More than 15 years ago, long-time MANA‑member Harry Abramson authored a series of articles for Agency Sales magazine focused on the importance of perfection. Before he was done, Abramson, who founded Electronic Salesmasters, Inc., over 40 years ago, had tackled the subject of perfection from the vantage point of the rep, principal, customer and other perspectives. While Abramson retired from his agency in 2015, he is still “hands-on” in his capacity as a consultant to ESI.

Beginning last month and continuing this month and next, Agency Sales will be revisiting the subject of perfection as it applies to the rep, principal and customer, respectively. At the same time, Abramson has agreed to offer his comments as they pertain to this ongoing discussion of “perfection.”

To begin his discussion of the subject of the perfect principal, Abramson took a look at what the perfect principal has to do in order to become an independent manufacturers’ representative’s “emotional favorite.”

Abramson maintains that while the term “emotional favorite” can be a bit overused or even hackneyed, the concept still exists. “But ‘emotional favorite’ has nothing to do with a manufacturer being a rep’s largest line. To me, ‘emotional favorite’ has everything to do with respect — the manufacturer respecting the rep and the rep respecting the manufacturer. It’s those manufacturers who collaborate with you and don’t try to intimidate you that will get your time and your attention.”

Abramson continues that a perfect principal’s respect for reps will develop if they truly understand what a rep does. “When I refer to understanding what the rep does, I mean there must be an understanding all the way up the ladder in the manufacturer’s organization.

“I can recall during one rep council meeting when this point was driven home. In the presence of the company president and head of marketing, a point was made concerning what the rep was facing. As the matter was discussed, the president said ‘Someone go get our financial guy here. He’s got to hear this.’ Reps have to constantly backsell their value to their principals. They’ve got to be educated about everything that we do for them. Once they understand what we face on a daily basis, they’ll be on their way to being the ‘perfect principal.’”

In his original article devoted to the “perfect principal,” Abramson focused on several areas that he maintained were of prime importance for manufacturers to gain entree into the category of perfection.

Respect

Respect doesn’t work unless it is mutual — a two‑way street. Reps should be viewed and treated with the same degree of respect that they show their principal! The “perfect principal” sees reps as peers, not peddlers. They should realize that reps are just as educated, sophisticated and motivated as they are. Reps and their principals both aspire to the same goals and successes. They work every bit as hard, if not harder. If they don’t perform, they don’t get paid. Reps want to sell more for their principals and are not “independent reps” when it comes to success — principals and reps are dependent on each other!

Understanding

I believe that most reps try to understand their principals’ business — they must in order to be successful. Likewise, principals should try to better understand the rep business. As reps, we have to better educate them. Reps can’t just leave it up to our great trade associations like MANA, NEMRA, ERA, etc. Principals and reps should take the time to figure out what makes each other tick. Reps have to express their goals and problems. Reps want to have financially healthy principals and our principals should want the same for their reps.

Support

It takes a team to “make things happen.” The team consists of the rep, principal and — in many cases — the distributor. For the purpose of this article, we’ll focus on the rep-principal aspect. In regard to support, some manufacturers are sensational and others putrid — they run the full gamut. Unfortunately, many of the putrid ones see themselves as perfect. Scary, isn’t it?

What follows is a wish list of the ultimate and perfect principal support:

• Products — always perfect.
• Technology — the leader.
• Delivery — always on time.
• Pricing — never an issue.
• Samples — as soon as needed.
• Responsiveness — immediate.
• Technical support — as required
• Website — state of the art.
• Customer service — second to none.
• Training — as required for new employees, new products and distributor partners.

Quality Products

Who said quality is a “given”? Products are no more perfect than the people who design and manufacture them. Reps should sell their entire line card with total commitment and with a sense of product excellence. Manufacturers should strive for continued improvement of quality and value. Perfect quality is not to be taken for granted — it is still a goal.

Quality Service

Service is truly a team effort. This means being communicative and responsive — both ways. Be verbal and document. E‑mail makes it easy. Today more than ever before, products are looked upon as the same or similar, therefore, the edge is now heavily weighing in the “service arena.” Reps want lines that make their customers “deliriously happy” with great service. It often warrants and justifies greater margins. We know how precious this is to the bottom line.

Leadership

Leading is what gets suppliers “preferred vendor status.” It is the force that makes you the “leader of the pack” or, better yet, sets you a “breed apart.” It makes your product or service stand out. It makes you “customer friendly” and innovative. Leaders set the standard throughout your company and the industry. It brings you business because you’ve earned the recognition as “the leader.” Reps long to represent the “industry leader.”

Market Pricing

Good reps don’t expect the lowest prices. They want to sell fabulous products at fair market pricing. If the principal senses their reps sell on price, it may signal a professional incompatibility. Frankly, I have no room in my professional life for “price predators” — be it reps, manufacturers, distributors or the “Jolly Green Giant.”

