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If this manufacturer subscribed to the belief that “you can’t go home again” when it comes to revisiting the rep business model, he learned in a hurry that he was wrong.

Here’s his story: “A little over a year after we moved away from using reps and reinstituted a direct sales force, we had to face the error of our ways. Not only did we encounter the economic hardships of finding, employing, supporting and paying factory-direct salespeople, we learned in a hurry that we had lost the relationships that were the backbone of our success in the field.”

Here’s what else he learned (to his regret):

• “We should have known this one from our past history of working with reps, but independent reps look to stay with their businesses; direct salespeople are always looking for a way up and out. Reps live and work in the territories where they’ve established their businesses, not so with direct salespeople. We learned quickly that we weren’t getting the stability and staying power that our reps provided.”
• “Closely related to the previous point, as our direct people were looking to move up the corporate ladder, we were losing the relationships that are key to our ongoing business success. On top of that, our network of reps always proved better at bridging the gaps that inevitably develop between departments at our customers’ facilities.”
• “Call it problem anticipation or consultative selling, but reps have always been better at anticipating what our customers need in order to solve a problem. Maybe it’s because they make such an effort to synergistically represent products, but they appear to be better suited when it comes to anticipating what the customer needs to solve a problem.”
• Continuing with the benefits of synergistic sales, the manufacturer added, “The fact that our reps can execute multi-line sales calls has opened many more doors for us and them than the one-product-line approach of our direct sales force.”
• Finally, the manufacturer noted, “Our reps’ track record indicated they regularly did a better job when it came to fighting on behalf of the customer. They advocate for the customer at higher levels within our organization. That’s normally not what we experienced with our direct sales force. They were more reluctant to go over the boss’ head than were the reps.”

Staying on the Rep’s Good Side

Maybe it’s some form of quid pro quo or — better stated — maybe it’s just treating others the way you want to be treated, but one manufacturer had a fairly simple approach to ensure he got his fair share of his reps’ time in the field. “Look, we’re realistic when it comes to our product line. We’re never going to be a rep’s biggest, best-selling line, but if we treat them in a professional manner, we’ve always found that they’re enthusiastic when it comes to working with us.

“From the first day we work with an agency, we let them know that we’re well aware of the fact that they are not going to be spending all of their time just on our line. In return for that level of honesty, they let us know that in order to get their fair share of time it depends on the way we support and treat them. To that end, we provide them with all the product samples they need, keep them up-to-date with company plans and activities and are always sure to pay them accurately and on time.”

In addition, the manufacturer explained that “Just like us, reps are only human. As a result, they’re more apt to spend the majority of their time with the products that they’re most comfortable with — and where the money is. In order to increase their comfort level and present the best change for them to make money with our line, we regularly increase the level of training that we provide for new product introductions so the rep goes into the field confident that he can comfortably — and profitably — sell the product.”

Benefits of a Sales Coach

Elsewhere in this issue of Agency Sales, an article advocates for the use of sales coaches for reps. Coincidentally, a manufacturer came to that same conclusion in a letter sent to this publication. According to the manufacturer, “Shortly after contracting with a sales consultant to work with some of our reps, he informed us we had more to do with our commitment to our rep network than simply signing them up, providing them with information and support and paying them. He maintained that our commitment is never done. After initial training, our job is to provide reps with any and all additional material that they need. Following that we should periodically furnish them with updates and ensure that all training efforts are ongoing. He stressed that we’ve got to make sure whatever we do to support our reps is more than a one-shot deal. What we’ve got to do is establish a process that never ends.”

Learning From the Past

Over the years Agency Sales has written a great deal about manufacturers that have become independent reps and reps that have moved on to manufacturing companies. A manufacturer that followed that latter course contacted us after reading the article on “The Perfect Principal” that appeared in the June 2017 issue. His purpose was to detail some of the benefits he learned from starting his career as a rep. According to the manufacturer, “If anything, I think I’ve got a better relationship with reps than many of my competitors because I know what drives them. For instance, I know how they’re going to react if and when the manufacturer:

• “Arrives at a decision and doesn’t communicate that with them.
• “Doesn’t come close to living up to its promises and expectations.
• “Fails to provide the back-up support that they promised.”

He continued, “For me it’s been a fairly easy transition to working with reps. A part of that had to do with the fact that I took steps to make sure I picked the best reps to work with from the very beginning. What I was looking for in them were some of the same qualities I possessed as a rep. I know that’s how I wanted to go to market and it’s paid off for me.”

Tips for Quick and Efficient Communication

One manufacturer who notes that he’s more than aware of the fact that over-communication with his reps can result in them losing some valuable time in the field has come up with a quick and simple means for effective communication. When calling his reps — which he admits he does with some regularity — he skips all the niceties and gets right to the point. Aiding him in this effort is the fact that he carefully plans the content of his calls. “Whenever I contact my reps, either in-person or by phone, I make sure I’ve got a list in front of me that covers what I want to discuss. As an example, if I receive a comment thanking me or complimenting the company for our attention to a problem, I make a note. Likewise, if there’s any mention of a late shipment or commission, or a quality problem, that’s also on my list. By operating in this manner, I’ve been able to stay aware of many problems that if left unattended would have seriously hindered relations with our reps — not to mention our customers.”

Manufacturer and Rep Value Relationships

When a manufacturer was recently boasting — with good reason — about the lengthy tenures he enjoyed with many of his independent rep firms, he was gratified to hear from a rep that long-term relationships were just as valuable to him as they were to the manufacturer. The rep offered the following: “Not only do long-term business relationships make me feel secure that the people who provide my support are going to be there for the long haul, it also lets me know that the manufacturer is really serious about his relationships. There’s nothing worse than constant change. When that happens, it makes you feel as if you’re always starting over. And, if the manufacturer employs a philosophy of stability with his own people, that lets me know he’ll do the same with his reps.”

MANA Seminar Opens Eyes

A manufacturer that had attended a previous MANA Manufacturers’ Seminar recently signed up some of his newer people to attend next month’s seminar in Chicago. One of the major reasons for doing so was that his experience allowed him to view the manufacturer-rep relationship in the eyes of the rep. According to the manufacturer, “After spending a day-and-a-half with other manufacturers, I thought to myself how important it was for us to view our relationship from the rep’s perspective. Too often in my experience we tend to look at the relationship simply from our side and consider only how it benefits us. I can’t say we ever made much of an effort to learn what the agent needs. This includes the very basics such as commission payment, factory support and advertising, to questions that very few manufacturers ever ask their agents.”

He continued, “My intent in sending our two new people next month is that they’ll come away feeling the same way I did. It can only benefit both sides of the relationship.”

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