Lessons From Rep Firm Closing Down

Author: Brian Karas, Published on Aug 12, 2016

2016 has been a tough year for rep firms. Earlier this year CV Reps, which had been Arecont's largest rep, closed down their business, and now another firm, Murphy & Cota announced the end of their operations.

We spoke with one of the principals of Murphy & Cota, Russ Moore, about what led to the business shutting down, and what he learned from running the firm.

**** *** **** * ***** **** *** *** *****. ******* this **** ** ****, ***** *** **** *******'* ******* ***, ****** **** ***** ********, *** *** ******* ****, ****** & **** ********* *** *** ** ***** **********.

** ***** **** *** ** *** ********** ** ****** & ****,**** *****, ***** **** *** ** *** ******** ******** ****, *** what ** ******* **** ******* *** ****.

[***************]

Overview ** *** *****

*** ***** *** ********** ** ******** *************, ********* *** *** product ********, ** **** ***** ***** ** * ***** ********* / ******. **** *** ********* **** * ********** ** *** sales ** *** ****** (******** ** *** *-**% *****). *** *** manufacturer, **** ******** *** ** ********** ******* **** **** *** paid ** ****** *****.  *** ****, ******* ****** ** **** a ****-****** ******* **** *** ** ******** ******* **** ********* get **** *** ***** **** ** ***** *********, **** ** they *** *** **** ****** *********** ** **** ****.  

*** ****'* **** ** ***+ ******** ************ ***************.

Reasons ****** ********

*** **** *** **** ******* * *** ***** *** * while, *** *** ******* ********* *********, *** ******* **** ************ into * ***** *********. ********** *** ********** ******** **** **** **** *** going ** *** * ****** ********* ** *** **** ***** they ******, *** ***** ** **** *** ******* ****.

Loss ** ***** ***** *** *********** ****

** *** ************, ** ********* ******** ** *** ******** ******* ***** ** ***** ******** *** * ***** ****** on *** ****. ** ** *** ******** *** * *** firm ** *** *** ******** ** ***** ****** **** ***** top *** *****, ** ****** *** ***** ***** ***** ** immediate ****** ** **** **** *** * **** *** *** be ***** ** * *** **** **** **** ********** **** / scale ** *** **** *****.

Agreements Are ***** ** *****

************** ********** ******* * ************ *** * *** **** ********** only ******* ** **** ****** ** *********, ********* ** *****. This *** **** ** *** ***** ******* ** **** **** an *********** ** **** ** * ***/****** ****, *** **** often ** *********** **** * ************ ***** * **** (****** because **** ************ ** ** ****** ***** ** *** ****, or ******* **** *** ***** **** ******* ****) ******* *******.

Complications ** * ****

***** **** **** ** **** ** ***** ** ************ **** a *** **** *** *********** **** ** *** *** ******** of *** ************* *** *********. ** *** ****** ************* ** *** want ** **** ** **** *** *** ****** ** **** obviously ****** *** ****. ** *** **** ****, ****** ************* ***** that *** *** ******* *** ** *** ******** ***** ***** them ** **** ***** ***** ** ***** ****** **********. **** can **** *** ******* ******* ** ******* *** **** ** for **** **********.

Solutions ******** ***** **** * ******* ****

****** & **** ********* ********** ** * "********* ****", ******* that **** ******** ******** ** ********* **** ***** ** ******** to ****** **** ** ******* * **** ******, ******* ** just ********* **********. **** ***** *** ***-***** ******* *********** **** time ********* **** ******* **** ****** *******, *** **** ****** selection ** ******** ** *****.  ** *** **** ********** * VMS *** * ****** **** **** **** * ***** ***********, and **** ***** *** ** ***** *****, **** **** ** either **** * *********** **** *** * ******* ***** ** interoperability, ** ******* **** ***** **** *** **** **** **** well ********.

***** **** *** ** **** "********* *****" ***** *** **** it ******** ****** ** **** ****** ** **** *** ********* not ******* **** ****** *******, ****** ** *** **** **** those ***** *** **** ****** ** *** ***** ***** *** so **** ** ********* **** **** **** ********** *********, ***** can ******* **** ***** *********.

