While some independent manufacturers’ representatives view the territory visit/joint sales call from the factory as something they just have to “grin and bear,” if planned and executed properly there are plenty of benefits to be accrued from that exercise.
Sure, there are negatives such as the rep having to spend time away from more-pressing matters or the fact the manufacturer may not understand the rep’s need to sell other lines, but consider the potential positives for a moment. The territory visit might just be an ideal opportunity for the rep to:
- Meet first-hand with senior factory sales personnel and take the first step in developing personal relationships that can benefit the rep/manufacturer/customer long-term.
- Take care of lingering problems (e.g., quality, delivery, price concerns) that demand a personal touch.
- Continue with the rep’s long-term efforts to “sell” the rep way of going to market and the agency to the principal.
- Experience a more complete education on the principal’s product line.
- Get the latest information concerning new products and marketing programs.
- Share territory marketing information with the principal.
All these benefits, however, come with the caveat that the field territory visit is prepared, executed and followed up in the proper manner. Perhaps this is best said by one rep who maintains, “We don’t necessarily need manufacturers out here making cold calls with us, but given the right circumstance they can be invaluable.”
Why the Visit?
Reps report that, in general, their principals will contact them to schedule a territory visit for one of several reasons. Those reasons run the gamut from touching base with critical accounts, solving a customer problem, evaluating the rep, conducting technical product seminars, or simply a desire to take some time away from the factory.
MANA seminar leader Paul Pease, The Pease Group, Hermosa Beach, California, adds to the conversation when he explains, ”In my experience there are basically two kinds of visits — planned and emergency. The planned visit, which must be done with plenty of advance notice, should only be contemplated when it’s a win-win-win for factory, rep and customer. The disaster or emergency visit, on the other hand, is the kind that is done when there’s a sudden need to solve a problem, resurrect a product/program or, in general, just take advantage of the opportunity to ‘nail’ this thing down.
“Basically, what I’m saying is the call has to make sense for the factory, me and the customer. It has to be an occasion when we are taking a business transaction from one point to another or we’re enhancing a relationship and they (the manufacturer) would help us achieve that goal.”
By way of example, Pease recalls a couple of instances when the manufacturer’s presence on a sales call was invaluable. “We were providing a component on a defense project but a problem occurred when the customer sought to slash the price in half. The factory manager who accompanied me on the call was a skilled negotiator who knew exactly when it was right to walk away. When the customer asked for price cuts, his response was: ‘We can provide the product at the price you want, but the problem is it won’t work.’ Now, many manufacturers would fold up like a cheap chair, but this manufacturer was savvy enough to know it was right to just walk away — and it was important that the customer receive that message directly from him.”
The second example Pease notes involved a very pointed question from a customer in the aerospace industry. “The manufacturer was asked a question about a nagging quality problem and he answered with such conviction that it worked to our benefit. He acknowledged the problem, said he was aware of it, knew how to solve it and would solve it. The customer told me later that he was won over by the manufacturer’s honesty. What happened was that we won the contract at hand and that included two additional lines that were extremely profitable.”
Planning and Communication
Because of this fairly wide array of reasons for such visits, it’s important for the rep to:
- first, be contacted well in advance of the planned visits
- and second, to learn the main reason for the visit.
Emphasizing the importance of sufficient notice is Doug Benway, who has spent plenty of time on both sides of the desk as both a principal and a rep. Benway, Contract Marketing Group, Fairfield, California, notes that “When a regional or national sales manager arrives in the territory, all too often they just show up. Sometimes, when advance notice is given just a few days before, it goes something like ‘I’ll be there on the 18th , let’s make some calls.’ It’s then up to the rep to scramble to come up with appropriate meetings. On top of that, the rep doesn’t know the expectations of the manufacturer. What happens then? The rep will take me to their customer friends and not much is really accomplished. That’s why pre-game communications are so important.”
Commenting on the customer-friend type of visit noted by Benway, Pease describes something he encountered several years ago when he was a rep: “Let’s face it, there are some times when the manufacturer wants to get out of the factory and decides to visit some customers with the rep. The first question I had to ask myself was is there any real value to the visit? One time I remember asking the customer if he could make time for us. The customer, who indicated he knew exactly what was going on, responded by asking if I wanted the business-driven or the time-wasting visit. It’s the latter joint call when no one brings anything to the party that fits into the time-wasting category.”
Learn All You Can
Benway’s and Pease’s thoughts are key to keep in mind, and they serve to urge the rep to find out all he can about the reasons for the manufacturer visit from the outset. The rep would be well served from the very first contact with the manufacturer to ascertain why he’s coming to town. Even before telling your staff about the proposed visit and committing them to working with the principal, find out the manufacturer’s objectives, what accounts they desire to visit and how much time they plan on spending with you. By following this process, the rep allows himself sufficient time to consider the appropriateness of the visit and just as important the number of days that are proposed.
