There’s a certain consistency in responses when reps are asked to define the term “professional principal.” It doesn’t take long to learn that there are several attributes that any principal that works with reps must possess — at least in the minds of reps — if it is going to comfortably fit into that “professional” category.
© Getty Images | Jupiterimages | Thinkstock
For instance, consider some fairly broad guidelines that one rep firm that’s been in business for about two decades offers: “Over the years that we’ve been in business our philosophy has always been to represent principals that produce good products, respond to customer needs, are innovative, solve problems in a timely and professional manner, and pay us accurately and on time.”
That’s certainly a good start for defining what is a professional principal, but there’s much more. What follows are some but certainly not all of the most-desired attributes that reps maintain they look for in those sometimes elusive professional principals.
Consistency
Fortified with more than 60 years of experience going to market the rep way, one Midwest manufacturer espouses a philosophy that’s especially attractive to reps: “We’ve never seriously considered a change in how we go to market. We’re only a $60-million company, and I don’t know at what point people think it makes sense to even consider something different than working with reps. If you want to make a change and have a direct salesman cover a territory, there are trade-offs to consider. At the same time, however, you’ve got to keep in mind that whatever commissions are paid to the rep don’t all go into his pocket. He’s got a variety of travel and entertainment expenses that he has to cover. Those are all costs that the manufacturer would have to bear if he ever decided to go direct.”
Commitment
One manufacturer notes, “Part of the culture that has been crafted by us is our commitment to the rep way of going to market. Whether you use direct salespeople or reps, you must be absolutely committed to conducting business in that manner. You can’t go about it halfway. If you’re half in or half out, you’ll be constantly at odds.
“Our reps regularly ask us about our commitment and I don’t blame them. My response is that we are committed to effective, productive independent reps. No principal should tolerate anyone who takes a free ride. On the other hand, no respectable rep would take a free ride. A partnership such as we have with our reps respects the needs of the principal and the rep. If you start off the relationship on that basis, you ought to be able to address any problems that come your way.”
Communication
Here it’s appropriate to add the third “C” of the trio: Communication. Two-way communication provides the foundation for any solid relationship and that’s certainly the case for principals and reps. As he describes the level of communication that he enjoys with one of his professional principals, one rep says, “They constantly solicit input from their reps and they regularly communicate with us through their monthly newsletter. In addition, whenever there’s a new product development, they’re sure to involve the rep in any discussions. As a matter of fact, even before they market a new product, they’ll contact their reps to determine if there’s an actual market for the product. We’re constantly asked what our customers want and need and, if possible, we’re even included in the design status of new product development.”
He continues that the manufacturer also makes every effort to include reps in discussions with their management, engineering and marketing people.
Staying on the subject of communication, another rep notes that one of his principals complements its traditional communication efforts (e.g., website, newsletters, etc.) with an extremely strong network of regional sales managers whose job it is to speak directly to reps. According to the rep, “Each of them has gone through all the ranks in the company and they have vast experience with the company and the products that they manufacture. They know where to get all the answers.”
He continues, “In the course of performing their jobs, “These sales managers spend the majority of their time in the field making joint sales calls, serving as counselors for reps and identifying reps’ strengths and weaknesses. By their presence and regular communication, they establish and maintain a strong and trusting relationship with us and all the other reps the manufacturer works with.”
Written Reports
Discussion of the subject of communication between principals and reps can’t be completed without addressing the subject of written sales reports. Typical of what reps desire when it comes to this subject is the absence of such reports — and they generally get that from their professional principals. As he considered one of his principals’ attitudes on this subject, a rep says, “It appears that they’re not really big when it comes to written sales reports. Sure, they expect their reps to share competitive and other information with them on an as-needed basis, but in general they trust us to communicate with them when we have to.” And it’s not just written communication that will do the job. “Any way we can get pertinent information to them in a timely basis does the job.”
On the same subject, another rep explains that one of his professional principals bridges the communication gulf the most direct way possible. “The manufacturer that I would describe as the most professional communicates with us in the absence of a sales manager. Instead, the company president deals with us personally. I know not all manufacturers can do this and their ability to communicate that way is partially dictated by their relatively small size. As he’s explained it to us, he feels that his reps are professional salespeople. As a result, we know our jobs and by him working directly with us, all mutually-agreed-upon goals have regularly been met.”
Partnerships
A firm commitment to working with reps ultimately leads to partnering between principals and reps. When he was asked to comment on how professional principals view a partnership philosophy, an Ohio rep notes that “Each of what I would consider the professional principals that I work with also work with reps in other areas and they have a working knowledge of what reps are, what they do, what they do not do and what to expect from them.
“Furthermore a professional manufacturer will be well-run from a management and financial perspective. They are conservative and careful, but will make business expansion plans, including equipment or software. Each company has professional employees involved in the sales, management and production side with years of experience in their respective fields. Each company has offered to work with me as a partner. They frequently ask for my input, comments, criticisms, and they offer a ‘can-do’ attitude toward taking care of the customers. Furthermore, they have shared confidential information on the company in a way that allows for my better understanding of a larger picture as it relates to issues such as price increases and their direct impact on profitability. This is a far cry from some other lines we have worked with that look upon reps as ‘quote gatherers’ or ‘smoke stackers.’”
On-Time, Accurate Payment
There’s not a rep in the world that will establish a partnership with a principal in the absence of payment for services rendered. According to one rep, “The truly professional principal pays their commissions on time — without fail — and provides excellent documentation on shipments, paid invoices, unpaid invoices, and credit memos. The sale reporting data is also first-rate and is used in conjunction with my internal data collection systems.”
Speaking on the same subject, another rep offers this experience that more than cemented his relationship with a professional principal: “When I took over the agency, we completed an audit to determine exactly what was owed to us by each of our principals. Over the course of reconciling all of our commissions, I asked them for their figures, and believe it or not, their figures matched ours penny for penny.”
Training and Education
Perhaps it was one rep’s previous career as a teacher that causes him to point to the importance of principals supporting constant training and education. As he explains it, “I was a high school teacher. I truly value the need for education and one of our agency’s goals is to align ourselves with principals that share that view. We’ve been lucky enough to be able to work with manufacturers that not only educate us regarding their companies and their philosophies but constantly hold sessions that keep us up-to-date on new product development.”