Assets ** * *** ****

*** ***** ********* ** *** **** *** ***** ******** ******.  Instead, ***** ****, **** *** ****** ****** ** ***** **** recognition, ******** *************, *** ***** **** ** ***** ***. **** also ***** **** ** * **** ** ***** ****, *** the ****** ** *** ********* ** *** **** ** ** with *** ****, ***** ** **** ****** **** ***** ** the *******, ** *** ************* *** **** *** **** ******* would *** ****** ********.  ** *** **** ** ****** & Cota *** ********* **** ******* ** **** ** ***** * sale.

******* ** ****, * *** **** ***** **** *** * fraction ** ****** ***********, ****** ** * ********** ******** ** the ****** *** ***** *********** ******* *** ********** *******.

Options *** * *****

*** ***** *** *** ********* ********* ** ********** ****** ** equity *****, **** *** ***** ********* ** ***** ****** ** the ******** *** **** ** ****** ****** ** ******** ****, or ********** **** **** ***** *** **** ***** * ***. Because *** ***** **** ** *** ******** ******, * ***** has ** ***** ********* ***** ** ********** ** ******** ****, or ****** ******* ***** **** ***** ******* ******** * *** firm ** ***** ***. ** *** ***** ** ******* ****-********* and ****** ***** *** ******* ** *** ** **** ** justify ********** ** ******** **** **. ******** ***.

Working *** ************ ******

** **** ***** ************* **** **** *** ********* ** ** direct ***** ******, ** ******** ******** *** **** ****** ***************** ************ ***** **** ********* *** **** ** *** **, ***** *****.

Future *** *** *** ********

*** ******** ******** *** ****** ** *** ***** *** * long ****. ****, **** ****** & **** **** **** ** business *** *******. ** ** ******** *** ******** ******** **** move ***** **** *** *** ***** *******, *** ***** *** acknowledge **** *** ******** ****** **** **** ********* *** **** it *** **** ** *** ****.

Comments (24)

Undisclosed Integrator #1

08/12/16 01:19pm

**** ***********, *** ***, ***. ******** ***** ** ***** ****** disruption ***** ** ******* **** ****, ***** ** **** **** jobs *** ** *******, ***. ***** * ******, ******* ******** article ** * ****** ** ** ***** ***** ******** ****, how **** *** ** ** **** ********* ***... ** **** went ** ******* *** **** *** ** ***, ***** **** want * *** ** * *** **** *****.

Kris Hornung

08/12/16 03:35pm

****** *****

*** *** ******* **** ******** **** *** *********** ** ** members

** ***** * **** *********** ** *** ********** *** ***** face ** ******** * ********** *** ******** ********.

Thumbnail brk1

Brian Karas

IPVM | In reply to Kris Hornung | 08/12/16 05:28pm

****** ****!

Undisclosed Manufacturer #2

08/12/16 04:57pm

** * ******** ***, *** ******* **** ***** ** * do, * ***** **** *** **** ** ** **** ********* to ******* **** * ***** **** ****, **** **** ******* little ******.

* ***** ****** ************ ***** *** *** ********, *******, *** the **** ** **** ** ******* *********** **** ****** ********** and ******* *********.

** ******* ** **** *** ***** ** ******* ***** **** by ************* ** ***** ***** ********, ** **** ***** **** from ****, ** * ****** ** *** ********** ***** **** find ********** **. ** ******* ** ********* (*** ******) ******* downward ***** ********* ** * **** ***** ****. **** ************* are *** **** ** ******* ***** ** ********** ***** **** solutions, *** ***** ***** *** ***** ***** *** *** ******** of ***** *******. **********, **** ****** ************* *** ******** ******* more *******, *** ** ***** ******, ** ***** ***** ******* are ******, **** ****** ********** *** ******** *********.

*** ******* ** ****** **** **** **** *** **** ********, however, *** **** ***** **** *****, ** ** ****** *** in *** ****.

*** ******** ***** *** **** ** **** **** *************, **** outside *** *********** ******** ********, *** ******** ******** *** ************ into *** ********, *** ******* **** **** **** *** * very **** *** ** ******* ***** ******** *** ******** ** front ** *** *********** **** ******* *** *********** ** * timely ******, *** ** * **** **** *** ******. ****, these ************* ******* **********, *** *** **** ** ** *********** business ********, ***** ****** ****.

