© Dmitriy Shironosov | Dreamstime.com

Over the years, this section of Agency Sales has addressed the question of what traits manufacturers find attractive in their independent manufacturers’ representatives. The reverse of that — what agents look for in their principals — hasn’t been explored quite as often.

Recently a group of representatives was queried on that subject and their responses were enlightening. Included in their responses to the question of what they found objectionable in principals were the following:

• “I’m especially apprehensive about continuing to work with principals who routinely make a big deal about any errors I might commit, but say very little if anything concerning all the good things that I do.”
• “A manufacturer who gossips about his competitors or other agents is a big negative for me. For instance, I have one principal who talks about other agents to me and I know that he’s talking about me with others. Fortunately all of us agents are aware of his habits so we take it with a grain of salt. However, this kind of behavior does diminish his status in our eyes.”
• “I’m wary of the manufacturer who’s willing to bend the rules, even if the rule will ultimately benefit me. My rationale is that you never know what he or she will do when the chips are down — and it can come back to bite all of us in a negative way.”
• “The ability to communicate — and that means the ability to listen — is something I’m very keen on. If a principal is reluctant to listen to me and our customers, I find that they really have zero tolerance for anyone else’s ideas or feelings.”
• “Surely, a willingness on the part of the principal to communicate is critical, but the manufacturer who calls with nothing to say and wastes my time doesn’t contribute much to the relationship.”
• “Principals I work with have got to let me do my job. In general, I’d advise others to look out for the manufacturer that refuses to delegate the responsibilities that should rest with the agency. The control freaks are the ones who undermine the relationship faster than anyone else.”

Analyzing House Accounts

Here’s how one manufacturer worked with an independent manufacturers’ representative to change his approach to house accounts: “At the same time we took on a new rep, we had several major and profitable customers in the territory. That’s when we suggested that we hold onto those customers as house accounts. The agent suggested that we pay him a smaller commission for the house accounts for which he would service the existing business. We didn’t bite and then he suggested that we keep accurate records of all of our costs to service the business and compare those costs with the commission he would be paid just on this business. We did that and after six months we learned that the agent was right. When we told him that we’d like to do as he suggested, he surprised us by declining and saying that if he were to take over all the business, he wanted a full commission on all the business. We reluctantly agreed, but very quickly realized that this is what we should have done from the very beginning.”

A Nod Toward Independent Sales Representatives

When one manufacturer cautioned another about praising his use of independent manufacturers’ representatives, the first manufacturer was a little taken aback. “I think he was telling me that I ought to be a little embarrassed about not having enough business to merit a direct sales force. My response was that I was not only pleased to cover my territories with the use of agents, I was proud to do it that way. I explained that I took every opportunity to communicate to customers and prospects concerning the value of working with independent agents. I don’t use these situations as a soapbox for knocking direct selling; rather, I simply take the time to explain the benefits that come my way and to our customers through our use of reps. It’s a value–added notion that I think all manufacturers who sell through reps should stress all the time.”

Understanding the Agent’s Business Philosophy

It was only after a manufacturer endured the pain of a conflict with one of his independent agents that a new way of conducting business was called for. Here’s how the manufacturer explained what happened: “As a company, we’ve always taken pride in the fact that we go to great lengths to understand the corporate philosophy of the customers who buy our products. Why don’t we spend the same amount of time and effort in understanding the corporate philosophy of the reps who sell those products?

“Maybe some manufacturers do this on a continual basis, but we didn’t think much about it until we had a bit of a conflict with one of our reps. During the discussions that evolved, the rep explained that he was expected to do things differently from the way that works best for him. He said that we were trying to overlay on his agency a selling strategy that was not compatible with the way he sells.

“At first, I took exception with his view, but when he pointed out that he was always in the top performers each year in sales of our line, his point was made.

“We were, indeed, attempting to have him do it our way. Then when we took a careful look at our policies and realized that we just didn’t take into account the differing philosophies of our reps, we changed that in a hurry and we’re much the better for it.”

Planning Tip for Joint Sales Calls

Here’s a tip for executing effective joint sales calls that was sent to Agency Sales magazine by Robert Riley, technical sales manager, Midwest Region, Bridgeport Fittings, Bridgeport, Connecticut. According to Riley, “If a manufacturer is planning a trip to a rep’s territory to make joint calls, instead of asking the rep to produce an itinerary, just ask him to send a meeting invitation to each prospect and customer and invite the principal too. That way everyone who is scheduled to attend knows exactly who will be in the meeting, and if there are any scheduling changes the meeting invitation and attendees’ calendars will adapt dynamically to those changes.”

Using Input From Agents for Employee Appraisals

A manufacturer reported how he recently sought input from his network of independent manufacturers’ representatives when it came to conducting employee evaluations. According to the manufacturer, “Like most companies, we annually evaluate our employees. Usually this process is done primarily by human resources with input from our sales managers. We added to the mix two years ago to the point where we include input from our reps. What we do is ask them all the same questions about each of the people who have direct contact with them. We use the information they provide us to shore up people who might not be peak performers and also to justify rewards (e.g., promotions), for those who are top-level performers.

“I’ve got to admit that when I began this process my staff was more than a little wary. They were afraid of the worst. However, they quickly realized that the goal was to build the team, not tear it apart. Now, they actually look forward to the input we receive from reps. And, on the other hand, the reps appreciate their inclusion in the process. It makes them feel more like a member of the family.”

Second Isn’t Always That Bad

One manufacturer knows he’s not generally his agents’ number-one line but he’s come to terms with it and doesn’t mind it all that much. “If anything, I’m a realist. I can’t expect all of my agents to treat my company and our products as their prime line. It’s a good line but some of our agents have much better lines. But the truth is that I’d much rather be the second line pulled out of the bag simply because the agent is a real powerhouse in the territory. As a result, I know that his reputation is going to get us in the door and that he’s going to sell our line to the best of his ability. Sure we may not be number one with him, but he has the integrity to give it his best effort as his number two or three line. So far I’ve been proven right and I’ve got no complaints.”

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