There was no shortage of responses to a survey conducted by a manufacturer when he asked his reps what type of support they valued most from their principals. While responses covered a variety of areas, three distinct subjects were raised time and again.
Regular and timely communication — Nothing makes the reps feel more like a member of the team than always being included in the loop when it comes to corporate information. According to one rep respondent, “We don’t like surprises. They catch us off guard. That’s why when there’s a new personnel appointment, new product announcement, price change or anything that we can make use of to solidify our relationship with customers, we want to have it first. That lets the customer know that we are truly the manufacturers’ representative.”
On-time quotations and delivery information, not to mention on-time and accurate commission payments — “Next to consistent product quality, quotations and delivery are probably the most important thing customers want to know about. If they can’t be provided (by the reps) with that information, they’ll probably look elsewhere for service.”
Availability of knowledgeable factory personnel — “Whenever we have a question in the field, nothing makes us look better than our ability to get an instant and accurate response from the factory. That results in us and the manufacturer looking like we’re a true team.”
Printed Material Not Dead Yet
A manufacturer who was in attendance at MANA’s manufacturer seminar this fall indicated that while he was fully aware of how important the Internet has become in terms of supplanting the reams of printed product literature reps used to depend upon, he indicated that such printed pieces weren’t completely a thing of the past. This particular manufacturer indicated he still provides his reps with generous supplies of printed material — although not as much as he did 15 years ago. Here’s how he makes current use of printed material:
- Every piece of literature is kept up to date and current and all new products are supported with printed pieces.
- Reps are automatically provided with generous supplies of literature that describe the company’s background and capabilities. There’s also a full-line product catalog (both printed and online) combined with individual product data sheets.
- The manufacturer regularly checks with his rep sales force to make sure they have all the printed pieces and new product information that they need.
He concluded by saying that “Not every customer or everyone on the reps’ sales forces are in their 30s and 40s. There are still some old-timers out there who while they’re conversant with the computer and the Internet, still feel more comfortable holding a printed piece in their hand.”
Better Reasons for Working With Reps
Kudos to a manufacturer who was willing and patient enough to learn something about reps at a recent industry meeting. The manufacturer in question was initially enthused about working with reps because “they only get paid when they sell.”
Thankfully his enthusiasm wasn’t dampened when one of his peers cautioned that “There are some much better reasons to work with reps than hoped-for cost savings.”
Drawing from more than two decades of relying on reps to carry his line, the manufacturer continued: “I’d put the ‘They get paid only when they sell’ benefit a little further down the line in terms of benefits.
“First off, we were attracted to the practice of contracting with reps because they know a given territory much better than we ever could. Because they live in the territory and have sunk their business roots there, we’re confident they’ll provide the long-term stability we’re looking for.”
“Next, since our company’s goal is to improve our market share, we’ve learned that there’s no one better than a rep to improve our market position.”
“Finally, our customers have let us know in no uncertain terms that relationships are key when it comes to sales. Creating those needed relationships is something that would take our direct staff months to achieve. And then, once they’ve achieved them, they’d be looking for a promotion out of the territory. Reps don’t move — they stay where their business is.”
Finally the manufacturer added: “It’s then that we plug in the cost benefit of working with reps.”
Reps Cover the Territory
As if the previous argument in favor of reps needed some more backing, here’s what another manufacturer has to say after viewing its more than a quarter century of working with reps: “We consider ourselves to be a progressive company and we like people who are forward thinking. That led us to reps. We’ve never doubted that reps are the way to go.
“As you get farther away from your home territory, it’s more and more difficult to cover the territory. Reps are ideal in those situations because they are hungry and they don’t want any cap on how much they can earn.”
The manufacturer continued that the types of reps that are best to work with possess a strong belief in customer service. “When we find reps that really believe in servicing the customer, we love to work with them. Those are the ones who always want to do the right thing for both the customer and the manufacturer. They’re hard working, self disciplined and motivated. They are sharp people who understand human nature. Furthermore, they are firm believers in continuous improvement. They live in the territory and know the community from top to bottom.”
Manufacturer Stability Builds Relationships
Independent reps and MANA have long touted the reps’ lengthy tenure in the territory as a major reason manufacturers should be attracted to that way of going to market. At the same time, one rep had this to say about the value of the tenure of manufacturers’ employees. As the rep pointed to one of his principals who boasted of inside sales personnel with several years on the job, he noted that the people he was in touch with on a regular basis have been in place for more than 10 years. “Not only does that length of service make me feel secure that the people who provide my support are going to be there for the long haul, it lets me know that the manufacturer is serious about his relationships. There’s nothing worse than constant change. That makes me feel as if the manufacturer is always starting over. If the manufacturer employs a philosophy of stability with his own personnel, then that lets me know he’ll probably operate in the same manner with his reps.”
Seminar Changes Manufacturer’s View
An attendee at MANA’s Manufacturer Seminar in the fall pointed to a major benefit of the day-and-a-half session. “There were plenty of opportunities for us to network with our manufacturing peers during the seminar. After doing a lot of talking with our fellow attendees, something major occurred to me. We should be looking at the manufacturer-rep relationship through the reps’ eyes. Too often we only consider the relationship from our side and only look at how it benefits us. I can’t recall that we ever made such an effort to put the needs of the rep under a microscope. That why I’m now taking a close look at things such as commission payment, factory support and advertising and trying to consider what the reps’ needs are. After changing my perspective a bit, I think my relations with reps have improved.”
Editor’s note: Registration for MANA’s next Manufacturer Seminar, scheduled for May 1-2, 2014, in Chicago, is open. Check MANA’s website (www.MANAonline.org) for more information.
Getting That Comfortable Feeling
When a rep was asked if any of his principals have a higher comfort level for him than others, he offered an interesting perspective. According to the rep, “Despite the fact that my agency is more than 50 years old and I’m a second-generation owner, I still get a kick out of working with new companies that have a steady stream of innovative products. In addition, any time I can locate a manufacturer who appreciates the synergy that exists between their products and all the other ones I already represent, I’m appreciative. On the other hand, I get a bit nervous when a manufacturer speaks to me as if I don’t know the business that I’ve been in for so many years. What I appreciate is when a manufacturer offers me the freedom to act more like a ‘regional sales manager’ for them than just a salesman for the territory that I’m assigned to.”