**** *** **** ********** **********, ********** *** *********, *** ******** to ** **** ******, ** ***** ** **** ***** *** challenges. ** **** ** **** ***** ****** ***'* ****** *** prospect ** ********* * ******** ****** **** * *** ****, and **** ****** *** ******* *****.

* **** ***** **** ******* ** ***** *** **********, *** I ****** ********* **** *** ************* ** **** ******, *** talents ** **** *********, *** *** *********** ** *** ** the ********* ***** *************, **** ******* *** *********** **** *** us ******* **** ****** ******** *****.

Thumbnail brk1

Brian Karas

IPVM | In reply to Undisclosed Manufacturer #2 | 08/12/16 05:28pm

* ***** *** ***** *** *****/*** ***** *** ********** *** be *********** *** *******.

** **** ****, **** **** *** ** ** *********** **********, bringing * *** ** ******** ** ***** ********* **** *** be **** ** ****** * ******** ** *** ********** **** not **** ** ** **** ******** ** ***** ***.

** *** **** ****, ************* **** **** *** ** *** solutions **** **** ** ******** ************* **** **** **** *** a ***, ** ** **** ***** *** *** **** ** use **** *** **** ** ***** ************* ******** ***** ******** for ******* ********.

******* * ***** **** ******* *** ******* ************* *** **** in ****** ******, *** *** ******* **** ***** ***** ** they ***'* *** ***** ****** *********** ** **** *** ******** viable.

Thumbnail lrg button

Chris Lanier

08/12/16 06:56pm

**** * ** **** ******** *********** ********* ** *** **** years ** * *** ****, *** *** **** ******** *** correct- ** *** ****** ********* ********* *** **** ******* ** the ****** ***** *** ***** **** ************* *** **** ********* to ******* **** ****** ***********, *** *** ******* *** ************ have * ****** ******.

* ***** **** ** ******* **** ****** ********** (***** **** are ************* ********) ****** ** ******* **** *****. **** *** relationships *** **** ******* *** *********** ******* **** **** * partner **** **** **** *** *** ***** **** ******** *** is *** ********** ** *** **** ******* ************ *******. ********** dealers *** ** **** ****** ** *** ******* ******, *** some ** ***** **** ***** *** ***** ******* **** ******* warning.

**** ***** ***** ** **** **** *** ***** *********** ** far * **** *** ****** **** **** (*** *** ********) are ** *** ***** ** ***** ********.

F. Dee Boyd

In reply to Chris Lanier | 08/12/16 11:06pm

**** ****, *****.

*** *** **** ****** ** **** *** **********.

Thumbnail bill 5 2015

Bill Parker

08/14/16 08:37pm

**** ********** ******* **. *****. ** ****** **** * ****-** call *** *** *****.

**** *** ******* *********(*) ** ****** ******** **** *** *** model ** ***** *** **** **** ***** ** ******* ******* the *** **** ********** *** ** ** **** ***** *****. There *** ******** ***** ***** *** *** **** **** ** outcome **** * ******* ** ******* ** **** *********. *** other ***** **** ******* ** *** *** **** *** ****** irrelevant ** ***** ********* ** **** **** ***** * ****** to ***** ****. * ***** ** ***** ** ** *********** rep ** ******* ********** ******** *** ** *** * ***** career ***** * **** ** *****. *** **** *'* ** the ******** ******/********** **** ** ****** * ******* *** *** Firms *** ******* ********** **** ******* *** * ****** ******* with *** ****** ******* ** ** ******** ********. ** ***, I **** **** *** ******* ****** ***** ***** **** **** than * **** *** *** *****. *** ******* ****** ***** folks **** **** **** ********* **** *** *** ***** *** to ** **** ** **** *************. * **** *** *** Firm * **** ***** **** **** ** **** ** * months ****** *'** ********* * ** ***** ************'* ****** ******* in *** **** ** **** **** ********* *** **** *********. Maybe ****** ** *** ******** *** **** ******** **** ** be ****** **.

