“The view is quite a bit different from the other side of the desk.”

That’s how one new rep who had just recently retired from a manufacturing company described her initiation to the world of reps. “After my company was sold to another much larger firm, I decided it was time for me to make a change. During the course of 23 years with the manufacturer, I had climbed the ladder from outside sales to a regional manager’s slot. When my company was sold, the whole culture of the place changed, and it just wasn’t where I wanted to be anymore. During the last eight years of my employment there, I had worked closely with a number of our independent reps and I really grew to appreciate what they did for a living.

“My years of working with reps showed me that the rep works in a much more stable environment than does the factory employee. The fact is the rep isn’t looking for a promotion to some other position. When it comes to product application, he possesses a broader and deeper knowledge of the industry that he works in. Another thing that attracted me to working as a rep was that I found factory people — myself included — tend to be much more specific in their industry and product knowledge. As a result, they often have difficulty fitting their product knowledge into the industry application.

“Bottom line, these are all factors that attracted me to life as a rep and I’m glad I made the decision I did.”

Learning From the Past

This same manufacturer-turned-rep was also quick to lean on her previous experience when it came to opening the doors of her own agency. “Based on the number of years I worked on locating and selecting agencies I wanted to work with, there were a number of attributes that attracted me to an agency that I wanted to incorporate into my own operation. I felt that if I possessed certain attributes that originally attracted me, then I could move forward to attract manufacturers in the future.” Among those attributes were these:

• Does the agency have a business plan and succession plan? Are they willing to share those plans with prospective and existing principals?
• Who are the agency’s customers? What do other reps and principals think of them? Do they carry lines that are complementary to your own?
• Among the product lines carried by an agency, how many of them are top lines?
• Finally, what about the quality and experience of agency ownership?

Asking Questions and Listening to Answers

Agency Sales and MANA — not to mention any number of MANA-member manufacturing firms — have long advocated the benefits of rep councils. In the absence of such councils, however, one manufacturer offered his rather simple approach to gaining valuable input from his reps.

“I’m a true believer in the rep model of selling my products. One of the major contributors to what I’d refer to as successful relationships with the majority of my reps is that I’ve made it a habit to regularly ask them questions about how I conduct my business. Then, I sit back and listen to their answers — without interrupting them.

“Basically, the two major questions I regularly ask them are ‘What am I doing correctly?’ and ‘Are there any important areas where I need to improve my performance?’”

He continued that in general the responses weren’t all that surprising. Typical of the feedback from his reps included subjects such as the need to provide quality products, make sure deliveries are on time, responding promptly to reps’ questions and problems, and paying commissions accurately and on time. “However, when several of our reps reported that we should do everything we can to make it easy and fun to conduct business with them, that really got our attention. Asked to expand on that message, one of reps told us they enjoyed working with us because we made them a part of the organization. We didn’t treat them as outsiders and when problems cropped up, we and they were able to put our heads together and come up with a quick resolution. The old term to become the rep’s ‘emotional favorite’ came up conversations a number of times. That message wasn’t lost on us, and we work hard to create an atmosphere where we know our reps look forward to hearing from us and working with us.”

Identifying and Realizing Expectations

In the course of an exchange between a manufacturer and a MANA seminar facilitator last month, one MANA manufacturer focused on the danger inherent in having expectations between principals and the rep that can never be realized.

The manufacturer began the conversation by noting, “Remember that it’s critical from the onset of the manufacturer-rep relationship that any relationship between the two will only be successful if it is beneficial to both. From the very beginning, failure in this area will result in dissatisfaction from both sides.

“I know that there are any number of occasions when a rep will appear to be overly optimistic in terms of what he or she can do once the agency gets a line. If and when that happens that can be the beginning of the manufacturer dictating terms of the relationship that aren’t going to work long term. For the relationship to truly work, the rep and the principal both have to think and plan short- and long-term concerning who will do what to maximize the relationship. What I’m pointing to here is the need to be flexible during at least the first year of the relationship. Both sides must determine what works for the other while benefiting the customer at the same time. It’s only then that chances for success will be multiplied by the effort they both put into the relationship.”

The Benefits of Big Checks

Interesting and positive responses were forthcoming when a group of manufacturers that work with reps were asked the following question: “Are there occasions when you — the manufacturer — have to write a check to a rep that exceeds the salary of your company’s CFO?”

An initial response from one manufacturer was: “If the rep earned it, he’s entitled to it! End of subject.” Another manufacturer offered: “I’d love to write a check that’s bigger than our executive’s salary. It’s simple — all that means is that the rep is doing a great job, and more of our product is being sold. That’s what this relationship is all about.”

A third manufacturer offered the following concerning what manufacturers ought to keep in mind when they’re writing those “big checks.” “Keep in mind that the manufacturer has to appreciate the fact that the check doesn’t simply go into the rep’s pocket. Remember the rep has to pay all the business expenses that the manufacturer doesn’t since he’s not employing a direct sales force. That check gets spread around to salaries, insurance, travel and entertainment, office expenses, etc. The more a manufacturer appreciates that fact, the easier it is to write the check.”

Replacing the Reps’ Contact

Earlier this year when a manufacturer was winding up his presentation in front of his network of independent sales reps, he asked his audience for their input including any questions or problems they had with their principals. One of the first subjects covered how his manufacturer went about selecting a replacement for a marketing director.

In posing the question, here’s how the rep described his situation: “A principal that is among my best and most long-standing had to replace their existing marketing manager. The person they had to replace had been there for years and if anyone served as the rep’s ‘champion’ it was this man. Unfortunately they replaced him with someone not nearly as experienced, and more to the point, it was one who didn’t truly appreciate the reps’ contribution to the manufacturer’s success. Perhaps given some time he could begin to fill his predecessor’s shoes, but in the interim, what are we supposed to do?

“As it is now, we’re spending an awful lot of time and effort explaining things to the new man and trying to bring him up to speed.”

Obviously the manufacturer who was speaking to the reps couldn’t solve this problem for them, but he did offer some advice to other manufacturers that might find themselves in a similar situation. “I would have done one of two things:

• “Put someone in place who already had a track record of working well with reps.
• “Or, hire a replacement well in advance so he or she could learn from his predecessor the ins and outs of working with reps.”

The Continued Value of Face Time

When asked about the perceived value of being able to conduct so many sales functions via phone, e-mail and computer, a manufacturer cast his vote in favor of more face time with customers. According to the manufacturer, “Too many people think that we can get everything we need from the Internet and other high-tech sources to make the most effective first-time sales call. That’s just not the case. I’m a firm believer that nothing takes the place of the good old-fashioned face-to-face meeting to allow you to get a handle on what is truly important for the customer. I’ve noticed over the years that it’s those reps who sell best that are the ones who operate this way. I’d add that reps who believe as I do probably have more experience in sales than the others. The new and younger reps tend to think that everything they pull off the Internet is of value and true. That’s just not the case. The Internet may provide you with a valid starting point, but that’s all it is — a beginning. It’s up to the true salesperson to finish the job.”

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