At least that was the view of one manufacturer who explained, “I can’t count the number of times that I’ve heard my fellow manufacturers say that their reps claim they didn’t know what the manufacturer wanted out of the relationship.”

He went on to explain: “I’d maintain that it always comes down to keeping open the lines of communication. And to accomplish that goal, what has to be done? I’d maintain that it’s not all that difficult, but it does take some time and effort.

“In my opinion, here are some things to keep in mind when evaluating the rep-principal relationship:

• “Make sure to detail your short-term business and product plans for the rep. Considering the former, remember that this is the tactical portion of your business plan and it includes sales growth expectations. Don’t spring any surprises on the rep. Let the agency know what you expect to happen with pricing and whether you expect any supply constraints with some products.

• “When it comes to product plans, let the rep know how your plans might impact their selling efforts. Are there any new products in the pipeline? Will you have to change a product as the result of regulations?”

• Agency business plan — “The rep owner should be more than willing to let his manufacturer know what his business plans are and how they could affect the product lines.”

• “Make sure you tell the rep what your vision is for the future of your company. If the rep knows where you are and where you’re going in the future, he can then use that information to craft his own plans for his own business. Sharing this type of information also highlights any disconnects that may need to be discussed.”

• Plans for the territory — “Are the sales territories for your reps changing? Is the agency territory changing as the result of other products it represents?”

• Personnel changes — “Are there any changes planned when it comes to agency personnel? If new hires are planned, can the principal assist with training? Keep in mind that the rep agency employees are not employees of the manufacturer, but be quick to offer assistance when it comes to acclimating them to your lines.”

• Emotional favorites — “This is an often-used and favorite term for reps when considering their principals. Where and how does your product line rank with the agency’s other product lines? Are there any obvious lines that appear to be the rep’s ‘emotional favorites’? What are your chances to climb the ladder to become one of the agency’s favorites? These and other bits of information should be made available so the principal can evaluate the rep’s level of commitment to the relationship.”

This manufacturer concluded by noting, “The greatest challenge the rep faces when dealing with manufacturers is unrealistic expectations, especially if the manufacturer has not done their homework regarding their large markets, customers and competition. That’s why it’s so important to have and to keep open the lines of communication between principals and reps.”

Gauging the Merchandising Talent

The phrase “jack of all trades, master of none” made an appearance when a principal recently introduced the subject of merchandising at an industry meeting. According to the manufacturer, “It’s completely unreasonable for me to expect that all my reps are able merchandisers. In general, the reps I work with possess any number of qualities that truly add value to our relationship. There are, however, several that I work with that exhibit a merchandising talent that allows them to stand apart from the rest.

“I truly value the ability of my reps to merchandise our products, and that’s high on my list when evaluating reps. Generally, I check with my distributors to determine whom they would recommend. Then I visit the distributor’s counter areas to see for myself if their rep does a good job. Finally, when I get to the interview stage with a rep, I’ve got an entire list of merchandising questions and problems that I pose. I’ve followed this process for the last several years and I haven’t made a decision that I regret.”

Paying for Extra Work

Whenever Agency Sales interviews a rep, the question is always asked if they regularly provide extra services (e.g., marketing, consulting, etc.) for their principals. The next question is: “Do you get paid for that work?” Here’s why that subject even comes up.

It’s hardly a surprise that as manufacturers’ staffs have shrunk, many of the marketing tasks previously performed by those staffs have been passed along to reps. Having acknowledged that fact, one manufacturer explains that he’s well aware of the pressure this puts on reps, and he’s hardly surprised when reps —including his own — complain. Here’s his response to those complaints: “If one of my reps brings this to my attention — and several have — I’m going to readily admit that this is a subject that has to be addressed. Furthermore, if I learn that a rep was complaining about not being compensated for something he was doing, I would go to him and let him know that he hasn’t been taken advantage of in the relationship we’ve worked long and hard to establish. Rather than complain, here’s what I’d want to happen — I’d want both of us to put our cards on the table, consider how the situation is currently being handled and then solve our mutual concerns. Simply said, it’s all about engaging in two-way communication.”

Believing in Customer Service

The national sales manager of one manufacturing company didn’t hesitate for a moment when she was asked what was the major attribute she looked for as she weighed whether her company should align with a network of independent manufacturers’ representatives. According to the manufacturer, “Based on years of success working with reps, we’ve always found that the reps who really believe in serving the customer are the ones that we have the most success with. Specifically, those are the ones who always want to do the right thing for both the customer and the manufacturer. They’re hard-working, self-disciplined and motivated. On top of that, we’ve found that they are sharp people who truly understand human nature. In addition, they are firm believers in continuous improvement. They live in the territory, and they know the community from top to bottom.”

Who Has the Relationship?

Some valuable advice from a sales consultant came to mind when the subject of relegating the rep to the back seat during a joint sales call was brought up among a group of manufacturers. According to the consultant, “The manufacturer should be very careful that the customer knows that the rep is the one handling the sales call — not the manufacturer. Be sure to let the salesperson take care of all introductions and conduct most — if not all — of the talking. As a result, the customer will follow up with the salesperson, not the manufacturer. In addition, the rep should stay in control of the call. If the sales manager does most of the talking, the customer is actually receiving a mixed signal and he really won’t know who’s in charge. If the meeting with the customer reaches a point where a close is called for, the manufacturer should make sure the rep takes care of the closing. Once more, it’s a matter of letting the customer know who’s really in charge and who has the relationship with the customer.”

The Quest for Time

No manufacturer — regardless of size — should give up trying to gain and keep as much of his reps’ time and effort as he can. Here’s what one manufacturer does to accomplish that: “When we contract with a rep, the first thing we do is to make sure that they get all the support material they want and need from us. We don’t question their requests and we don’t make them pay for literature. They ask for it —and they get it.

“At the same time when we begin our relationship, we share an annual schedule with them that shows when we’d like for them to take a trip to the factory. There are a number of reasons for these factory visits, including introduction to new products and product training, marketing updates, networking opportunities with new and existing factory personnel, and an opportunity to meet with their rep peers.

“Annually, all of our reps receive a complete marketing guide that is regularly updated during the course of the year. The guide includes new product information, warranties, marketing programs planned for the year and all company policies.”

He added, “Since we’ve implemented this approach, our feeling is that we’ve enjoyed as much if not more of the reps’ time and effort than might be justified by our business in the territory. Maybe it’s a case of the ‘squeaky wheel getting the oil.’ Regardless, I don’t care because what we’re doing works for us.”

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