**** ****** **** ***** ****** *** **** *** *** ****** different *******. ** ** ********** ** **** **** *********** ******** the *** **** ***** ******(*) **** ** ******* ****** ************* or ************* ** ***** **** ***** ****** *******. ** **** don't, **** *** ************* **** ******* **** *** **** ***** select ** ******* *** *** **** *****. **** ** *****'* come ** **** ******* *** *** **** ***** *** **** effective ** *** ***** ***** ***** **** **'* **** *****. BP

Undisclosed #3

In reply to Bill Parker | 08/14/16 10:24pm

**** ****** **** ***** ****** *** **** *** *** ****** different *******.

*******,

**** ****** **** ***** ****** *** **** *** *** ****** the **** ******* ******.

** *** ******** *******, *** ***'* **** *** ***** *********** is ***** ******** ** ******. ** *** *** *** * rep *** ** ******* ***** ***** *** ** **** ****** yesterday.

Thumbnail portrait

John Day

08/15/16 03:31pm

* **** **** ** *** **** ** ****** *** ***** 15 ***** ** ********. *** ******* ********** * **** *** is **** *** ****** ********* **** *** ******* *** ******* had ****** ** ** *** ** ****** *** *** **** value.

** ** *******, ** **** ** ****** ******* ** ********* systems **** *** ******** ******** ************ *** ***** ** ****-****** to ***** ************. *** ****** ** ****** ********** ******* *** a *** ** ************ ********* ** ************* ********* *** ***** of *** ********* ** ********.

***** ****** - * ******* **** (*** ** ******** **) the ********** *********-***** *** ***** ** *** ****** **** ** providing **** ******* ***** ********* *** *******.

* **** ***'* *** *** ****** ******** ********* *** **** opportunities *** ****** **** **** *** **** *** **** *** camera *** ******. *** ********* ********* ** ********** ******* ***'* there **** *** ****** **** **** ** **** $*** ** now **** **** $**!

****** *** ******* **** *****-

Undisclosed Manufacturer #4

08/15/16 04:07pm

**** ** * ****** *** * **** ***** ** *** firms * ****** *** * *** ******, ** ****...**** **** implemented *** ***** **** * **** **** ******** *** *** at ** *******, *** ***** **.

********* **** ******* ******** ** ***"****** *****" ** *** *** firms *** ** ****** **** ************ *** *** **** ****. But *** ******** *******'*. **, **** ** *** * ************ judges ***.

#* *** *** ******* *** ********* ***** *** ****** **** they *** ******* ***?
#* *** *** ****** *** ****** *** **** *** *****?
#* *** *** ******* ****** ***** / ******* * ***? (if *** *** ****, *** ****** **)
#* *** *** *********** * *****? (**** *** ** **** and ***)

********, **** ******** *** ******* ***** ** ***********....

*** *** ******* ** ***?

************* *** ******* ** *** ***** **** * **** *** salesman. **, * **** *** ** *** *** *** *** me. * **** *** **** *** **** ******* **** ***** the ***** *** *****, **** ** **** ** ** ***** their ***** *******!

** ********** ** ** ****** ** ******** *****, ******, ********** you ** *** *** **** **** **** **** ** ******* marketing ***** *** **** ** *** ** **** ************* ** you **** * ****** **** ************, * ****** **** ** your **** *** ** ****** *** ****** *** (**) ** have ********* ** **** **** ***.

* ***** **** ******* * ***** ******* *** *'** **** manufacturers ***** ******* ****** ***** *** ****.

* **** ** *** *** ***** ** **** ******** **** a ***** ************ *** *** ******** ** **** ***** **** they *** *** **** *** ***** **** ************ ***, *** others *** ****** *********. *** **** ** * ******* *****.

Undisclosed #5

08/15/16 06:23pm

** ** ******** *** ******** ******** **** **** ***** **** the *** ***** *******....

*** ***** *** *** ***** ******?

**** ** ****** **** ******* ** * *-*% **********?

** *** ******* **** *** ****** ******** ** **** ** option?

**** ** ****** **** ******-***** *******, ***** ******* *************/***** ** replace *****'* ****-**-**** **** *** ****** ********?

Undisclosed Manufacturer #2

In reply to Undisclosed #5 | 08/15/16 08:55pm

"**** ** ****** **** ******-***** *******, ***** ******* *************/***** ** replace *****'* ****-**-**** **** *** ****** ********?"

