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When one manufacturer was asked what he liked best about his top‑performing reps he pointed to a saying he had heard often and recently become re-acquainted with thanks to a book that crossed his desk.

According to the manufacturer, in the book How to Be a Sales Superstar, by Mark Teward, the author emphasized how important it was to remember to “Dance with the one who brought you.” He pointed out that the author said, “Most salespeople and businesses totally ignore this notion. They make a sale, forget the customer, and then move on as quickly as possible.

“Our good reps don’t do that. Instead, they follow the author’s advice that ‘Although you should keep progressing after sales, you must never forget about or neglect your existing customers. There is a simple reality that when acted upon can make you rich: Your business should be largely based upon the customers that you already have. The really ‘big money’ isn’t out there among people you’ve never met. It’s in your list of sold customers.”

This manufacturer emphasized that if there’s any single trait he truly values in a rep, it’s the ability to keep the customers he already has, working with them to have them buy more all the time, and finally to have those existing customers lead them to new customers.

Making the Right Decision

One manufacturer found herself in just the right place late this summer when she described to another manufacturer the difficulty she was experiencing in making the choice between two independent manufacturers’ rep agencies. According to the first manufacturer, who was attending her industry’s annual conference, “In my opinion I’ve done all my due diligence to the best of my ability. I was looking to fill a void in one of our territories. I solicited interest from prospective reps, contacted the industry-specific rep association for advice and ultimately interviewed three agencies. The interviews allowed me to eliminate one agency, but now I have to choose between the two and that’s my problem. It’s a close call and I don’t want to make the wrong decision. I’ve put a lot of time, expense and effort into this decision and it’s an important one for us that will seriously impact our future.”

When we say the manufacturer found herself in the right place at the right time, that’s because the manufacturer she was speaking with had some experience and could relate to her plight.

The second manufacturer offered the following, “When you say you’ve done your due diligence, I hope that includes the following:

• Check with some of your manufacturing peers who know these agencies.
• Check with some of your other reps who might know these agencies.
• Do the agencies have synergistic lines?
• Do they have succession plans? Are they willing to share them with you?
• Do they have business plans? Are they willing to share them with you?
• Are they active members of their industry rep association?

He concluded with: “If you’ve covered all these bases, then don’t be afraid to go with your gut. Was the chemistry good between the two of you? Is the agency and its personnel the kind of organization you feel you can develop into a long-term relationship? If the answers to those last two questions are positive, let your business instincts take over and choose the one you feel most comfortable with.”

Operating a Successful Rep Council

Here’s how one manufacturer described his thought process when he first established his company’s rep network: “My view had always been that I signed up reps to provide me with more efficient, productive sales and marketing coverage than I could ever achieve with a direct sales force. In return, their job was to sell products and communicate market information back to me. In turn, my job was to provide them with the products and support they need to do their jobs, not to mention communicate with them and accurately pay their commissions on time.”

As a result, when a couple of his reps brought forth the idea of establishing a manufacturer rep council, he says his first reaction was: “I can’t think for a moment that this is a good idea. How can I ever benefit with them meddling in my business and telling me what to do and how to manage my business?”

Well, if times change, so did this manufacturer’s perceptions of the value of a rep council. “I bought in to their suggestion — but I admit I did so with a distinct lack of enthusiasm. I guess I figured that if I gave them lip service — let them do their thing — they’d eventually lose interest in the whole idea.”

But how time and experience change things. The more he watched and thankfully listened, the more he learned — and the more he grasped the value of the concept. “The main thing that hit me was that these reps were concerned about improving our relationships and building a solid foundation that would benefit us and ultimately the customers.”

Now, a good 10 years later, the manufacturer’s council is still going strong. Over the years the manufacturer has firmed up some of his logistical practices that contributed to the council’s success. For instance:

• Rep Input — Rep input for council meetings is absolutely critical. “In speaking with other manufacturers who’ve had some experience with rep councils, I’ve heard that manufacturers who want everything their way will never succeed. That’s why I regularly communicate with my council members and ask them what subjects they feel must be addressed. At the same time, I ask them to check with other reps who aren’t on the council to learn what they feel should be included.”
• Agenda — Establishing the agenda should definitely be a joint effort, according to the manufacturer. “Having said that, I always keep in mind that if I’m the one who okayed the idea of a rep council to begin with, then I should have a major input into the agenda.

“At the same time, I can’t overstate the importance of the rep council operating within the parameters of a well-drawn-out agenda. I guess I keep in mind the old adage that if you go on a trip without a map, you’re never going to reach your destination. So too is it with a rep council. If you don’t state the reasons for your meeting, you’re just wasting time.”

• Follow-up — “At the completion of a council meeting the manufacturer should be the one in charge of writing up the meeting’s minutes and disseminating them to the group. An important part of this job is to detail any follow-up responsibilities together with any deadlines that have to be met.”
• Scheduling — The manufacturer recognizes that the scheduling of council meetings should be dependent upon how active the group is and how many items reside on its agenda. “However, I’ve become a firm believer in councils remaining active between their formally scheduled meetings. That means members should be in touch with each other and their fellow reps gathering comments, suggestions, problems, etc., that the group can address during regularly scheduled events.”
• Location — While meetings don’t necessarily have to occur at the factory, “There is a real benefit to conducting them nearby. By doing so, we guarantee that factory personnel can be readily available if a subject crops up that they should be involved with.”
• Expenses — “If there is any way I as a manufacturer can show the rep how much I value his time and his contributions, it’s by picking up all expenses related to a rep council meeting. Remember the council meeting should not be confused with a sales meeting. I’ve asked various reps to give up their valuable time in the field representing me and their other principals in order to engage in an exercise that we hope will benefit all of us. The least I can do is to show my appreciation for their time and effort by picking up expenses.”

Establishing Benchmarks

As a follow-up to the previous items, another manufacturer who has been benefiting for years from his rep council touted the reasons why establishing benchmarks with reps was an important ingredient in the relationship. This manufacturer and his reps would annually meet and agree upon joint goals. At the end of the year, they’d meet once and discuss how well each of them performed toward meeting those agreed-upon goals.

As an example, the subject of reps participating in trade shows was discussed. On the one hand, his reps had felt for years that there were real benefits to be realized by attending and participating in industry trade shows. On the other hand, the manufacturer made it a habit of dragging his feet when it came to attending these shows in the company of their reps. In order to get a clear view of the effectiveness of such shows, the principals and the members of his rep council agreed that the manufacturer would attend (in the company of their reps) a specified number of trade shows over the course of a year. At the end of the year, they’d meet and measure the success — or lack thereof — of these efforts.

To both of their satisfaction, this trial run at trade shows proved to be effective, and the manufacturer has upped his participation over the last couple of years. The manufacturer was quick to note that he would have never agreed to this course of action without the measured approach the council offered.

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