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One of the more common paths to follow on the way to becoming an independent manufacturers’ rep is to start as a manufacturer. Two manufacturers who followed that path compared notes at an industry meeting earlier this year and there were two areas in which they credited their former careers for providing them with some valuable knowledge.

In the area of being able to truly understand what the rep does, one rep emphasized, “One thing I’ll never forget is the fact that the rep owns the customer. That’s why when we made the move from a predominately direct sales operation to an outsourced sales force, we experienced increased sales mostly because of the long-standing relationships the reps we chose to work with already enjoyed with their respective customer bases. I can honestly vouch for the fact that when we put a new direct salesperson in the field, it would take months before we were able to claim any appreciative results. When we compared that with what our reps did, there was no comparison. After signing on with a number of established rep firms, for the most part they hit the ground running and had the sales for us right out of the gate.”

Then there’s the ongoing discussion of which size rep firm (large or small) is best for a manufacturer. One of the reps (who also used to be a manufacturer) noted that “I was never really comfortable with the fact that too often we sought out the ‘mega’ agency to work with. Why? I don’t know, it just never made any sense. Choosing that super-sized agency really meant that we were going to wind up on the bottom of their line card. To me, it’s a reasonable question to ask: Does the manufacturer really think he’s going to get any attention from the rep when he’s the 30th — or lower — line on the line card? My approach, and I’ve got to admit it’s worked beautifully for me, was that I wanted to be as important as I could be to the rep. If I was able to make the connection with the right-sized agency, I was assured to be given more than my fair share of their time in the field.”

He added, “With several of the one- to three-person agencies that I worked with, we were always provided with the time and service we needed simply because the rep couldn’t afford to ignore us.”

Valuing the Entrepreneurial Spirit

Continuing with praise for reps who used to be manufacturers, another manufacturer wrote to Agency Sales recently going on at length about the success he’s always enjoyed by searching out reps who had spent time earlier in their careers as manufacturer sales personnel. “I can honestly say after more than 30 years of working with reps that I’ve found that the really successful rep is one who possesses an entrepreneurial spirit. Reps are independent business people because they have that personal drive. These are usually people who for some reason or other felt stifled and unfulfilled and couldn’t reach personal goals while working under the constructs of rigidly run larger businesses. Often those businesses were ones that they presently work with as reps.”

Stressing Customer Service

The executive vice president of one manufacturing company didn’t hesitate for a moment when she was asked what was the major attribute she looked for as she weighed whether her company should align with a network of independent manufacturers’ representatives. According to the manufacturer, “Based on years of success working with reps, we’ve always found that the reps who really believe in serving the customer are the ones that we have the most success with. Specifically those are the ones who always want to do the right thing for both the customer and the manufacturer. They’re hard-working, self-disciplined and motivated. On top of that we’ve found that they are sharp people who truly understand human nature. In addition, they are firm believers in continuous improvement. They live in the territory and they know the community from top to bottom.”

There’s No Such Thing as Too Much Information

There’s no denying that if the Internet hasn’t cornered the market when it comes to communication between manufacturers and their reps, it has had a major impact. Despite that fact, reps report to us that they still value the advertising and publicity that their principals provide to support their efforts in the field. Here’s what one rep had to say: “New product advertising and various other support materials are critical to the success of what we’re doing in the territory we serve. And, quite frankly, the more of this kind of activity the better for all of us. Like most of my fellow reps, I hardly have time to read every industry periodical that fills my mail box, but what I do is to closely scan all the publications that I receive. Then when I spot a product or service that’s related to what I do, I tear out the page, ask my principal for more information and then make a concerted effort to share the information with my customers.

“Here how I look at this communication effort — it’s truly a team effort and it’s this kind of support from my principals that lets me ensure a steady stream of pertinent information is provided to my customers.”

Communication — Another View

Staying on the same subject, here was the reaction of another manufacturer when he began receiving some complaints from reps about the volume of material they were receiving. “I don’t know if this view of receiving too much information was prevalent among a majority of my reps, but enough of them complained that I felt I had to do something.

“I stopped calling and sending them as much material as I usually did. That way I felt I could determine if this was just a vocal minority that would complain about everything I did, no matter what — or if I really had a problem. Thankfully, I got an even larger number of complaints from people who maintained they wanted and needed what I was sending them. I quickly returned to the original complainers and asked them how they want me to communicate. As a result, I’ve made the greatest number of people happy while still keeping the pipeline of information fully stocked.”

There’s More to This Picture

When a manufacturer new to working with reps explained that her main attraction to reps was the fact “They only get paid when they sell something,” a fellow manufacturer was quick to let her know that there’s much more to be known that recommends reps as the best way to go to market.

Citing more than three decades of relying on reps to carry his line, the second manufacturer maintained that the advantage of the rep only getting paid when they sell ought to be seen as a side benefit to the major reasons for working with reps.

“To begin with, we were originally attracted to signing on with reps because they are the ones who know a given territory much better than we ever could. It’s because they live in the territory and have sunk their business and personal roots there that we’re confident that they’ll provide the long-term stability that we’re looking for.

“In addition, since our company’s stated goal is to improve our market share, we’ve learned that there’s no one better than a rep to improve our position in the market.

“And finally, our customers have let us know in no uncertain terms that relationships are key when it comes to sales. Creating those needed relationships is something that would take our direct staff months to achieve. And then, once they’ve achieved them, they’d be looking for a promotion out of the territory. Reps don’t move — they stay where their family, relationships and business are.”

The manufacturer concluded by noting that “Once all those variables are considered, then we plug in the cost-saving benefit.”

Build a No-Gossip Zone

When one rep was asked if there’s anything that might trouble him about a principal’s behavior, he didn’t hesitate to explain, “If there’s one thing I find most unattractive about a manufacturer it’s that he talks about or gossips about his other reps. As an example, I have one principal who talks to me about his other agents and I know that he’s talking about me with others. Fortunately, most of us agents are aware of his habits and we take them all with a grain of salt. However, this type of behavior certainly diminishes his status in our eyes.”

A Vote for Proactivity

The “proactive approach” two agencies took upon signing with a manufacturer took the manufacturer a bit by surprise, but in hindsight he admits it was a pleasant surprise. Here’s how the manufacturer described what happened: “It’s been more than a few years since we had to replace reps in two of our territories so maybe it’s just the passage of time that has changed agencies, but for whatever reason we like what has changed. Faced with replacing the two agencies as the result of retirements, we followed the normal process of finding, interviewing and ultimately signing on with agencies that we deemed were going to be the most successful for us. Looking back, our decisions have worked out great and we couldn’t be more pleased with our choices. What took me by surprise, however, was what both agencies did upon signing on with us. Both agencies asked for an in-person meeting where they shared their agency business plans with us. They also asked us to provide them with detailed input on what we felt they could do better in order to serve us more efficiently in the territory. They explained that their goal was to serve their customers and principals better than they have in the past. Their feeling was that this could only be done with full and open communication between us. I couldn’t have agreed more. Naturally we complied and we continue to have regular and open discussions concerning our and their future business plans.”

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