Independent manufacturers’ representatives are hardly the only participants on MANA’s LinkedIn discussion page. A recent visit to that location on the Internet found two manufacturers weighing in on issues important to them and their peers.

For instance, in a contribution entitled, “What Do Manufacturers Look for in a Rep?,” Charles Ingram, vice president of sales & marketing for Eriez Magnetics, maintains that “The best manufacturer-rep relationships are those where both parties respect each other, understand their mutual expectations and have shared business values. While manufacturers may have some variations on the attributes of rep organizations they wish to represent them, there are some constants we all look for.

“At Eriez Magnetics, where we’ve been working with independent manufacturers’ representatives for over 70 years, our best representative agencies possess the following:

“A formal company overview — This sounds like a simple requirement all professional reps should have, but it’s surprising just how many agencies solicit representing our line without a basic presentation of their company. The best reps provide an overview of their history, markets served, territory covered, a synergistic product portfolio, services provided, and current manufacturers represented.

“Marketing skills — It’s true, manufacturers expect more from their representatives these days. Years ago, reps really served as field sales personnel. Sales leads were sent out to reps who then were the technical resource for their customers. Now, largely due to the Internet, product and technical information is more generally accessible. Customers are usually well along in their project research by the time a sales rep is contacted. The best reps have a formalized marketing program which actively promotes their company’s expertise, strengths, products and services.

“Additionally, all professional rep agencies should have a quality website with links to the manufacturers they represent. We’re proud of our reps and want them to present a professional, concise picture of their agency to our mutual customers. After all, if a rep agency can’t promote their own company well, how can we expect them to do a good job promoting our company?

“These programs, of course, should be integrated with their principals’ programs. Reps serve as a manufacturer’s eyes and ears in the field, so their feedback and input regarding market trends, the competitive environment, and even rep council involvement is critical. When manufacturers’ and reps’ marketing strategies are aligned, their successes will multiply.

“Customer relationships — Okay, this attribute has always been a constant in the manufacturer-rep relationship. The leading reason manufacturers go to market with independent reps is to leverage the customer relationships and local knowledge reps bring to the partnership. Our best reps know our customers’ key personnel, manufacturing processes, and hot buttons. They are familiar and are willing to assist with conflict resolution, too. Without solid customer relationships, a rep firm will not attract or maintain quality lines.

“Business plan — This does not need to be a chapter book. Some of the best rep business plans I’ve ever read were only one page. They contained a brief summary of the agency’s focus, expertise and strategic direction. This illustrates to a manufacturer that the rep is operating a professional business, not just selling products.

“MANA membership — You bet! Membership in the premier association for professional rep agencies signals to manufacturers that a rep is professional, serious about their business, and willing to invest in continuous education and development.

“Succession plan — Well, you knew this one was coming. This is the one that causes manufacturer sales managers to lose sleep. What’s the future for my company’s representation in your territory? The manufacturer is looking for growth, sustainability and continuity in the organizations that represent them.

“At our company, we’re fortunate to have an average tenure of over 20 years’ representation with our U.S. and Canadian reps, with six agencies on our team for over 50 continuous years. These representatives have the attributes referenced here that will continue to serve our long-standing relationships. Do you?”

No House Accounts

Next up was Bob Limper, director of sales and global product management, Zenith Pump Division, who took aim at the subject of house accounts. According to Limper, “I started in the pump business working for a distributor/rep in the Philadelphia area. About seven years later, I took a position as a direct salesperson in that same area for a pump manufacturer.

“When I was at my employer’s Chicago headquarters for training, I was told that a particular Fortune 500 company was a house account. I told them that this Fortune 500 Company has a plant in my territory that I had been calling on for many years. They told me not to call on them because all inquiries and engineering for that Fortune 500 company was done out of that company’s headquarters, which was also in Chicago.

“I tried to explain that, at least at the plant in my territory, they engineered and purchased pumps locally for everyday use. Again, I was told to not call on them.

“Since I am rather strong-willed, several weeks after returning home, I called on a couple of my contacts at the plant in my territory, showed them this new technology I had learned about, and discussed where I thought they might be able to use it in their plant. They were somewhat familiar with the company I worked for and had some of our product in the plant on some OEM equipment. We came up with several areas that they could possibly use these pumps.

“About a month later I got my first order from them. When I sent it in to the sales manager, I reiterated what I had told him earlier, that this plant does have local engineering and purchasing capability. Only when it is a much larger project do they turn it over to corporate engineering and procurement. I told him I was not expecting a commission for this order but felt that as a salesperson for the company it was my duty to help increase sales whenever and wherever possible.

“About three years later I was promoted to V.P. of sales and marketing for the U.S. It should come as no surprise that one of my first actions was to eliminate house accounts.”

The Value of Synergistic Selling Never Goes Away

When a group of manufacturers and reps got together for a roundtable discussion earlier this year, this telling question was offered to the group: “How do you get 20 percent of a rep’s time even though you represent only 10 percent of their income?”

One rep took the lead in answering when he said, “Manufacturers should keep in mind that some of our lines serve as catalysts for creating business for our other lines. They get a disproportionate share of our time when we are in the early selling phase or a marketing mode. Some products are not only good lines, but they are also fun and when the principal is also rep-friendly, we naturally provide their products extra time and attention. But the overall objective is to make money, and the best way to accomplish that goal is to give priority to the product lines that create the best sales opportunities. More than anything else, when an order is on the line, the product we can sell today gets all the attention. The lines that make the most commissions, or that have the best potential for the future commissions, get the highest priority.”

Mentoring + Motivation = Success

In addition to quality products and commissions paid on time, here’s what one rep recently let us know he and his fellow reps truly desire from their principals. “As we work our territories, the primary goal remains to always serve the customer and provide solutions for his problems. If anything remains as an area of concern for us, however, it’s our constant need to be motivated by our manufacturers. In order to perform our jobs properly, we’ve got to be willing to do whatever it takes to serve the customer. How much time it takes should never be an issue. But what we constantly need is to be mentored and motivated by the manufacturer. And that motivation doesn’t just mean paid compensation — what it means is total support in the field.”

Learning From Manufacturer Peers

One manufacturer made the point recently how valuable his contacts have been with other manufacturers that work with reps. According to the manufacturer, “After talking with some of our non-competitive manufacturer friends and some reps, the message has been driven home that we simply have to do a better job when it comes to choosing reps as marketing partners.

“Based on our past performance, we’ve managed to create any number of problems for ourselves because we haven’t conducted due diligence before we partnered up with a rep firm. Because we’ve failed to do that, we’ve wound up severing relationships with a number of agencies that in hindsight were the ideal fit for us.”

After one of this manufacturer’s top-performing reps took the step to offer some unsolicited advice, they mended their ways. “That rep let us know that just about everyone was aware that we weren’t doing a good job of jointly agreeing on performance goals with our reps. So, armed with what I learned and bolstered by information from this rep, we’re going to move forward and make sure we’ve done all we can on the front end when it comes to signing new representation.”

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