Everyone acknowledges that independent rep firms need to plan their business.

But very few get a real plan done and put in action.

The answer to “Why don’t reps plan their business?” is very simple — the “I’m too busy” syndrome dominates rep thinking. “What do you want me to do, plan or sell?” dominates the mentality of even the most successful rep firms. How can a rep firm build planning into their business? The “work on” not “work in” your business standard has to rise to the surface.

All Hands Meeting

A good starting place is to gather everyone in the company in one place. Today it may be a Zoom meeting, but however it is organized, getting everyone from top to bottom to talk about planning is the right starting point.

What is the tone of planning at the rep firm?

“Represent” Means?

What does it mean to be a rep and represent multiple lines? Spending a little time with all involved in discussing the meaning of these operative words is time well spent.

Multiple-line selling is easily understood as the organizing principle of a rep firm. There has to be a clear understanding of the line card.

All planning begins with the line card and the commission income derived from selling products on the line card — the bottom line is always sales results.

What Are Commission Dollars Buying?

This is the key question everyone in the relationship between manufacturers and reps must ask. How should the rep firm represent the manufacturer? All reps do not think alike.

There is a big difference between representing an older well-established line and a newer, less established line. When the rep firm is fighting for market share, it is fighting to successfully compete.

How can the rep firm carve out a bigger share of market? It’s done by walking everyone in the company through the line card to discuss the market position of each of the individual lines. Agreeing on the market position of each line is critical to successful planning for the following year of selling and competing for market share.

Attack Plan

For each line the team should construct an attack plan. What is each salesperson going to do to gain sales and market position for each of the key lines? Remember there are probably only five to seven lines that represent significant (more than five percent) of total commission income in each territory. This small number facilitates careful customer-by-customer, product-by-product planning.

Manufacturer Support?

As a part of the planning the team needs to determine what is needed from each manufacturer. The need for support will vary by line, by territory and by individual customer. Getting into this level of detail is the key to success for the planning program.

Teamwork Is Key

The planning system is very dependent on teamwork with the manufacturer. Hopefully, the rep firm already has a good basis for teamwork with each of its key manufacturers. Bringing the regional sales manager and perhaps the national sales manager into the process early and totally is a major point of leverage.

In addition to the immediate benefit of involving the manufacturer’s key people in the planning process, this activity provides a very valuable back-selling opportunity. The better the manufacturer’s people know the rep firm the better. Working at ground level to plan the sales programs for each customer gives both the rep and the manufacturer real insight into the value of representation and the manufacturer’s marketing and sales program.

Working the Plan

The rep firm must follow up on the planning program by not only executing with the manufacturer, but also keeping both sides constantly on top of the activities of the customer and the competition.

Reporting Is Key

Regular reporting to the manufacturer is vital to the success of the plan. Letting everyone at the manufacturer know what is happening, how the plan is working, what competition is doing to attack the plan, and how the customer is handling the plan is key to getting the results.

Being “first to the party” is vital. Getting the rep’s plan in place with the customer is critical. When the rep is first to be involved with the customer with the full support of the manufacturer the odds of success are much greater.

Executing on each element of this planning process gives the rep and the manufacturer a significant advantage. Constantly acting in the market and reviewing each plan gives the pro-active rep a big leg up. Holding status meetings to review each plan is the key to success.

Good luck and good selling.

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