© Stephen Coburn | stock.adobe.com
Manufacturers and reps alike tout the value of in-the-field joint visits.
In general, benefits cited include:
- Manufacturers get to see how their reps operate in the field.
- Manufacturers have an opportunity to meet face-to-face with their customer decision makers.
- Manufacturers are able to establish closer bonds with their reps.
Those benefits aside, a couple of posts on MANA’s LinkedIn discussion page show how some reps view their principals’ visits to the field.
Opening a conversation on this very subject, one rep maintained that “I only let them (manufacturers) come when we have something important pending with a customer. Other than that most visits are usually a way for the sales manager to get out of the office.”
Expanding a bit on that view, a former rep offered, “During my time as an independent representative, I always appreciated the regional sales managers/principals that planned visits well in advance and who were valuable partners in helping us both to grow our business together. When I became a regional sales manager, I vowed that I would work to engage with my reps to bring similar value. Today, in my position with a manufacturer who works extensively with reps, I would caution any rep to think well beyond any individual transaction when considering how a principal can help you reach your own goals. Believe me I have no need to sightsee or get out of my office just because. The thrill of business travel for its own sake is long gone.
“Most manufacturers are highly focused on supporting their rep sales force. My job is to grow the business with our sales partners and I need to be more involved than only as an auxiliary salesperson. This includes training, development of skills or product knowledge, as well as continual evaluation and analysis to understand our markets and how effectively we can reach them. If we don’t develop a strong working relationship, and I don’t understand how you bring value, then we both suffer and your position is less secure and we risk losing business we might have otherwise won together.”
Manufacturer Tip for the Joint Call
In line with the previous item, a manufacturer offered some advice to his fellow manufacturers on how to benefit most from a joint sales call. “If a manufacturer is planning a trip to a rep’s territory to make joint calls, instead of asking the rep to produce an itinerary, just ask him to send a meeting invitation to each prospect and customer and invite the principal too. That way everyone who is scheduled to attend knows exactly who will be in the meeting, and if there are any scheduling changes, the meeting invitations and attendees’ calendars will adapt dynamically to those changes.”
Honesty Is the Best — and Only — Policy
When a manufacturer recently undertook a reorganization of its sales and marketing departments, she was faced with the problem of how to allay any fears her outsourced sales force might have. “One of our staff suggested that we get our reps’ attention by implementing some sales incentives and even including a sales contest, but I decided to move in a different direction — one of total honesty. I figured that it was best to let our reps know everything that was going on. When any decisions were made affecting the rep sales force, they were all notified well ahead of time and their advice was sought. Looking back, this was the right approach. It did a lot to allay their fears and, in fact, most of our reps felt that their relations with us had actually been strengthened. Bottom line, they felt they were more a member of the team than they were previously.”
More Principals for Fewer Reps
An independent rep recently let Agency Sales know that during the course of the last year, he’s probably received more calls from manufacturers than ever before in his agency’s close to a quarter-century history. “As this was occurring, I contacted some of my fellow reps to learn if they were having the same experience. They agreed with me and we all attributed this trend — if I can call it that — to the fact that the variable cost of using an outsourced sales force is more attractive than ever before. It’s really quite simple as I see it: the rep gets paid when he sells. The more he sells, the more he (and the manufacturer) makes.” He cautioned, however, that forward-thinking manufacturers should be looking for more than just the cost advantage of working with reps. “If all a manufacturer is looking for is lower-cost sales, I wonder if they’re really the ones we want to establish long-term relationships with. Shouldn’t they be looking at the other value-added attributes we put on the table?”
What Happens When a Salesperson Leaves?
Explaining that he had several decades’ experience working with both direct and outsourced sales staffs, a manufacturer was asked what the difference was when a direct salesperson leaves his position vs. what happens when a rep leaves. In response, he explained, “When a direct salesperson leaves for one reason or another, there’s a direct impact in the sales effort. If we’ve been lucky enough to have him in place for five or more years, all those years of relationship building go away. When there’s a change with an agency, however, there appears to be little impact. By and large, the agencies have sunk deep roots in their territories and they can survive changes much better than a direct sales force can.”
First Impressions Count
A manufacturer with a lengthy history of working with reps let us know what many of his more successful reps had done over the years to create a positive first impression. According to the manufacturer, “Some of the steps reps have taken during our first meeting have really stuck with me. As an example, one rep that has been with us for more than two decades created a matrix of his existing key principals.
“Admittedly, these were principals he was going to use as references anyway, but by putting them in the matrix, we saw them quickly and all together. Believe me, it made a lasting impression because it was one of the best examples of a rep illustrating his synergistic sales approach to the territory.
“Another dynamite method of getting my attention is to list any and all sales/marketing awards that agencies have earned. There’s no sense in achieving the recognition that comes with an award if you keep it a secret.
“Then I can recall another agency that briefly wrote up the steps they had taken on the way to gaining major orders with important and profitable customers. In one case that I still remember, an agency pinpointed the major contributions they made on the way to signing a more than three-million dollar order. I remember thinking that if he could do that with one of his principals, he could certainly do something similar for us.”
Covering the Territory in a Cost-Effective Manner
Right in the middle of its plans to expand the number of agencies that it works with, a manufacturer passed along some of its corporate philosophy pertaining to working with an outsourced sales staff.
According to a sales executive with the company, “Owing to the fact we really don’t have a broad line of products for the industry, it would be impossible for us to go direct. Logistically reps allow us to cover the greatest amount of territory in the most cost-efficient manner.”
She continued, “If we don’t sell any of our product, then no one makes any money. We’ve gravitated to independent agents because the more they sell, the more they earn, and the more we make. I’ll never complain about the size of the rep’s commission.”
Explaining that the company was in the middle of a rapid expansion, the company president offered his view on what it takes for an agent to get his attention: “What we’re looking for in prospective reps is that they already have a career in the industry, a knowledge of the customer base in their territory and that they’re willing to learn all they can about our products. Perhaps most important though is that we desire reps who are hungry. We’re also looking for reps who are honest and straight-forward in their business approach. We want reps who are willing to partner with us in developing the market. If we can accomplish that kind of a match, then we’ll all be happy.”
Listening to the Rep
During the course of a manufacturer roundtable session at an industry meeting last month, the subject of how best to build a strong agency network came up. After hearing how his peers had spent so much time, money and effort making use of rep search firms and consultants, one manufacturer offered his approach.
“I’ll never talk down the benefits of search firms and consultants, but what I and my company have learned to lean heavily on is what we can discern from the rep during the interview process. I listen carefully to the rep’s thoughts on the territory and what his plans for the future might be.”
By way of example, the manufacturer noted that he makes it a practice to inquire of a prospective agent where he thinks his agency will be in five to 10 years. “This lets me know something about his needs and goals. And it lets me know something about how he’s looking at us as a part of his plans. Depending upon the answers I get, I’ll be better able to make the right decision.”
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