******** ** ****** ** ********* ******** ******, ** ** **** told ***** *** ***** ******...**** **** ** **** ******** ***** be ******** ** ******* ************* *** ***** ********** *****.

Thumbnail brk1

Brian Karas

IPVM | In reply to Undisclosed Manufacturer #2 | 08/15/16 08:59pm

**** ******* ** ** *** ***** ****** ****** ****** **** back ** ~****. * **** ******* *** *** ******** ******* stores/demo ***** *** ******** ******* *** *********. * ***** ** one ***** **** **** ****** ** ******** * ******* ***** show ** ****. **** *** *** **** ***.

**** ** ***** **** ***** ** *********** **-******/**-**** ********, ********** for ****** **** ******* ***** * **** **** *** ** very ********.

John Honovich

IPVM | In reply to Brian Karas | 08/15/16 11:49pm

* ***** ** *** ***** **** **** ****** ** ******** a ******* ***** **** ** ****.

***** *** * *** ***** *** *** ******** * ******* it *** *********, *** ** ******* **** ** **** ***** but ** ** ************ *********** ******* ******:

* **** *** **** ****** ** *** ******** ** * 'virtual ***** ****' ** *****.

Undisclosed #3

In reply to John Honovich | 08/16/16 01:23am

*** ***** *** ******* ***** **** *** *** ***** *** it, ** ********** *** ***** ***** ***** *******. ***** ** your ****** *********** ** **** *******, *** ***** ***** ***** take ** * ********** *********** ***************.

**, ** *** ******** *****, *** ***** **** * ****, female ** ******** ******** *********. *** ***** *** ***** **** get ***** *******!

****: ******** ********* *********** ** ****.

Undisclosed #3

In reply to Undisclosed Manufacturer #2 | 08/15/16 09:07pm

...**** **** ** **** ******** ***** ** ******** ** ******* presentations *** ***** ********** *****.

** *** **** *** **** *** *** ******, *****'* **** create **** ************* *** *** *** ** *** ***** *****?

Thumbnail bill 5 2015

Bill Parker

In reply to Undisclosed Manufacturer #2 | 08/15/16 09:29pm

***** ** ** ******** ********** *** **** ** **** *************. The ******* ***** ***** **** **** ** **** ** * good ******** ****, *** ** ****** ******* ******** *****. ***** to ***** *********** ** *** ****. **** ***** ** * Rep ** ******* ***** *** ** **** *** * ****** by *****. **

Undisclosed #5

08/16/16 02:06am

***** ** ** ******** ********** *** **** ** **** *************.

******, *** *** ******** *******, "*** ***** *** *** **** model ******?"

**** ******** ****** ******** *** *** **** ******/****-****** ******** ** Rep ***** ***** *** ******* *****, ***** ** **** **** funding ********* *** **** "***** *** *****" ************* *******. ** I *** **, **** ** *** ******* ** ***** ** find ********* ** ** ********.

**** ****** * ************ ** **** ******** ** ***** ** response?

Undisclosed Manufacturer #4

08/16/16 02:09am

*** ***** **** ** *** *****, *** ********** *****.

Thumbnail lrg button

Chris Lanier

08/16/16 02:45am

***** *** *** **** ******** ** **** ******* ************* *** build * **** *********** *******, ******* ************ ** *** ** cannot ******* * ************* ********* **** ** ********* ******** ************ and ***** *** **** ** **** ** *** ****.

***** * *** **** ******* **** **** ********* ** ** conjunction **** * ************ ******* ** ****** ** *** ****** resources *** ********** *********** ***** ***** *********** ** *** ***********.

**** ***** *** ***** ** ** ****** ** *** ********, but * ****** ***** ***** *********** ***** **** ***** **** towards *** **** ***** *** ** *** **** *********.

Thumbnail img 0006

Ted Curtin

08/16/16 11:45am

"***** * *** **** ******* **** **** ********* ** ** conjunction **** * ************ ******* ** ****** ** *** ****** resources *** ********** *********** ***** ***** *********** ** *** ***********."

