Lee, and I apologize for that, you know, we're sitting at the table, and this COVID thing, and I just shaved my head, and I say, you know, wife's name is just, I can't imagine what it would be like, being 2728 years old, turning back the clock. And at this particular time, trying to be a manufacturer's rep or an independent agency, or an agent just starting out, you know, when you're developing those new relationships, when you're, when you have to go out and find new firms to sell when the income isn't there, possibly, because you the sales are going up yet. 

 

And you know, you're living on your savings, which is something you have to do when you go into independence, you're not going to get that money immediately, it's going to be in the pipeline. So this COVID thing is just there are things that come out of the clear blue sky that you just can't control. So that was my lead. And but generally speaking, when you take a look at the people that are very, very successful, there's a reason for if you take a look at the people who have washed out, there's generally a reason for it. Generally, yeah, you know, you can't blame it on other people or other circumstances. Absolutely. And whenever I've lost the line, I've got to tell you, I gotta be in all, I'll get that certified letter in the mail, and open it up, we're shaking hands and go, you know, Mr. Hammond, this is to inform you that your surfaces. And you know, after you kind of cool off a little bit, you sit down you go, Oh, you know what, maybe, maybe this was my fault. Maybe I didn't do something that I should have been doing. So you do need to be again, I like your expression, Lee, you need to be true to yourself. Now what, especially when you're in business for yourself.

 

The Mag

 

Right? Because you're an entrepreneur, I mean, you're in an eat what you kill kind of world. So when that's the case, you The buck stops with you. I mean, ultimately, this is your show. So circumstances may occur, but ultimately, you're responsible. 

 

Jeff Hampton:  

Yes.  Getting back to another question.

 

The Mag

 

No, you go, you go 

 

Jeff Hampton:

  

Well, I just getting back to another kind of something that you alluded to, and, and sometimes you know, I think God is just selfish of me. You know, I got when I have a success, I want to be rewarded for it. And if I fall flat on my face, I should be the one that suffers the consequences. So the beauty of this business is that I know definitively if I have or haven't been successful, you know, I don't have out to go in every six months and get an evaluation by a manager that, you know, when I'm successful, and I'm doing my job and doing it, well, I'll see my Commission's go up, if I'm not being successful, and I'm not doing exactly what I should be my Commission's are going to fall. And that is the kind of see I'm a kind of person that needs very, very definitive feedback. Be true to your softly, I have said that I would find it hard from just personally working in a job where I wasn't quite sure if I was really being successful, and what and what I am. And maybe that's just because I kind of sneak in reports short and long, I can't figure out how to do it. But I like the definitive feedback that it gives you you can you can take a look at those commission ships going in every month. And you know, definitively again, how am I doing? How am I doing?

 

The Mag

 

Now? What can we be doing to help you? What do you need more you need more things to sell? Are you looking for more lines? Are you looking for more opportunities within your existing customer base?

 

Jeff Hampton:

  

Do you want a short answer?

 

The Mag

 

Any answer?

 

Jeff Hampton: 

  

No, I have done. When you talk about benefits. This is absolutely one of the beauties of being an independent contractor independent sales is that I'm at such an age. And if you're good at math, you can kind of tell how old I am. Because I was in high school from 66 to 70, and college from 70 to 74. So you kind of get an idea of how old I am. So I am now in what you would say the semi-retirement mode. And, again, the beauty of being independently employed is that if I only want to, work now 2025 hours a week, and still get the feeling that I'm being somewhat productive, maintaining the customers that I have now that I can do that. So at this particular time in my career, I would say this to people, would you allow me to get off on another little tangent and go right, I looked at doctors and lawyers. 

 

And I know some lawyers, leaders, they're at 80 to 85 years old, and they're still practicing. Now. They're only keeping their existing customers. And they might only be working 20 hours a week, but they're still working. So that is one of the true benefits that I've just started to realize in the last couple of years of being an independent sales is that you have the ability to slow down on a gradual basis. Unlike some of my other friends that, you know, one minute they're working 40 hours a week, the next minute they're retired and at home.

 

The Mag

 

All right, well, that's a trap, too. I mean, retirements, a kind of a trap, too. Because every day you have to do something, you might as well do something you like, you know, it doesn't have to be work if you like it.

 

Jeff Hampton:

  

Bingo. And that's exactly what it is with me at this particular point. So to answer your question, no, I'm not out actively looking for new firms to represent. I'm not like I was when I'm 30 out there like you know, like a bloodhound, or bird dog is what they used to call us, you know, hunting for new accounts and beating on doors and trying to develop new relationships. No, I'm extremely satisfied with the status quo. I've informed the firms that I'm with that. Ladies, gentlemen, I'm not going to be out there prospecting for new customers, if that's what you want to add some additional salesforce to so but I appreciate the thought and the question that if I was searching for anything that you'd give me an opportunity to, to make that point on here. Again, I appreciate it. Thank you, Lee.

 

The Mag

 

Well, if somebody wants to connect with you and learn more about what's got going on, maybe you're in the stage where you're mentoring and kind of solidifying your legacy out there in the world. Is there places to connect with you? Do you have a website or LinkedIn or someplace to get a hold of you?

 

Jeff Hampton: 

  

I don't have a website, or I and I used to use LinkedIn when I was very aggressive. And let's see, what do Yes, you can find me on LinkedIn. Jeff Hampton Beta Sales.

 

The Mag

 

Good stuff. Well, Jeff, thank you so much for sharing your story. What a career and what a legacy you've left. Thank you.

 

Jeff Hampton:

  

Lee, you're a tremendous, very insightful question. Take care of my man.

 

The Mag

 

All right. This is Lee Canter. We'll see y'all next time on Detroit Business Radio.


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