When a manufacturer makes the decision to go to market with independent manufacturers’ representatives, they’re inherently admitting they don’t have the physical and financial wherewithal to cover the market on their own. As a result, manufacturers had better make sure they know how to work efficiently with reps if they’re moving in that direction.

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That was the thought process of several attendees at MANA’s Manufacturers’ Seminar in Chicago last fall. And, it was a thought process shared by the seminar’s two presenters Hank Bergson and Kris Hefley.

“I think what we offered to the 20 manufacturers in attendance was a convenient place to gather information concerning working with reps,” explains Bergson, president of Henry Bergson Assocs., LLC, Katonah, New York, and former president and CEO of NEMRA. “And there to take advantage of that opportunity were manufacturers with a wide variety of interests from a wide variety of industries. We had everyone from Chinese looking to rep their products here, an electrical manufacturer with years of experience with reps (but looking to improve their relations), the head of a manufacturing association, and others just seeking a means to improve their processes.”

In addition to hosting a variety of manufactures with a similar variety of needs, Bergson says “Some of them knew more about reps than others and some knew very little. There was no one in attendance, however, with anything like a chip on their shoulder. All kept an open mind and allowed us to present information about reps in a general sense.

Hefley, a consultant and currently an associate professor of marketing at Johnson & Wales University, Denver, Colorado, points to some of the seminar subject matter as being especially interesting to attendees — based on their reactions. High on the list of subjects on which the presenters received the greatest amount of feedback were planning with reps and best practices to follow when searching for reps. “While some of the seminar participants indicated they actually conducted joint planning with their reps, it’s interesting that most of them said they really didn’t have a formal or systematic process in place for doing so. In addition, we entertained a number of questions concerning best practices that were following by other manufacturers when it came to hiring new reps.”

A couple of other interesting areas of concern, according to Hefley, were these:

• A lack of understanding of rep firm operating costs.
• The pressing need for rep firms to have a professionally designed and maintained website.

On a subject related to rep websites, Hefley indicated it was interesting that several manufacturers indicated they had no idea that their brand was being represented on the rep firm’s website. This speaks to the obvious need for reps and their principals to improve communication.

Staying on the topic of seminar subject matter, Bergson noted that a good deal of time was spent on the need for “fair and balanced, written” contracts between principals and reps. “The need for a written contract is fairly obvious,” he continues, “for the very same reasons that MANA and ASM have emphasized in the past. What we added to the conversation during the course of the seminar was a discussion of what happens if all you have is a handshake agreement, what constitutes ‘fair and balanced,’ and what should be included concerning a termination of the agreement.”

Another subject covered fairly extensively during the seminar sessions was that of evaluation of reps. Bergson explains that “In my years observing reps, one thing I’ve learned is that if the rep isn’t working out, it’s much better to end the relationship sooner, rather than later. All you accomplish by delaying the decision is providing yourself with more room to make up. The best advice that we offered to the group was to deal with the situation.”

If Hefley and Bergson came away from the day-and-a-half seminar satisfied with the reactions they received from attendees, those manufacturers in attendance voiced similar opinions.

Typical of reactions of attendees to the seminar was that of Bill Shepard, vice president of sales and marketing for Di-Matic Corp., Brooklyn Heights, Ohio. The manufacturer, who works with approximately 20 reps, notes that “As a result of attendance at the seminar, I don’t think I had any pre-conceived notions about reps that were changed. But the real value for me came with an explanation of the need for good documentation of policies and procedures for working with reps. What was provided was an excellent checklist for hiring and working with independent reps.”

A bit of a different perspective was offered by Darron Collins, Fort Worth, Texas, who explained that in comparison to the manufacturers in the room he was a bit of a “hybrid.” “I’m serving more as a master rep and am setting up a sub-rep and distributor network for a company I used to work for. My goal — which I’ve got to admit was met at the seminar — is to find ways to improve relationships between principals and reps while at the same time improving the reps’ effectiveness in the field.”

Collins admits that a couple of misconceptions were adroitly dismissed during the seminar. “Being a former rep myself, I’m more than aware of how reps work. It’s interesting, however, that over the years I’ve heard a couple of things from others:

• Reps simply sit around and collect commission checks.
• If a rep isn’t working out, just terminate him.

“Both misconceptions go back to the problem of the rep not being engaged in what he’s doing. They’re not engaged because they have no clue as to what the manufacturers’ expectations are. That happens because the manufacturer does little or nothing to support and incent the rep. Manufacturers that act in that manner treat their reps almost as adversaries. Look at it this way — if the rep was a direct employee, the manufacturer would do everything in his power to understand what the reps’ needs and wants are in order to make them more effective.

“It was very refreshing to hear Hank and Kris address this problem and provide practical methods for the manufacturer and rep to grow together.”

Dan Leszczynski, vice president of sales for Anco Engineering Inc., Shelton, Connecticut, explains that his company worked with reps about 20 years ago but stopped when both of their reps retired. “My goal in attending the seminar was to restart with reps in order to expand our sales efforts into other areas of the country.” Among the topics he found useful during the seminar were how to contract with reps, how to motivate them and how to set down in writing the terms and conditions of a fair contract.

Tips for joint planning between principals and their reps was a point of interest for Diane DiBattista, national sales manager for Brabantia USA, East Rutherford, New Jersey, and she says that’s just what she got during the course of the seminar. “Plenty of information was included that showed manufacturers how they can educate their reps to share in their joint plans allowing them to work more efficiently together.”