© Robert Kneschke | stock.adobe.com

Once he had completed his due diligence regarding his company’s rep selection search, the national sales manager for one manufacturer was frustrated. He had narrowed his search to three independent agencies, but here was his problem — in his opinion they were all in a dead heat when it came to which one was most qualified to represent him in the territory in question.

Thankfully, this manufacturer had plenty of non-competitive manufacturer friends who weren’t bashful when it came to offering suggestions about how to break what was a virtual tie. According to the manufacturer, here’s one of the most valuable bits of advice he received: “When I outlined my dilemma one of my longest-standing friends began a conversation by making sure I had checked all of the agencies’ references (from both customers and other manufacturers), was sure they were properly staffed and were willing and able to share their strategic and succession plans with me. Then he got down to business by asking what were my personal feelings for each of the agencies. Did I have an emotional connection with any of them? Did I feel comfortable socially with one or the other? Did I think their personnel would ‘click’ with my inside staff?

“After carefully considering those and some other questions, I have to admit that the tie was broken. This all took place six years ago, and I’m more convinced today than I was then that I had made the right decision. When all things are considered, sometimes you just have to go with your gut.”

Thanks for Calling

Here’s why one manufacturer appreciates it when his reps occasionally call in for no particular reason other than to keep the communication doors open. “I’ve got to give this one rep credit because he’s made it a habit to call in even when there’s nothing specific to report. I believe he just wants to assure me that he’s out there working on my behalf. But, here’s one time when the call really paid off for both of us. After we covered a number of routine subjects, I mentioned to him that one of my biggest customers in another territory had just placed a purchase order for a $15,000 piece of machinery. Normally just one order of that size doesn’t make much of a difference in the whole scheme of things, but then I asked if there was a chance this same customer might be making similar purchases at other facilities in this rep’s territory. I could immediately hear a change in the rep’s tone of voice when he said he’d check on it immediately. True to his word and to the benefit of both of us, by following up on this lead, the rep uncovered a wealth of business that wouldn’t have developed if we didn’t have our regular ‘social’ phone visits. Count me in favor of regular in-person or phone contacts — even if it’s just to say ‘hello.’”

To Pay or Not to Pay

Sometimes a little prospecting among Internet discussion groups can uncover some valuable business tactics. For instance, how about the subject of getting reps to provide worthwhile market research? A group of manufacturers were found discussing this very subject.

The consensus among the group was that it’s not unusual to encounter some manner of push-back from reps when they are asked to conduct market research. According to one of the manufacturers, “I’ve had a certain measure of success when I’ve been less than demanding with my reps. For instance, if the rep and I agree that the gathering of information can be completed in the normal course of their regular sales calls, I really don’t think I’m entirely out of line to expect that they can get the job done for me. Furthermore, if it’s something I think can improve the relationship between me and the rep, I will never avoid asking them to do the job.”

Things change a bit, however, when the subject of major market research comes up. “If the information I’m asking for is a little out of the norm and I’m certain it’s going to necessitate a fairly major effort by the rep, then I will never hesitate to raise the subject of compensation. This is something I’ve done from the very beginning of my relationship with my reps.”

As an addendum, he said: “By the way, whenever the subject of market research comes up, I’m surprised at how seldom the rep will ask for compensation. They might be surprised by my (positive) reaction if they ask about it.”

Requests for Compensation

Another manufacturer who was a participant in the previous conversation had this view on the subject of compensating reps for additional services: “Recently, I’ve been more than a little surprised at the number of my reps who initiate a conversation with me about needing financial support to develop new territories, devote more time to their line than they have in the past, and to take new products to market in territories where they haven’t had a presence in the past.

“Just as my fellow manufacturer, I’ll admit that I have an open mind and I am more willing than reps might imagine to listen to their requests for compensation.” He added that the conversations he’s had have resulted in some form of pioneering contract, higher commissions for a specific period of time, longer post-termination commission or territorial development costs.”

Viewing the Rep as a Consultant

When a manufacturer was asked to recall some of his beginning experiences with reps, he offered one bit of advice that might be worthwhile to others. “When my company first considered working with reps, I’ve got to admit we didn’t know a thing. Thankfully, our first steps were taken by consulting with MANA and with the industry-specific rep association we were familiar with. Then it came time to talk to a rep. We began not by vetting specific agencies, or conducting an extensive search. What we did was to locate one firm that we knew had an excellent reputation and asking them to serve as a type of consultant for us. I’ll admit that this could have been a mistake if the rep hadn’t turned out as well as he did, but as things developed, we hit the jackpot.

“This rep alerted us to the fact that we needed to have in place some sort of a consistent plan for working with reps in all of our territories. He then proceeded to assist us in developing that plan. As I look back over our experience, I’d advise other manufacturers to follow a similar course. What this did for us was to point to several elements in the relationship where we need to strengthen our efforts.”

Raising Expectations

As technology continues to impact the business world, the expectations that manufacturers have of their independent manufacturers’ reps continue to rise. At least that’s the view of one manufacturer who maintains that “In taking a look at our — and our competitors’ — product lines, continued change is more than obvious. Our products today are more technical, more powerful and provide more solutions to our customers’ problems than ever before. At the same time, we are now expecting much more out of our reps. We now need reps who are more technologically savvy. They’ve got to be better educated. And, they’ve got to do a great deal more in the marketplace than just make calls, follow up, and sell products. Here’s what happens when we look for, interview and ultimately select reps: We look for top-notch professionals. They’ve got to be educated, able communicators and they must serve both us and our customers as consultants. When a customer has a problem, the rep has to be able to step in, make suggestions and work out ways for the problem to be solved.”

The Rep as Complement — Not Substitute

When a well-established rep firm owner delivered a presentation on the value of using reps to a group of manufacturers, he left the podium gratified that his message was well-received. According to the rep, “Over the years I’ve found that too many manufacturers looking to work with independent sales representatives don’t really see engaging a rep’s service as simply ‘outsourced sales.’ Instead, they enter the relationship looking upon a rep as a substitute for a marketing and sales program. They don’t just delegate the job of selling into a particular territory to a rep — what they do is to dump the whole marketing and sales process into the rep’s lap. And then to make matters worse, they expect miracles. Those companies are really abdicating their fundamental marketing and sales responsibilities because they believe guiding the process is just too expensive or time-consuming. I’d call this the lazy man’s way out. Short-term, sure you can avoid a great deal of thought and work; but long-term, you’re really performing a disservice to yourself and your organization.

“For any manufacturer who maintains, ‘What I’ve been doing has worked well for me for years,’ here’s my message: When you’re not prepared to take full control of your marketing and sales processes and provide the resources necessary to those processes, some real negatives rear their heads:

• “You’re probably going to wind up playing musical reps, that is being prone to replacing reps when they don’t meet your immediate expectations.
• “You’ll never achieve the market share or the market awareness that you’re seeking.
• “Bottom line, you’ll never truly learn how your business is performing in the territory.”

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