When a long-standing MANA member was asked a few years ago to define the traditional rep business model he offered, “We’re expected to make calls, follow up, send in orders, and get paid.”
Because he was and still is a planner, an entrepreneur and a forward thinker, that rep would agree that today there’s much more to the job of an independent manufacturers’ representative. Any doubt to that thinking is put to rest in even the most cursory conversations with observers and participants in the rep business model.
For instance, consider that Charlie Ingram, vice president, sales & marketing, Eriez Magnetics, Erie, Pennsylvania, has seen a good deal of evolution over the more than two decades he’s been working with reps.
“When I first started working with reps 23 years ago,” he said, “it was more than common to encounter small rep organizations that in some cases had no internal staff and no marketing plans. All you’d see were boxes of catalogs and literature in the trunk of their cars. Their primary function was to serve as the information conduit from the manufacturer to the customer base. What they’d do is develop a lead themselves or get one from a manufacturer. From there, they’d serve as the sales arm for the manufacturer.”
Ingram continues, “Here’s what I’ve seen evolve over the years: Today you see a huge progression and evolution among reps to the point where today agencies are populated with good business people who serve as really professional marketers not only for their manufacturers but also for their own brands. The latter point is especially important as I see that rep agencies are pushing their own brand and striving to be the contact point for solutions to customer problems. They’re not just the instigators of information, there’s much more to what they’re doing. Today’s rep is one who serves as a consultant and solution provider who understands the customer base. The value-add that the rep provides goes well beyond anything a customer could find on the Internet.”
The role of the rep as a marketer is one that has also evolved, according to Ingram. “We do so much more with our reps now in the area of marketing than ever before. Those efforts include everything from participation in trade shows, marketing on the Internet and innovative sales programs.”
Impact of Technology
The role of technology is one that is hardly overlooked when it comes to the evolution of the rep business model. Ingram notes, “You can’t ignore the impact of technology when you consider how both reps and manufacturers conduct their business today. If they didn’t embrace and adapt to the way technology helps both sides, they wouldn’t be in business today.”
When he’s asked to take a look into the future with the aim of predicting how the rep’s business model will continue to change, Ingram says, “I wish I had a crystal ball; then I could answer that question. There’s no doubt there will continue to be an evolution and change in both technology and business practices. I feel comfortable in saying that there will always be a need for the professional, well-educated rep to serve as the link between the manufacturer and the customer looking for a solution to a problem.”
If the continued existence of the rep is a given, according to Ingram, another given is the fact that personal relationships will remain to be just as important in the future as they have been in the past. “The personal touch will always serve as an integral part of the business. Customers will always be looking for the comfort level that develops only with someone they know and can depend upon. All you’ve got to do is look at the past 100 years, and it’s personal relationships that spell business success.”
Personal Relationships
Echoing Ingram’s opinion that personal relationships are as important today as they’ve ever been, Frank King, FLK Associates, Orchard Park, New York, draws on his 34 years of experience as a rep to note that an important change the rep faces today is the difficulty in getting to see the people he needs to be in front of. According to King, “In the early ‘80s, I could walk into a customer’s place of business with no appointment and I’d be virtually tackled by people who wanted to see me. Now, because so many companies have downsized and they’re working with fewer employees, people don’t necessarily have the time to see me. You can show up and they’ll look at you and ask ‘Why are you here?’.”
As a result, if there’s a major change in how the rep does business today, King points to the difficulty in getting appointments. There are so many gatekeepers the rep has to deal with that it’s incumbent for him to come up with approaches that get the job done. “Phone calls and e-mail are the two most common approaches for me but with the former people tend to hide behind their voice mail and with the latter, you often don’t get responses.”
He adds that with some of the larger customers, you have to get through a gate or guard house to even get to the building. “In that case, unless you already come armed with the name of someone you’re calling on, they won’t even volunteer a name to you.”
Persistence Pays Off
In addition to keeping up with the phone and e-mail approaches, Kings explains that he also creates an Excel spreadsheet that notes when he’s made his original call and projects forward to when he should call again. “That’s something I refer to time and again, but I’d simply emphasize the point that you’ve got to be more persistent today than ever before when it comes to getting to customers.”
When asked if and how his principals have changed over the years, King stresses that “Today principals are insistent that reps show their value-add. The rep has to be able to demonstrate to the manufacturer what they’re doing for them. In the early days, when I was just starting out, manufacturers didn’t really have the time or interest to monitor what you were doing in the field. I’ve found that today it’s a good deal easier for me to communicate with my principals, put all my cards on the table and demonstrate the value that I provide.”
Technology has also impacted how he performs his job. “When I started out, like everyone else I had a full supply of literature and catalogs, not to mention product samples. Today, however, I rarely carry samples but just travel with my laptop. Customers don’t normally have the time to go through literature or handle a sample. All they need to see is what’s on the computer.”
He continues, “In general, I’ve really welcomed the advantages that technology has provided. It’s made my job that much easier. As far back as the early 80s I learned how much more efficient technology was making me.”
Reps as Connectors
Also welcoming the benefits of technology is Michelle Jobst, CPMR. Jobst, who heads Jobst Incorporated, Eden Prairie, Minnesota, says that “What technology has done is to make more information available to us and our customers than ever before.” But, she cautions that having that information and understanding it are two entirely different things — and that’s where today’s rep comes in. “The rep’s function — specifically with the custom components that we deal with — is to take a part of the puzzle that certain information represents and then be able to connect all the pieces for the customer.”
And it’s that role of the rep as connector that she emphasizes is so important for today’s rep. “We not only connect customers with information, we’re also the major connectors between the manufacturers and customers. One thing that hasn’t changed over the years is the fact that we’re always going to see buyers come and go. We’re still going to be here and continue to provide our value to the market despite changes in customer personnel. Remember that when someone new takes over a buying position, chances are they’re going to know less about the jobs and projects than the previous person. We can and do serve the purpose of connecting them with the information they need to get the job done.”
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