Reps, their customers and manufacturers applaud the use of manufacturers’ websites as marketing tools.
At the same time, however, some reps get the feeling that they’re being left out in the cold when principals fail to list them as the major sales contact in the field. In speaking to a number of reps, this usually happens in a couple of ways:
- Failure to list all reps — Among some manufacturers, the trend of failing to list all of their reps continues. As one rep noted, “How do you think that makes us feel? As far as the customer knows, there’s no one covering their territory.” The main takeaway here is if you’re going to list your reps, make sure that you list every one of them.
- Failure to list any reps — On the other hand, many — the majority — of manufacturers do a good job of listing all of their reps. In addition, they communicate (via their website) that if the customer desires additional information, they should contact their local rep. Or, if they contact the manufacturer directly, they should know ahead of time that the manufacturer is simply going to turn the contact over to the rep.
However, there are some manufacturers that don’t list their reps at all. Sometimes when that happens, the customer will call with a request for price, for instance. The manufacturer in its enthusiasm may come up with a price that sharply undercuts the efforts the rep had already expended in the field. The message here is that it’s good business to list all your reps and send all contacts their way.
Better Late Than Never
After a decade of supervising independent rep sales forces at two different manufacturers, one company’s national sales manager admitted that “Sure, it’s taken me an awful long time, but I finally get the point of working with reps. It could be that the reps I’ve worked with have simply better met the needs of my companies, but looking back at my experience, the fact is they really save us money in our sales efforts.
“More to the point is the fact that we get much more regular exposure in front of the customer on a much more regular basis than if we had our own sales force. I’ve been out in the field on sales calls often enough to realize that when the rep makes a call, we’re not the only company he talks about. The relationships that our reps have made with their customers have led the customer to expect the latest on a number of companies’ offerings — and that’s where the real benefit to us comes in. Since we’ve carefully chosen our reps, we know our products complement their entire line. As a result, every time the rep walks through the customer’s doors, we have a sales opportunity, and it shows on the bottom line.”
A Manufacturer’s Metaphor for Good Relations
One manufacturer admits he may be stretching the point a bit when he describes the metaphor he’s developed for maintaining solid relations with his network of independent reps. “I don’t know if this approach will work for others, but it certainly does for me. I liken my approach to staying close to my reps as the three legs of a stool. Each leg represents a different area of support. The absence of any of the three legs, means the stool will collapse under its own weight.”
Here’s the three legs that he refers to:
- Sales performance — “I’m constantly asked how I regularly communicate with my reps and what type of communication I require in return. I’ve got no formalized program. As a matter of fact, as long as we’ve agreed on our forecasts for the year and the rep meets or exceeds those forecasts, all I really want to hear from my reps is when they have a problem or need my help on a project. Across the board, my reps let me know when there’s something I’ve got to know. By cluttering up the communication process with regular call reports, I’m only going to discourage them. On the other hand, when they do call or e‑mail, they can count on an immediate and effective response.”
- New product development — “If there is going to be any level of success by my reps selling the same old products, the same old way, to the same old customer, I’d be fooling myself. In addition to being entrepreneurs, reps are creative people who want to be challenged. The way to keep their interest high and to raise the bar of their performance is by providing them with a steady diet of innovative and ‘bleeding-edge’ products. This challenges their sales skills and communicates to their customers that we’re not a manufacturer that stands still.”
- Regularly scheduled field visits — “Whenever I schedule a field visit, I make sure that I do so judiciously. I’m just as busy as my reps. As a result, when I go out into the field I had better have a reason that is more important than just wanting to get out of the office. Whether it’s a new product introduction, introduction of a new sales program, or troubleshooting a problem account, I let the reps know 30-60 days in advance. I never surprise them. And when I tell them I’m coming, I also let them know what it is I want to accomplish and what specific accounts I want to visit. I’ve found that by taking the extra time to plan this way, reps go out of their way to ensure the visit is beneficial not only to the two of us, but also to the customers.”
Valuable Manufacturer-to-Manufacturer Advice
When one manufacturer bemoaned the fact that one of his reps was selling his agency and retiring without telling the manufacturer, one of his manufacturing peers was quick to offer some advice.
The second manufacturer noted that it was certainly in the rep’s best interest to let his principal know what his future plans were, but at the same time, the principal should make it his job to be proactive in learning all he can about his agencies. He went on to say that this can be done in an unobtrusive manner by simply letting the rep know you care about what he’s doing. This manufacturer said he made it a habit to ask his reps to share their annual business plan as well as any retirement or other plans that could affect the agency — and its relationship with the manufacturer.
Constant Support Pays Off
As an example of how important it is for a principal to keep in the loop regarding reps’ plans, a rep offered the following: When a couple of the rep’s principals downsized as the result of some serious business losses, the trickle down caused the rep to lay off one of his outside people. When he let his principal know what had happened, they agreed that no changes in their relationship would result as long as the rep signed on a sub-rep in order to provide the same level of coverage in the territory. Once the agency’s business picked up again, the rep signed on the sub-rep to fulltime status. The rep was convinced that it was only because of the strength of his relationship and the support offered by the principal that he was able to work his way through a temporary downturn.
Facing the Millennial Challenge
Elsewhere in this issue of Agency Sales, we examine the challenge of dealing with millennials in the workplace. This is obviously a challenge faced by both manufacturers and their reps. The subject brings to mind an article that appeared more than a decade ago in these pages. At that time we reported on a presentation made during a rep association meeting where a moderator spelled out the difference and challenges existing among those who populate the work force. The speaker defined those generations as:
- Matures, born prior to 1946
- Baby Boomers, born 1946-1964
- Gen-X, born 1965-1980
- Millennials, born 1981-1999
He defined the differences among the groups and then called upon reps and manufacturers on a panel to share their observations. A manufacturer sales manager offered the following: “I fall right in the middle of Generation X. Keeping in mind the difference that may exist in my motivations vs. those of older and younger individuals, I bring the following with me when I work with an independent sales force:
- “I take what I call a more professional (vs. a personal) approach to the relationship between myself and my reps. I want to work 8 a.m. to 5 p.m. and don’t necessarily want to spend a lot of extra time developing personal relationships. I’m skeptical about trusting outsiders. I’m quick to adopt technical solutions to problems and value reps that can do the same. I’m easily frustrated with older people (e.g., Baby Boomers) who are resistant to change.”
- “Here’s my view of how the independent rep brings value to me and my company. The first thing he brings is the relationship with the customer. When the rep owns the relationship and provides that value to the principal, the advantage it provides us is huge.”
- “The strength of line synergy is a tremendous advantage to the rep, and especially to us — a commodity manufacturer.”
- “The rep who possesses the ability to service the customer and the principal is a real asset. He knows how to quote quickly and accurately. He provides expert, professional advice when it comes to solving problems. And, he knows how to communicate — whether it’s in person, phone, fax or e‑mail. He always keeps us in the loop.”
- “And finally as a Gen-X manufacturer, it’s to my benefit to do everything I can to get closer to the rep. That’s the only way we’re going to grow together.”
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