We’ve heard of principals rating their reps and reps rating their principals, but here’s a bit of a turn on that practice.

A manufacturer recently let us know that he’s made it a regular practice to ask his reps to rate his performance with them. “Our motives are pretty clear cut,” he explained. “We simply wanted to know where we stood above and beyond our competitors and the other lines that our reps carried. This was an outgrowth of the fact that we’re well aware of how most of our reps perform during the course of the year. But aside from the occasional complaint, we didn’t have a good fix on how our reps viewed our performance.”

Among the areas that the manufacturer charges his reps to comment on were:

• Promptness of response to inquiries and RFQs.
• Quality and quantity of product literature, advertising and publicity.
• Quality of communications regarding price changes, product availability, applications, new products or product modifications.
• Is the pricing competitive.
• Product quality.
• Timeliness of quotation procedures.
• Effectiveness of rep council.

Having conducted this process for a number of years, the manufacturer noted that “The feedback we receive is invaluable. It not only strengthens our relationships with reps and customers, it allows us to more accurately plan for the future.”

Establishing Continuity in the Territory

On the one hand, a manufacturer admitted that he experienced very few problems with his direct sales staff. Rather than performance, it was the need to have a more permanent presence in the territory that caused the scales to tip in favor of an outsourced sales staff.

According to the manufacturer, “Our outside salespeople worked hard and sold well, but typically they were ambitious. I’ll have to admit if they weren’t the ambitious type, we shouldn’t have hired them in the first place. But given the fact the good ones wanted to move up in the company, there was always a steady train of talented sales staff that were being promoted out of the territory.”

He continued, “The most effective way we found to counter that trend was to go to an independent manufacturers’ representatives sales force. Reps are individuals who have worked hard to build a long-term business in a territory and who don’t leave holes for their competitors to jump in. Actually, we helped several of our direct people start their own agencies when we realized there was little or no room for their promotion within the company and we faced the prospect of them leaving us.”

Understanding the Reps’ Mission

We’ve heard complainants in the past from reps regarding various manufacturers’ regional managers. Complaints ranged from perceived interference in the activities in the field or dropping the ball when it came to getting something done at the factory. That’s why these words from one regional manager were especially refreshing: “The first job for the regional manager is to make sure that everyone understands the reps’ mission. This means that everyone at the factory has to be on the same page when it comes to understanding what they expect from reps. At the same time it means that all hands are to pull together to see that tasks are performed. If the agents have questions, the regional manager should be able to answer them, or to get answers from those at the plant who can provide the correct information. In addition, a regional manager knows the limits of their authority and responsibility and works overtime to see to it that they have access to corporate people who can make the decisions that obviously can’t be made in the field. Finally a good regional manager is secure person, that is, he doesn’t attempt to steal credit for a job well done by an agent.”

The Value of Input From the Field

The value of obtaining and using input from his reps in the field was emphasized by one manufacturer who noted, “Most of my design, manufacturing and sales decisions are made on the basis of data we receive from reps. I always get all sorts of information from trade associations in our field, from federal agencies and even from services that I regularly subscribe to. However, no matter how much of this information I gather, I’ve found that it’s really not sufficient to be able to make really good decisions that will affect my manufacturing. I need up-to-date information from the guys in the trenches — the reps who sell my products and interact daily with customers. They provide me with good information. Armed with all valid data, I’m able to look at trends against the background of information the reps provide me. On more than one occasion I’ve taken their advice, even when trends I see other places point me in another direction. Overall, the reps have been more accurate in what they see and report. Because of that, when they tell me something I act on it.”

The Pressing Need for Constant Training

One of the most important things a manufacturer learned from a consultant he had teamed up with to work with some of his reps was the need for constant training. “In the past, I thought that my job was done when it came to training reps after we finished the training session. Here’s what the consultant told me: ‘Training never stops. You should provide additional material to your reps immediately after they finish a program. You should periodically furnish them with updates and make sure that all your training efforts are ongoing. It’s not something that you do successfully as a one-shot deal.’

“I’ve followed this advice religiously for the last several years and my reps are much more satisfied — their performance shows it.”

Working Together in the Field

If there’s any doubt about the value of manufacturers making calls in the field with their reps, read what one rep has to say about what he refers to as an especially beneficial experience: “My principal told me that when he came to town, there was no problem with me selling the other lines I carried when the opportunity presented itself. However, he did want me to make appointments with especially good customers for his products and with those prospects I’ve had the most difficulty with. He maintains that was where he could be the most help. He wanted to cement relationships with the good customers and contribute wherever he could to selling the more difficult customers and prospects. And that’s exactly what we did. He never took over the call and let me take the lead. At one meeting especially he said I should really show that (other) product that I carried. The product wasn’t made by him, but in fact had the potential to really help the customer. This was one of the best field sales calls I had ever experienced. This was truly a joint venture that paid off for both of us.”

An Anatomy of a Relationship

When a manufacturer was asked to break down what he thought was most important in the relationship between his company and the reps he works with, he referred to the first year of the partnership as the one “that establishes the foundation for everything that’s going to follow.”

He continued that during the first year there are a number of important stages the relationship goes through that truly serve as a harbinger for how well or how poorly the two companies are going to work together:

“For instance, during the first few months both the manufacturer and the rep discover characteristics that neither knew existed. Those discoveries aren’t necessarily related to individuals involved in the relationship, but rather to the characteristics of the agency (e.g., the benefits that grow from the contacts made for some of the agency’s other principals, or the depths of the rep’s contacts in the territory).

“Following the opening stages of the relationship is a period when the personal relationships either grow stronger or actually begin to weaken. We refer to that as the ‘getting-to-know-you’ part of the relationship.

“At the half-year mark, we notice some sort of a breaking away phase when the agency begins to depend less and less on the manufacturer and actually start beating its own path when it comes to representing the product line.

“Finally, during the last couple of months of that first year, we really begin to see what the future holds for relations between manufacturer and rep. It’s then that the two are either comfortable with the relationship and have a feeling of confidence that it will become the type of relationship they both know will work. Conversely, it’s at this same time that the two can determine it’s not going to work and it’s best if they soon part ways.”

He concluded, “The manufacturer can increase the chances of getting the type of relationship he really wants if he treats his reps as true business partners and not employees. When you do that we find that we’ve realized the considerable benefits of long-standing relationships.”

The Value of a Pat on the Back

To give or not to give sales awards? A manufacturer reports mixed results when it comes to giving sales awards to his reps.

“Some respond well to awards and others don’t,” he explains. “We’ve got one rep, for instance, who whenever we name him our annual top performer — which has happened several times — makes it a point to frame and hang the award on a special wall in his headquarters. He’s reported to us that visitors, especially other manufacturers, see the awards, comment on them and are impressed.”

There’s a whole other group of reps, however, that don’t want awards, but do appreciate a heartfelt pat on the back. “When they have done something special, whether it leads to an order, or solved a problem for us or the customer, simply like to feel that their efforts are noticed and appreciated above and beyond just getting their commission checks on time. We make sure the latter group receive our words of thanks.”