One manufacturer learned about the pitfalls of offering the same marketing/promotion programs to all of its reps. “Thankfully, we’ve always been pretty good about listening to what our reps tell us. We began to get an earful from several of them when they complained about how we were rolling out some marketing plans. While we had done a great deal of preparation for the program, we didn’t do what we should have in terms of getting their advice.”

“As a result, we shouldn’t have been surprised when we didn’t get the results we were looking for. None of our reps were bashful about letting us know that what we were doing might work for some territories, but it wasn’t what they needed, and the customers weren’t responding.

“Our conversations with our reps all took place during the course of a couple of our rep council meetings. Once we heard what they had to say, we took quick action, and now it’s a matter of course to tailor-make many of our programs so we’re sure that we’re providing exactly what they need to get the job done.”

Dealing With House Accounts

House accounts and the rep’s disdain for them never seem to go away. According to two reps, however, when they receive word that their principal has decided to consider a customer as a house account, they sometimes take a proactive approach.

“While the going rate for commissions is 10% in my industry,” explained the first rep, “I reluctantly took half of that to service an account for the manufacturer. I did that for two reasons:

• I figured some income was better than none.
• I wanted to keep my hand in the account because I sold the customer other products. I wanted them to know that I was there to meet their needs.

“I decided to become a bit more aggressive, however, when during one sales call the customer told me they were going to take their business elsewhere. It seems they weren’t receiving the proper response from the manufacturer when it came to quotes. I listened quietly and empathized with them. Immediately upon leaving their office, however, I called the manufacturer, let them know what happened and suggested that they had better do something if they wanted to hold on to this customer.

“My call was the cause of immediate action as the manufacturer made follow-up phone calls and sent letters of apology to the customer. They also assured the customer that I was going to be handling the account full-time. Along with that my commission was brought up to the proper level.”

In a second instance, a rep tried an educational approach when he was notified a major account was going to be serviced by the factory. “I tried my best to communicate to them the difficulty they were going to face in trying to service the account in the same manner as I had for several years. I also predicted that they were in danger of losing the account. Sure enough, it took only two months, and the manufacturer lost the business.

“In this case the manufacturer didn’t listen to me. However, they have begun to pay more attention to what I tell them from the field. So, if anything good came from this experience, they’ve learned that I know what I’m talking about.”

Modesty Pays Off for Some Reps

“Over the years I’ve learned that many of my best reps aren’t those who rush forward to tell me how great they were going to be.” Those are the words of one manufacturer who notes that it’s the rep who “wants to know about me and my company who has proven to be the most dependable. The truly effective reps are those that want to know all they can about us. When I gauge their high level of interest I know they`re going to communicate their interest and enthusiasm for our products to customers in the field.”

He adds that it’s also the effective and professional rep who comes to “our first meeting with a wealth of knowledge about us, our company, history and products that really gets my attention. They’re more than prepared to make a good impression on me.”

Get the Relationship in Writing

One of the most important subjects addressed elsewhere in this issue of Agency Sales is the importance of reps and manufacturers having written agreements between each other. Those comments brought to mind something that appeared in Agency Sales on the same subject years ago.

When manufacturers and reps were advised to get the terms of their relationship in writing, it was emphasized that no one questions the wisdom of doing that, but many continue conducting business in the absence of a contract.

It’s not unusual for a rep to be told by a manufacturer that “We always operate on a handshake. There’s no reason to put anything down in writing.” When that arrangement unfolds, it may be up to the rep to weigh the relative value of accepting or rejecting the line. However, how about writing something as simple as a “memo of understanding” between the parties? Such a document spells out the terms of the relationship and lets one side know what is expected from the other.

But let’s assume that establishing the relationship with the manufacturer — even without a contract — is worth the effort. There are some things to keep in mind, not the least of which is that a contract establishes the ground rules for the relationship into the future.

Reminders of What Makes a Good Rep

After boasting of the tenure he enjoyed with the majority of his reps, one manufacturer related the details of a valuable tool he used to constantly evaluate his reps in the field. According to the manufacturer, “I have posted what I’d call a rep job description within clear eyesight of my desk. Whenever I’m communicating with a rep or on that rare occasion when I have to make a decision on representation in a new territory or to replace a rep, I carefully consider what I’ve got written down there.

“To begin with, I’ve listed the overall qualifications needed for a rep to be able to work with me. Included in those qualifications are:

• Strong selling skills.
• Territory knowledge.
• Contacts.
• A workable knowledge of our product technology.”

If those are the rep’s qualifications to even get in the door, the manufacturer then went on to describe what he considers the rep’s responsibilities when working with him. Included are to:

• Find and qualify new accounts in the territory.
• Orchestrate and complete the selling process.
• Identify customer decision-makers, including building deep and lasting relationships with them.
• Identify customer needs.
• Deliver our (the principal’s) message to the customer and be prepared to answer and overcome any objections.
• Gather and analyze competitive information.
• Anticipate future customer needs and requirements.
• Be able to align the customer’s long-term goals with our ability to meet those goals.
• Thoroughly understand the customers.

These aren’t the only attributes/talents the manufacturer is looking for, but he maintains they serve as an excellent starting point.

Making the Most of a First Impression

Keeping in mind the adage that there is no second chance to make a first impression, one manufacturer takes a number of proactive steps when he begins working with his reps on a new customer.

“If anything is going to go wrong, I’ll bet it will happen at the very beginning of a relationship (e.g., the first order with a new customer). That’s why we follow a proactive process that takes us through that first impression stage.

“Whenever we begin with a new customer, we emphasize the importance of our rep notifying us that this is a first-time experience. We do that so we can pay extra attention so everything runs smoothly. We’ll write a welcoming letter to the customer immediately following the rep’s notification. While we’re careful to see to it that everything runs smoothly, we’re just as careful not to do anything that we’re not going to be able to do on a regular basis. For instance, if we ship the first order in just one week vs. the normal three-week period, we can be sure we’ll be in trouble on succeeding orders. We’re careful concerning the service promises we make, and we’re just as sure to live up to our promises.”

An Alternate Source of Credit Intel

One manufacturer cites a number of his reps as dependable sources for customer credit information that he wouldn’t necessarily be able to find elsewhere. “We continue to make use of credit reporting services, but the information that our rep provides very often develops intelligence that wouldn’t regularly appear from those services.

“When we combine the rep’s input with the credit service input, we’ve found that we’re in a fairly solid position to evaluate the customer’s ability to pay in the future.

“Some of the input our reps can provide that others can’t includes:

• Their opinions on customer managerial competence.
• What they think about the appearance of the plant.
• Are there any upcoming personnel layoffs or other changes we should be made aware of?”

He adds that reps aren’t expected to develop and provide this type of information for free. “We pay them a small consulting fee because we understand that any time they spend away from selling will be reflected in their earnings. In addition, since we affix a value to this information, we let them know how important it is for us.”