Reps Have Needs Too!

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Earlier this year, I was asked by the Electronics Representatives Association (ERA) to moderate a panel discussion for select Illinois and Wisconsin sales, management, and manufacturer professionals in Kenosha, Wisconsin. The purpose of this open forum was to clearly identify expectations and competencies of each other to effectively move forward in this challenging economy.

This important event pointed out that mutual interests certainly out-weigh differences. For example, manufacturers and reps both want and need strong two-way communication. Both demand strong well-trained leadership of one another. And both manufacturers and reps strive for and require specific measurable objectives for territory visits, reporting, and forecast models.

Yet in a recent review of Internet websites, I discovered more than 1,000 sites specifically devoted to helping manufacturers locate, find and interview sales candidates. That’s good, but on the flip side, I could not find a single website specifically devoted to helping reps find, locate and interview manufacturers.

Some of you may know that I came from the manufacturing environment and have worked with direct sales, independent reps, and rep agencies across the United States. And in my own business I continue to work throughout the channel so I do understand this important relationship from both sides of the table. While I feel quite comfortable making some assessments about this relationship I thought it would be more valuable to you if I did a bit of outside research to find out just what it is that reps should be looking for when interviewing with prospective manufacturers.

After interviewing key individuals from nine strong rep agencies it became apparent that there are common key pieces of information reps think they should know prior to agreeing to rep a manufacturer. They fall into the following three “buckets” if you will. They are:

  1. That promises made to prospects and customers need to be promises kept.
  2. Support with critical resources and information is vital to sustainable long-term success.
  3. The ability to earn solid income relies on commission rates and a whole lot more.

Let’s examine these a bit more closely.

Promises

Reps understand that keeping promises is not only their responsibility but the responsibility of every organization in the channel. Reps know that the credibility and trust they work hard to earn can be lost in a blink of an eye should they make promises that are not kept.

When asked what aspects are most important to keeping promises made to prospective and current customers reps reported the following:

  • Consistent product quality.
  • Depth and breadth of product line.
  • Prompt knowledgeable customer service support.
  • Standing by product warranties.
  • Strong consistent history of a solid reputation.
  • Strong reliable and prompt distribution.
  • Honest leaders with strong integrity.

So how do you — the rep — find this information? It starts by preparing key questions to ask.

Some key questions you can ask to determine “promises kept” could be:

  • Do you have product quality measures in place and if so what are they based on?
  • Do you measure customer service, and if so how?
  • Have you ever honored a warranty and if so what was the situation?
  • What is the average time for order fulfillment?

Support

Reps also understand that the support they have available to them from within and outside their rep organization is critical to their sales success. Resources and information tools are used on a day-to-day basis to prospect for new business, qualify opportunities, gain customer commitments, and implement customer solutions.

When reps are asked to identify the tools that would help them most they routinely report the following:

  • Product training for both reps and customers.
  • Market Studies that are shared with them on a consistent basis.
  • Competitive Analysis information that is accurate and up-to-date.
  • Regional application engineers to assist with technical aspects of the sale.
  • Feedback exchange that is honest, open, complete, and scheduled on a regular basis.

It’s worth noting that while all of these were reported as very important, two stand out as getting the most rep responses. They are Market Studies and Competitive Analysis information. I suppose that shouldn’t be surprising since a rep’s ability to sell is directly related to understanding the playing field and the teams they are up against.

Examples of key questions a rep could ask to better understand critical resources might include:

  • How are reps trained?
  • How do you train your customers and if so how?
  • What competitive information do you provide your reps? Could I see one of these reports?
  • Do you have application specialists? And if so how do you prefer they interface with sales?
  • How does your organization communicate with sales?

Mind Share and the Bottom Line

Of course reps watch the bottom line as much, or more, than most professionals. They are, in effect, the sole proprietor of their own business responsible for ensuring revenue and profit today and tomorrow. For reps as with any sales professional, time is truly gold! They make decisions every day on how best to allocate their time. Reps are concerned about spending their precious selling time effectively and efficiently. In other words, doing the right things right with little room for error. Most everyone in the channel understands this as well. It is commonly called “mind share” and everyone wants it.

What reps report as most important “mind share” variables are listed below:

  • Manufacturer should have a stand-alone cash flow.
  • Rep efforts from one manufacturer should not be subsidized by revenue from another.
  • Some manufacturers believe they have a steady revenue stream with little rep effort.
  • Some want to over maximize revenue from commission dollars.
  • It may be critical that lines are synergistic with current lines.
  • Market direction of a line needs to be concurrent with the direction the rep organization wants to go.
  • Some conflicting lines can cause conflict for everyone.
  • Zero-dollar lines usually don’t foster trust because there is no mutual investment.
  • Large closely associated lines can cause channel conflict especially with specified products.
  • Commission Rates that are tied to productivity, standardized, and easy to understand.

Questions reps could ask regarding income ability could include:

  • What reports are available to better understand your organization’s financials?
  • What percentage of my time do you anticipate is required to effectively move your line(s)?
  • What line conflicts should we anticipate?
  • What do you see are the key markets for your line(s)?
  • What has your organization invested to date in effectively moving your line(s)?
  • What can you show me to better understand how I am to be paid — contracts etc?

The key is to prepare your questions well in advance of when you need to know the answers to them. It also helps if you can articulate them as Open Questions. In other words, questions that are worded in such a way as to encourage the other person to expand on their answers. You will learn far more from open questions then from closed ones. And let’s face it, your time with them is limited.

So you might be thinking, “Where do I get the answers to all these questions?”

The answer is everywhere and anywhere.

Answers to some of questions can be available through independent research — the Internet for example. Or from organization collateral such as brochures, line-cards, marketing materials, etc. Attending association meetings, trade-shows, or other functions routinely attended by the organization can be great sources of information, some of which may answer your questions and help you think of new questions to ask.

Other questions can often best be answered by asking someone who may already know. This list can be wide and varied. It could include others in the channel, customers, your peers, other sales people selling into the organization, your management, and of course key contacts at the organization itself.

The key is preparation. Take time to identify the specific information you need, the key questions you need to ask to obtain that information, and where or whom could best provide you the information you need.

Remember you have needs too!

End of article

In addition to his above views on the subject of training, Bill Heyden notes that he has a skills’ checklist — that he’d be willing to share — that many of his clients have used to assist them in their skill assessments of their people. He adds, however, that “Ultimately, it is absolutely best that they themselves do this.” Contact Bill Heyden, Heyden Training/Signature Sales Performance Skills (www.heydentraining.com); phone: (630) 305-7267; e-mail: [email protected].