The power of personal relations….

“Whenever I’ve reached the point in negotiations for a line that I’m anxious to obtain and I sense the manufacturer just needs that extra push, I do something; I do something that I’m not sure other reps would do.” That’s how one rep described the extra effort he would make if it came to getting or not getting the super-synergistic line he’s looking for. “During the prospective principal’s visit to my office, I’ll plan a couple of calls in the field with some of my best customers. I do that to show him the real world I work in and to assure him that I truly have the contacts with the customers that I say I do. This has been especially beneficial for me in the last three months when I’ve landed two of the lines I needed. I was confident — and my confidence paid off during the visit — that I could show him I had a personal relationship with all the major buying influences with my customers. In both cases the principals and I reached an agreement for me to represent them before the day was out.”

This rep was quick to admit that not all reps were as willing to provide personal customer introductions as he was. He betrayed no apprehension in doing so, however, because it was made clear to the principal that the rep was the contact the customer depended upon and the customers weren’t interested in dealing directly with the manufacturer.

Reps achieve critical mass….

After an attorney familiar with rep law and a MANA/NEMRA-member rep joined forces for a presentation sponsored by nine rep associations late last year in Chicago, they both came away with the impression that these joint association meetings allow reps to achieve critical mass and learn from one another.

Taking part in the meeting were Gerry Newman, Schoenberg, Fisher, Newman & Rosenberg, Ltd., and Charley Cohon, CPMR, Prime Devices Corporation.

The premise for the presentation, according to Newman, was to emphasize how the rep should negotiate with his principals and what should be negotiated. Cohon, obviously, took the position of the rep and Newman that of the attorney. The dialog between the two took the shape of a typical rep seeking counsel from his attorney.

At the conclusion of the session both men emphasized how beneficial it had been for those in attendance. According to Newman, “It worked well because with the associations banding together to sponsor it, they were able to achieve a critical mass in terms of numbers. That’s something I doubt would have occurred if just one of the organizations put the meeting together.”

Cohon agreed when he said, “My overall impression is that pulling the associations together this way and presenting the attendees with the right topic is the way to go. I don’t know the exact attendance figures, but I think we had about 60 reps there. It would have been much less if only one association was sponsoring it.”

Among the subjects covered during the session:

• “We covered many of the concepts a rep has to consider when he’s presented with a new contract from a principal,” explained Newman. “One thing I always emphasize is that at the rep’s request, my practice is to look over the contract and then write him a letter explaining my position on the document. The letter is prepared in such a manner that the rep might find it constructive to send it right on to the principal with a note such as ‘I’ve asked my attorney to look this over, and here are his comments for your consideration.’”
• From his perspective, Cohon noted, “Another of the important topics we received solid feedback on was that of termination. What should a rep do after termination? Sometimes a principal wants a ‘non-compete’ agreement from the rep. The greatest value the rep has is his contacts in the territory. If he agrees to a ‘non-compete,’ what the principal is asking him to do is to basically shut down his business.”
• Cohon continued that another point that was driven home by both him and Newman was that “the time for the rep to ask for something from the principal is during the negotiation stage. When you’re in the middle of negotiations, that’s when you find out how much the principal says he wants you and how nobody can take care of you the way he can. It’s after the contract is signed, however, that it can be difficult to make any changes.”
• House accounts — “In one example on this subject, we discussed a rep who will take on a line even though he knows the principal is going to take back some of the customers as ‘house accounts,’” explained Newman. “We discussed this in the context of the rep allowing the principal to do that rather than leaving the principal altogether. But a tactic that can prove effective is for the rep to continue to work those accounts at very little or no commission. He does that to prove to the principal that he can, in fact, build the business. That’s a method to ‘earn your stripes,’ and show what you can do, then go back to the principal and convince him that you should take over those accounts.”

Cohon agreed with Newman when he said, “It makes sense to do that, but after you’ve worked those house accounts, you should expect commensurate compensation.”

Based on the success of this event, additional “all-rep” events will be planned in other locations around North America. Be sure to check chapter information on the MANA website, www.MANAonline.org. Information will be posted as it becomes available.

Giving a customer a choice….

After being asked repeatedly to sharpen his pencil and come back with a lower price for an important piece of capital equipment for one of his customers, one rep offers what he maintains is the perfect — for him — retort: “I don’t know how many times a customer has said something to me like, ‘You’ve done a great job on this quote. Your paperwork is all great, but the problem is your bid came in at $480,000 and our budget will only allow $450,000. What can you do?’ My answer is, ‘What part of the machine don’t you want?’ I know that sounds a little abrupt, but what it lets the customer know is that just as he appreciated the comprehensiveness of my bid work and paperwork, I also know I’ve done everything properly. As a result, there’s not much more I can do.” He adds that the responses he gets aren’t all that negative.

Evaluating sales types….

A number of reps’ eyes were opened in recognition of what a consultant had to say when describing the variety of sales types that seem to gravitate to agency selling. The consultant boiled down his sales types to three:

• Hunters — “You find a lot of hunters among direct salespeople. Their philosophy with the customer is, ‘I have a product, you have a checkbook, let’s change.’ They don’t like cold-calling. They think such calls are a waste of time. What they’d much rather do is to seek out the buyer and close the deal. Chances are there will be a lot of damage control with hunters because they’ve achieved the sale by getting people to do something they didn’t want to do in the first place. They’re motivated by money.”
• Farmers — “Salespeople in this category tend to gravitate to agencies. They’re into route sales — professional visiting and service calls. They like to ‘love bomb’ people. At some point in time it is their hope that the customer will simply throw them an order. They are the ‘conscience’ of your company and they’re constantly asking ‘Is this right for the customer?’ They wear their emotions on their sleeves. They are good at order taking and their paperwork is good. They’re not great at cold calling or closing the deal. They aren’t motivated by money.”
• Bees’ Nest — “This group is made up of people who are manic. They are into activity and are a whirlwind of activity. They’re always busy and always stirring up things. They have the gift of gab but don’t always do their homework. They love the cold call — but not for that long. This is another group that gravitates to the rep world.”

The consultant’s bottom-line message to his audience of agency owners was, “As early as the hiring process, recognize what talents the salesperson possesses and determine if those talents mesh with the needs of the agency. Don’t be afraid to make adjustments if the prospect isn’t everything you’ve been looking for. Many success stories are told about the salesperson who’s been able to make adjustments and fine tune his talents.”