If there is any one attribute in the manufacturer-rep relationship that is emphasized more than others in the pages of Agency Sales, it’s probably the importance of communication — whether from the manufacturer to the rep or the rep to the manufacturer. The importance of executing a truly seamless communication process can’t be understated. Recently an example of effective communication came our way in the form of a memo that Bo Anderson, president of Glens Falls, New York-based Danfoss Flomatic Corporation, sent to all of his manufacturers’ representatives and employees. With Anderson’s permission, we reprint that memo below:

“Dear Fellow Employees and Sales Representatives,

“First, congratulations on the 45%+ sales increases in May!

“What a valve team!

“Our independent sales representative organization is growing, with several new agencies with many additional salespersons. This past week we held a product sales training seminar to assist our new sales reps. It is our hope that with both classroom and hands-on training at our training facility in Glens Falls that our new sales reps well be better prepared. The interactive sales training was well-attended by sales reps from the United States, Central America and Canada. Danfoss Flomatic has broadened its product line. Our independent sales representatives work primarily on commission and pay their own expenses in return for a contractual agreement to be the exclusive ‘agent’ of the manufacturers they represent in a given territory, market, or for specific accounts. They earn their income by leveraging their time so that sales of complementary products from multiple manufacturers can be made with the same customer — often on the same call.

“Our strong sales and product growth makes sales and product training of our sales reps more important than ever. Nick Farrara, VP sales and marketing, was assisted by his product managers: Mike Jones, industrial and municipal sales and Mark Magda, automatic control valve product manager. Dina Dieckert, marketing assistant, did a terrific job preparing and arranging many of the scheduled events, CD ROMs and other training documentation. Our engineering department provided tremendous product and technical support as well. Many of our production employees and supervisors assisted with the hands-on training in the factory.

“An important part of sales training is information about the market and competitors’ product limitations. It is clear to our sales reps attending the two-and-a-half-day sales training program that the product benefits and features that Danfoss Flomatic offers are superior. They were surprised to see and learn about how extensive our valve product programs have become during recent years. Our sales representatives were also interested to learn more about our extensive valve product applications. The sales training seminar ended with realistic and fun-filled play scenarios that let the sales reps sell interactively with each other using their newly-learned product knowledge.

“Danfoss Flomatic is very fortunate to have such a professional and motivated group of sales representatives selling our valve products. Many of them belong to the Manufacturers’ Agents National Association (MANA) a professional organization that we support that furthers the important relationship between manufacturers, sales representatives and our customers for the good of all. We have a high regard for our sales representatives’ level of interest in our company and valve products knowing that they will put their new valve product knowledge to good use in their sales territories.

“Best regards.”

Editor’s Note: After a pat on the back like that, who wouldn’t want to go out and sell for this company?”

E-Deposits Cement Relationships

When a reader contacts us concerning an article that has appeared in the magazine, it can be gratifying on a number of levels:

• It provides proof positive that people read the magazine.
• Something that appeared on our pages has made a lasting impression.
• Often what was read results in a positive step toward strengthening the relationship between manufacturer and rep.

That’s exactly what happened recently when a manufacturer recalled reading a number of articles that appeared in Agency Sales describing the value of automatically depositing reps’ commission payments.

According to this manufacturer, “We’ve been using automatic deposit for our employees for several years. It simplifies our accounting procedures and the employees all appreciate the fact that they have immediate use of the funds. We had never thought about the value of doing the same with our reps’ commissions until we read the articles describing how well it worked. We first ran the idea by our rep council, and they readily endorsed it. It didn’t take more than six months before we had all of our reps signed up.

“If anything, it’s further cemented the relationships we have with our reps because they know exactly when they’re going to be paid. They no longer have to wait for checks to come in the mail and then trek to the bank to have them deposited — not to mention waiting for the checks to clear.

“Thanks to Agency Sales for alerting us to a good idea.”

And, thanks to this manufacturer for sharing his experience with us.

High-Performance Expectations Bring Greater Revenue!

Consultant Jay Henderson offers his perspective on how manufacturers can “incent” their reps to even better performance by:

• Holding an independent sales rep accountable.
• Accessing more of your sales rep’s potential.
• Determining how to get your sales rep to give you their best.
• Capturing your sales rep’s discretionary effort.

Start by designing specific high-performance expectations for each of your reps.

Think of high-performance expectations as a miniature vision for each rep. These expectations become a sort of set point in the mind of the performer, like a barometer for the rep to hold themselves accountable to. High expectations should be used neither as demands, nor as a hammer, but as inspiration.

Conversely, having low-performance expectations, or not communicating them, is one of the biggest blocks to business success. Interestingly, a company’s performance expectations stem directly from the owner’s attitude about their rep agency and its success.

Here are benefits that come with high-performance expectations:

• Reps will take more focused action and revenue productivity will increase.
• Reps will have greater passion, drive and creative energy.
• Reps will shoot for increased performance.
• Agency owners will be able to make tougher demands.
• Agency owners will gain a greater sense of freedom and control.

High expectations are nothing to be feared. Establishing strong standards for your agency reps is actually very affirming. It says you believe in them and you know they can achieve great things. Salespeople, especially high achievers, actually want to be held to high expectations. They must know what is expected of them and they need a target and a goal to reach. Of course, successfully communicating high performance expectations to independent reps all lies in how it’s done.

Here are a few tips you can begin to implement immediately:

Performance reviews — Hopefully you’re having a regularly scheduled “update” appointment with the reps you work with. I would counsel against allowing these to take place haphazardly for reasons following this point. Casual spur-of-the-moment meetings are fine too. However, you’ll want to strive for a regular meeting where there is an effective agenda so each party may be prepared.

Communicate your high standards — Language is very important when striving to get your high standards across. Think of the principle, “Intent counts more than technique.” Your intent is to have a casual, but purposeful, conversation that ultimately inspires and uplifts your agency reps. You want your commitment to high-performance expectations to come across in your tone of voice, and that will make a difference for your reps.

Communicate your vision — Be sure to talk about the vision of where the sales agency is headed. Strong reps want to be part of a winning team, and this will serve to inspire their own contribution to the realization of this vision.

Attach high-performance expectations to their goals — It’s been said, “That which is most personal is most pressing.” Casually, but with permission and purpose, review their professional goals with them. Try to move beyond sales numbers and income. Get into their growth and development and their future plans. Do they want vacations with their family? A boat or a cabin? Learn about your reps. You’ll then be able to hot-link your performance expectations to their professional goals.

Process over results — Keep your expectations process-oriented versus results-oriented. Too much focus on results causes low performance. Think about that next time you’re on the golf course.

One night while being interviewed just before a professional fight, an announcer told Mike Tyson that his opponent said he had a plan. Tyson replied, “Yeah, everybody’s got a plan, till they get hit.” You have to be able to manage the pressure that comes from standing between what the businesses demands and often unmet personal expectations. It’s not an easy place to be.

Keep the expectations high — continue to raise them. A great deal of one’s drive, energy and creativity are a result of having stretch goals that one believes they can attain, but will take extra effort to achieve.

Jay Henderson is the founder of MyRepCoach, a professional business coaching service for sales rep firms based in Raleigh, North Carolina. He can be reached by e‑mail: [email protected] or by visiting the website: www.myrepcoach.com.