Surveying Provides Value for Manufacturers

At the recommendation of its rep counsel, one manufacturer decided to survey all of his reps. While what he found didn’t especially surprise him, it did allow him a more precise focus on what it is that’s important to his rep constituents. Three areas in particular came to the surface as a result of the survey:

• Field visits — “Thankfully we knew this ahead of time, but the message we received concerning field visits bears repeating. If I’m certain I’ve chosen the correct reps to partner with, then I know they’re as busy in the field as I am in the factory. That’s why when I schedule a visit to the field, I’m very careful about what I do. I make it a practice to let my reps know at least four to six weeks in advance of my desire to make joint calls with them. I’ve never surprised them and I never will. When I let them know I’m coming, I also let them know what it is I’m trying to accomplish and what specific accounts I’d like to visit. By planning this way, I get very little push-back from the reps. As a matter of fact, they appear to be more than pleased to have me accompany them on calls.”
• Sales performance and communication — “As I’ve already mentioned, I’m busy, and I know my reps are too. That’s why I don’t want them burdened with unnecessary, unneeded, unread sales reports. Here’s what I want from them in terms of communication: If they have a problem where they need my immediate assistance or if something is happening with a customer or in the territory that I had better know about, then I want instant communication. Otherwise, their sales figures at the end of the month speak wonders for what they’re doing for me.”
• The importance of new product development — “My experience in dealing with reps is that they’re creative, enterprising entrepreneurs. That’s why they like new products. And that’s why I’ve made it a habit to provide them with a steady stream of new products. It’s my desire to whet their appetites with this type of activity. At the same time I know customers are looking for innovative solutions for taxing problems. That’s what new products provide.”

What Manufacturers Look For

When reps at the recent Keystone Conference were asked what their greatest challenges were today, it caused us to ask the same question of a number of manufacturers. Basically, their responses boiled down to locating reps that possessed the attributes they felt were needed to be successful. Among the attributes the manufacturers listed were:

• A willingness to communicate with their principals — Are they in possession of the latest in technology that will allow them to be in contact with their manufacturers?
• Financial stability — Do they invest in their agencies, and are they going to be around for the long haul?
• Relationships in the territory — Have they proven by their past success that they truly know who the customers are in the territory, and can they reach the decision makers at those customer locations?
• Experience in dealing with executive decision makers — As a follow-up to the previous point, we want to be sure the rep has contacts at all levels of the his customers’ business.
• A synergistic product offering — Manufacturers value the fact that reps have a better chance of getting face-to-face with customers if they can offer a synergistic vs. a single line of products.

A Manufacturer Who Believes in Contracts

It was interesting to listen to and then watch the expression on the face of one manufacturer when the subject of contracts and reps came up.

Like so many other manufacturers, this one was quick to note that he has a standard contract for reps. “What amazes me, however, is that some of them actually accept it without any reservations. If we’re going to write a document, naturally it’s going to favor us. Having said that, however, I don’t think we’re entirely out of line. Our goal is to establish long-lasting relationships with our reps because we truly value their contributions. And we wouldn’t be nearly as successful in the market without them. To prove my point, I’d cite the many reps with whom we’ve worked effectively for more than two decades. At the same time, we know that going into the relationship is the time to put in writing what we expect of each other. That’s the time when some reps surprise me. They don’t question certain points in the contract and some don’t even have an attorney review the contract beforehand.”

He added, however, that probably as a result of MANA’s insistence on the importance of not only having contracts but carefully reviewing them prior to signing, “There are a growing number of reps who do their homework ahead of time. Since we’re true believers in reps and in treating them well, if anything, I’d advise everyone to carefully consider what they’re signing on to with a manufacturer. If more reps did this, as a profession they’d be a lot more economically sound.”

Sustaining Relationships

Before the above manufacturer exited the conversation, he was asked to explain how he has been able to sustain such long relationships with his reps. In short, his answer was, “It’s been our practice to truly get to understand that our reps are our partners. I know others say the same thing, but we’ve made a concerted effort to involve them in our company and keep them informed about our present and future plans. By doing this, we’ve been able to impress all of our personnel that our success is directly tied to the success of our reps. That’s why whenever they have a question, need a quote, or help in solving a problem, we drop what we’re doing to help them. This has really paid off for us in the strength of the relationships enjoy with them.”

The “Six-Million-Dollar” Rep

Thankfully we’re old enough to remember Col. Steve Austin (aka television’s The Six Million Dollar Man) from the 1970s. That name came up when the manufacturer was asked what he looks for when selecting a rep for his territories. According to the manufacturer, “We like someone who is as proficient in a number of areas as Austin was in his job as a super hero.”

Failing in that, however, the manufacturer went on to say he’d be willing to settle for something a little less. “We don’t actually need our reps to execute the intensive sales effort needed by other products. What we’re looking for is someone who is good at servicing the customer and the product.

“Having said that, here’s what I’m looking for with a rep:

• “I want and need someone in the field who can go out and anticipate and then solve problems on his own; that is, before I have to get involved. I want someone out there representing me who is armed with solutions before he even gets out of bed in the morning.
• “Couple that with an ability to immediately meet customer needs, and we’ve hit a homerun. Let me explain. Let’s assume we have a situation where we’re out of one product, but another will be more than adequate to get the job done. I want the rep — on his own — to make that recommendation. He’s got to be a self-starter, someone who knows how to stay in the information loop, and he has to be an individual who’s adept at following up.

“Thankfully, we’ve been able to find those attributes in our reps. That’s why we’re so successful.”

Quality Time vs. Face Time

Fully acknowledging the importance of how the Internet has affected the way reps conduct business, one manufacturer thinks it’s a good thing. “If anything, the Internet has resulted in our reps having more office and less face-to-face time with the customer. A lot of leads that are developed come from the Internet. Once that lead is received, a good deal of time can be spent ensuring that the rep has the right product available to address application needs. Then, when the rep finally sets foot in the customer’s place of business, I’ve found that our reps are fully armed with all the information they need, and they know all the questions to ask in order to get the order. That doesn’t mean face time isn’t still important; however, it’s just that now a lot of work can be done ahead of time. And, it’s the reps who are truly savvy with electronic communications and the information emanating from the Internet that can realize the benefits of this change.”

Succession Planning — A Double-Edged Process

A manufacturer who admitted he was surprised years ago when one of his best reps decided to sell the agency maintained he was never going to be caught off-guard again. “I learned my lesson when the rep sold without telling me ahead of time. Sure, I was upset with his lack of communication. But the more I thought about it, the more I realized I should have been better prepared. Why didn’t I ask him for updates on what his future plans were? Why wasn’t I more proactive?”

To solve that problem, the manufacturer on a yearly basis asks his reps to share their future plans with him. That process has been a big help, because in a couple of instances, he’s been able to help make suggestions on a more effective succession plan. As a result, he’s further cemented his position in the territory.