It was a combination of due diligence in the form of research of the independent manufacturers’ rep business model and knowledgeable input from company sales veterans that saw Advanced Micro Controls, Inc. (AMCI), make the move from a direct to an outsourced sales force six years ago.
Bob Alesio
According to Bob Alesio, director of sales and marketing, “Before I joined AMCI, the company worked with reps, but eventually moved away from that business model. In 2009 we firmly set our sights on company growth for the next five years. That’s when we made the move back to reps. That decision was based on our business plan and consideration of the resources we had available. Working with independent manufacturers’ reps appeared to be the most efficient way to move forward.”
The more than three-decade old Terryville, Connecticut-based company manufactures industrial control products to improve PLC-based automation systems with specialized position sensing and motion control technology that simplifies automation and adds reliability to manufacturing processes. AMCI designs and manufactures all of their products.
Alesio points to 2009 as a time when the company began researching different sales models. “In my research I found the independent rep model recommended itself to our operation. At the same time, we were fortunate that there were still some veteran employees here, including our general manager, who could recount many of our past experiences with reps.
Reps = Efficiency
“From where I was sitting, it seemed obvious that working with reps was the most efficient way to go to market. Another factor that made our decision to work with reps easier is the fact that our product line is diverse. We don’t make one product for one customer; rather we make a variety of products that serve the needs of broad market segments. That’s why working with independent reps, who have complementary product lines, works well for us. We can be flexible and fluid because we know that our reps are going to be flexible and fluid. Reps allow us to serve the needs of the market without giving anything up in terms of salesmanship and support.”
The AMCI building.
He continues, “In addition, making an investment with reps scaled well with our company growth plans. Establishing a rep network is unlike hiring full-time salespeople where you have to make that initial investment right up front. Compare that to working with reps: as your company sales increase, the rep grows with you.”
And, as the rep grows the business and AMCI’s sales grow, there comes the subject of paying larger and larger commissions. That’s something that doesn’t faze Alesio at all: “I have never had a problem writing a large check for the rep. Honestly, that’s the end goal for both of us. If I have to write a large check, he’s done the job he’s supposed to do and our sales are growing. It’s really a ‘no brainer.’”
He adds, “Another component that recommends we work with reps is the fact that they have other — complementary — products on their line cards. Depending on the rep-principal fit, we’re always looking for our reps to carry other product lines. That allows the rep to always offer a value proposition to his customers. There’s a level of visibility that the multi-line rep offers that you are hard pressed to achieve if you’re working with a direct sales force.”
Evaluating Prospective Reps
As with any company that has made the move from a direct to an independent sales force, AMCI has had occasions when it has had to search for and sign on with new agencies. A look at the company website (www.amci.com) will show a map of the United States where the company has focused its rep efforts. In total so far, the company has focused its efforts in a 10-state area because at the outset “that’s where the business is.” With that as a starting point, AMCI is looking to expand its coverage. When it comes to finding and signing reps, “We have a team of reps in place. We survey them and find out who they might recommend. Another resource is our business partners, that is, companies we work with. On top of that is our distribution channel that also can make recommendations on dependable reps.”
When he’s asked what attributes AMCI seeks when it’s looking at prospective reps, Alesio quickly responds that “Our first consideration is integrity and business professionalism. Keep in mind that reps are going to be serving as an extension of our company in the territory. We’ve worked hard to establish the reputation that we enjoy and we have to ensure that any decisions we make regarding reps keep that in mind.”
Next up in terms of what’s important in a rep, he says, “Any rep organization that we work with has to possess excellent communication skills. I don’t care if that means in-person, public speaking, phone or e-mail, they are the customer-facing component of our company and they’ve got to be effective in that area.”
Expanding on the subject of being effective communicators, Alesio explains that “While our products are technical in nature, our reps don’t necessarily have to be experts. They’ve obviously got to have a measure of a technical background and be able to extrapolate information for the customer. They’ve also got to have a familiarity with all the other products on their line card, B2B sales channels and a working knowledge of how to work with distribution.”
The Importance of Communication
Staying on the subject of rep-principal communication, Alesio emphasizes his belief that the best way for a rep to communicate with him and AMCI is on their own terms. “This might sound a bit strange,” he continues, “but I’m very respectful of the fact that reps are their own business owners. Sure, we’re partners, but all of them have a system and a business model in place. That’s why I’m never going to mandate when or how they should communicate with me. I don’t want reps to e-mail or call me every week. My real concern occurs when there is no communication. I want communication — period. With high-quality reps, I’ve found that communication is part and parcel of their daily activities. Far be it from me to put them in a box. Looking at what our reps do; they call and e-mail when there is something to report or when they need a question answered or some back-up from the plant. With this approach, the question of communication simply works itself out. When my reps communicate with us, I’ve found that they’re not just checking in, their communication is truly authentic.”
Certainly related to the subject of communication is the rep agency’s willingness to provide knowledge of their agencies to the manufacturer. “Look at it this way: if we’re going to turn over our sales process to someone else, it’s important that we know all we can about their organization. On the one hand, because they’re individual business owners, we’re not going to police anything they do; however, we would like to know what their plans are. That’s why we like our agencies to fill us in on their organizational plans, succession plans or any important changes they’re anticipating. For instance, if they’re going to add personnel, we certainly want to know that and to meet the person. Once again, we look at our reps as an extension of our company.”
Personal Characteristics
If professionalism, integrity and communication skills are attributes Alesio looks for in a rep, then the absence of any of those attributes is a negative. “The big ticket for us is how they present themselves to us and to the customer. When we engage with a prospective rep, we learn a lot about them right away by the way they speak about past principals. And the more we speak with them, the more we can learn if there are any inconsistencies in their motivation. These are all important factors for us.”
Once aligned with AMCI, Alesio says reps are backed up with a comprehensive training program to acquaint them with the company’s products. “As a part of the onboarding process, we fly them to the office where they spend a day or two meeting personnel, getting acquainted with the engineering staff. While that’s more of a deep dive for them, on an ongoing basis we periodically bring them into the office again for training. We also have hosted web-based training sessions that have proven to be very successful.”
In addition to a variety of training programs, Alesio also notes that the company is at the ready to provide any and all forms of sales support. “We’ve made a big investment in technical support and sales and marketing assistance and lead generation. I’d state it this way: If they need it, we provide it. What this all comes down to is the relationship we have with our reps. If each party provides what the other needs, the relationship will thrive.”
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