Commenting on the number of days the manufacturer may desire to visit, Benway notes that “I can’t blame the rep if he doesn’t care for it when the manufacturer simply states ‘I’m going to be visiting in your territory.’ He really has no idea how much time to allocate. In addition, consider that if the rep offers up to any given manufacturer two days while he visits in the territory, he’s given him 10 percent of the entire sales month. Looking back at the time I was a rep, I’ve got to admit that such visits in the field rarely provided me with any real sales opportunities. At the same time, I’m aware that the visits do give the manufacturer a closer view of what’s going on in the territory, and that’s important to both of us.”
Once the rep has considered the manufacturer’s request, it’s wise to communicate back with your contributions to what ought to be covered and then take it from there.
Manufacturer field visits shouldn’t always be one-sided, however. In other words, there can be a time when the rep perceives a need to have the manufacturer with him in the field.
The Need To Be Proactive
For instance, Len Powell, owner of Powell Equipment Sales, Inc., Minneapolis-St. Paul, Minnesota, recounts, “Looking back quite some time, I can recall an instance when we had some long-standing performance issues with numerous pieces of equipment we sold. This wasn’t a case of poor performance by the manufacturer; rather, it involved how the product was being used by the customer. We requested that an experienced engineer from the factory join us in the field to learn what the customer was doing. He came in, spoke with the customer and noted what modifications had to be made to achieve customer satisfaction. The manufacturer’s engineer was able to sit down with the customers’ engineers, speak at the same level, and learn what the most likely problems were. He then took that information back to the factory and communicated with engineers there concerning what had to be done. Once the modifications were performed, he came back, worked with the customers and instructed them how to retrofit the equipment. All these efforts led to 20-plus years of working well with that customer.”
What that instance illustrates is there’s no reason why the rep can’t be as proactive as the manufacturer when it comes to field visits and joint sales calls. Chances are the rep’s request for a visit will be heard by welcome ears and can go a long way to preclude the need for visits that arise out of problems.
No matter who initiates the visit, however, planning is the key. Some basics surrounding the planning and execution should include pre-game mail, e-mail or fax (if anyone uses fax anymore) that would describe the visit’s itinerary. It’s also useful that the manufacturer should be prepared to present an update for the agency’s staff. A final advance step would be to approve the itinerary.
Once the detailed plans for the visit are in place, manufacturers and reps agree that the actual execution of the visit should include time for interface between the manufacturer and the agency’s executives and staff. Once completed, the visit should move on to joint customer calls.
A question that inevitably crops up surrounding the execution of the joint call is whether the rep should sell/mention the other lines he represents. There’s little hesitation on the part of reps contacted for this article concerning how that situation should be handled.
The Synergistic Approach
For instance, Powell explains that “When I’m working in the field with my normal factory liaison, whether the district or regional sales manager, they understand that the mention of other manufacturers’ products can come up. I might add that the higher up you go with factory personnel that understanding decreases. As a practical matter, however, I try not to venture into other manufacturers’ territory, but if the sales opportunity presents itself, I’m there.”
Benway adds: “It’s imperative from the very beginning that if the rep is going to make joint calls with the manufacturer that he clearly communicate that he’s representing two to three or even 20 more product lines. It’s probable that there’s going to be mention of those lines during the visit. Common sense has to prevail, however, as you consider who you’re with. You can’t go on and on about the other lines, pick up one or two leads and then move on.” Benway adds that when he was a rep, one rule of thumb he tried to follow is that if he was joint-calling with the manufacturer with a dealer, it was more than acceptable to bring up other lines. If the call was to a customer, however, every effort was made to concentrate just on the manufacturer who was present.
Echoing those thoughts is Brian Hurd, director, HKR Ventures, LLC, Cincinnati, who says, “Most manufacturers who use independent reps also realize they sell complementary products. As a result, they shouldn’t be surprised if another company is mentioned.”
Pease maintains that one of the primary, if not the primary reason, a manufacturer is working with a rep is the synergy the rep brings to the table. “I can recall a time I was on a joint call in Las Vegas and I was very hesitant to bring up additional lines in the presence of the manufacturer who was with me. Because he truly recognized the value of the rep way of going to market, he made it a point to bring up some of my other lines. He did so because he felt by doing that it would be easier for me to sell all that I represented to the customer.”
If there’s agreement that mention of other lines is acceptable, there certainly are some subjects that ought to be avoided during joint calls.
