“Face-to-face, eyeball-to-eyeball contact” are among the first words Hank Bergson speaks when asked to assess the importance of two-way communication between reps and principals.

Bergson, the former president and CEO of NEMRA and currently a consultant working with MANA among others, stresses that “When addressing the subject of communication between reps and principals, it’s critical to keep in mind that we’re speaking about two-way communication, that is from the principal to the rep, and just as important, rep to the principal.”

First, considering reps and their interaction with principals, Bergson observes that “Most reps are great salesmen. They know how to sell the products that manufacturers make down and through the channel. Where reps can fall down is in their inability to sell the value of their agencies to manufacturers on a day-to-day basis. This all comes down to the subject of communication, or rather, some reps’ inability to communicate with their principals.”

Bergson continues that this really begs the questions of, “How are you (i.e., reps) really communicating with your principals? What are you doing with your business that you ought to be communicating to the manufacturers with whom you conduct business? I’m not speaking about call reports here. I’m referring to the important things in your business and in your territory and with your customers that principals ought to be kept informed about.”

Unimportance of Call Reports

Detouring in the direction of call reports for a moment, Bergson emphasizes that so-called “call reports” should not be confused with communication. “In my view,” he says, “call reports tend to be something that is mandated. They have a specific set schedule for completion and actually they tend to take away from the reps’ selling time. In addition, they have a habit of becoming the world’s greatest works of fiction. Such mandated reports tend to focus on the mundane and are ineffective. In addition, the manufacturer gets too many of these across his desk. Needless to say, they go unread.

“This isn’t to say, however, that the rep should be precluded from communicating (reporting) those matters that are important in the territory. There’s a ton of market and strategic information that should be communicated for the simple reason that it’s critical for the manufacturer to know what’s going on in the territory and in his rep’s business. And there’s no one better suited to communicate that information that the rep.”

Having covered the subject of call reports, Bergson notes, “I always emphasize how important it is for the rep to meet in person with his principals every 18–24 months. When that meeting takes place, the rep should be sure that the conversation that follows with his principals includes a discussion of the strategic plan. That strategic plan ensures that each side is fully conversant as to where I’m going and where you’re going. Both parties have to be on the same page and directing their efforts to the same objectives.”

Avoiding Catastrophe

He cautions that the absence of such regular contact and communication can lead to problems festering and continuing to grow. “If each side fails to communicate and if they let problems continue to slide, the results can be catastrophic. Relationships get sourer and frankly you can end up with a situation where the rep could say to him ‘I’ll just keep collecting money until the manufacturer figures out he should fire me.’ That’s hardly the type of relationship either side should be striving for.

“Constant communication, on the other hand, allows you to either course correct or, if need be, reach a mutual parting of the ways.”

While the former association executive obviously recommends the face-to-face type of communication whenever possible, he emphasizes that whatever works for the players is what they ought to use. “Consider what we have available to us today — phone, fax, e-mail, text, etc. There’s no reason why one of those means won’t prove effective.”

When he was asked to consider the case of a rep who is self-admittedly a poor communicator and who has a desire to change his normal mode of operation, Bergson offers that “When I was with NEMRA we had a yearlong project where we considered how to eliminate ‘wasteful’ practices between principals and their reps. Heading the list of wasteful activities was poor communication. So, obviously this is something that has to be corrected and corrected quickly. How to do so? Have the conversation immediately with your principal. Address the problem and jointly come up with ways to solve the problem. Taking that first step is something that will keep you and your relationship out of trouble.”

He continues that “It’s as simple as calling the manufacturer and arranging for a meeting. But don’t have that meeting at a national conference or annual sales meeting. Have it personally between the two of you at a time when neither of you will be interrupted.”

Written vs. Verbal?

Should the communication in question be verbal or written? Bergson says, “It all depends. Verbal communication between rep and principal carries with it the benefit of not putting people on the spot. It also doesn’t come back to haunt you in the future. Such communication might be useful if the matter in question isn’t all that critical.

“Written communication, on the other hand, carries with it accountability. It usually concerns an important matter and is accompanied by a call to action from a specific person. It that’s the case, then written is the way to go.”

In summation, Bergson recommends a couple of positive steps reps can and should take when it comes to communicating with their principals:

•   Regular and proactive communication — “This is the absolute best way for the rep to keep his principals up-to-date with what’s going on in the territory. And, it’s the rep who is proactive — he communicates before he’s asked for an update — who is laying the foundation for a firm relationship with his principals.”

•   Rep councils — “Rep councils remain one of the best ways for the rep to not only provide him with market intelligence, but also to let the principal know what’s on his mind.”

•   Avoid the mistake of not communicating — On the subject of communication, Bergson advises, “The greatest mistake a rep can make is to not communicate with his principal.

“I can recall when a rep told me about problems he was having with a manufacturer. My advice to him was to immediately go to the factory and let them know everything that you’re doing for them. His response was a negative and he maintained, “All I have to do is sell more and everything will work out. Well, he successfully filled that bucket but then a whole host of other problems and issues developed. They were all things that could have been solved by communication, but he failed to take that simple step and ultimately wound up paying the price.”

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Communication — Something to Work on Constantly

Just a couple of years ago veteran rep Harry Abramson offered some of his thoughts on the subject, and his view is as timely now as it was then.

According to Abramson, Electronic Salesmasters Inc., Beachwood, Ohio, “Without effective communication on our part, how is the manufacturer going to know what the customers’ needs are? How can they anticipate needs? Provide pricing/make deliveries? It’s all on our shoulders to communicate the information from the customer to the principal.”

He continues that if a rep is a poor communicator — and he recognizes that fact — there are some things he can do to right the ship, if he remembers:

• Reps are businessmen in sales
• Sales are lost as the result of poor communication
• Communicate the entire picture (e.g., not just price, etc.)