Communication

Communication should be open and honest. Manufacturers should not feel slighted that they don’t talk to their rep as often as before. Why? Commission rate reductions have forced reps to take on more lines, thus diluting mind share and time share — and yes, talk time. Reps are accountable to their principals on all opportunities. However, it’s a two-way street. Reps should be notified of problems as they happen. They should not have to be informed and surprised by their customer, especially on late deliveries or quality issues. In regard to commission rates, reductions due to profit margin issues should be discussed before the customer is quoted and not after the order is placed. Unfortunately, this does not happen and I feel that it is inexcusable.

“I don’t necessarily want to say that monthly or other regular sales reports for manufacturers are low on the totem pole of concerns, but the fact is those reports are frequently not read. They are simply filed away as reference material in case the sales manager gets a question from the product manager or his boss. I would actually revel on the rare occasion when somebody read it and then picked up the phone to tell me ‘That’s a great report,’ or ‘I didn’t realize you had such a barrier to overcome. Let me help you out.’

“When the economy is soft, reps don’t have the time to write these reports because they’re busy looking for business. And, when the economy is humming, we don’t have the time for them because we’re busy booking business. It’s a royal pain compiling and sending all these reports that aren’t read.

“Here’s what will work — when there’s a need, we pick up the phone and speak. The conversation doesn’t have to be long winded or involved. You don’t have to talk about the Super Bowl or World Series. Just get to the point and communicate what’s important.”

Rep Advocacy

Kudos to those manufacturers who recognize and appreciate the viability of outsourcing the sales function. It is truly the cost-effective approach to an efficient and professional sales effort. Once a company is committed to reps, all parties should buy into it. This includes the “bean counters” who are issuing some very large commission checks and any other envious parties. A rep should be looked upon as an inherent part of the same team and not an outsider or necessary evil. If negative thoughts are uttered, they should be immediately suppressed by managers who had the wisdom to use manufacturers’ reps as their sales engine.

Fair Contract and Compensation

Being a representative, I would not want this paragraph to be self-serving. More important, I want it to be looked upon as good business practice. The perfect principal should have an equitable contract with fair commission rates, which are paid on a timely basis. The perfect principal does not have house accounts nor does he arbitrarily reduce commissions because he feels the rep is making too much money. Team members should revel in their mutual success and the perfect principal will not have a sense of greed.

Simply stated, Abramson maintains, “You’re not a good professional businessman if you work without a written contact. Handshake agreements are a thing of the distant past. Keep in mind that people in decision-making positions change, and circumstances change with them.

“Written contracts benefit not only the rep, however. A fairly written, mutually-agreed-upon contract is just as important to the manufacturer as it is to the rep.”

On the subject of manufacturers writing large commission checks for their reps, Abramson — as would be expected — says, “That’s a good thing. Among the best encounters I’ve ever had with a principal is when we sat down at a sales meeting and the president of the company looked at me and said, ‘I really like writing large checks to you.’ He was so sincere that I have to admit that I was more motivated at the end of that conversation to go out and do an even better job.

“I know that not everyone agrees with this type of thinking but if in addition to the company president, the comptroller, treasurer or anyone else who makes decisions affecting reps hears that message, the relationship will be cemented. Sure, there can be some jealousy when the rep gets a check larger than the president’s salary; the principal won’t mind if the rep is getting rich, because he’s getting rich at the same time.”

Partnership Mentality

The perfect principal considers and treats their reps as part of the family. They practice the Golden Rule and do not have double standards. They value their rep’s opinion and use rep councils. They strategize with reps on significant business opportunities. They don’t point the finger at the rep if they lose the order. On the contrary, they say “we” lost the order. When we win, they congratulate us, as we do them. In other words, we win as a team and we lose as a team. We share both the good and the bad.

We should also be profit partners. If profit margins are cut, the rep’s commission rate may be affected. However, the percentage of the commission reduction should not exceed the percentage of the gross profit margin reduction. At the very least, commissions should be negotiated and not dictated or mandated. Partnerships are intended to be fair to both parties and not selfish or self-serving.

Integrity

I wish this was a “given,” and in most cases it is. It applies to all of the supply chain partners: suppliers (principals), distributors, reps, OEMs, CEMs, B2Bs, brokers and the entire brigade of intermediaries. It encompasses the buyers of spare parts to those with billion-dollar budgets. It includes the MRO distributors to the global giants. Dishonesty has no place in our great industry, but good ethics does. We should all be introspective. Most of you have heard the expression “Be honest to thine own self.” I’ll dare to expound on it and say “Be honest to thine own self and to thy customers and supply chain partners.”

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