In interviews with manufacturers on the subject of what and how independent manufacturers’ representatives should present themselves when describing their capabilities to prospective principals, a number of factors regularly come up in the conversation. It would appear that the rep that can ably show that his agency possesses those attributes, the chances of the agency getting the line increase immeasurably.
Among those factors or attributes are these:
- Professionalism and Integrity
The first two, professionalism and integrity point directly at the agency’s reputation among principals and customers in the territories in which they work. In addition, what do other agencies think of them? Do they perform at the highest levels? Do they anticipate customers’ needs? Do they answer questions and solve problems promptly? When they say they’re going to do something, do they do it?
- Sales Volume
The value of a healthy sales volume speaks for itself. That sales volume points to the firm’s ability to anticipate long-term survival, not to mention success. Inevitably, a healthy sales volume across the agency’s line card points to the firm’s ability to continue to serve its existing customers in a satisfactory manner, while at the same time developing new business, all the while making sure not too many major orders slip away.
- Stability and Tenure in the Territory
Whether it’s a large, medium or small firm, principals want to see stability in the rep firm. How long has the agency been in business? How long have the owners of the agency been in place? Is there a secure succession plan in place? Does the agency show a willingness to communicate major changes in its organization — changes that could impact its stability — to principals? Does the agency have and does it share its annual business plan with its principals? Is there a willingness on the part of the agency to accept input from principals on that business plan? Also important is the agency’s ability to demonstrate long-term relationships with customers.
While it may be more difficult for newly-formed agencies to demonstrate stability and tenure, what they can do is demonstrate stability and integrity in their previous positions and in their personal backgrounds.
- Communication Skills
Elsewhere in this issue of Agency Sales, a manufacturer makes the point that what he desires in terms of communication from his reps is that they stay in touch on their terms. He doesn’t care whether that means phone, video chat, e-mail, etc. Whatever works for them, works for him. At the same time, he makes the point that when the rep is proactive in his communication (that is, communicating only on matters of importance or asking questions that need answers), then the communication is of an authentic variety. Time and again manufacturers have made the point that when pressure is placed on the rep to communicate regularly, whether there’s anything to communicate or not, then the rep is taking valuable time away from selling to perform a relatively unneeded task. And, chances are the quality of the communication will be minimal.
And, the rep that is proactive in his communication with principals keeps the pressure on the principal. The principal won’t be wondering what you’re doing in the field, they’ll see what you’re doing via the quality of your communication — not to mention the resulting sales volume.
Speaking of quality of communication, whatever is presented to a principal had better be done in a professional, well-organized and concise manner.
When it comes to the rep being able to present their agency’s ability to exercise the aforementioned attributes, there are some characteristics the rep should be careful are not included in their resume (call these turn-offs). For instance:
- While manufacturers always seek out agencies that work with synergistic lines, nothing turns them off more than a rep that carries competitive or incompatible lines. The presence of those lines lets the manufacturer know that you’ll be spending time calling on customers that have no need for his product line.
- A glaring weakness in an agency’s operation appears when the agency has a reputation of staying with non-profitable or marginal lines for too long. Many successful agencies distinguish themselves by regularly cutting lines that are time-consuming and nonproductive. Line productivity analysis is a relatively simple process and one that benefits the agency that practices it.
- A consistent track record of failing to deliver upon agreed action. Nothing impacts an agency’s reputation more than a failure to do what is agreed upon.
- Resisting change — both in their relations with principals and with changes in the marketplace.
- Reluctance to provide professional and well-organized feedback to principals concerning their business trends and market activity.
- In general, a lack of communication, prospect tracking, lead follow-up, sales forecasting, and honest feedback on the manufacturer’s sales and marketing activities.
There are more turn-offs that could be included here, but perhaps a final area of concern that is critical when the rep is presenting himself and his agency to a prospective principal resides in the rep’s personal qualities and characteristics. Principals — and customers for that matter — gravitate to reps that exhibit:
- Honesty and integrity — Past performance define an agency’s reputation. Agencies with long-standing footprints in their territories recommend themselves to manufacturers.
- The best value — The agency that can demonstrate that it is the most efficient means for bringing a product or service to market will continue to get attention from prospective principals.
- Timely and accurate communication — The attribute of being able to let the manufacturer know what is happening in the industry, among customers and in the territory lets principals know that the job they need to have completed is in fact being done.
- Service before, during and long after the sale — Nothing guarantees failure better than making the sale and disappearing from sight. The rep that shows a commitment to the needs of principals and customers will develop the relationships that guarantee success.
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