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While in the process of establishing its network of independent sales representatives for the first time, a manufacturer sought some advice from a non-competitive manufacturer that had years of experience working with agents.
According to the manufacturer, “We’re right at the point where we’re close to choosing our agents. While we’re doing that we’ve become acutely aware of the potential benefits and even the negatives that might accompany going to market with reps.”
He then went on to describe his exchange with the manufacturer he sought advice from.
“One of our worries was that we’d have to train our new reps from an absolute zero knowledge basis. When we expressed that fear, our fellow manufacturer responded that wasn’t the case. His view was that from the outset, our goal should be to choose reps who have already demonstrated their sales ability. After all, that’s what they do for a living. What we should be looking for are trained, professional, outsourced salespeople. Once we locate the right people, naturally it’s up to us to provide a training program but only on the products that our company manufactures. The rep already knows how to sell or he wouldn’t be a rep for long.”
His next concern was getting enough of his reps’ time. “Given the rep’s business model, he’s an independent businessperson representing a variety of — hopefully related — products. Here’s how our friend addressed that concern: “You’re obviously referring to the fact that good reps have other principals on their line card. As a result, all of their time isn’t devoted to just one principal. But rather than viewing this as a negative, the manufacturer should realize the benefits that multi-line reps provide with their synergistic approach to the marketplace. Because the rep represents a number of complementary product lines, he comes armed with more than one reason to talk to a prospective customer.”
Putting Heart and Passion Into the Game
The words of a professional football player brought to mind advice one manufacturer offered years ago when it came to choosing an independent manufacturers’ representative. The New York Jets player, with the unique name of “Snacks” Jackson, referred to the fact when that when auditioning to play in the NFL, his numbers in the 40-yard dash and the bench press weren’t necessarily as impressive as his fellow footballers. What he did have, however, was heart and passion for the sport.
How does that translate to the world of manufacturers and agents? Here’s one manufacturer’s take on the subject: “Several years ago I asked one customer what he thought about a rep who had been calling on him for a couple of years. I was considering this rep to fill a void in my national coverage. The customer’s ringing endorsement was: ‘He and his agency are great. They’re not the biggest agency to call on us, but they have a passion for what they do.’ He went on to say that if a rep didn’t have a passion for his job and for the products he sells, ‘How can you expect me to be passionate about buying from him?’ I’ve remembered those words and I’ve made it a point to include the ‘passion quotient’ in every appraisal of a prospective rep.”
Maxmimizing Opportunities
“Every time the rep walks through the customer’s doors, we have a sales opportunity and it shows on the bottom line.” That’s how one manufacturer opened a conversation with his views of the benefits and efficiencies of working with independent manufacturers’ representatives.
He continued by saying that “I’ve got to admit that it’s taken me more time than it should have, but I finally get the point of working with reps. Maybe it’s just that they better meet the needs of the companies that I’ve worked for, but the reality of it is that they’ve saved us money in our sales efforts.
“The fact is that we get exposure in front of the customer on a much more regular basis than if we had our own sales force. I’ve been out in the field on sales visits often enough to appreciate the fact that when the rep makes a call, we’re not the only company he puts in front of the customer. The relationships our reps have established and nurtured with their customers had led our customers to expect the latest from us on a number of companies’ offerings. Bottom line, that’s the real benefit for us. Since we’ve carefully chosen our reps, we know our product complements their entire line. It works for us and for them.”
Getting the Rep Comfortable
A manufacturer made a point that he’s very much aware of the fact that agents spend more time on product lines that they’re comfortable with. That begs the question, how do you get reps comfortable with your line? Training was the immediate answer that he settled on. “As soon as we bring a new product to market, I’ve found that it’s a joint responsibility for the manufacturer to provide training that will improve the rep’s comfort level. Then on the rep side, it’s up to him to enthusiastically take advantage of the training that has been offered to him. The net result is an improved comfort level.”
Guaranteeing the Reps’ Future
A bit of a counter-argument was offered to a manufacturer who was bemoaning the fact that several of the agencies he worked with repped other lines and weren’t spending as much time as he wanted on his line. A fellow manufacturer, who described the decades-long success he enjoyed with independent agents, said “I’m so convinced that my reps carrying complementary lines works to my ends that I’ve made it a habit to refer other manufacturers to them. That’s the best way I can guarantee their future success. That’s how they can continue to grow and when they grow, I grow. Referring other principals to them lets them know that I value them and want them to succeed. Since they know I follow this practice, they’ve always doubled their efforts on my behalf.”
When Too Many Is Too Much
As a follow-up to potential concerns over the number of lines an agent carries, another manufacturer noted that when he and his company are considering potential reps, if there’s any single deal breaker, it can be the number of lines that the agency carries. “We’ve made it a habit to avoid agencies that have more principals than we feel we can effectively represent. For instance, we’ve found that reps in fairly sparse territories may carry as many as 40 lines. In our opinion, that’s just a bit unreasonable. Here’s what we’re looking for — we search out agencies with 10-11 lines. Remember the agency has to have full-time office support staff in order to take care of incoming calls from us and our mutual customers. In addition, they’ve got to have a customer service organization providing limited installation service, start-up service and user training, not to mention be able to write quotes. Anyone in the 40-line range really isn’t going to be able to perform at that level.”
Valuing the Effort
When the occasion arises that one manufacturer needs some additional assistance from the agencies he works with when it comes to market, territory or customer research, he’s got a few tried and true steps he takes that work for him. According to the manufacturer, “First and foremost, pay the rep for his extra time and effort. To complete the work you’ve asked him to do, he’s taking time away from his sales in the field. Let him know you value his effort the best way possible — pay him.”
But there’s more. “Along the way, I let the rep know we’re traveling a two-way street when it comes to research. If there’s a question or a problem, I let him know I’m here to listen to whatever questions crop up. And, if I’m not here, there’s always someone on staff who’ll get back to him immediately.
“When the research project is complete, I’ve made it a habit to let the rep know exactly how it is that I’m going to be using the information that he’s gathered. And finally, in addition to paying for the effort, I let him know how much I value and appreciate their efforts and cooperation.”
Reacting to Feedback
In the midst of a presentation on how to conduct effective sales meetings, a sales consultant fielded a question from a manufacturer on how to react to negative feedback from one of his reps. The manufacturer’s question was: “Following our most recent sales meetings that involved the majority of our reps, one of them pushed back at our plan for spurring sales in the territory. On the one hand, this was one of our most effective reps, but on the other hand, everyone else seemed quite at ease with what we were proposing.”
Here’s how the consultant responded: “When all things are considered, there’s really not much purpose in telling the rep how to do his job. I know every manufacturer wants more sales. But, if the rep comes back and describes real-world obstacles to getting those sales, you’ve got to remain open to the discussion. It doesn’t do any good to keep reminding the rep that sales might be lagging. Remember that the real world can be quite different from the world of research. That’s why an open discussion on problems or obstacles will lead to a sense of never-ending improvement, allowing you to move forward.”
