“Businesses struggle to fill sales positions as economy picks up.”

The above is the headline from an article that appeared in USA Today earlier this year. The article detailed the woes of manufacturers who are faced with replacing the sales force that they downsized during the economic downturn.

Drawing from a number of interviews, the article maintained that “The American salesperson isn’t dead, but he or she is getting harder to find.” That situation resulted from the fact that as the economy improved, employers are facing a situation where there’s a shortage of qualified salespeople and managers, and that’s hampering their revenue growth.

According to the article, “It’s a missed opportunity,” says Richard Vickers, regional managing director for Page Group, a global recruiting agency. “You need somebody out there to sell.”

The article noted that in June, the number of jobs in sales and related occupations jumped a whopping 445,000 to a four-year high of 15.8 million, Bureau of Labor Statistics figures show. Sales representative is the second-hardest job to fill this year, behind skilled trades, according to Manpower’s talent shortage survey.

“Thirty-five percent of sales managers couldn’t find qualified candidates for open positions last month, up from 24 percent in 2010, according to a survey by CareerBuilder, which is owned in part by USA Today parent Gannett. Nearly half of those struggling to bring on sales employees said the problem has hurt their businesses, mostly by curtailing revenue growth.

“Shortages are especially acute in technical sectors, such as medical devices, logistics and information technology.

“During the 2007-09 recession, sales workers were often the first to be laid off as demand plummeted, with employment in the field falling by about 1.6 million. Many switched occupations or moved, says Willis Turner, CEO of Sales & Marketing Executives International.

“Plus, more companies are peddling services in addition to products, placing further demands on sales reps, Turner says. In recent years, Toro, which sells landscaping equipment, has required its sales staff to pitch maintenance contracts and other options, says Steve Keating, Toro’s sales training director. It takes Toro’s distributors about two months to fill a sales opening, vs. four weeks only 18 months ago, Keating says.

“Despite the added job requirements, few colleges and business schools offer sales classes, in part because of the field’s tarnished image, says Dave Stein, CEO of ES Research, which tracks sales training firms.

“Companies slashed training budgets and now are seeking candidates with a laundry list of skills, he says.

One retort to much of the information that appeared in that article might be “Just open your eyes and look around.” That’s the view of Bob Reiss, a national sales rep for 14 years before he switched to being a manufacturer. Reiss has been involved in 16 start ups and one of his companies was named to the Inc. 500 list of America’s fastest-growing companies for three years in a row. His e-book on understanding the sales rep-manufacturer relationship was serialized in Agency Sales in 2012.

According to Reiss, “That article might as well have been written from a view of 10,000 feet. I’d ask the question, where are these people looking for salespeople? Don’t they know the basics about looking for independent manufacturers’ reps? All any manufacturer would have to do is conduct some minor research and they can find the reps they need to sell their products.”

Reiss points to what he terms a huge educational gap as a reason why there’s an ignorance of who and what reps are and where to find them. “In general, manufacturers don’t understand about reps, and they still buy into myths surrounding them. To understand what’s going on today, let’s look at some of our country’s business schools. Every year you’ve got a large number of naïve kids coming in to be taught by some very bright people who have spent time out in the real world. But there’s the problem — how many of those smart people with real-world experience know what a rep is and can explain it to the class? This is a very frustrating situation. What’s got to be understood and taught is how important the sales function is to businesses. Furthermore, it must be understood that if you don’t have customers, you don’t have anything. And it’s the independent rep who can supply the customer. Businesses looking to grow can sell their product and get the customer if they go to market with independent reps. And, it’s not that hard to find them.”

A Useful Guide to Product Sourcing

MANA member Ed Juline, a partner at the manufacturers’ representative company Mexico Representation, Guadalajara, Mexico, makes a valuable appearance in a recently published book that guides manufacturers through the process of selling their products and/or services. In Wholesale 101: A Guide to Product Sourcing for Entrepreneurs and Small Business Owners, authors Jason Prescott and Tara Gladstone educate their readers on various effective methods to employ in order to jumpstart their businesses. When it came to what independent manufacturers’ reps can do to assist in this effort, they turned to Juline for advice. Among the advice he offered was the following:

• Manufacturers’ Reps for Suppliers

“If you’re going to become a supplier yourself by manufacturing products, importing goods, or selling mass amounts of wholesale items, you need to open up sales channels and get your products into the market. You can spend money on marketing and advertising and exhibiting at trade shows (these are great tactics), but for some new suppliers these tactics are too expensive when just starting out. Another less expensive way to get products into the market is by having manufacturers’ reps represent your line. Many rep groups can represent your line both nationally and internationally.

“This can be an easy way to get your products in front of really big buyers with whom these reps have already developed relationships.”

Juline explains the difference between market-entry strategies for large and small companies. He also explains why a manufacturers’ representative is helpful for small to medium-sized companies that want to get their products into retail stores:

“Big companies have different strategies than small companies when entering a market for the first time. They’re already established and usually looking to conquer markets one by one. They will hire country managers and four or five salespeople for each region. They usually have a lot of money to invest, so they will also set up new warehouses and local distribution methods.

“When you’re a smaller company, you don’t want this kind of overhead and need a different approach. You’ll want to find a representative or an agent and advertise online. A manufacturers’ rep agency is good for small to medium-sized businesses because they become an extension of your sales force. And they provide the local touch and support that you need when you’re trying to enter a new market. People want to do business with people they know and like. Even with the global economy and technology we have today, long-distance sales are still hard without someone in the country helping you.

“Rep groups are the most cost-effective way to distribute your product because they already have an established network. Also, you don’t have to pay them a salary, benefits, and other fees related to employees. All you have to do is give them a commission, and they will open up sales funnels for you.”

Juline further explains the lack of risk to companies when working with manufacturers’ reps: “There is less risk to the company because you’re not paying that salary every month. The company benefits because they only have to pay for what gets sold. This is much more practical for new companies just starting out and for long-standing small- to medium-sized companies that don’t want to maintain the extra overhead.

“When a good rep group decides to represent your products, you’ll be provided with many more sales opportunities. You’ll have a sales team all across the country (or various countries) that can meet face to face with small- to medium-sized retailers and big-box retail chain buyers.

“They’ll expand your customer base with relationships established through selling other manufacturers’ products. If they’re good, they’ll have a great network.”

• Advice for Getting Reps to Sell Your Product Line

“Now that you understand how a manufacturers’ rep agency can help your business, let’s discuss how to get them to represent your line. A manufacturers’ rep is going to look for a winning product line. The rep needs to be sure that the line will sell well and that there’s a need for your product in the market. You have to prove that when your product hits the stores, it will show a fast increase in sales for the rep. You have to build a case and go prepared.

“When you pitch your line to a manufacturers’ representative group, go with a presentation that demonstrates why they should want to represent your products. You’re asking them to sell your products to buyers with whom they need to maintain strong relationships. It’s important to convince them of the benefits of your products.”