When a panel of manufacturers was asked the following question, a lively discussion followed: “Is there anything I would want my reps to do that would make us more successful?”
Adding personnel — First up, one manufacturer offered, “I actually approached one of my reps on this subject. Here’s what I said: ‘I’ve done an analysis of your territory and I’d like you to prove me wrong. I know the amount of business we have right now, and I know how much potential there is in the territory. I’ve concluded that if you added another person in the territory, we’d both be more successful. Here, in black-and-white, is the value you presently provide me. There’s a gap between that and how much business we could conceivably capture. What do you think?’
“In response, the rep didn’t take issue with what I had to say. Instead, he agreed but then came up with a bit of a twist to what I said. ‘How about I make a commitment to getting that additional person. Not only will I hire someone, but I’ll also have them work on your line exclusively because I also know how much business is out there. However, if I’m making that level of commitment, I need some assistance from you in terms of helping pay the person’s salary.’
“We spoke for awhile, negotiated and agreed that we’d both participate in hiring that new person. At the time it sounded like a winning proposition, and during the six months that the new person has been with the firm, I’ve been proven correct.”
Communications — A manufacturer advised that he was well aware of the general aversion that reps have for submitting sales reports, but he offered, “It’s the reps who communicate regularly of their own volition in whom I have the greatest amount of confidence. It’s those reps who don’t communicate who tend to struggle with a line. And, I’m sure mine isn’t the only line they have to struggle with.”
Serving as the solution provider — “Neither I nor the customer place a great deal of confidence in the rep who just drops off a brochure or wants to know what I thought about the ballgame last night. It’s those reps who demonstrate that they’re the solution provider who are the ones we want to work with. For instance, if the rep solves a clutch problem, then he’s my go-to guy. He anticipates problems, knows how to solve them and will always be there.”
Professionalism — Another manufacturer asked: “Do your reps have goals that mirror my own? Do they have a business/strategic plan? Is it a plan that we can go over together annually and make adjustments as needed? If he does, then I know we’re maximizing our relationship.”
Educating the customer — “Has the rep educated the customer concerning the ‘rep model’ for going to market? Does the customer know the rep is not a ‘middle man’ but is truly the manufacturer’s representative in the field? If not, then he’s failed in his job.”
Agency branding — “When the rep has established his brand on his agency, then he’s the one we want to work with. By understanding each and every product he represents, the rep, in fact, becomes the factory expert in the field. If a customer exclaims ‘I want to see someone from the factory,’ that’s a red flag. Reps who have branded themselves never have customers react that way.”
Making the Most of Communication
A manufacturer let us know how much he appreciated the attitude of one of his reps when it came to communication. “Like any other manufacturer, we want to be kept informed regarding anything important that’s going on in the field. At the same time, we’ve heard, listened to and appreciate the feedback most of our reps provide us when it comes to letting us know that keeping us in the loop can sometimes detract from their ‘face-time’ with customers. But we’ve got one rep who simply put his arms around the problem and has done a good job with it. Here’s how the rep describes his attitude: ‘I constantly remind myself that without fax machines (which are declining in use), PDAs, e-mail and other technological tools, we could never do the volume of business we do today. The moves we’ve made—and the moves our principals have made—toward embracing technology, have helped us do more volume at less cost than anything else we’ve done for our company.’
“That’s the type of attitude I truly value in my reps, and I find it’s growing among our outsourced sales force.”
Discussing the Value of Adding a Line
During a break at an industry meeting that was attended by manufacturers and reps, one manufacturer approached us to describe his philosophy about his reps adding lines. “We’ve historically enjoyed a great relationship with our reps. As a result, many of them will consult us prior to making any type of a major decision, such as adding a line. When we learn about what they’re considering, we’ve put together a couple of questions that get them thinking—and many times provide them guidance in making their decisions.
“Are you adding this line to better meet yours needs, the needs of your customers, or the needs of your principals—naturally, including us? Make sure that whatever you do benefits everyone.
“What situation has developed to cause you to want to add a line? Does the economic situation dictate that you do it? If you’re in a growth mode and need additional lines to generate additional revenue, then that’s fine, but remember you’re probably going to have to add personnel and make other investments in your firm to make this work.
“Consider the fit of the line you’re thinking about. Does it complement your present line card—and more specific to our interests, does it complement our product offering?
“Are you convinced that this new line will contribute and is sustainable by your agency well into the future?
“And finally, whatever you do, don’t stray too far from your current line mix.”
“We’ve found that our reps willingly engage in conversation on these subjects and they appreciate the fact that we’re interested in their future success.”
Getting Accurate Market Intelligence
“If I can’t do it myself, I’m not afraid to pay for it.” That was the attitude espoused by one manufacturer when he was describing how difficult it can be for him to gather accurate marketing information.
“We’re a fairly small manufacturer. As a result, we don’t have personnel we can assign to the field—that’s why we use reps. At the same time, we’ve got to know what’s happening out there. That’s where our reps come in—in addition to getting us orders. When we have a need for marketing ‘intel’ in a specific territory, we’ve had good luck asking our reps for assistance. While we’re not afraid to ask for their help, we’re also not afraid to pay for it. This approach has provided us with what we need, while providing them an additional revenue stream. We both win.”
Times Have Changed — for the Better
“I wouldn’t call it more selective or aggressive. It’s more professional.”
That was the reaction of one manufacturer who had recently gone through the selection process of choosing new representation. But rather than this simply being a process whereby the manufacturer culled through a number of reps to decide who was going to represent him in a territory—it was a mutual-selection process.
“In years past,” the manufacturer reported, “we contacted a number of reps in a territory where we needed representation. Then we simply worked our way through them until we found one with whom we clicked. Naturally, the one we chose had to demonstrate his abilities and experience to us, but it was a fairly one-sided process where we made the decision.” How times have changed!
This time, “We identified three reps we were interested in. When we contacted them, however, one very politely said he didn’t feel it was a good fit because his existing lines weren’t synergistic with ours and besides, he maintained his line card was filled to a level he was comfortable with. Perhaps more surprising, however, was the reaction of the other two reps. Neither immediately jumped at the chance to work with us. Rather, they placed us under the same level of scrutiny that we usually reserve for our prospective reps. Both of them asked a number of proving questions concerning everything from shared-territory development costs, exclusivity and post-termination compensation. While we might have been taken aback, ultimately we came to realize how far the rep profession has progressed.
“When we ultimately made our choice of one of the two reps—and it was a close call—we felt very confident that we had selected a professional partner for that territory—one that is going to serve us well for a long time.”
Appreciating the Extra Effort
When one manufacturers rep contracted with a professional sales trainer to work with its outside sales staff, it didn’t stop there. In addition, the rep invited the outside salespeople from several of the distributors that it works with in order to undergo the same training.
This impressed one of the rep’s manufacturers. “This shows how seriously the rep believes in ongoing sales training. And, by extending an invitation to the salespeople from several of their more important customers, they showed a real belief in the value of training. This is the type of commitment we truly value in our reps.