Concentrate on the Customer
Benway recalls one time when he wasn’t given a great deal of advance notice for a field visit, but he did manage to put together an effective itinerary of dealer and end user calls. “Unfortunately, I was accompanied by a regional manager who spent most of his time talking about himself, so much so that one of my customers actually got up and walked out.
“Manufacturers must keep in mind that when the rep brings someone into the territory for a customer visit, it speaks to the rep’s reputation and credibility. If a customer gets frustrated and walks out, it appears as if I didn’t strategize properly. I can recall that I actually came close to resigning that line.”
Promises are what Powell wants to avoid in such situations. “During a joint call with me, I never want to see or hear the factory person make a promise that a problem will absolutely be solved. I don’t want them to promise either for me, on behalf of me or anyone else at their factory. Such promises can only be made as the result of additional conversation resulting in someone else taking on a responsibility. We both can promise that we’ll follow up and get back to the customer, but that falls short of making the commitment that something will be done. I’ve had some higher-up managers come in and say something that from experience I know simply wasn’t true, and I’ll have an impossible time pulling off what they promise.
Who Pays?
A discussion of territory visits can’t be completed without mentioning expenses. In other words, who (rep or principal) pays for meals, travel, etc. It would appear that common sense in making those decisions is the best rule to follow. Here’s how Powell looks at expenses: “When the manufacturer comes into the territory, they always pick up the hotel. In addition, I’ve never had anyone impose a meal on me. I know when I go to sales meetings, they (manufacturers) take very good care of me. At the same time, when they’re here and I’m serving as host, I want to be hospitable to them. I want them to be comfortable. They provide a valuable service when they come to the territory. If there’s something I can do for them, I’m paying.”
When it comes to expenses, Benway says, “Assuming anything is a bad idea. Here’s the way I’ve done it. When I’ve been on the manufacturer’s side, the person with the most stripes has the biggest budget. If I go into a city and do lunch with a rep, I take care of it. As a rep, if the national or regional sales manager comes in and takes two days of my time, the meal, etc., are on him. I have no expectation to pay.”
Some additional views of how expenses should be paid and by who are offered in comments from MANA’s LinkedIn discussion board. They include:
“Our policy is to normally pick up the majority of the dinner tabs. The feeling is that the manufacturer has gone to the expense of sending a person into the field and the person is also away from family, etc. The least we can do is to pick up a dinner tab. I will add, however, that it is nice to be able to let the principal pick up the occasional tab. If a customer is included, we try to pick up the tab 100 percent of the time.”
“When I was a factory guy, we were told to pick up dinners for sure, lunches could go either way. If there was a customer present, we picked up the tab. The factory’s position was that it was a reward for work well done and the hassle of having a factory guy in the territory for three to five days. Now that I am an independent rep, it usually goes the same way with my main principals. I do have a couple of principals that won’t pay for anything, however. That’s life.”
“In my experience, the meals are split. I pick up lunch one day, the factory picks up dinner. The next day, they pick up lunch and I pick up dinner. I pay for all fuel while traveling in the territory; which is a huge expense these days.”
“Our goal is always to grow the business to a point that the meals are such a trivial expense, it does not matter who buys. Having said that, meals are treated on a case-by-case basis. Sometimes you can help a factory guy lighten his expense report and gain some of his goodwill. Other factory guys will insist on paying. One principal has the policy ‘home team pays.’ None of this matters as long as we grow the business.”
“My number-one principal always picks up the tab for breakfast, lunch, and dinner when traveling with their reps. They even pay for the hotels and sometimes even put gas in the car. It is a real treat and greatly appreciated. They do this as a way to show us we are of value to them and to show their appreciation of our efforts. My number two picks up a meal periodically. They tend to take turns paying, but never for hotels or any extras. The rest occasionally will pick up a meal. When we are together and taking out a customer, every principal I worked with or do work with has picked up that bill.
“Though never expected, it is a great treat to have the tab picked up by someone else, as we always seem to be taking people out and paying in this area.
“When I was in manufacturing and traveled with reps, I always picked up the meal tabs in an effort to show the companies my appreciation for what they do. It is a small expense that results in some good PR.”
Importance of Follow-Up
Finally, at the conclusion of the visit, when all bases have been covered and expenses agreed upon, a visit debriefing and an agreement as to who should do what in terms of follow-up should be agreed upon. Inherent in that follow-up should be a written review of the visit that should be completed promptly and a recap of all the calls made and commitments made by rep or principal.
Once these steps are followed, chances are reps can forget about having to just endure such visits, but rather they’ll be able to use them to their sales advantage.
In conclusion, Pease stresses the value of these visits when he says, “Manufacturer field visits are critical. They show the factory how hard the rep works. They also verify that the information the rep is providing the manufacturer from the field is accurate. This is all-important, because many manufacturers have to see this for themselves.”
