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“It’s easy to fall into the trap of believing that you know it all when it comes to dealing with your independent manufacturers’ representatives.” That’s how one manufacturer began a conversation that focused on the benefit of networking with other non‑competitive manufacturers — especially as it involves relations with agents.

According to the manufacturer, “I don’t think I’m alone when I say we’ve always done our due diligence when it comes to choosing reps. As a result, we’ve been lucky in building our network of true professional outsourced reps. I’d like to say that I’m well-versed in choosing our reps, but recently I got a lesson from a non-competitive manufacturing friend who shined a little more light on the process of choosing a rep.

“I was at the point of filling a void in one of our territories. I had solicited interest from a number of reps, contacted their industry-specific rep associations for advice and finally interviewed three prospective agencies. I had whittled my choice down to two agencies and was at an impasse when I met with my manufacturer friend. He pointed me in some additional directions that made my choice a bit easier — as time has passed I’m glad he advised me, because we obviously made the right choice.”

Here’s what he advised:

• Make sure whatever agency you choose has a business plan and is willing to share that plan.
• Determine if they’re active (with the emphasis on “active”) members of their industry rep association.
• Check their succession plan. Will they share that plan with you?
• Carefully examine their line cards to insure their lines are synergistic.
• Contact your other agencies who might know them to learn all you can about them.
• Finally, ask other manufacturing peers if they know anything about the prospective choice.

Making the Move Back to Reps

It’s a tale often told about the manufacturer feeling its commission payments to reps are too high, so why not make the move to a direct sales force? Then after the dust has settled a bit, and sales performance has suffered, a move back to reps is initiated.

One manufacturer who went through that very scenario offered his take on why independent agents were the recommended path to sales success. Basically he cited five considerations that topped his decision-making chart:

• Customer relationships — “When we made the move from reps back to a direct sales force it was immediately evident that we missed the established, stable relationships that our customers had with the territory’s reps who truly understood the culture and practices in the territory. On top of that, our reps had proven themselves as much better at bridging interdepartmental communication gaps than our direct sales force ever did.”
• Customer advocacy — “When our customers had a question or a problem, our reps simply did a much better job of communicating with us on their behalf. They were constantly advocating for the customer at higher levels with our organizations. Our experience with a direct sales force showed us that direct salespeople didn’t feel comfortable in ‘going over the boss’ head.’ The rep did that with no reservations.”
• Productivity — “Naturally the bottom line always counts. It didn’t take us long to realize our network of independent reps was the most efficient and economical means for us to take our products to market. They were able to execute multiple-line sales calls and open many more doors than our direct sales force could ever accomplish.”
• Job commitment — “Talk about motivation, there was no comparison. When we went back to the direct sales force, one of the first problems we faced was that without exception, the salespeople always had their eyes on climbing the corporate ladder. Not so with reps. From the get-go, they always showed a long-term commitment to the territory and to the customers in the territory.”
• Solution providers — “One of the major skills our reps had at their disposal is the ability to act as consultants to the customer. They exhibited not only an understanding of the specific products, but went on from there to have a knowledge of the way products need to relate to the other elements of the customers’ projects. In my opinion, they are the true solution providers for all of the customer’s problems.”

Some Additional Motivational Steps

It’s a given that paying commissions accurately and on time and keeping reps in the informational loop are great motivational tools, but one manufacturer recently offered some additional steps he’s taken to keep his rep network motivated.

“We’ve made it a habit to have our company president regularly phone our reps to let them know how much their accomplishments are appreciated. Thankfully, he feels comfortable doing this because from day one he’s been instrumental in choosing our reps and he knows most of them on a first-name basis.

“On top of that effort, whenever a rep has gone above and beyond the normal when it comes to meeting customer needs, we send him a quick note to let him know we’re aware of his efforts.

“Our reps can also expect a quick thank you or e-mail note where we let them know how much we appreciate what they’re doing for us.

“All of these steps take very little time and effort, but our reps recognize them as genuine reflections of how much we think of them.”

The Positives of Full Disclosure

When a manufacturer was asked his thoughts on whether it ever serves him or his agents to hold back information, he was quick to offer this view: “How could it ever be a positive to work in that manner? I’d strongly advocate for full disclosure on any and all issues because isn’t the real foundation of our business relationship built on information, communication and education?”

He continued by offering an example: “How about when we’ve got a new product introduction? Shouldn’t it be of paramount importance for us to let the rep know exactly who our target audience is for the new product? In addition, isn’t it logical for us to continue the discussion by letting him know what we think the customer is doing right now and what we think he’ll be doing with this product in the future? If we arm the rep with this type of information, then shouldn’t we expect the rep to do a much better job for us, the customer and ultimately for himself and his agency?”

He concluded by saying that “In the past it’s not unusual for us to hear from our reps that some of their other lines introduce new products that they knew from the beginning had little or no chance for success. All the manufacturer offers them is a false hope based on a dream that will never come true.”

Putting the Rep Front and Center

Here’s how a sales consultant began his presentation in front of a group of manufacturers: “You’re making a joint call with your rep. Who’s leading the presentation?”

He then continued with some valuable advice: “Based on years of working with manufacturers just as yourselves, I’d have to advise you to be very careful that the customer is fully aware that the rep is the one who’s handling the sales call — not you. Be sure to let the salesperson take care of all introductions and then continue with most — if not all — of the talking.

“What this approach accomplishes is to let the customer feel comfortable in following up with the salesperson — not the manufacturer. On top of that, the rep should stay in control of the call. If the sales manager does most of the talking, then the customer is probably going to receive a mixed signal and he really won’t know who’s in charge. If the meeting with the customer reaches a point where a close is called for, the manufacturer should take steps to ensure that the rep takes care of the closing. It’s all a matter of letting the customer know who’s really in charge.”

How to Target a Customer

When a manufacturer was asked how he knew if his reps were able to get an audience with the right customers, he answered by showing his appreciation for the concept of line synergy. “It’s really not that difficult for us to determine what customers a prospective rep will be able to get in front of. Our practice has always been that we take a look at their line card. If we determine there’s nothing complementary, we don’t even consider a prospective rep. It’s really not that complicated. With all the difficulty that reps and direct salespeople have in getting across the desk from a customer, our rationale is that a rep needs every advantage he can get. And having complementary lines to put in front of a customer is a chief advantage. That not only makes the rep’s job a lot easier, it makes the customer’s job easier. If the rep is carrying the right lines, that means the customer has to see fewer salespeople in order to get his job done.”