As a manufacturer that outsources the sales function to independent manufacturers’ agents, you want to create relationships with the most professional manufacturers’ agents willing to work with you. The more professional the manufacturers’ agent, the more they sell for you.

On the other side of the relationship, manufacturers’ agents want to partner with the highest-quality manufacturers willing to work with them.

The goal is to create long-term and mutually profitable relationships, a “Partners in Profits” relationship.

How Do Manufacturers Achieve “High Quality” Status With Manufacturers’ Agents?

There’s a lot more to high quality than just the products and services they provide. Product quality, on-time delivery, responsiveness to customer issues are a given. That’s not the focus of this program. Below we outline the characteristics of high-quality manufacturers, as seen in the eyes of a manufacturers’ agent. In addition, information that MANA has available for manufacturers is detailed. This month, information concerning working with reps and then finding and interviewing reps is included. In future issues, other subjects related to the manufacturer-rep relationship will be included.

• High-quality manufacturers understand the agent-manufacturer relationship and how it differs from managing direct employees.
• High-quality manufacturers know how to find and interview prospective manufacturers’ agents so at the end of the due diligence process, there is a very high probability the relationship will succeed.
• High-quality manufacturers create fair and balanced written agreements with their manufacturers’ agents that work for both parties.
• High-quality manufacturers develop trust with their manufacturers’ agents to foster frequent and open communication between both parties.
• High-quality manufacturers form agent councils that meet and work on how to improve the rep-manufacturer relationships to create greater success for both.
• High-quality manufacturers meet annually with their manufacturers’ agents to create mutual action plans on how to grow territory sales for the following year.
• High-quality manufacturers know how to set up territory visits for maximum benefit.
• High-quality manufacturers understand the need for extra consideration when they ask manufacturers’ agents to develop missionary territories.
• High-quality manufacturers train their manufacturers’ agents so they know and understand the products the manufacturer provides.

High-Quality Manufacturers Abide By MANA’s Code of Ethics.

High-Quality Manufacturers Understand the Rep-Manufacturer Relationship and How It Differs From Managing Direct Employees

Working with manufacturers’ agents differs significantly from working with direct employees. The former are business owners and entrepreneurs, the latter are not.

High-quality manufacturers understand this and work with their independent agent force as business partners who work together for mutual profitability. They don’t treat their agents as they would an employee.

Manufacturers who understand the rep-manufacturer relationship become the manufacturers’ agents’ “emotional favorite.” This understanding results in their manufacturers’ agents devoting more time to these manufacturers’ lines. The extra time and effort result in higher sales.

High-quality manufacturers attract higher quality manufacturers’ agents.

MANA members and associates may access the various articles and other presentations that address the importance of reps and manufacturers working with business plans by visiting the “member-only” section of the MANA website (www.MANAonline.org).

Educational Resources

Special report: Analyzing the Manufacturers’ Agent-Manufacturer Relationship — MANA’s Joe Miller and Jerry Leth offer a detailed examination of the rep-principal relationship. Among the topics discussed are why manufacturers decide to go to market with reps and the role that due diligence plays in establishing the relationship.

Electronic book: Sales Agents-Manufacturers: Adversarial or Cooperative? — In this e-book, business writer, former sales rep and manufacturer Bob Reiss explores the business relationship and offers tips for each for mutual gain.

Agency Sales magazine article: In “Partners in Profits or Adversaries?” Joe Miller, MANA’s former President & CEO, explains how some manufacturers destroy bottom-lines with short-term thinking. He cautions that once a manufacturer attempts to treat a rep sales force as he would an employee, the end of the relationship is in sight.

Teleforum: MANA staff as well as consultant and former rep and manufacturer Bob Reiss focus on what can be a confusing relationship in “Understanding the Rep-Manufacturer Relationship.” Steps for manufacturers to follow in order to ensure a healthy rep-principal relationship are presented as well as tips on how to establish and meet mutual expectations.

High-Quality Manufacturers Know How to Find and Interview Prospective Manufacturers’ Agents So At the End of the Due Diligence Process, There Is a Very High Probability the Relationship Will Succeed

High-quality manufacturers select the right representatives from the start. They know where to find professional agents and they know how to go through the due diligence and interview process. This increases substantially the odds of creating long-term and mutually profitable partnerships.

Educational Resources

Webinar: Selecting Your Sales Channel Partners — Jerry Leth, MANA’s Vice President & General Manager, takes readers through the process of choosing marketing partners. Along the way, he discusses what constitutes solid business relationships and what partners should expect from each other.

Special report: Selecting the Right Representative or Manufacturer — This publication guides manufacturers and reps through the selection process to give each party the best opportunity to make the correct choice.

Teleforum: In Selecting the Right Representative MANA staff, as well as consultant Nicki Weiss, cover key tactics for manufacturers to employ in the process of selecting independent manufacturers’ reps and how to craft rules of engagement with prospective reps.

Agency Sales magazine articles: Charley Cohon, MANA’s President & CEO, takes aim at what is important for manufacturers when they’re considering signing on with reps. “Top Considerations When Hiring Manufacturers’ Reps” looks at everything from where to find reps, how to get more of the rep’s time in the field, how reps are compensated, and much more.

“Advertising for Agents? There’s Room for Improvement” — Manufacturers are guided through the process of creating effective ads to get the attention of potential reps. How to do that effectively while avoiding common pitfalls is covered.

“Searching for Agents” — Charley Cohon, MANA’s President & CEO, takes manufacturers through the most common methods employed to locate marketing partners. He also examines the concept of data mining as a search tool.

“Looking for Agents?” — Some of the more common search methods are described including MANA’s online database, consultants, search firms and representative trade associations.

MANA resources to help you take these steps can be found in the member area of the MANA website, MANAonline.org.