Rep Councils Show They Have Staying Power

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If the subjects covered in the volume of books that come into the offices of Agency Sales magazine on any given day are an indication, it would appear that the way for reps to successfully approach business changes about as often as the weather. For instance, consider these offerings:

Own the Room:
Business Presentations that Persuade, Engage & Get Results

The Referral Engine: Teaching Your Business to Market Itself

Building a Winning Sales Force: Power Strategies for Driving High Performance

If this sampling of the approach/process du jour says anything, it is that if something isn’t working for you today, just wait a bit, and something else will come along very shortly.

In speaking with reps, manufacturers, business consultants and others, however, if there is one tried-and-true tool that should be firmly imbedded in the rep-manufacturer relationship, it’s the rep council.

Always in Fashion

The rep council never seems to go out of fashion. It remains a workable communication tool that provides the manufacturer with a direct link to what’s happening and what works out in the field. Not all manufacturers buy into the council concept, however. But, according to a rep and a business consultant interviewed for this article, those manufacturers are making a serious mistake by not recognizing the obvious benefits of a well-constructed and well-run rep council.

“Here’s what any manufacturer must keep in mind — the rep is your sales force. That means they’re hardly outsiders.”

Business consultant Allan Lamberti, CSP, is a firm believer in rep councils. “I’ve had extensive experience especially with Japanese manufacturers who have worked with independent reps in the United States,” he explains. “What I’ve found is that a good number of Japanese sales executives get turned out every three years or so. As a result, you’ve got a fairly consistent stream of managers who know nothing about going to market with reps in this country. There’s probably no better way to deliver the rep message to these managers than via a rep council.”

Lambert, who has served as the vice president and general manager for a number of large companies, heads the Billiken Group, Trumbull, Connecticut. In his words, his consulting company “assists manufacturers and reps with their marketing matters.” He insists that “Having a rep council is a way for the rep’s voice to be heard by the manufacturer.”

Hardly limiting his comments to the benefits that can be enjoyed by a foreign manufacturer, Lamberti maintains “Councils are just as important to U.S.-based companies as they are to foreign manufacturers. Here’s what any manufacturer must keep in mind — the rep is your sales force. That means they’re hardly outsiders. Look at it this way, if the rep was physically located right inside your building, wouldn’t you want to get together with him over coffee every day to discuss business?”

A Rotating Rep Council Meeting

To familiarize that seemingly endless line of new managers from the Japanese manufacturer with its rep sales force, Lamberti explains that a regular process involved taking the sales manager to a different rep location (each of which were rep council members) every 90 days or so. “We’d all meet together at the rep’s office and the manufacturer would get a clear view of what it’s really like out in the field.” Lamberti would also make use of the time to conduct a half-day rep council meeting while he was there, thereby getting as much done as possible in a relatively short period of time.

As he recalls his past experiences with manufacturers and their rep councils, Lamberti’s overall view is a positive one. At the same time, however, he voices a bit of frustration with the reluctance of others not to embrace the concept. “Those (manufacturers) who don’t make use of a council, very often do so because they work with a ‘It wasn’t invented here’ philosophy. Instead they put forth an attitude where they want to dictate to rep. For the most part they have an anti-communication attitude. What they really have to do is recognize the fact the rep is a part of their family and treat him accordingly.

“Here’s why rep councils work so well — there is simply no better source of affordable information than the feet you have on the street in the person of your reps. If you create the proper environment for your council, the rep will tell you everything you need to know about the market.”

When he mentioned “proper environment,” the consultant explains what he’s talking about is one where you “don’t let the sessions turn into chit-chat meetings. Create an agenda and stick to it.”

“There is simply no better source of affordable information than the feet you have on the street in the person of your reps.”

A Rep’s Point of View

As he considers his views on the subject of the value of rep councils, Robert Karlheim, Texas-based Sterling Industrial Technology, explains that “In the past I’ve served on rep councils and currently serve on one. In doing so, I’ve got to admit that we have been the major pathway for many productive rep-principal ideas, issues, etc.”

