When opportunity knocks how will you respond?

Is your agency in a position to compete effectively when good lines are available? To effectively compete in a “shootout,” your agency needs to be ready and rehearsed months in advance of any chance to go after a good line.

The business of getting a rep agency ready for live time is not complex, but it requires a very disciplined approach.

Your Profile

Is your company profile an effective working tool to provide a significant edge?

The profile must be totally professional.

First, the graphics presentation. Does your profile look as good or better than any other rep firm involved in pitching the prospective line? Will a manufacturer look at your profile and say, “Boy, that is really good! This firm is sharp, well-focused, and highly competitive”?

In order to have great graphics you have to invest in a highly competent graphic designer or design firm. You don’t necessarily have to spend a lot of money, but you have to be willing to invest.

Commission Devoted to Marketing

After years of study, I believe that a rep firm should be willing to invest at least five percent of gross commission income in marketing itself. The profile is the first investment. That means a rep firm with $ 500,000 in commission income should invest $25,000 annually in its marketing program.

What Goes Into the Profile?

The profile should be comprehensive. It should tell the reader all of the key elements of your rep firm’s personnel, market position and operations. The profile should describe the territory and how you cover the geography, the customer mix and the markets within the territory.

Success Stories

The profile should stress what you have accomplished for the lines you currently represent. It is probably not appropriate to cite specific numbers, but percentages will tell the growth story. You may not want to cite a specific line, but you can certainly cite a product type.

Get Endorsements From Principals and Customers

There is no substitute for a well-written reference from a sales manager or vice president of sales who is willing to write it and put his or her name on it. This type of reference selling is particularly effective with prospective principals. If someone significant in your industry with a recognized company says good things about your rep firm, it goes a long way to position your firm to win the line.

How Important Can the New Line Be to Your Firm?

Be honest about your current package of lines and how the prospective line fits in.  Candor can often help win the line. In order to present a truthful and effective package you have to know the market and be able to explain the market to your prospect. This part of the presentation is also a way to show the prospect how effective your firm can be working with them to build sales and market share.

The more you can tell them about the market for their products the better. Many prospective principals do not have the in-depth market research you are capable of developing. You have been in the market for many years, you have in-depth knowledge of customers. You are capable of being a principal’s “branch office” in the territory. This is a point that you want to stress. If you are their reps, they will have a real presence in the market. If in your research you have found weaknesses in the prospect’s marketing and sales programs to date, you can gently point them out and hopefully have a good discussion. This discussion can tell you a lot about the prospective manufacturer. If they are very defensive and unhappy with your assessment, you may want to reconsider representing them. A manufacturer who does not handle criticism well is not a manufacturer that you want to devote major resources to.

The Numbers Are Key

It is nice to get a new line, but taking on a line requires a lot of special effort within your firm. It has to be worth it. What makes a line worth working on? If that line cannot contribute at least a 5-10 percent increase in your commission income within 12-24 months, it is not worth taking on. It is important to stress what your firm does to “onboard” a line and what is best provided by the manufacturer you are onboarding.

You Are the Market Experts

Explaining the realities of the market to a prospective principal is an effective way to demonstrate your skills and knowledge. A prospective principal will react to your presentation and this part of the presentation can be a major factor in the selection process. That means you need to be very thorough and insightful.

Some might worry that they are “leaving too much on the table.” In order to gain the advantage, you have to take risks with what you do and what you say. The more you can demonstrate your skill and in-depth market knowledge the better.

Presentation Skills

Your team must be excellent presenters. There can be no stumbling, no uh, ahs, no bad jokes. If your team members are not good to great presenters, get some training. Good coaches are available in every market. This effort and expense will pay not only for better results when pitching new business but also in the everyday work of being a rep. More skill at presenting at customer sales meetings, and when presenting products to customers, is an immediate dividend from better presentation skills.

Even if you don’t win the line or you decide that the manufacturer doesn’t fit with your firm, you have had a very good exercise in competing for lines and beating out competition.

A post-action report/review with your team can lead to many improvements in the process of competing for good lines.

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MANAcast —
Marketing Your Manufacturers’ Rep Firm to Prospective Principals

In a complement to this article, John Haskell hosted a MANAcast earlier this year where he advised reps on the importance of recognizing the fact that “You are in a shootout with two or three other rep firms in your territory when it comes to competing for good lines.

“If that’s the case, getting to first base with a prospective principal depends a lot upon what your rep firm looks like to a sales manager. If a manufacturer is looking to change reps, add reps or is making the move to reps for the first time, then it’s incumbent upon you to have an agency profile.”

Just as he emphasized in this month’s article, Haskell stressed the importance of content and graphics when it comes to putting a profile together. “Make sure you find a highly competent graphic artist, and be willing to spend some money on the effort.”
He continued, “Your profile must be comprehensive, and it must communicate to readers all the key elements of your agency (i.e., personnel, market position, and operations). You need a good writer to complete the profile. Remember, if you’re a rep, you’re not necessarily in the business of writing; work with someone who is experienced.”

He emphasized that an important part of a profile is stories. “You need to stress what you’ve accomplished, and nothing does that better than telling stories about yourself. You have to tell how you’ve successfully worked with two or three principals in your territory. Locate principals you’ve worked with who are willing to be quoted and will attest to their satisfaction working with you.”

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