Let’s be clear: “it” refers to going to market using professional independent manufacturers’ representatives and the process of hiring and managing these reps. To illustrate the process, I will discuss a recent personal experience with a manufacturer who “gets it.”
The principal is a European manufacturer of large size, long lead-time, custom engineered and custom tooled products. They have a small business presence among various OEM customers scattered throughout the U.S. Their goal was to hire three experienced reps to service existing customers and expand their business. Following are the steps they took to achieve this goal.
- Joined MANA, an investment in their future.
- Searched the MANA database for reps experienced in their products and markets served.
- Qualified 36 prospective reps in three territories, reduced to 12.
- Interviewed the 12, reduced to three.
- Made an offer of a defined, protected territory, with a territory development fee (stated up front) and a minimum 12-month contract, with a 12-month extension based on performance. They invested in success at the outset.
- Insisted that the reps visit Europe to tour the plant and meet staff, with all expenses paid.
- During the three-day stay, showed the reps all the details of their business, while being completely open and candid about issues and opportunities.
- Asked what the reps needed for success.
- Equipped the reps with the specific tools needed to sell the custom engineered products.
Within three months, they had new business and new opportunities flowing to the manufacturer, happy and enthusiastic reps, and good “marriage.” This manufacturer “gets it” and is reaping the reward of investing in MANA and their reps.
The rep-manufacturer relationship is similar to a marriage. When both parties make a true commitment, a successful, beneficial and rewarding relationship follows. So when negotiating with a new manufacturer, make sure they belong to MANA and that they get it!