He continues, “The decision as to whether you should move forward with or without a rep council is hardly one-sided. Both the manufacturer and the rep should have a meeting of the minds where they agree it would be beneficial. If used properly, rep councils continue to provide value and never go out of fashion.” He cites two major reasons why councils offer so much value:

• “If a manufacturer has a direct sales force, he’s going to have regular sales meetings with them anyway. It all comes down to communication. So if you work with an outsourced sales force, you’ve got to make every effort you can to effectively communicate with them. A rep council assists in that effort.”

• “The other major benefit of a rep council is that it gets right to the point of your marketing and communication effort. By listening to your rep council you learn what you need to do for your sales and marketing efforts to be effective in the field. It’s hardly unusual that the factory sees things one way and might very well have a preconceived perception of what’s necessary. The rep is out there in the field and the rep council works as a conduit for information that lets the manufacturer know what is truly going on.”

“If used properly, rep councils continue to provide value and never go out of fashion.”

As an example of how the rep council can prove its worth, Karlheim recalls a marketing program that was initiated by a principal. “They communicated their ideas on a new product by simply saying ‘Here’s the new product; here are the benefits. It’s in stock now, so go out and sell it.’ The only problem was they weren’t getting the sales they anticipated. The manufacturer was dealing with its 25 reps located across the country and each of them had a different level of expertise as it applied to this product. What the rep council did was to come back at the manufacturer with a suggestion that rather than just put the product out there and sell it, they should prepare a ‘launch presentation’ for their reps and go into detail concerning how the product can be used, what accounts would be attracted to it, etc. Give credit to the manufacturer because they listened to their reps. They adopted this approach and sales immediately increased.”

Always be Professional

“Any rep should have the ability to act with tact and a level of professionalism when they are communicating something to their principal.”

Karlheim admits that the example he cited was one where the manufacturer and reps were on the same page. He’s also aware that there can be a danger with rep councils in that one side or the other can cross the line and wind up being unprofessional — if not impolite — in their approach. Based on his own years of experience of working on rep councils, he says, “I’ve been known to be honest and direct with my principals. Any rep should have the ability to act with tact and a level of professionalism when they are communicating something to their principal. They have to be able to go in there and point out things that need attention. As a matter of fact, you as a rep council member have a right to do such a thing. As far as the principals are concerned, he should be working within the same parameters. Both sides must be aware that they can’t say the other side is no good or worthless. The main purpose of the rep council is to be honest and constructive and work to the benefit of both sides.”

Obviously Karlheim recommends to other reps that they act as proponents of rep councils. Simply stated, his advice to reps on the subject is simply, “Go for it. If your principals have never established a rep council, don’t be afraid to make the suggestion. On the other hand, if your manufacturers have councils and your name comes up as a prospective participant, take advantage of the opportunity. All that can happen is that you will grow professionally and learn more about your principal.”

“The main purpose of the rep council is to be honest and constructive and work to the benefit of both sides.”

In terms of providing advice to manufacturers on the subject, he says, “If you’ve never had experience with a rep council in the past, be very open to the idea. All it can do is help you and your reps. If the principal is open to the idea of communication, then a well-put-together rep council will more fully inform you as to what your reps are doing. In addition, your customers will benefit from improved performance. Sales will increase and you’ll play a role in building a reputation for your company.”

End of article

Jack Foster, president of Foster Communications, Fairfield, Connecticut, has been the editor of Agency Sales magazine for the past 23 years. Over the course of a more than 53-year career in journalism he has covered the communications’ spectrum from public relations to education, daily newspapers and trade publications. In addition to his work with MANA, he also has served as the editor of TED Magazine (NAED’s monthly publication), Electrical Advocate magazine, provided editorial services to NEMRA and MRERF as well as contributing to numerous publications including Electrical Wholesaling magazine and Electrical Marketing newsletter.