When a manufacturer complained how the lack of tenure among his direct sales force coupled with the expense of maintaining the factory salespeople was crippling his sales activities — not to mention his bottom line — he listened attentively when we cited the following study.

“One in five sales workers are not happy in their current positions, and 33% say they plan to change jobs by the end of the year, according to a recent CareerBuilder.com survey. Workers cite dissatisfaction with pay, increased workload and the lack of career advancement opportunities as the leading factors influencing their decisions to look for new opportunities this year. The survey, Job Forecast 2006 — Sales, was conducted from November 15, 2005 to December 6, 2005.

“The biggest concern on the minds of sales workers continues to be compensation. Fifty-five percent of sales workers say they were not given a raise last year and 67% did not see a bonus. It is not surprising that 53% are expressing dissatisfaction with pay.

“Sixty-one percent say their workloads have increased in the last six months, while 43% feel their workload overall has become unmanageable. Juggling the additional work and at-home commitments is proving problematic for sales workers. Thirty-six percent report dissatisfaction with their work/life balance, an increase from 27% last year.

“Moving ahead in the company is proving to be a challenge for sales workers. Eighty-two percent say they were not given a promotion last year while 35% percent say they are dissatisfied overall with the advancement opportunities available to them in their current positions.

“‘Top sales performers know they are in demand and are more likely to join a company that is offering them a better deal,’ said Mary Delaney, chief sales officer at CareerBuilder.com. ‘To manage the increased competition for top sales workers, employers need to be more creative with their recruitment and retention strategies. In an attempt to strengthen their sales forces, sales workers can expect to see companies offering more attractive packages including increased pay and flexible work schedules.’”

The manufacturer in question continued to show interest when we went on to educate him to the fact that while the figures cited in this survey were widespread, they wouldn’t affect him if he partnered with independent manufacturers’ representatives to be his face in the territory.

What One Manufacturer Values in His Reps

Two things that one manufacturer looks for in his reps are a voracious appetite for knowledge and a willingness to visit the factory at least annually. According to the manufacturer, “We’re relatively small and don’t necessarily have the same presence in the marketplace as our larger competitors. Of greatest assistance in getting attention for ourselves are our reps, especially those that have exhibited a drive to stay ahead of us on the learning curve. And when I speak of the learning curve, I refer to not only their knowledge of what’s going on with their customers and in their territory, but also in terms of improving their sales skills. Many of the agencies that we work with have not only participated in MRERF’s CPMR program, but they’ve followed up with regular product and sales training sessions. Then there’s the matter of keeping up with the technological tools we use to conduct business today. I can’t count the number of times we’ve picked up tips on how better to communicate with other reps.

On the other matter of scheduling regular visits to the manufacturer’s factory, he noted that the rep who takes the initiative to complete these visits really shows they’re serious about the relationship. “We even have one rep who schedules the next visit as soon as he’s completed the last trip here. He maintains that this allows him to better keep up on our new product developments, and renew contacts with factory personnel with whom he is in constant touch during the year. “In addition, since he’s got plenty of time alone with our management team, he always brings matters of concern to our attention during his day-and-a-half stay here. We get more done in that short period of time than we ever would by visiting him in the field.”

Growing Too Big and Out of the Relationship

One manufacturer who described himself as being “on the small side” made it a habit to go to market with small agencies, generally in the range of a one- to three-man operation. When one of his agencies began to grow its business exponentially, however, it got the manufacturer’s attention. His immediate reaction was that he was no longer getting his fair share of the rep’s time and there was little he could do to rectify the situation. Instead of letting the problem fester and grow, the two had a sit-down meeting which resulted in a parting of the ways. Rather than have this scenario sour what had grown into a great relationship, the two agreed this was the best route to travel. For his part, the rep helped quite a bit by recommending three other reps in his territory, one of whom is now representing the manufacturer — and doing a great job at the same time.

Providing Extra Care for a New Customer Pays Off

A manufacturer reports that following a rep’s suggestion has solidified his relationships with new customers. “I began working with a rep in a territory where we had very little business, so virtually everything that developed was new business. When business began picking up steam and we really began moving, my rep made a suggestion that I thought was terrific. Because our goal was to establish lasting relationships with these customers and to become the one they think of when they need the product we manufacture, he urged us to take extra care. Once again, per the rep’s suggestion, when new orders came in, I had them singled out for special attention. I sent a personal note to the customer acknowledging their first order, thanking them for the business and asking them to submit any comments relative to how we could improve our service. After the order is received, we conduct a strong follow-up, all with the goal of securing us in the minds of the customer.” The manufacturer maintains that this process has served him well even in the face of strong price competition.

More on the Perfect Principal

After two years, Agency Sales is still working its way through the lengthy list of “Perfect Principals” that reps have recommended to us. One late-comer to the recommendation process was overly enthusiastic when instead of recommending one manufacturer to our list, he suggested three of the principals that he works with. We contacted him and whittled the list down to just one that we will profile in an upcoming issue. There was consistency in his recommendations, however. Included as a part of the comments he attached to his letter were the following points that were consistent with each of the three manufacturers:

• They have insisted that we complete regular visits to the factory. Once there, the people go out of their way to accommodate us and make us feel as if we’re an integral part of the team.
• They generously support us in our joint field visits to customers, and they always allow us to take the lead in presentations to customers.
• Their in-house rep-support teams are outstanding. When we contact them there is no problem left unsolved, no question left unanswered.”

Sounds like attributes that any rep would value in their principals.

Quickly Correcting an Error

“Did I make a mistake!” But, at least I learned in a hurry and corrected it.” That’s how one manufacturer described the situation shortly after he had made the move from direct sales to independent manufacturers’ reps. According to the manufacturer, “Because I no longer had a salaried direct sales force, I didn’t have the salaried rep support staff in place prior to making the switch. If I was able to learn anything from the experience that I could pass along to others, it’s this: Remember, your reps are your ‘sales partners’ and they need as much support, if not more, than your direct people ever did.

“Since I was saving all that money on salaries, it was the opportune time to beef up the inside staff.

“Training the inside people on how to work effectively with reps is critical. And, it’s not a one-time deal; it’s an on-going process.

“With the aid of my reps, I now regularly conduct ‘audits’ of my inside staff to ensure they are performing at a level that makes the outsourced sales force function as easily as possible.”

Training Works Both Ways

In the midst of a conversation with a rep about the concerted effort he’s made to keep his staff well trained on both sales and product matters, the rep offered this opinion on manufacturers and the training they make available to their salespeople: “Training had better be as important to them as it is to us. From the vantage point of my more than 30 years working as a rep, I can say that it’s the manufacturers who truly value the importance of training that are the easiest to work for. They learn what we’re up against and they can anticipate problems and solve them before they grow larger than they should.”