Acknowledging the reality that there’s hardly a tried-and-true formula that will guarantee success for independent manufacturers’ representatives, John Haskell (Dr. Revenue) remains adamant that “Reps who present their agencies as total professional sales organizations” have more than a leg up on the competition.

When he is asked to share his thoughts on the immediate and longer-term future of the rep profession, Haskell, a long-time contributor to Agency Sales and a regular presenter at rep meetings and conferences, maintains that it’s the agent’s job to explain his role to customers and principals and to act as his own chief advocate for the rep way of going to market.

“The first thing the rep has to do,” he says, “is to understand their position in the middle between the principals and their customers. At the same time, they’ve got to keep in mind that nobody truly understands the rep’s role, unless the rep explains it to them. That’s the important role reps have to explain.”

A major part of the rep’s ability to explain that role can be seen in their talent to put themselves forward as true sales professionals who can outline their organizations, and explain their tactical plans for dealing with principals and customers one at a time, sku by sku, line by line. Chief among the tools to explain that role is the need to have a business plan. “And by having a business plan, I don’t mean to just have something in your head. It’s got to be a real, written business plan that they can share with others, one that explains exactly who and what they are and what they’re going to do.”

Sharing With Customers

Haskell goes on to stress that the rep firm’s business plan isn’t something that should be shared solely with a principal. “I’d maintain that it’s just as important to share that information with your customers. You’ve got to educate them as to what you do. That’s the only way they’re going to appreciate what you do for them.”

There’s more to being a true professional, as Haskell continues:

• Backselling

“The old thinking that says, ‘I’m a good salesperson; that’s all I have to do to be successful’ doesn’t fly anymore. You’ve got to be able to stand out from the competition. Someone in your organization has to be the planner, the organizer, the ‘backseller.’ They’ve got to be able to work their way back up the channel to the principal and sell them on the rep firm’s plan. Failing in the ability to do this results in failure.

“Conversely, the ability to sell yourself to the principal can have an immediate payoff. I’ve seen any number of rep firms’ business double in instances where the rep has been able to successfully ‘backsell’ himself.

• Line cards

“A key to success is the skill of managing your principals, and a major part of that is to carefully manage the line card. I don’t know how many agencies I’ve worked with who will have a line that represents 60 percent or more of their total business. What happens when that business goes away for one reason or another? One day the manufacturer can snap his fingers and the business is gone. Personally, I prefer to have no single line exceed the level of 30 percent of an agency’s total business. I’m also a believer in reps having a short line card. You just can’t afford the time and effort it takes to be ‘schlepping’ around working on the back end of your line card that rarely benefits you.”

• Customers

“Not all of a rep’s customers are good customers. It takes a special skill to separate the good from the bad. Recognize the fact that all too often too much time is spent chasing too much business that isn’t profitable for the agency. And when the rep recognizes the good customers, it’s important to know how to deliver the agency’s value message.”

• Website

It’s a given today that to be successful in business you’ve got to have a presence on the Internet and that’s where a company’s website comes in. According to Haskell, “An agency’s website had better be as good — or better — than any of his principals’ or customers’ sites. Websites today are simply another tool of the trade. Websites don’t have to be huge or expensive, but they do have to be professional. And once complete, it’s critical to make your customers and principals aware of your site.

“To accomplish those goals, I don’t believe in hiring the low-price designer, a relative or some high school kid who says he can do it. If you’re doing a half million dollars a year in commissions, don’t tell me you can’t afford to invest several thousand dollars on a professional website.

“It’s all about service — service for your customers and your principals.”

• Pride

“I respect and enjoy working with reps. I’ll go out of my way to do anything for them. When I work with reps, I let them know how important it is to be proud of what they do. They don’t have to be overly egotistical, but they should let others know how hard they work and how much they accomplish for principals and customers.”

• Getting a seat at the table

Follow all of the aforementioned steps and what happens to the rep? “When you’re appreciated by your principals and customers then you have friends in court. That’s when you get a seat at the planning table with your principals and customers. That’s where all the decisions are made and the professional rep wants and needs to be there.”

• Association membership

“Reps need to be involved in their industry. One of the best ways is to belong to a vertical rep association.  Working with other reps who work in your industry is a great way to know what is going on and to participate with them in helping your industry grow. It’s simple — everyone wins.

“Rep involvement in associations within their industry segments is an important way to get to know a lot of people. This is especially beneficial from an educational point of view. An industry-focused rep association can bring programs to the reps that help them run their business better and understand their challenges better.

“Vertical associations can bring reps and principals and customers closer. When an industry association like MAFSI or NEMRA or ERA provides information, conducts seminars and supports its members, the members win big. Just being at an association meeting and getting to know a key manager from a large principal can pay handsome dividends. Being visible within your industry often results in opportunities your rep firm would never have if you did not belong.

“MANA can be the keystone of a rep’s memberships but it should not be the only membership. There is not a lot of cost in belonging and being active in rep associations. They are a superb investment for all reps in all industries. I’ve spoken to almost every rep association at one time or another. They all provide valuable services and an opportunity to involve you and your firm in your business at a high level.”

In conclusion, Haskell remains optimistic concerning the lot of the independent manufacturers’ representative. He says that’s why he spends so much time working with them. “I’ve spent more than 40 years of my career working with reps. There’s a problem today in that we’re not attracting smart college graduates to the profession. Believe me, they’re missing an opportunity. There are so few other professions where you can be your own boss, be free and independent, all the while making money and having fun. I believe the rep profession will always be here. Reps are the most efficient and effective means to bring product and services to market.”

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