Historically, if the role of the rep could ever be described as one where “he makes calls and follows up,” changing times have dictated that’s no longer the case, and one manufacturer especially is well aware that he has to change just as the rep does.

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Keeping apace with the conversation on “change” that’s taken place in the pages of Agency Sales magazine since the beginning of the year, this manufacturer continues: “None of us — rep, manufacturer or customer — has the time we used to have for what I’d refer to as ‘social’ sales calls. Technology has increased our productivity at the same time it’s placed more responsibilities on our shoulders. As a result, I’ve made every effort to be more direct and effective in my communications with reps. They appreciate the effort and reciprocate by proactively letting me know of any important developments in the field.”

Rating a Rep By the Lines He Has

Don’t ever underestimate the wisdom of the axiom “You can always judge someone by the company they keep.” That’s exactly what two manufacturers recently reported they keep in mind when they had to locate new representation and that philosophy worked out well for both.

In the first case, the manufacturer reports, “When one of our long-standing reps decided he was going to retire, we developed a gap in our coverage that we had to fill immediately. Because we had a great deal of long-standing business in the territory, we underwent a fairly extensive search process to find the rep that was going to be the right fit for us. When we eventually signed the rep we made sure we kept uppermost in our mind the fact that they already had a long history of going after top lines and getting them. Once we added to that our recognition of their professionalism, enthusiasm and knowledge of the territory, it was a virtual no-brainer.”

The manufacturer adds that while it’s only been about 18 months, “All indications are that we made the right choice. Business is booming and prospects for the rest of the year look great.”

The second manufacturer is quick to admit that he is relatively small but he’s had good luck working with reps in the past. “One of the reasons we’ve had the level of success that we enjoy is that before making a choice, we always carefully weigh the other lines a prospective rep is working with. I’ll carefully go over his entire line card and contact several of his non-competing lines in order to learn what they think of him. Since we are non-competitors, they’ve always been very forthcoming with me in the past. Perhaps the number-one thing I’m looking for in these conversations is to determine what their level of commitment is to their other lines. We’ve followed this path several times and I can’t say we’ve ever made a mistake.”

Keeping the Reps’ Eyes On You

Not even a relatively small manufacturer, such as the one described in the previous item, should give up trying to get as much of his reps’ time and effort as he can. Here’s one manufacturer’s plan to do just that: “When we contract with a rep, the first thing we do is make sure that he gets all the support material they want and need from us. We don’t question their request and we don’t make them pay for literature. They ask for it — they get it.

“At the same time we begin our relationship, we share an annual schedule with them that shows when we’d like for them to come visit the factory. There are a number of reasons for these factory visits, including introduction to new products and product training; marketing updates; networking opportunities with new and existing factory personnel; an opportunity to meet with their rep peers.

“Annually all of our reps receive a complete marketing guide that is regularly updated during the course of the year. The guide includes new product information, warranties, marketing programs planned for the year, and all company policies.”

He continues that “Since we’ve implemented this approach, our feeling is that we’ve enjoyed as much if not more of the reps’ time and effort than might be justified by our business in the territory. Maybe it’s a case of the ‘squeaky wheel getting the oil.’ Quite frankly, I don’t care — it works for us.”

Jointly Establishing Expectations

When a manufacturer and a rep were in the early stages of their relationship, one manufacturer reports he learned something very important as they sat across from each other discussing their mutual expectations. “I entered the relationship with what I thought was a well-founded expectation of fairly quickly realizing more than $2 million in business in one segment of the territory. It didn’t take long for the rep to debunk that notion, but he was very clear in his communications and couldn’t have done a better job of educating me. What he did was walk me through the territory and by using his contacts and data let me know immediately that the total amount of business in the territory hardly justified my overly optimistic belief I could reach that lofty $2-million level. He didn’t leave me discouraged, however. He was quick to let me know that over a period of time, I could make serious inroads and develop a solid base of profitable business. I can’t help but think how quickly things would have soured if I entered the relationship with a belief the rep should be doing much more than was possible.

“I didn’t forget this early conversation with the rep. Thankfully he’s been more than willing to sit down with me many times since to bring me up to speed with his view of the territory.”

Communicating with Reps

If the previous item emphasized how important it is for reps to communicate with and educate their principals concerning potential business in the territory, a manufacturer turned the tables a bit when he stressed how important it was to fully communicate with his reps and never hold back any information. According to the manufacturer, “Does it do either of us — principal or rep — any good if we hold back information? I’d maintain that the linchpins of our relationship are communication, education and information.

“As an example, let’s talk about a new product introduction. Isn’t it important for the rep to know exactly whom I’m targeting with this new product? Then it seems logical to me to further the discussion by letting the rep know what I think the customer is doing right now and what I think he’ll be doing in the future. Armed with this information, can’t the rep be expected to do a better job for not only me, but for the customer, and ultimately for himself?”

He continues, “I don’t know how many times I’ve heard reps complain to me about some of their other lines introducing new products with virtually no chance for success. All they’re armed with is hope and that uneducated hope is hardly ever realized.”

Regular Factory Visits

As an addendum to the previous item, one manufacturer was big enough to admit he was guilty of bringing a new product to market without keeping his reps in mind. The effort failed, but to the manufacturer’s credit, he took responsibility and then took corrective action. “My first goal was to bring the product to market, and that was a mistake. After the effort failed, I began bringing all my agency owners into the factory at least annually. I did this for a couple of reasons, not the least of which was to avoid the previous fiasco. In addition, however, I believe it’s critical for reps to get in here to meet any new people we have on staff and to strengthen their relationships with people who support them from here. Finally, and perhaps most important, during the course of their factory visits we make sure to devote at least a half day to bring them up to speed with new products and provide them with the training they need to deliver the products to market. We’ve followed this practice for a couple of years now and so far all we’ve had is cooperation from our reps and plenty of compliments.”

Showing an Interest in Your Reps

MANA and Agency Sales magazine have long preached the value of the rep being proactive when it comes to communicating matters of importance with his principals. Wise reps, most of whom bristle at the thought of submitting regular call reports, realize the benefits of quickly letting the manufacturer know about customer trends or developments.

At the same time, it’s the wise principal who will be proactive when it comes to keeping reps up to speed with what’s going on both personally and professionally. For example, the manufacturer who casually asks what his reps’ future plans might be in terms of retirement or succession plans, lets the rep know he cares about them personally, but also has an eye on the stability of the future relationship. And, what beats the request for the rep to share their annual business plan? As one manufacturer put it: “When I know what he’s got planned for the next 12 months, that lets me adjust my plans for working more effectively with him.”