Next month’s issue of Agency Sales will devote space highlighting many of the products and services that MANA members have found invaluable over the years. As a bit of a preview, what follows are excerpts from a discussion that is fairly typical of what takes place among principals and reps in the MANA LinkedIn discussion group. We include it here to illustrate how the MANA discussion group serves as the ideal forum for reps and manufacturers to present problems and concerns and invariably come up with a wealth of solutions.

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A manufacturer kicked off the discussion by describing the difficulty he was having in locating reps for his product line. According to the manufacturer, “I am having a terrible time finding reps for my open territories. Is anyone else struggling with this same issue?

“We are a manufacturer of standing seam roofing panels that has been in business since the 1800s. We have a structural standing seam panel that has been in successful use in the United States since the 1960s in all types of applications and climates. There is some pioneering/legwork to be done in the open areas, but there is no inventory to stock or purchase. Once a purchase order is issued by a customer, we handle the entire order, right down to invoicing and collection of payment from the customer. The rep collects a commission once the customer has paid.”

He went on to say that he’s tried any number of methods to locate and sign reps, but to no avail. “Any suggestions or wisdom out there to share?”

That question opened the gates to any number of remedies to his dilemma including this suggestion from a fellow manufacturer: “I’ve been there in the past trying to find good manufacturers’ reps….”

“The best success for me has been to go to the largest city in the territory that you have open. Research and identify six clients, contractors, engineers and possibly
raw material suppliers. Call each on the phone and ask for their help. After explaining who you are and what your product is, then do the following:

• Ask each for the name of two or three manufacturers’ reps that they currently work with.
• Next, who do they recommend as the best of the three?
• Then, ask if that rep was selling your roofing panels would he/she buy your product from that rep?

It is absolutely amazing that the same sales rep’s name will keep coming up. Guess what, that means he is the best. Do I have to tell you who your next phone call is to? I didn’t think so.”

As an indication as to how valuable these discussion groups are, that first bit of advice was just the beginning of a number of suggestions for finding reps.

Next up, a rep offered that “The key word you mentioned is pioneering. In challenging economic times most reps will dedicate more time to the lines that are generating income in order to keep their business profitable. Although most reps are willing to invest in a new product that needs a region developed, we have to evaluate the ROI on our time investment with our complete product offering.

“One idea would be to offer a potential rep a ‘Shared Territory Development Cost’ where you help the rep share in the cost of developing the territory for a set period of time, usually 12-24 months. At that point, the rep has some income with your product line and would be willing to dedicate the time to help develop the territory.”

In addition to the shared territory development fee concept, another rep suggested the manufacturer focus on his termination period. According to the rep, “The only thing I would add is a fair termination period after the 12-24 month period. When I approach a principal and ask for a shared territory development fee, the initial reaction is ‘no.’ To overcome this objection, I explain our extensive marketing program plus we offer monthly reports on our activity. We do a download from SalesForce and send it to the principal so they can track our progress and also to assist us in learning the product line. I offer this as a relatively inexpensive marketing study for an unknown territory.

“My last trump card I present to the principal is ‘Would you work for a year with no income only to have the principal be able to cancel the contract with 60 days notice?’ That usually turns the tide and we begin a serious discussion about the real costs of working the territory.”

Illustrative of the fact that there’s no one way to solve this problem, another discussion participant offered: “I would add a sometimes overlooked avenue, your existing reps — assuming you have some. Do they have any colleagues in your open territories that they share another principal with? Over the course of my career, I have helped several principals to locate and sign reps in open territories that they had. I do acknowledge it is hard to locate good reps, but work hard and you will find success with a true partner in building your business.”

Agreeing with that last suggestion, a manufacturer explained, “Having owned and operated a rep firm myself for 11 years in the past, that is how we reps get good lines. We stick together and help each other. Also, a good side effect from that is that hiring a rep on the recommendation of an existing rep will also promote cooperation among those reps. That process cuts down on the range wars that sometimes occur between territories. The existing rep will not recommend a neighboring rep if they are going to fight and cross territory boundaries. The rep firm recommended will be someone he trusts and with whom he has a relationship. That alone will make your managing job less combative. You can then concentrate on marketing, not policing.”

Some Rules for Rep Councils

When a group of manufacturers and reps sat on a panel to discuss the viability of creating rep councils, there was nearly unanimous endorsement of the concept, with a few caveats. Among the concerns that the group voiced were:

Composition — “Be sure to include rep and factory senior sales and marketing executives. Others can be invited, but it’s important to have decision makers take part in the process. It serves no purpose to have someone at the table who has to go back to the office to find out if you can do this or that. Have more reps than factory people — it’s their forum, not the manufacturer’s. Remember reps are your eyes and ears in the field and that’s how you learn firsthand what’s happening in the territory.

Scheduling — “Once the manufacturer has created a rep council, he can’t wait a year to have his first meeting. Since every company is different it’s difficult to determine a set-in-stone best practice when it comes to scheduling. At the very least a meeting should be held once or twice a year. One of those meetings could be scheduled at an industry annual conference. In addition, since technology now plays such an integral role in our business lives, use technology for your meetings. Don’t be afraid to conference call or use webinars, video conferencing and Skype.”

Some other guidelines the group offered for rep council scheduling included:

• Meetings should be at least three to four hours long.
• Don’t schedule them for the end of a quarterly month.
• Avoid Monday or Friday scheduling.

Absence of Recriminations — “Feelings and egos can be bruised easily, but it’s critical to foster an environment of open and honest communication. There can’t be any hidden agendas or ulterior motives. One way to achieve this might be to use an outside facilitator who can ensure that the group stays on track.”

Managing Information — “A well-put-together rep council should result in a wealth of information. That creates the challenge of managing all that information. In order to meet that challenge you’ve got to weave your way through all the ideas that are presented and show the group that action will be taken. That’s why minutes of meetings are important as well as designating someone to take action within a stated period of time. One thing we’ve done is to create some sub groups that deal with specific problems and ideas.”

Mentoring Means Motivation

A rep recently wrote to Agency Sales and spelled out what all reps need from their manufacturers. “In our jobs, our number-one goal is always to serve the customer and provide solutions to his problems. If anything remains as an area of concern for us, however, it’s our constant need to be motivated by the manufacturer. To complete 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.”