It was telling when one manufacturer asked another about independent representatives’ willingness to introduce new products. Here’s how the conversation evolved: “We have a new product line and we would like to introduce it with reps. Are reps willing to undertake such a task?”

In response, the second manufacturer voiced the opinion that his fellow manufacturer sounded a little inexperienced when it came to working with agents. “Sure they’re more than willing to undertake the introduction of a new product line but there’s more to the manufacturer-rep relationship than that. I’d have to say that most of us see the introduction of new products as a true opportunity to get in on the ground floor with a good product. But from your question, I get the impression that you only want reps to introduce the line. If your plan is to do this and not to have the reps continue selling the line after it has been introduced, then I think you’re making a huge mistake. There may be some reps who might be willing to undertake a short-term project, but most of the ones I’ve been familiar with are far more interested in the long-term potential than just introducing a product.”

The manufacturer continued, “Beyond what you seem to be asking about, I’d recommend that you want your outsourced sales team to achieve a great deal more. But in order to do that, from the very beginning of the relationship you should lay your cards on the table and be specific in describing goals you hope to achieve with them. And the goals I’m speaking about here go far beyond just the dollar amount of sales. The goals I refer to include:

• What market segments you target to sell to.
• The volume you’d like to produce from each of the market segments and from the total market.
• The market share you would like to have from each market and from the total marketplace.
• The product and product lines you want to sell, in what volume, at what price, with what profit, and in which segments.

“So you see, when approaching an agency, to maximize their effectiveness there’s a lot more to consider than just introducing a new product line. Think big picture here, and both sides — not to mention the customer — will benefit.”

Diffusing the Issue of Control

Looking back at attitudes or philosophies that have been expressed by manufacturers over the course of any number of MANA seminars, a major concern manufacturers voice is that of not having control over the activities of independent manufacturers’ representative agencies.

Historically, MANA seminar presenters have responded that this fear of lack of control is an accurate statement. However, its very existence suggests that if manufacturers are to develop a truly successful relationship with their agents then they have to manage the relationship in a fashion that is substantially different from the historic boss-subordinate relationship commonly found in direct sales forces.

When the subject is examined by seminar attendees, a key question for manufacturers is, “What are the objectives of your sales force?” After discussions, attendees invariably agree that there are two key objectives:

• Sell the company’s products or services.
• Provide feedback to the company so the company can plan for the business of the future.

Over the course of these conversations, it becomes very clear that “control” isn’t really an objective, but rather a management style that may not fit the rep model of going to market.

Dealing With a Weakness in One Team Member

A noteworthy subject was spotted in an online discussion among manufacturers who work primarily with independent sales representatives. Here’s how the question was posed: “One of our top-performing rep firms does a great job for us; that’s why I put them in the ‘top-performing’ category. However, one of their salesmen who doesn’t quite cut it. The person I refer to handles several important accounts — including other lines — for the agency, but I don’t really see him doing a bang-up job for us. Has anyone else run into this situation and if you have, what did you do about it?”

It’s didn’t take long for another manufacturer to offer the following: “In reality there are probably limited alternatives for you in order to improve that person’s performance. If that individual can’t be convinced directly to perform to the level you’d like, then an appeal ought to be made to the owner of the agency for assistance. Failing that, I’d advise you to make an overall judgment as to whether the shortfall still results in overall satisfactory performance of the agency compared to alternative rep firms. If not, you probably don’t have any other alternative but to terminate them.”

Talk To — Not At

When a manufacturer was in the midst of bemoaning the fact that his agents tended to turn a deaf ear when he addressed a variety of issues during a sales meeting, another one of his manufacturer acquaintances weighed in with a bit of advice. “One thing you’ve got to remember,” he said, “is that agents never appreciate being talked at. In fact, no one does. This is a key point to understand when you’re planning your agency sales meetings. Instead of talking at your agents, solicit input from them and make sure that you provide them with an opportunity to play an active role in the meeting. Make sure, however, that their presentation is up-beat, and that it relates to problem-solving themes.

“Even if you don’t plan to include your agents in the formal part of the sales meeting, you should make provision for them to take part in an extensive open session. You can prepare for this by sending a questionnaire to them in advance asking for topics they’d like to discuss. You can even take this a step further and ask one of the attendees — in advance — to serve as a moderator for a particular topic.”

She continued, “If you’re fortunate enough to have a rep council, the members of the council are in an ideal positon to take part in the meeting. You and they have already been meeting and discussing operations. They can get up to speed for a meeting a lot faster than those who are not on the council. So, take advantage of them.”

Carefully Approach Evaluations

“I know it’s important to constantly evaluate our agencies’ performance, but other than looking at total sales, I’m not really all that sure about what I should include in the process.” That’s how one manufacturer began his request for help from some of his fellow manufacturers.

Very quickly, the group of three manufacturers came up with a couple of recommendations. “One thing that’s key here,” began one, “is that you are evaluating independent business people, not your own company’s employees. As a result, your approach has to be a bit different. Sure, when you’re looking at your own employees, you can dig into their work history, but you’re on some shaky ground if you try that same approach and start attempting to direct the work habits of your independent agents and their employees. When you’re putting together an evaluation, however, let your agents know that what you’re doing is for the benefit of everyone. I’ve followed that approach, and in general have had very good cooperation.”

Continuing with the advice, the group listed several items that ought to be a part of the manufacturer’s evaluation process of its agents:

• Sales presentation skills.
• Service and follow-up.
• Sales call preparation.
• Prospecting skills.
• Product knowledge.
• Competitive tracking

A Reminder to Manufacturers

A manufacturer who works extensively with independent manufacturers’ representatives walked away from a consultant’s presentation late this summer with a deeper appreciation for his company’s decision years ago to work with agents.

According to the manufacturer, “This consultant, who has been both a manufacturer and a rep, predictably recounted the benefits of working with reps that we’re all aware of. He pointed out that reps provide more ‘feet on the street,’ more stability in the field and so on. But then he went on to let us know the benefits that reps provide to customers:

• They have established, stable relationships with someone who already knows both corporate cultures — the customers’ and their own.
• Efficiency and time savings that accompany a multiple-line call.
• The ability to bridge inter-departmental communication gaps.”

He concluded by noting, “Sure, we’re all aware of what he was talking about, but it was time well spent to have him emphasize these points. It caused me to remember that what we’re all about is really to serve the end-user customer.”

Reflections of a Manufacturer Turned Agent

It’s hardly a new story when a manufacturer retires or otherwise leaves his place of employment and becomes an independent manufacturers’ representative. What is interesting, however, is when the manufacturer-turned-agent takes the time to reflect on what reps have done for him in the past and why he’s attracted to independent sales as a new career.

One manufacturer who made such a transition took the time to reflect on the benefits of his now fellow agents. “My years of experience have shown me that the rep works in a much more stable environment than does the factory person. The rep isn’t looking for a promotion to some other positon. He also possesses a broader and deeper knowledge of the industry he’s working in, with product application. I’ve found that factory people tend to be much more specific in their industry and product knowledge. As a result, they often have difficulty fitting their product knowledge into the industry application.”

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