How do you “earn” a spot with your principals?

​​© FotolEdhar | Dollar Photo Club​​

In the old days, the good old days, independent manufacturers’ representatives were “part of the family.” Today many of the people agents work with are new to their positions with the manufacturers or very inexperienced working with outsourced salespeople. Attitudes have changed. Agents are often looked at as “vendors” in a “supply chain.” There is very little appreciation for the things they do and the way they work for and with the principal.

What Is Wrong With This Picture?

Nothing has changed in the nature of the independent agent’s role. It is still their job to build relationships with customers and prospective customers. It is still their job to create a dialog between the principal and the customer — the agent is the man in the middle. And, of course, it is still their job to get orders. Finally, the independent agent is charged with helping transactions to work smoothly. So why is he at arm’s length with so many of the principals?

Many agents are missing the backselling opportunities in their business. I have spoken many times to reps individually and collectively about backselling — the process of working back up the channel to the principal to assure that all elements of the rep’s business are understood and “appreciated.”

Backselling Review

What are you and your rep firm doing to backsell all of your significant principals? What do each of the people you are involved with at each significant principal think of your rep firm and each of your personnel?

That is a huge question — think about it in detail — each significant principal and each of your personnel. Wow! But, that is exactly what you have to do.

Narrow Your Focus

Your line card may have 12-20 lines. My suggestion is to make the number of lines fewer. Here the fight can begin. If a line doesn’t produce 2-3 percent of your commission income — why represent that company?

The only answer is “potential.” Can a line become a three percent line in 12-24 months? If not, there is no legitimate argument you can make for continuing to represent that company.

There is a substantial backselling impact when your firm is more substantial with a principal. When you get 5-10+ percent of your income from a principal, the odds are that you are more significant to the manufacturer because you are doing much more business.

As you look forward in your world, determine which lines are the ones that you have to concentrate on and then analyze what those lines think of your firm — are you one of the firms they really value or are you just a rep? Do the key players at this company think of you and your people as more than just “salesmen”? Do these managers want and value your thoughts on their products, business methods and competitive position? This is what I mean by “a seat at their planning table.”

Your Planning Plays a Major Role in Your Backselling!

Getting your key principals involved in the plans you have for their business in your territory is the first step to positioning your rep firm as significant for that principal.

How are you approaching the business for the next 12-24 months? What tactical plans do you have for building business for the principal? The more the principal’s key management personnel know about your plans and programs for building the business the better.

The whole planning process is a two-way street. First you put the principal’s people at your planning table and then you look for a seat at the principal’s planning table.

The more visible and the more complete your planning is the better. One rep firm has developed a process of taking one day a quarter to plan. Every member of their company is involved on a regional planning team. Each team is responsible for developing comprehensive plans for market penetration and development of key accounts for key lines.

Promote Your Programs — That Is Backselling!

Letting the principals know about your firm’s processes and procedures is a critical part of the backselling program. The only way you are going to advance in the thoughts of your principals and gain the respect that you want is to let the principal know what you are doing, why, when and how.

When you hold important meetings, key training activities, and sales meetings you need to let your principals know what you are up to. One major rep firm writes a lengthy letter including photos to every principal after their annual sales meeting. Many of the principals respond to the firm’s leaders complimenting them on their activity and even offering additional support to the rep firm.

Rep Councils Are a Starting Point for Your Backselling Program

Getting invited to be on a key principal’s rep council is a great starting point for your backselling activities leading to a seat at their planning table. The rep council is part of the manufacturer’s planning program. How you behave and interact with the principal’s team as a part of the rep council is very important to becoming more important in the future.

Plan Everything!

Planning everything involved with your principals is vital to your future success. That is why you need to narrow your line card and focus on the most important, most productive principals — you want to sit with the winners!

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