The joint concerns of what reps and principals should expect from each other in the relationship were tackled by a group of manufacturers and reps when they recently got together. See if any of these items are important to you. First, consider what they had to say about the rep’s expectations of their principals.

Expectations — “Will there be a clear understanding from the very beginning of our relationship of the expectations of each other that we’ve jointly agreed upon? How about collections? If a joint customer is in arrears, do they expect me to go out and make collections? How will we agree upon reasonable sales forecasts?”

Communication — “When I say ‘communication’ I mean two-way communication. First, does the manufacturer keep me in the loop on matters of importance concerning their company? Do I know about new product developments, personnel changes, updates on late deliveries? Second, what type of communication do they expect from me? I’d like to think that my performance will speak for itself when the numbers show up at the end of the month.”

Reputation — “Any manufacturer that I’m going to conduct business with had better come equipped with a stellar reputation for performance. On top of that, they had better come with solid references from other reps.”

Support — “Does the manufacturer ensure that their quotes go out on time? Will they give me an immediate response whenever there’s a problem with a customer or with the customer’s order? If the need arises, will they make someone available to work with me in the territory? Do they provide the tools (e.g., literature, trade publication advertising, attendance at trade shows, etc.) that help me do my job?”

Product Liability — “Are they aware how important it is for their reps to be named as an additional insured on their product liability insurance? Do they know how easy it is to accomplish this?”

Post-Sale Service — “Once I make the sale, what’s their post-sale service plan? How and in what manner will they respond to the customer’s needs? What’s my involvement in post-sale service?”

Honesty — “This is probably my most important concern. How are they viewed on this level in the marketplace? What do their other reps and customers say about them in this regard?”

The View From the Other Side

Since reps and principals were given equal time during the course of this exercise, to follow are some of the top concerns that principals had concerning expectations of their reps.

Market Intelligence — “Are they willing and able to provide me with needed market intelligence?”

Effectiveness — “What’s their success rate when it comes to getting to the decision makers? And once they get there, are they able to close big-dollar sales?”

Position — “Where will I fit (and I don’t mean alphabetically) on their line card? If we agree upon what the potential for the territory is, how do I know they’ll devote enough time on my line to generate sales?”

Knowledge — “Do they already have the product knowledge and technical competency I require? What will they do to update their competencies?”

Agency Profile — “How large is the agency? How many feet do they have on the street? How long have they been in business and what type of customers do they call on?”

Succession — “Since I require coverage in a territory for the foreseeable future, I need an agency for more than just today. Does the rep firm owner have a plan for when he or she will leave the business? Is the rep firm owner proactive in sharing the details of that plan with me?”

Synergistic Lines — “Reps that expect to be successful with my product line can only be so if they carry products that are complementary to mine. When the rep is calling on customers for their other lines, are there opportunities to discuss my product line?”

Reputations and References — “What do their customers’ other principals think of them? What is their reputation among their rep peers?”

Looking Back in Time

As she was recalling some of her company’s successes and failures over the years in working with reps, the sales manager of a manufacturing company that boasts of a long history of working with reps took time to offer some opinions on how to maximize the effectiveness of field sales calls, here are some of her comments.

“Manufacturers would be well served if they visit each of the sales territories at least annually. However, before such visits are undertaken, they should be sure that their objectives for such a visit are clearly defined. Furthermore, they should know ahead of time what benefits they hope to achieve.”

The importance of giving the rep advance notice can’t be overstated. According to her: “30-days’ notice is a common lead time that should be agreed upon with the agency. In addition, when you plan the trip, make sure you make every effort to avoid conflicts with the existing business and personal schedules of those you’re visiting.”

“There’s no substitute for planning. Make sure you work with your rep’s sales organization input. Determine the accounts you’re interested in calling upon, what the specific objective is for each call and discuss how you can help the rep meet the customer’s needs. Make sure you document your advance plan and share it with the agency to be visited.”

“Planning is just part of the preparation you must complete. Do your homework on the sales organization. Keep in mind problems and issues with customers, sales in the territory, key accounts, and potential new business opportunities.”

“Upon undertaking the visit to the field, ensure that everyone traveling with you has an understanding of the roles of the sales firm in the territory. And be sure they understand their own role with each account being called on.”

“Understand that your rep has other business to complete during your visit. Be patient if it becomes necessary for the rep to work on another principal’s business. Remember, making sure that the customer’s needs are met improves the relationships and increases sales for everyone.”

“Make sure you’re appreciative of the time and effort your host has provided during your visit to make it worthwhile.”

“Following the visit, be sure to follow up. Copy all your field sales firms on all correspondence resulting from your visit, and always, always make sure you do what you tell the customer you are going to do. Moreover, do it when you tell the customer you are going to do it. This makes not only you, but your rep look good in the eyes of the customer.”

“Finally, make every effort to critique the visit and communicate that critique to your rep. This will ensure that your next field visit is more valuable than the previous one.”

Importance of a Succession Plan

When the owner of an agency brought us up to date on his ongoing and nearly complete succession plan — which included selling the agency to his son — he stressed one point that ought to be of particular interest to manufacturers. “From the very beginning of my relationship with principals, I’ve made it a point to keep them informed concerning my transition/succession plans. I’ve been in business for more than three decades and for the past 15 years my son has been an integral part of the organization. That’s why it made so much sense for me to turn over the agency to him. But in addition to making sense to me, it also has made sense to my principals. That’s why I’ve let them know what my plans have been every step along the way. Owing principally to my proactive approach in letting my principals know what the future holds, they were all in agreement with me. Not a single one of them has considered making a change.

“I mention this only because I think it’s incumbent upon manufacturers to communicate to their reps how important it is for them to share important information about the inner workings of their agencies. No one wants to be surprised or otherwise left in the dark when there’s something important in the offing.”

Training Reps

A manufacturer that was relatively new to the concept of working with independent manufacturers’ reps voiced two important concerns about the rep business model when he was speaking with a fellow manufacturer at an industry gathering late last fall. The two areas of concern were the following:

• “We’re probably going to have to train our new reps from a zero-knowledge base.”
• “How do we know that we’re going to get our fair share of the reps’ time since agencies represent other non-competing lines?”

Thankfully the manufacturer he was speaking with was able to respond from his historical perspective: “You’re really not accurate when it comes to the training question. Remember that your goal from the start is to sign on with agents who have already demonstrated their sales ability. That’s what you ultimately should be looking for — trained, professional, outsourced salespeople. Once you locate the right reps, sure, there’s going to be a certain level of training specifically as it relates to your product line. Keep in mind that the rep already knows how to sell or he wouldn’t have opened his doors a rep.”

On the second point, getting the rep’s time, the second manufacturer noted that “Sure, all of the rep’s time isn’t going to be spent only on your line. But take that as a positive, not a negative. The manufacturer should appreciate the fact that multi-line reps offer a multitude of benefits via their synergistic approach to sales. The fact that the rep represents a number of complementary product lines allows him to come armed with more than one reason to talk with prospective customers.”

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