**** ****, *****. *** **** ********** **** **** *** ***** must **. ** **** **** **** ************* *** ******** ** for **** **** ******...**** ** *** ******** ** **** **** are ****** "*********" ** *** ****** *****. ******, **** ****** to ** *********** *** *** ***** ** * "*****" *** to *** ******** *** "***** *** ****" ** *** **** sales *******. **** ***** **** **** ** ** ** ***** marketing *** ** ****, *** ****** ********* ** ******* ***** show **********, ********** ** ******** ************ **** ** ***, *** the ******** ************* ** ***** ******** ******.

**** ***** ***** *** ******* ******* $***-$***, ** ***'* **** to ***** **** * ************ *** **** *** **** * long **** ********** ** ********** * **** **** ***********, *** one **** **** *** **** * **** ** ***** ****** in *** ********.

*** ******** *********** ***** ** ****, ***** ****** ****** ** not ********* **********, ***** *** * ***** **** *** ************ coming *** *** **** ***** ********** ********* ** *** *********. IoT *** *****-***** ******* *** *** **** **** **** ********* costs, *** ***** * ********* ******* ***** **** ** ** line **** **** ********* **** ****** ********** ** ** ***** daily *****. ** ***** ******** ********* ******** ** **** **** will ** **** **** ********** ********, ** **** **** ****** look ** **** ** **** *************.

Undisclosed Manufacturer #4

In reply to Ted Curtin | 08/16/16 03:28pm

***** * ***** **** *** ***** ****** ****** ** ***** of ************* ** ******* ***** **** **** *** ***** ***** to *** *** ************* **** *********, * **** ** ********* the **** **** "*** ****** ***** **** *** ****** **** brought ***".

*'** **** * ****** ** ******** ** **** ***** ** heartburn ** * ************ *** ******* *** *****.

** ** ******* * ***** ****** $*,***.** ** $*,***.** ********** a ****** *********** ***** ******* *** **** ** *** ***** and ******** ** ******. ***** * *** ** ** *****, man ** ***** *** ****** ***** *** ** *** **** to ****** ** **, **** *** **** ********** *** * other ****** *** ************* **** ***'* **** ** *** *** busy ******* ****.

**** *** "***, ****** *** ***** ****" *** * ***** "Sorry ** ******* ***"

* *** ***** ** **** (******) *** ************ ** ** set ***** * ** ** ****.

**** * **** **** ** "***, ******** ** **** ******* every ***** ************ ** ** **** **** **** ***". ** should **** **** ******* ****.

**** * **** ** "***, ******** **** **** ************ ****** me ** * ****** ***'* **** **** **** ** ********".

** *** *** * *** ****, ******** **** ******* ***** rule. **'* *** **** *** ****, **'* **** **** *****.

*** ** ***, * ******* *** ***** *** * ***** overall ***** *** ***** ******* ** *** ********, *** ******** and *** ************. * ******* *** ***** ** ******** *** that *** ***** *** ********* ***** ** *** ***** ** their ***** ************.

***'* ***** ******** ******** *****?

Thumbnail img 0006

Ted Curtin

08/16/16 05:49pm

"* **** ** ********* *** **** **** "*** ****** ***** with *** ****** **** ******* ***".

**** **** **** ****, *** * ******* ***** **** *********** attention ***** ** ** **** ** *** ***** **** *** have ****** ** *********. *************, ***** ************* ***** *** *****-**** representation ******* ***** **** ****** **...* ******* **** ****** **** into ************* ***** ** *** ************ **** **** ********** ******* of *****-**** *******, *** **** ***** **** **** ************ ******* the **** *** ***** ******** ** ***** ******* ****.

**** ** *** ***** *********...** * **** ****** ******, ** a **** ***** ****, *** ***** ** **** **** ****, and **** **** *** ******* *** **** ***** ** ************* I **** *** **** ** ******** ******** *** ***** * may ************ ***** **, ** ** *****/*******/**** ***********, ** ** I **** **** *** **** ***** ****** ***** ** *** territory *** **** * **** ******* ** ************* **** ***** they *** ***** ** ******* *** ****** *********, ***, ** by *** ***, **** *** **** *** **** **** ****?

**** ************* ****-**** **** *** ***** **** *** ***** ******* reps *** ****** *********, ***** ** *** ********** **** *** new ***** *******/********* ****** **** ***/***. **** ***'* ****** ***** with *** ****** **** ******* ***.

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