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Getting and keeping a fair share — if not more — of the rep’s time in the field remains a challenge for manufacturers. At least that was the consensus of half a dozen manufacturers who were queried in telephone and email interviews. To follow are some of the typical responses to the question: “What’s your major concern with working with reps?”

• “If we’re going to represent 25 percent of the rep’s income, then I want a quarter of his time in the field.”
• “We want to know that we’re high on the rep’s line card and that he spends the right amount of time on our line.”

When these responses were run by some reps, here’s how they recommended that a principal could be sure reps were spending as much time as possible on their lines:

• “There’s hardly any one-size-fits-all answer to that question. I’d begin by advising a manufacturer to let the agent manage the territory. Give him the territory and get rid of all talk of house accounts and other games that typically are played. If the manufacturer says ‘Here’s the territory, but I’ll hold on to the major accounts,’ then you know he’s hardly serious about working with you; and, if he’s not serious, think about how much time you are going to spend on his line — that is, if you even take on the line.”
• “Next up is the matter of commissions. If you, the manufacturer, want my attention and my time, always, always pay commissions accurately, and on time.”
• Then there are joint sales calls. One rep offered “I know joint calls in the field take a lot of a manufacturer’s time, but it’s the manufacturer who will make that effort to work with us in the field that will get the majority of my time.”
• And finally, another rep volunteered, “Manufacturers must be honest, open and willing to share information with their reps. They should make every effort to communicate with their reps, just as if the reps were members of their staff.”

A Presence in the Territory

While readily admitting he really didn’t have any major concerns with his direct sales staff, one manufacturer explained that his reason for making the move to an outsourced sales force was driven by his desire to establish a more permanent presence in the territory.

According to the manufacturer, “Our outside salespeople worked hard and sold well, but typically they were ambitious. I’m not saying that’s a bad thing. In fact, I’ll have to admit if they weren’t the ambitious type, we shouldn’t have hired them in the first place. But given the fact the good ones wanted to move up in the company, there was always a steady train of talented sales staff that were being promoted out of the territory.”

He continued, “The most effective way we found to counter that trend was to go to an independent manufacturers’ representative sales force model. Reps are individuals who have worked hard to build a long-term business in a territory and who don’t leave holes for their competitors to jump in. Actually, we helped several of our direct people start their own agencies when we realized there was little or no room for their promotion within the company and we faced the prospect of them leaving us.”

Choosing the Right Path

“We chose the professional route.” That was the description offered by one manufacturer who had recently gone through the process of choosing a new rep in a territory.

According to the manufacturer, “Rather than just going through a process whereby we culled through a number of reps in order to decide who was going to represent us, we embarked on a mutual-selection process.

“In the past, what we usually did was to contact a number of reps in a territory where we needed representation. Next, we simply worked our way through them until we settled on one that we thought we clicked with. Naturally, the one we chose had to demonstrate his abilities and experience to us, but it was usually a fairly one-sided process where we made the decision. Changing times and changing needs have altered our approach.”

In the manufacturer’s most recent experience to locate representation, “We identified three reps we were interested in. When we contacted them, however, one very politely said he didn’t feel it was a good fit because his existing lines weren’t synergistic with ours and besides, he maintained that his line card was complete to a level he was comfortable with. Perhaps more surprising, however, was the reaction of the other two reps. Neither immediately jumped at the chance to work with us. Rather, they placed us under the same level of scrutiny that we usually reserve for our prospective reps. Both of them asked a number of probing questions covering everything from shared-territory development fees, exclusivity, and post-termination compensation. While we might have been taken aback, eventually we came to realize how far the rep profession has progressed.

“When we ultimately made our choice of one of the two reps — and it was a close call — we felt very confident that we had selected a professional partner for that territory — one that is going to serve us well for a long time.”

Examining the Interview Process

An apt follow-up to the previous item was offered by a rep who went on at some length to describe the multi-step interview process she was currently engaged in with a prospective principal. According to the rep, “You know, I’ve grown appreciative of the fact that it’s important for me to always put my best foot forward with this — and any — manufacturer. It’s a line that would truly benefit my agency and strategically position us to grow as I look to the future. At the same time, however, I hope the principal realizes he’s got to do everything he can in order to make a good impression on me. I’ve got all it takes to make this work in my territory. I’ve been in business for more than three decades. I can boast of deep and strong relationships with customers and prospects, and I’ve developed a reputation as someone who knows what’s happening in the territory.

“I mention all this because I’m not afraid to walk away from a potential line. If I don’t think it’s a good fit and the manufacturer isn’t honest about the commitment it will take to make it work, I’ll look elsewhere in a heartbeat.”

She continued, “So far everything has gone well, but now we’re at an important point in the getting-to-know-each-other process. For me, here’s what’s important as we continue. When the manufacturer meets with me, he must realistically and fairly present his company by detailing his goals and how he’s going to support my efforts. He’s got to identify key elements he’s looking for in our agency. He’s also got to be prepared to discuss required compensation, and company management culture.”

She added, “While I know the impression I make on him is important, he’s got to realize that I’m evaluating him in the same manner in which he’s looking at me.”

Avoiding Past Mistakes

When the regional sales manager for a manufacturer was discussing his decision to leave his previous place of employment, one of the major reasons he cited for making the move was the company’s lack of success in working with independent manufacturers’ reps. After making the move to a new company, one of the goals he set for himself was to do much better in his relations with reps.

In his own words, here’s what he had to say: “I don’t recall that they did anything correctly. As examples here are some of the things my former employer did to make a bad situation worse:

• “They did little or nothing to involve their reps in the workings of the company.
• “They rarely scheduled rep visits to the factory and did little to encourage their reps to get to know as many people as they could at our headquarters location.
• “They placed no importance on promptly responding to reps’ request for quotations.
• “It was hardly unusual for commissions to be paid late. You can imagine our reps’ reaction to that.
• “And, here was one of their favorites — they loved to make surprise visits in the field, often calling directly on customers without letting the rep know.

“If I learned anything, I learned it in reverse. I know what not to do and I wouldn’t repeat any of these mistakes.”

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