Prysmian Starts with a New Slate of Reps

In a move that shocked most in the industry, Prysmian announced its new independent manufacturer electrical sales rep network and all of them are new … the Encore sales organization!

As everyone recalls, Prysmian surprised the industry with an announcement in April of a tender offer to acquire Encore Wire. All of the Encore Wire reps were concerned about retaining the line. Many hoped that Prysmian would, perhaps, run a split organization … industrial wire and construction groups. Based upon marketplace feedback, reportedly some Prysmian agents “expected” to win / earn / receive the Encore package.

But Prysmian threw a knuckleball pitch. They went for a “clean sweep.”

Prysmian Changes Reps

According to a Prysmian press release:

Prysmian, a world leader in the energy transition and digital transformation, alongside Encore Wire are pleased to announce our new combination of best-in-class sales representation for the U.S. industrial and construction market with the following agencies:

• AJB Sales: Minnesota, West Wisconsin, North Dakota, South Dakota, Montana
• Apex Electrical Sales, Inc.: Arizona
• Arthur A. Boyle, Inc.: Indiana
• Callas Kingsley Electrical Sales: Illinois, E. Wisconsin, N.W. Indiana, N. Michigan
• Cascade Western: Oregon, Alaska, Washington, Northern Idaho
• Convergence Partners, Inc.: Kansas and Western Missouri
• ESP (Electrical Specified Products): Colorado, Southwest Nevada (Vegas) and Eastern Wyoming
• Enhanced Electrical Sales: South Texas, Houston Metropolitan & Valley
• Gallagher Sales Associates, Inc.: New Hampshire, Maine, Vermont, Connecticut, Massachusetts, Rhode Island
• Gen-Mark: Western Pennsylvania and West Virginia
• Gorin-Cockrell-Decker FL (GCD): Florida
• Gorin-Cockrell-Decker (GCD): Alabama, Georgia, Florida Panhandle
• Gumersell Cashdan, Inc.: New York (Long Island, Westchester, Rockland, Putnam & Orange Counties), Northern New Jersey
• Healy-Mattos: Northern California, Northwestern Nevada
• Interwest Electric Sales: Utah, Eastern Nevada, Southern Idaho and Western Wyoming
• Joe Bertsch Electrical Sales Company: Iowa and Nebraska
• P. Chick Company, Inc.: Kentucky
• McCreary Sales: Texas (excluding S. Texas and Houston Metropolitan & Valley), Oklahoma, New Mexico
• McDonough & Associates: Michigan
• Meridian Electrical Sales: Maryland, DC, Northern Virginia
• Nelson & Associates: Southern California, Hawaii
• Power Corp. – Arkansas: Arkansas, Louisiana, Western Tennessee, and Mississippi
• Power Corp. – Tennessee: Middle and Eastern Tennessee
• Riffle & Associates: Ohio
• Schaeffer Marketing Group, Inc.: Southern Illinois, Eastern Missouri (STL Metro)
• Synergy Electrical Sales, Inc.: Eastern Pennsylvania, Southern New Jersey, Delaware
• Vincent-Angel, Inc.: Virginia (excluding NOVA), North Carolina, South Carolina
• Wire Core Sales: Upstate New York

Prysmian and Encore believe these agencies bring strength and expertise, ensuring both companies continue to deliver top-quality products and services to customers.

For additional questions, please contact Prysmian’s Industrial and Construction Team at +1 (800) 243-8020 or locate your representative at https://www.encorewire.com/where-to-buy/index.html.”

Thoughts

• Isn’t it interesting that the link at the end of the press release is to an Encore website?
• We’ve heard that all reps were interviewed from both sides, so everyone, theoretically, had a chance, so “Why a clean sweep?”
• While Encore has had a sterling customer service / ease of doing business reputation, there were many good Prysmian reps (unfortunately I don’t know all of them, so I don’t want to say “all”). It is very doubtful that all Encore reps outperformed all Prysmian reps and, if they had, that the outperformance was long-term and systemic to justify a complete change.
• Some large reps, especially Ewing Foley and Lester Sales, that lost the Prysmian line were long-time agents who grew their agency and Prysmian grew with them / expanded their territory. Why did large agencies lose?
  • And what does this say about the concept of “strategic partnership” between manufacturer and agency?
  • Or, as someone suggested, perhaps Prysmian was seeking a reason for change (but no one knows why, maybe next we’ll hear that Prysmian corporate, or at least sales, is moving out of Cincinnati and relocating to McKinney, TX? Maybe Prysmian is looking for a cultural / process change, and it starts in sales and the reps were “in the crossfire?”)
• In reviewing the Encore reps, and Encore sales data, did Prysmian see a different value proposition for more “focused” / “locally owned” agencies?
• There will probably be personnel shuffling. Some of the agents will need to staff up, others will be seeking to “right size” their business. In the words of one agent, “this could represent 30-40% of an agency’s business.” A rep that represented neither of these lines commented that he felt that he could have some personnel opportunities for an outside salesperson.
  • So, from a “wealth movement” viewpoint, there are about 12-13 reps who were significantly disadvantaged and 28 that gained business.
• A west coast agency theorized that the change could open the market to additional import lines.
• Does this make a difference to distributors? From a distributor viewpoint, does moving to a different rep network help Prysmian grow its “legacy” business?

Now, every one of these agencies, and their principals, are well-known to Encore senior management and sales management. They are proven agencies that delivered for Encore and are quality agencies. They’ve all been recipients of a new line. New product to learn. Perhaps new end-customers to connect with. Some technical aspects to learn. Maybe different buyers within the distributor sales organization but nothing that they cannot overcome. So, it’s not as if the new slate does not know the market or most of the product category. Some have gotten to know the people. All will need to learn new processes (unless those too change … wouldn’t you like to know who is on the integration team?)

It is an interesting move that befuddles many, but that’s what makes the industry exciting!

Thoughts?