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Here’s a typical scenario for going to market with independent manufacturers’ representatives that has been heard many times in the past — but it’s one worth repeating.

According to one manufacturer, “We decided to make the move to reps six or seven years ago because it was difficult if not impossible for me to get all around the country meeting customer needs. It just seemed like a natural fit to hire reps and have them work on a commission basis. The reps we ultimately chose to work with were already calling on the customers we served. At the same time reps wouldn’t be making a living just off our products. The volume just isn’t there. Rather, they could piggyback their efforts and add our products to their sales books. Ours is a mature business that remains profitable for us and for the reps who work with us. Our reps like our products because they’re already in there across the desk from the customer selling complementary products. While in there on a sales call, they can easily visit other decision makers and determine their needs.”

While offering that reasonable rationale for the rep way of going to market, the manufacturer added there’s obviously an ongoing need to keep independent agents motivated: “Sure, commissions will keep them motivated for sales but what we’ve got to do is keep them interested in keeping an eye on the customers’ needs, making sure they’re well serviced and making sure that competitors won’t have success calling on them.”

As to how he accomplishes that task, he says “Many times orders will come in all on their own. Our products don’t necessarily need an ongoing sales effort. As a result, what we do ask them to do is to service the customer and the product.”

Exploring Two Problem Areas

After detailing their successful moves to an outsourced sales force, three manufacturers at an industry meeting earlier this year went a little further as they described two areas that concerned them when working with reps.

According to one manufacturer, “If a rep doesn’t put forth a professional image about himself and his agency, it causes me to doubt whether he’s serious about what he’s doing for a living. That professional image begins with the agency website, how the company phone is answered and continues all the way through to his stationery, familiarity with technology and continued investment in his firm.”

Then there’s the concern with how much time a rep will spend on a manufacturer’s line. A second manufacturer said: “I’ve had years of experience working with reps and in general, I believe some reps don’t spend as much time as they should with the entire lines that are offered to them by their manufacturers. Part of the reason is that they’re only human and they’re more comfortable with some products than with others.”

To overcome that challenge, however, he continued, “Here’s what we do: as soon as we bring a new product to market, it’s a joint responsibility for the manufacturer to provide training that will improve the rep’s comfort level. It’s up to the rep to enthusiastically take advantage of the training offered to him.”

Putting Forth the “Rep Champion”

When a manufacturer was asked if a single person had been assigned the position as “rep champion” within his company, he answered this way: “We recognized long ago how important it was to have someone serve as the go-to guy for our reps in the field. Rather than have just one person fill that role, however, we’ve designated everyone in the company as a rep champion. All of our personnel who have anything to do with our independent reps are empowered to make decisions and get things done. That’s what makes working with them so easy for us.”

He adds that he knows other companies preach the same message, but “We actually do it, and wouldn’t do it any other way.”

Replacing a Rep

One manufacturer that boasts of long-tenured relationships with its reps noted that on the relatively rare occasion when a rep retires or otherwise has to be replaced, here’s what they look for: “Among the attributes that a rep must have in order to work with us are an attention to detail and a strong sense of ethics. With the former, it’s one thing to just get the order, but after that the customer still needs care. That’s what we’re looking for: keep an eye on the customer, anticipate their needs and meet those needs. In terms of ethics, we’re not looking for someone who wants to make a killing on the first order. Too often if you sell the first order at an astronomical price, there won’t be a second order.”

And finally, the manufacturer touched on the subject of communication from reps to the manufacturer. “We don’t have any schedule or quota when it comes to communicating with us. What we want is to hear from them when there’s something to hear about. We’re not looking to create any type of busy work. All we want are the facts from the field.”

The Perils of Not Following Up

One manufacturer should be complimented for admitting its faults and taking some steps to correct them. On the other hand, they ought to be faulted for not following up when it came to solving those problems. Here’s what happened: “We went through a rather extended period where we experienced poor deliveries and some quality problems in the field. To make a bad situation better, we invited several of our reps into headquarters for a quickly-put-together rep council. The obvious goal was to discuss problems and hopefully come up with solutions based on the input we’d receive from our reps. At the outset, I have to compliment our reps for their input. They held nothing back and were deeply involved in the constructive criticism that we asked for. But then everything fell apart. We failed to follow up on their suggestions and we didn’t call the council back for additional sessions.

“It didn’t take long for the same and even some more serious problems to develop once again in the field. Thankfully, we learned from our errors. We re-established the rep council and once again benefitted from their input. This time, however, we now have semi-annual rep council meetings, and we’ve established a rotating system where we’re constantly bringing in new members. The change in membership within the council guarantees that we have a fresh supply of new and creative ideas that we’re continued to benefit from. And we’ve learned the value of following up on our council’s suggestions.”

Seeing What the Rep Sees

“There’s a lot to be said for looking at things through another’s eyes.” That how a manufacturer opened a conversation about the benefits of viewing the manufacturer-rep relationship through the eyes of his reps. “After our most recent annual sales meeting with our reps I think I learned more about our reps’ concerns than ever before. I fault ourselves when I say that too often we look at the relationships we enjoy simply from our side and only consider how it benefits us. I can’t say we’ve ever made much of an effort to learn what the agent’s needs are. This includes the very basics such as commission payment, factory support and advertising to questions that very few manufacturers ever ask their agents.

“As an example, the more I’ve thought about this subject, here’s what I’ve started to do: I will ask a prospective agent where he wants himself and his agency to be in five years. The answer to that question will usually let me know something about the agent’s needs, goals and anticipated challenges. It also lets me know something about how the rep is looking at us as part of his plans for the future. When I learn how we fit into those plans, that lets me have a lot more to go on when making decisions on which candidate to appoint.

“I’ll admit that at the same time, this doesn’t mean that all agents have the most comprehensive plans for the future. Consider if a rep occupies a territory that is small and doesn’t predict dramatic growth for the future. If the agent tells me that he wants his agency in five years to be pretty much the same as it is today, that doesn’t lock him out. Or, if there is an agent in a rapidly growing territory that tells me the same thing, chance are I won’t appoint him. It all depends on the circumstances.

“But once again, all of this insight only evolves if I allow myself to view the relationship through their eyes.”