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A month can be long or short. In the rep business a month should be the key measuring point for running the business.

Most of us have heard the expression, “work on your business — not in it!” Unfortunately, most reps are so far in the business that they are like frogs in a pot of boiling water, just swimming so hard to stay alive that they never think about the vital few things that make them successful.

The Vital Few

What are the “vital few” for a rep firm?

1. Time to think — as mentioned above, reps are running hard all the time. It is critical that leaders of a rep firm take time out monthly to review the key elements of their business that spell the difference between success and less.

2. Sales — Number one on the monthly list should be sales — not just total sales or total sales for each of the key lines, but a more in-depth look at sales for each of the key customers and the relationship of the rep firm and the individual salesperson with the key customers for each line.

Why are sales up or down for an individual line with customer A? What is going on at that customer that is currently increasing sales or might increase sales in the future or decrease now or in the future?

Relationships Make the World Go Around

In addition to evaluating the hard facts of sales and sales prospects in the future, it is vital that the management know what is going on with the salespeople in relationship to the personalities that make a difference at each major customer.

It may seem like this is a big task. Yes, it is. However, there are very few major lines and very few major customers for each major line.

The Devil Is in the Details

There is no question that having to go through all of this detail every month could be tedious, but there is no substitute.

Try building a card system for every customer for every territory. I’m suggesting that management have a 6×9 index card or an individual file like a factory salesperson.

Making the review and analysis as simple and fast as possible is key to sticking to the procedures every month.

Make it very simple and stick to it.

3. Principal Relationships — There is no doubt that the relationships between the manufacturers and the reps is key to the future.

The bottom line is that manufacturers must feel that they are getting a lot for their commission dollars. At the same time there is always someone at a factory who is questioning the value of the reps — the cost of reps vs. factory direct salespeople — the quality of service from the reps is the most substantial reason to use the reps. The reps are the best salespeople. Reps have the courage to work on straight commission.

Reps provide the best dollar value. The reps are in a “no sell — no eat” situation and love it. How many factory people would have the courage that the reps demonstrate daily?

It Is a CYA World

In order to avoid sudden, surprise termination the management of the rep firm must maintain a consistent, constant backselling program with detailed discussion of the top 5-6 lines that represent 70-80 percent of commission dollars.

Staying on top of the relationships is vital. The rep firm cannot afford to come last in the management’s thinking. Selling the rep firm’s value is the true meaning of “working on the business.”

Write the Plan and Execute

The plan for working with and on the manufacturers is critical. Which regional manager really does not like the rep firm? What are they doing about it? Do positive success stories from the rep firm get to key people at headquarters? Are the top people at headquarters aware of the good work and good planning that the rep firm is providing?

Monthly disciplined, organized management thinking and structured, organized approach is a powerful approach to running a rep firm driving success in the market.

Good luck and good selling.

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