According to the rep, among the many points made during the session was the fact that the greatest hindrance to improving the relationship between reps and principals is the lack of communication from both parties. He continued, “I love all the comments about ‘We are independent….Want us to sell or write reports? We are in constant contact….’ They are all arguments I have heard and used since I first started in the rep business 12 years ago. However, my views on the subject are changing. In the electronic age it is so easy to provide a monthly synopsis with bullet points — not a daily call report, just vital data.

“If you think a manufacturer who asks for a report does not notice you don’t send them, you will know they do when they terminate your contract regardless of how your numbers are trending. Maybe that isn’t the kind of manufacturer you want to rep anyway but the reality is that basic reporting is more often than not a requirement, particularly when the economy is in the state that it is.

“Instead of looking at what a nuisance it is, focus on the benefits that communication brings:

• Written proof you are working their line; No line gets 100 percent mind-share but the ones who get a monthly report feel like they do.

• Increased trust on both sides; If terminated, a nice way to define what you have provided if there are any legal issues at termination.

• Knowing what your own salespeople are doing in the field without requiring call reports from them.”

He continued, “Basic reports are easy — if you provide legitimate, real-time data about your territory you will have a better relationship with your principal.”

The rep concluded his comments by noting that he was well aware many of his peers would probably disagree with his views, but he advised: “I am not trying to break the secret-handshake agreements of reps to avoid reporting. I am just finding it has been more beneficial than not in the last couple of years, and I have needed all of my lines more than ever the last two years.”

“They [reps] didn’t provide me with weekly or even monthly reports. What they did instead was to keep me fully apprised of the important developments among our customers and throughout the territory.”

The manufacturer added his own thoughts on this subject when he said: “I’ve got to admit that when I first started with reps about 20 years ago, I was one of those manufacturers who thought my reps had to let me know everything they were doing. I had difficulty accepting the fact that they were reluctant to provide me with the information I was looking for. After several years of little success, I found that many of my better-performing reps were giving me everything I was looking for, but they were doing it of their own volition. By that I mean, they didn’t provide me with weekly or even monthly reports. What they did instead was to keep me fully apprised of the important developments among our customers and throughout the territory. As a result, I’d have to say that I’m lucky enough to avoid a deluge of relatively useless reports. Instead, when something comes in from my reps, I know it’s important and contains information I have to act on.

“In addition, it’s the reps who report to me in this manner that have shown me by their performance in the field that they’re doing the best job for us.”

Maximizing the Annual Sales Meeting

“I’ve got to admit that for several years our annual sales meetings with our reps were pretty one-sided affairs,” says one manufacturer. “It was only after we lowered our guard and began asking the reps what they really needed prior to the meetings that things got moving.”

According to the manufacturer, “Our national sales manager suggested we put together a rep council well in advance of one of our annual get togethers. We then asked the rep council members what was it that reps truly wanted from manufacturers’ sales meetings? The feedback we received was a bit of an eye opener but when we implemented some of their suggestions, we couldn’t have been happier.”

Among the critical elements the manufacturer made sure were included in that next sales meeting — not to mention all the subsequent sales meetings — were:

• Product information — “Ask a rep what he wants from a manufacturer and chances are he’ll say new products. But there’s more it to it than that. We’ve learned not to spend too much time during a meeting going over features. Instead, we talk benefits, illustrate those benefits with visual and hands-on aids, and make sure we summarize our points clearly.”
• Market intelligence — “Agents definitely want to know what’s going on within their own territories. We only present relevant information in a capsule form during the sales meetings. After the meeting, we follow up with more complete printed market information.”

• Application information — “We’ve found that many of our reps have been able to find and demonstrate new applications for our products through their experience and their close relationships with their customers. They’re more than willing to share that information during sales meetings.”

• Sales support material — “Whenever we have new sales literature, we’re sure to introduce it at our sales meetings. We point out new elements if it’s a revision, or the benefits if it’s a completely new piece.” The manufacturer added that he never hands out the new literature prior to the meeting — only after the fact. “When reps get the literature ahead of time, we find that they’re looking through it as we’re explaining things and they don’t pay attention to the explanation.”

• Answers to specific questions — “In order to cut to the chase when it comes to giving our reps the information they need, we’ve made it a habit to ask our reps in advance to provide us with the questions they want answered or the issues they need to have covered. By conducting our homework well in advance of the sales meeting, we’ve found that we’ve been the most helpful to them.”

“We’ve learned not to spend too much time during a meeting going over features. Instead, we talk benefits….”

Right Place, Right Time

One manufacturer found herself in just the right place late this summer when she described to another manufacturer the difficulty she was experiencing in making a choice between two manufacturers’ rep agencies. According to the first manufacturer, who was attending her industry’s annual conference, “In my opinion, I’ve done my due diligence to the best of my ability. I was looking to fill a void in one of our territories. I solicited interest from prospective reps, contacted the industry-specific rep association for advice and ultimately interviewed three agencies. The interviews allowed me to eliminate one agency, but now I’ve got to choose between the two and that’s my problem. It’s a close call and I don’t want to make a mistake. I’ve put a lot of time, expense and effort into this decision and it’s an important one for us.”

When we say the manufacturer found herself in the right place at the right time, that’s because the manufacturer she was speaking with had some experience and could relate to her plight.

The second manufacturer offered the following: “When you say you’ve done your due diligence, I hope that includes the following:

• Check with some of your manufacturing peers who know these agencies.

• Check with some of your other reps who might know these agencies.

• Do the agencies have synergistic lines?

• Do they have succession plans? Are they willing to share them with you?

• Do they have business plans? Are they willing to share them with you?

• Are they active members of their industry rep associations?

He concluded with: “If you’ve covered all those fairly basic bases, then don’t be afraid to go with your gut. Was the chemistry good between the two of you? Is the agency and its personnel the kind of organization you feel you can develop into a long relationship? If the answers to those last two questions are positive, let your business instincts take over and choose the one you feel most comfortable with. And, good luck.”