What does the sales manager do to build the business?

It used to be easy. Two guys went into the rep business. They got a few lines. They divided up the territory and perhaps split up the customers based on any number of things — previous experience each partner had with the account, specialized product knowledge, or something like friendship with an insider.

Now things have changed. The rep firm has 5-10 outside salespeople and 3-5 inside sales coordinators. Success is good. Commission income is approaching $2 million. But, no one is really running the business.

Both partners used to work for manufacturers. Both feel like they escaped the administrivia of those companies and are breathing freely.

“In” the Business vs. “On” the Business?

The problem is that both are working “in” the business, not “on” the business. Every day feels like a roller coaster ride. They are making major money, but there is an uneasy feeling that it could crash at any minute.

How can the partners get control of things and build a more professional sales organization? And, most important, how do they keep growing and building commission income?

Each of the salespeople is a little island working on his or her own out in the territory. When the salespeople are asked for reports, plans, communications to the factories or anything else, their answer is, “Do you want me to do reports or sell?”

Looking Unprofessional

At times it can be a bit embarrassing because the rep firm doesn’t get things done for the principals. Requests for marketing support, market information or other facts about customers and the outlook for business do not get answered or the partners scramble to send the information on the day it is due or a day late. The manufacturers have noticed. Maybe there have been some snide remarks about the lack of support the rep firm gives them or how poorly the reps communicate.

One saving grace is that most of the other reps for that manufacturer are just as bad.

Don’t Join This Club

Is that a club your rep firm wants to belong to? Do you want your firm to be one of the reps that are all talked about as a homogeneous group of “mediocre salespeople” or do you want to stand out?

How Do You Make Your Rep Firm Stand Out?

Management of the sales force is the best starting point. Getting your principals to know about, understand and respect the way you manage your business is a huge starting point for separating your firm from the rest.

Backselling Your System and Approach

First you have to develop the sales management system.

• What do your salespeople do to manage their business?
• What do you do to help them succeed in building the business?
• What systems do you have for rewarding salespeople who achieve specific goals?
• What do you do about less-than-satisfactory performance?

Every rep firm owner/senior manager will answer these questions in his or her own way. The key is to answer them and then tell the manufacturers about your system — backsell!

Backselling the system to the manufacturers is the starting point for standing out. Communicating the way you run the business gains credibility and positioning for the rep firm.

Selling back up the channel so that the management of the manufacturers know and understand the discipline, structure and responsibilities of your sales force is the building block for standing out among a group of mediocre rep firms. And, most of the reps that work for most of the manufacturers are “mediocre.” That is one of the reasons so many managers at the manufacturer level think reps are not very good, are overpaid, and could be dispensed with if they could afford a direct sales team.

Fortunately for you, they can’t.

Producing Real, Substantial, Significant Results

The most important part of positioning your rep firm to be a stand-out among the reps that sell for your most important manufacturers is results.

Rep firms have only one job — sell. When you sell, you position your firm to stand out and be rewarded by the manufacturers. Everything you do with your salespeople has to be focused on sales results. Working with each salesperson to identify their most important customers with the most potential for the most important lines is the key. As the sales manager you have to be on top of the customers, lines and programs to make your business stand out.

At the same time you are enhancing your commission income and building your firm’s reputation.

How Do You Get Results From the Salespeople?

The plan is the key. Each of your salespeople has just a few important, high potential customers. It probably is not more than five.

Plan by Account

What has to be done with each account on each of the five to seven key lines that they buy to make the results show significant improvement? This is the sales manager’s number one task — get each salesperson to commit to a written plan for each key customer for each key line. And then keep working with the salesperson every month to get results.

Sales Management Pays

By focusing on specific plans by customer and by line, the sales manager builds a solid frame of reference for every customer that can impact the firm’s commission income.

That’s the name of the game.

Good luck and good selling!

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