In terms of discussion, the subject of rep councils comes and goes. For some, the Councils continue as a valuable part of the manufacturer-rep relationship. For others, Councils continue to meet, but little is done as a result of those meetings. Here, we talk to a number of manufacturers who have enjoyed considerable success with their rep councils and offer us some thoughts on what has made their Council so effective for their organization.

Most manufacturers start rep councils with the best of intentions. But once started, some manufacturers encounter obstacles or lack the necessary follow through to realize Council success.

For some, Councils continue as a valuable part of the manufacturer-rep relationship. For others, Councils continue to meet, but little is done as a result of those meetings. (Unfortunately an “us vs. them” mentality prevails.) And yet other Councils fall by the wayside as manufacturers and reps alike either lose interest or become frustrated at the perceived lack of contribution to the joint effort.

We recently received input from a number of manufacturers who have enjoyed considerable success with their rep councils. Here they offer some thoughts on what has made the rep council effective for their individual organizations.

In general terms, one manufacturer offered this appraisal of his company’s experience after regularly conducting council meetings for more than 20 years. “We’ve found that our rep councils have done a great deal to head off problems and concerns before they become major headaches for our organization. In addition, we’ve found that reps truly appreciate the opportunity to express their opinions loud and clear. And finally, these twice-a-year meetings have proven to be an invaluable complement to our already effective communication with our reps. Conversely, they are valuable tools for the reps to communicate back to us.”

Addressing that aforementioned “us vs. them” mentality, another manufacturer offered, “Our councils have always worked extremely hard to establish a platform that allows us to discuss how we can mutually serve the needs of our customers while at the same time meeting our personal goals and needs. It’s really nothing overly complicated. What we’re looking to achieve is an equation where one plus one equals three. I think we’ve done that.”

“Feedback” describes what another manufacturer was looking for when their vice president of sales & marketing says, “We just wanted to get a more accurate `feel’ for what our reps were facing on a daily basis. Being realistic, they are the ones who are across the desk from customer decision-makers — not me. In order for us to grow and improve as a manufacturer, it’s incumbent upon us to listen to our customers. What better way to do that than listening to what we hear from our rep council members?”

One key to the success of a rep council, as unanimously expressed by these manufacturers, was that service on a rep council ought to be viewed as a “reward” by those who have been asked to fill the position. “From the very beginning, we let the rep know that this isn’t just another business meeting where we get away from the office, play some golf and have a couple of good meals. Rather, it’s valuable time spent alone with trusted business partners all of whom share the same goal — the creation and maintenance of a successful business relationship.”

A Real Pain in the “Tank”

Elsewhere in this issue of Agency Sales, a number of reps detail how they’re dealing with the drastically increased price of gas. While reps have to grapple with traveling their territories and managing their time carefully so as not to empty the gas tank too quickly, manufacturers are faced with a similar challenge. One manufacturer has addressed that concern while simultaneously increasing its face-to-face contact with reps. “Don’t misunderstand me,” he explains, “we’re not doing this with everyone, but it’s a start.” What he’s doing is meeting regularly via videoconference with reps in his major territories. “We went to some of our major reps and described our problem to them. Just as all other manufacturers, we’ve had to scale back some of our activities. As a result, we’re not getting out in the field as often as we’d like. Faced with the prospect of losing touch with our reps, we asked if they’d be willing to take part in regularly scheduled videoconference calls with us. We covered the expense of providing them with cameras to affix to their computer terminals. It couldn’t have gone any smoother. What we’ve found is that we’re in touch with them more often than we were in the past. In addition, the definition of the cameras is sufficient that if one of us has to show the other something pertaining to a product or a unique installation problem, we can clearly see it over the computer. Our reps tell us that they love this approach and — with some exceptions — that they actually prefer the video calls to joint calls in the field. The video calls save time and money and, according to one rep, “provide us with that face-to-face contact that helps nurture the relationship.”

Understanding the Reps’ Role

Reps are usually pretty fair when it comes to shouldering the blame for the lack of understanding among customers and manufacturers concerning the role the rep plays in the sales process. It’s not unheard of for a rep to say, “Manufacturers don’t really understand what we do. We see that when they hold on to house accounts or are reluctant to provide us with any fair form of post-termination compensation.” When asked why there’s little understanding on the part of the manufacturer, the rep will respond, “I haven’t done a good job to educate him or to let him know what my true value-add is.” While the rep should be doing more in that regard, there are a few things manufacturers could do to enlighten themselves. For instance, for years MANA seminars have presented the perfect educational forum to let the manufacturer know that the rep does much more than make calls and follow up. In addition, it’s not unusual to find manufacturers in attendance at MRERF’s CSP four-day sales training programs that are conducted throughout the country. And finally, why not make the effort to ask your rep what they do on a day-to-day basis. Chances are they’d appreciate the interest.

Supporting the Rep

Closely related to the concept of understanding the rep’s role in the marketplace is the practice of fully supporting the rep in all that he does. Ways that manufacturers can fully support their reps were discussed at a rep conference earlier this year. Among the practices covered were:

• Assistance — The rep is constantly contacted by his customer for needed information. The real-world experience is that reps don’t always have the answers. That’s why it is so important that manufacturer personnel be at the ready to provide the product, installation, etc., information that the customer needs. Is there any better way for the rep to look good in front of the customer than to have the factory provide an instant response to their questions?
• On-time quotation and delivery information — The unforeseen happens with regularity. When it does and when it affects information related to quotes or deliveries, it’s imperative that the rep have the information quickly so he can pass it on to the customer. Want to lose a customer in a hurry? Don’t communicate on matters of importance.
• Current information — There’s no worse case scenario than to have information concerning your company circulated in the field and the rep is the last one to know what’s going on. When anything of any importance occurs, keep the rep up to date — or better yet, let him know in advance.
• New products — The lifeblood of any successful rep is a pipeline filled with new products. But, that’s not all. To accompany those new products, he needs a steady stream of product samples, literature and advertising support. The rep must be fully armed so he can properly communicate the value of your products to customers and prospects.

Why Use Reps?

Why do some manufacturers use reps? Certainly that’s a simple question, but there’s no one answer for all manufacturers.

We recently came across an article in a trade publication asking a number of manufacturers that very question. Their answers reflect a variety of reasons for which many find that the independent manufacturers’ representative remains the most cost-efficient means for taking a product to market:

• “Reps are ideal in that they bring with them a vast contact database containing valuable intelligence of their territory and market.”
• “For our product, we use reps because we’ve found that it’s all about relationship sales and the rep provides the plant-level sale infiltration that does the job best.”
• “Reps offer us the best market penetration at the right price point.”
• “What it all comes down to is relationship selling, and that’s what the rep does best.”
• “We’re a small business, and the cost for us to cover the country with direct people would be prohibitive. As a result, we work with reps nationwide and provide them with internal support. We’re convinced our reps take care of the customer and we in turn, take care of the rep.”

When we ran these answers by another manufacturer, he thought for a moment and added something of his own that complemented the above:

“Our experience has shown us that for us, a good rep has existing relationships with various customers in his territory. At the same time, the reps we work with now — and in the future — must be knowledgeable of our industry and the technology involved in our industry. Finally, independent manufacturers’ representatives must individually, or as a group, possess a reasonable amount of professional selling skills.

“We want to partner with someone who can make a good impression on a customer as well as provide the follow-up and communication to keep the customer happy. He’s got to be able to do all that while providing us with the feedback we need in order to respond to his and the market’s needs.”