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A manufacturer that was relatively new to the concept of working with independent manufacturers’ representatives voiced two important concerns about the rep business model when he was speaking with a fellow manufacturer at an industry meeting last fall. The two areas of concern were the following:

• “We’re probably going to have to train our new reps from a zero knowledge base.”
• “How do we know that we’re going to get our fair share of the reps’ time since agencies represent other non‑competing lines?”

Thankfully the manufacturer he was speaking with was able to respond from his historical perspective: “You’re really not accurate when it comes to the training question. Remember that your goal from day one is to sign on with agents who have already demonstrated their sales ability. That’s what you ultimately should be looking for — trained, professional, outsourced salespeople. Once you locate the right reps, sure, there’s going to be a certain level of training specifically as it relates to your product line. Keep in mind that the rep already knows how to sell or he wouldn’t have opened his door as a rep.”

On the second point, getting the rep’s time, the second manufacturer noted that “Sure, all of the rep’s time isn’t going to be spent only on your line. But take that as a positive, not a negative. The manufacturer should appreciate the fact that multi-line reps offer a multitude of benefits via their synergistic approach to sales. The fact that the rep represents a number of complementary product lines allows him to come armed with more than one reason to talk with prospective customers.”

Speaking Well of Manufacturers

When a group of four independent manufacturers’ representatives began a roundtable discussion earlier this year, one of them took center stage and began complaining about two of his principals. Another agent quickly spoke up and said: “The way you’re talking really doesn’t reflect well on yourself. If you’ve got all these complaints, it just shows me that you haven’t done anything to correct the situation.

“Let me change the tone of our conversation this way — let me tell you some of the good things I’ve experienced while working with my principals:

• “In general, the communication I experience with my principals has been excellent. They promptly answer requests for information and assistance and they make sure I’m always included in the information loop.”
• “They’ve made it a habit to show an understanding of how I operate and appreciate the demands I have on my time. As a result, they don’t expect me to be selling their products exclusively all the time.”
• “From the very beginning of my relationships, my principals have communicated to me exactly what they expect from their reps, and they’ve never varied from that course.”
• “My principals allow for adequate sales and marketing planning to produce realistic results. They don’t expect something to happen overnight.”
• “They’ve always operated on a personal basis and have extended themselves so I feel as if I’m a member of their corporate family.”

Learning by Looking From the Outside

One sales manager for a manufacturing firm was quick to point to his years as an independent manufacturers’ representative as a contributing factor to the way he has embraced the company’s network of agents into the company culture.

“I spent a little over a decade as a rep,” he explains, “and I’d have to admit that I felt the strongest feeling for those manufacturers that made an effort to include me as a member of their corporate family. I’ve tried to do the same with our reps.

“For instance, whenever our reps make a plant visit, we make it a point to allow them the run of the place. They don’t have to ask our permission to go anywhere or do anything. If they have a question that needs answering or a problem that needs solving, one of our people had better be ready to take care of them.

“In addition, whenever we have an open house at our headquarters, we send an invitation to every one of our reps that we think can make it. To further that level of involvement and communication with them, we expect each of our reps to visit our office at least once a year. And, when they’re here, we fully inform them regarding any changes that have occurred.”

Why Won’t They Answer the Phone?

“Why, with the best product of its kind, at more than competitive pricing, am I having such a difficult time finding a qualified rep agency?”

That’s a question asked time and again by manufacturers. While what follows may not be the correct or only answer, the dilemma described fits nicely into what one independent manufacturers’ representative recently related. Here’s how the agent posed his situation: “When I saw a manufacturer advertise for representation in my territory in the pages of Agency Sales, I wasted no time in getting in touch with them. I say I got ‘in touch’ with them, but that really wasn’t the case. I called to let them know about my interest and the capabilities of my agency and I was put on ‘hold’ for 37 minutes. That’s not really what I’d call the beginning of an auspicious relationship.” He continued that principals who have such a phone setup also run the danger of alienating customers. “Doesn’t it follow that customers who call these companies also end up with a negative impression that turns them off and makes it harder for the rep to sell their products?”

After being contacted by Agency Sales, the agent went on to expand on the subject. “I just don’t understand why a manufacturer who has gone to the trouble and expense of either reaching out or advertising with MANA would make it difficult for the rep to follow up. In addition to the time I was on hold for 37 minutes, I’ve had occasions when I’ll call the person who placed an ad and I can’t get through to them. Naturally what I’m looking for is a quick and easy connection with that individual. But, I’ve had the experience where I’m just hung up on.

“Doesn’t it follow that the way the manufacturer has set up his phone system actually allows him to miss an opportunity to connect with a potential manufacturers’ representative for their company. And, they’ve wasted the investment in an ad.”

Stressing the importance for a business to remain available, the agent made the point that “I’m the president of my one-man company. But, whatever your title is, if you’ve made a point to tell others that you’re the contact person, then you’ve got to be reachable. To that end, I’ve got a cell number and I publish it on my agency website. I let others know that I’m available 24/7. As a result, I’ll be sure to answer your call. Believe me, this approach works and my principals and customers appreciate it. Now in the real world, people really don’t call me in the middle of the night, but they know that when they have to reach me, they can.”

He continues, “It frustrates me to know that if someone is spending that money to place an advertisement for reps with MANA, that they don’t take the steps needed to be available.

“I’m all about communicating. But if a manufacturer doesn’t feel the same way, then I’m not sure I want to work with them. If I take on a principal, I want immediate response on quotes, pricing and delivery. If I can’t react quickly for my customers then it’s just not going to work.”

Stressing that in his experience, this problem is fairly widespread, the agent explains that “In the past, I’ve conducted customer service workshops for manufacturers. In the course of the presentation I have challenged company executives in the room to call their own company’s main phone number and pose as someone trying to gather information. If they ever take up that challenge, they’ll have a much better understanding of what their customers (and reps) go through. The worst thing in the world for a company is to have to deal with a frustrated, unhappy customer and you don’t really know the reason why because they’ve hung up the phone. That’s lost business that they’ve never known about.”

Keeping all of this agent’s comments in mind, it might be worthwhile to refer to an item that appeared in MANA’s Principal iToolbox last year: “An important tip: We (MANA staff) call new manufacturers right after they join and thus have an opportunity to observe how companies handle incoming calls. A few companies have a live person answering the phone and that presents a highly positive image. Most, however, use automated answering systems. Many of these allow quick and easy connection to the individual you want to speak with. No need to make any changes.

“Quite a few, however, fail in this regard. We suggest you place yourself in the position of a manufacturers’ representative.”

MANA welcomes your comments on this article. Write to us at [email protected].