Ask Hank Bergson what manufacturers new to working with reps will miss if they don’t take advantage of MANA’s manufacturer seminar, “Best Practices With Reps, Planning With Intent,” in October and the rep-savvy consultant immediately opens a door to all the opportunities reps can provide their sales and marketing partners. The association’s next manufacturer seminar is scheduled for October 10‑11, Holiday Inn & Suites, Chicago O’Hare.
Bergson, president, Henry Bergson Associates, LLC, has been conducting the MANA seminars for several years. As a result of that lengthy tenure, there’s probably no question about rep-manufacturer relationships that the two men haven’t anticipated and answered.
In response to the aforementioned question as to what manufacturers might miss, Bergson explains that “…from the outset we strive to explain there’s much more to the relationship than believing, ‘You send orders and we’ll send money.’ That’s hardly the extent of the relationship. What both sides have to do is create a true partnership. That partnership is based on the belief that the manufacturer wants the rep to grow and prosper. At the same time the rep is focused on his own success, he should be working toward making the manufacturer successful.”
No One Size Fits All
In the course of covering the important points manufacturers should be aware of in their relationships with reps, Bergson, the former president of NEMRA, admits that “Not everything we include in the class fits everyone’s needs. While we try to paint a broad picture of the rep’s capabilities, the fact remains that there might be 42 activities that a rep can provide. An individual manufacturer, however, might only need activities 1 through 8. We’ll acquaint him with the fact that might be true, but chances are he also needs activities 13 through 16. We’ve got to educate him to that point.”
Bergson continues that over the course of the day-and-a-half seminar “We’ll try to take manufacturers from A to Z, covering a lot that the majority of manufacturers don’t think about when it comes to working with reps with the goal of guiding their outsourced sales force through good times and bad. In some instances it’s as simple as covering how to make sure everyone is performing and working their plan. We’ll get into the basics of what makes people tick. How do you manage marginal performers? What should you expect from your ‘A’ performers and is there anything you can do to turn a ‘C’ performer into a top performer?”
Factory Visits and Rep Councils
“We’ll also stress the importance of factory visits and spend a great deal of time speaking about rep councils. We stress how important it is to have reps visit the factory on a regular basis with the goal of establishing and strengthening relationships with a manufacturer’s inside support staff.
“On the subject of rep councils, we stress how important it is make use of the rep council. They serve as your eyes and ears out in the field and it’s important that the council serves as a channel of communication. At the same time, the council shouldn’t be viewed as some sort of a device where all of your reps get a turn. Your job in creating the council is to populate it with your ‘best and brightest.’
“Then there’s the tough question of divorce. This is something people are reluctant to speak about but it’s critical to recognize the divorce between the principal and the rep is something that might occur.”
Bergson admits that divorce or termination usually results in a lengthy conversation among the manufacturers. “Perhaps it’s a bit of an odd part of our presentation but we put the subject right out there on the table. Manufacturers want to know when, why and how you might terminate a rep. We make the point that the relationships between principal and rep is not one defined as lifetime employment for the rep; and the rep doesn’t expect it to be so. Termination can occur for a number of reasons. The technology involved with a manufacturer’s product may change, ownership of a company may change, or the focus of the rep’s agency may change. All of these events can alter the relationship between rep and principal. If the relationship is not working out, it’s more than possible to shake hands and go your separate ways. It doesn’t always have to be a negative experience or wind up with people hating each other.”
Importance of Contracts
Closely related to the subject of termination is the importance of having a solid, well-written contract. “A good contract will include some termination language. Having said that, we’ve seen any number of 30-day contracts that are now going on more than 45 years. This all doesn’t change the fact that there might come a day when rep and principal have to go their separate ways. Reps are always aware of the fact they have to do a good job. The failure to do so will bring a negative result.
“We make the point that if the agreement between rep and principal isn’t working out as expected, perhaps a type of ‘marriage counseling’ might help. If that doesn’t work, the decision might be made to terminate earlier rather than to let it deteriorate even further.”
When Bergson is asked to identify any pre-conceived notions or attitudes of manufacturers who have attended MANA seminars during the more than 10 years he has conducted them, he’s quick to offer compliments. “Since manufacturers are paying a reasonable amount of money to attend, I’d say all manufacturers we’ve worked with are there with an expectation that they’ll gain an education. The manufacturers that attend are of various sizes with a number of them being on the small size. I don’t think they’ve been sent by their leadership. They’ve attended on their own and are looking to learn. If any of them come grudgingly, I’d say they quickly get turned on by the class.”
Bergson explains that “turning on” attendees is a quick process. “Right at the beginning we ask them what they hope to get out of the process. If they’re at the seminar simply to get to the point where they can leave at noon on Friday, we tell them they’re better off leaving right now.”
Connecting the beginning of the seminar to that last day, Bergson says “In the final part of the seminar, we ask if we met their expectations. Were any questions not addressed or answered? If the answer to that last question is ‘Yes,’ we always leave enough time to stay longer and make sure everyone’s needs are met.”
For more detailed information about October’s MANA manufacturer seminar check the MANA website (www.MANAonline.org).