© James Steidl | Dreamstime.com

An ever-present subject for discussion among principals and their reps is that of call reports. In general, independent reps exhibit a dislike for them and tend to persuade their principals that they aren’t needed. Any number of manufacturers interviewed by Agency Sales over the years have expressed the view that in lieu of such reports, they truly appreciate the efforts of proactive reps who voluntarily keep them up to date with what’s happening in the territory.

Adding more fodder for the discussion is Brian Myers, Myers & Associates, LLC, Madrid, Iowa, who offers his take on the subject that should be of interest to manufacturers.

“Everyone who’s ever been involved in sales knows that call reports are a pain. They can be useful, of course, and in those cases they are a necessary evil. But far too often they are effectively nothing more than busy work for salespeople who should be doing something else. That’s especially true when it is known or suspected that no one is reading the reports anyway.

“In our retail service business, we are expected to fill out reports — a lot of reports. And at the end of the month, we spend almost as much time drafting, assembling, and sending in these reports as we do with our month-end accounting. The picture here is of one month’s worth of call reports. It’s roughly two-thirds of a ream of paper. We are looking into doing all these electronically, but it is our understanding that the tablet software is not yet where it needs to be in order for us to complete these reports in their various formats. That development can’t be far away, however, and the moment we can make the switch to paperless reporting we will make that investment.

“In the meantime, I would challenge all principals and agencies alike to re-think the alleged value of call reports. I have been on both sides of this issue, having been vice president of a small manufacturing company where I was in charge of the sales effort for most of the years I held that position. I’ve also held more field sales positions than I care to remember. I’ve filled out countless reports and I have probably received and read just as many. I’m not saying they should never be required. There’s nothing worse than being accountable for sales revenues, whether you’re a manufacturer, a sales manager, or whatever, when the numbers are down and you don’t know what’s going on in the field. But if no one is actually paying attention to the reports (and I mean in detail), why have your people in the field waste their valuable time filling them out? Surely you have a more effective way to hold people accountable or to gauge their activity than filling out reports that nobody reads.

“I freely admit that when the day comes that all of our reports can be done quickly using a stylus and a tablet, much of my problem with them will go away. But even so, some of what we fill out in these reports I will still view as meaningless fluff, and I will still be annoyed that no one will read them. For the rep, c’est la vie!”

Manufacturer Panel Tackles Rep Questions

Rep association industry meetings are a great opportunity for manufacturers and reps to exchange thoughts and opinions on subjects of mutual interest. That was certainly the case earlier this year when a panel of manufacturing sales executives took questions from their rep audience. Among the subjects raised were those of line conflicts, the need for communications and joint field visits. Here’s how the Q&A on those subjects shaped up:

Q: Conflicts may arise from the manufacturer when acquisitions or mergers occur or a manufacturer moves forward with getting into a category that a representative already is in with another manufacturer. Rather than potentially losing a quality representative, how do you view allowing the representative to manage the perceived conflict?

A: Members of the manufacturer panel believed that the most important factor in this kind of situation was communication between the rep and the manufacturer. The manufacturers stated that they would get the rep involved in the situation earlier rather than later — even to the extent of disclosing potential mergers and acquisitions to the rep. That being stated, each case needs to be considered individually, product by product. Even with conflicts manufacturers want to talk these situations through with reps and discuss the best result for both parties. The key is to have honest communication early and often.

Q: What is the single most-important item you wish your independent sales representatives did or practiced on a regular basis for you, the manufacturer?

A: The answer to this question is communication. Panel members enthusiastically supported more and better communication. The communication subjects that were discussed centered along the lines that the reps are the eyes and ears of the manufacturer in the marketplace. The specific topics of communication mentioned were competitive information, sharing the bad news quickly, keeping on top of quotes and updates and communicating manufacturers’ policies to the customer base. It is the firm belief of the manufacturers that a lack of timely and specific communication costs both reps and manufacturers money in the long run.

Q: How do you as a manufacturer view/address territorial visits with a representative with regards to advance notice of trips, expectations/goals, customers, specific targets or pre-planned calls?

A: The panel expects their regional sales managers to provide between two weeks’ and one-month notice to reps for territory visits. The estimated cost of a regional sales manager in the field can be as high as $1,000 per day. With that kind of cost structure, expectations are that the regional sales manager will be working 12-hour days and have preplanned his territory visits to be most effective. If rep firms have a policy regarding the planning of territory visits, those need to be shared with the manufacturer.

The View From the Other Side of the Desk

When discussing manufacturer-rep relationships there’s no better source to tap for an opinion than a manufacturer who used to be a rep and vice versa. When a man who occupies the latter position was asked what’s the most important thing he learned from occupying both positions, he responded that “Perhaps the most important thing I learned when I worked with reps, and now that I am one myself, is that the overwhelming majority of independent reps are professional, results-orientated salespeople. The chief motivation for me and my fellow reps is that we see the results of our work on an hourly, daily, even monthly basis. That’s a much different motivator than the regular sales check my direct salesmen received during my former career.”

And, that’s not all that he offered. “Two more common misconceptions I’d like to correct: Not all reps are rich; and, even though we work on commission, we don’t just concentrate on the low-hanging fruit that offers us the quickest and best pay. If you truly examine how reps work, it will be evident that most of the reps’ efforts are spent on projects positioned well down in the pipeline.”

The Quest to Learn

When a manufacturer sales manager was asked what he likes to read about in the various publications he receives, he offered that articles describing what people in different professions did on a daily basis was something that always got his attention. “You never fail to learn about the challenges and rewards that various careers offer. There’s even a show on television that goes through ‘the world’s worst jobs.’ When you see what others are faced with, it can serve as a bit of a motivator for yourself.”

He continued that he’s taken something away from those job descriptions. “Whenever we sign on a new rep, I take the opportunity very early in the relationship to spend some time with him to learn what he’s faced with on a daily basis. Sure, I’m interested in his customers and the relationships he’s established with them, but more to the point, I like to learn what makes him tick and what serves as a turn off.”

From those experiences with new reps, the manufacturer notes that he’s implemented some practices of his own that he maintains makes the rep’s life a little more rewarding.

• “Nothing’s doomed for failure faster than a new-product introduction that the rep has no interest and enthusiasm in. That’s why whenever we come up with something innovative, we’re sure to present it to the rep in the most interesting, up-to-date fashion. Whether it’s an online presentation, PowerPoint, or hands on demonstration, we make every effort to quickly gain the rep’s interest and motivate him to introduce it to customers.”
• “There’s nothing like a constant flow of information back and forth between principal and rep to guarantee interest. Our belief is that if we do everything we can to maintain a presence in front of the rep, chances are we’re going to be among the first of his lines that he presents for his customers.”
• “Finally, the rep is absolutely unarmed in the field if we don’t provide him with the support tools to his job. That’s why we go overboard to make sure our reps are provided with a wealth of products, samples, ad reprints and direct and immediate support from the plant. Our reps regularly let us know that we’re among their top lines when it comes to the backing they need in front of their customers.”