• Prospective reps have to have a strategic plan in place that shows that they are operating on the same track as their principal. Such a plan indicates whether any adjustments are needed and whether the rep’s and principal’s efforts are in sync with each other.

• If the rep firm operates across several marketing territories, it has to have an owner or principal who is located in — and physically responsible for — those territories. In other words, all major-market branch offices must be peopled by an owner of the firm.

• A succession plan is mandatory — the absence of which can be a deal breaker —and there has to be a strong level of comfort with that plan on the part of the rep firm and its principals.

• All the rep firm’s personnel must be aware of the rep’s changing role in the marketplace. Do all recognize that the rep must add to his skill sets and capabilities in order to serve manufacturers and customers in today’s super-charged competitive environment?

• The rep firm has to constantly exhibit innovative approaches to situations in the marketplace. The rep can’t operate simply as an order taker. He must provide those value-added services that make him unique.

Not Too Late to Fix a Mistake

About a year after dismantling its rep sales force and taking its products direct, one manufacturer decided it was time to back track and return to the rep model of going to market. According to the company’s sales manager, “We thought we were at a point where it was economically justifiable for us to take our sales direct. Were we ever proven wrong! Not only did we come face to face with the economic problems just about everyone else has encountered, but we found there were a number of other mistakes in our thinking.” Perhaps most important was the fact that the company began to lose contact with its customers because its direct sales force was never as present and attentive as its reps had been in the past.

Here are some of the points the sales manager mentioned that were large contributors to his company moving back to reps:

• Relationships — “When we replaced our reps, we lost the established, stable relationships our customers had with someone who truly understands our culture and practices in the territory. In addition, our reps have always been better at bridging inter-departmental communication gaps than our direct sales force.”

• Efficiency — “It didn’t take an awful lot of time to learn that reps were the most economical and efficient means for us to bring our products to market. The fact that reps can execute multiple-line sales calls opened many more doors for them (and us) than the one-product-line approach of our direct sales force.”

• Commitment — “When we put our direct sales force in place, one of the major problems we faced from the beginning was that without exception, the salespeople were looking to move up in the corporate organization. Not so with reps. They have always exhibited a long-term commitment to the territory and the customers in the territory. That approach put the interests of the customer first in the salesperson’s list of things to do.”

• Consultative Selling — “The consultative selling approach possessed by reps emanates from their understanding not just of our specific products, but in the way that product needs to relate to the other elements of the customer’s projects. They are true solution providers for all of the customers’ problems.”

• Advocacy — “In our experience, reps simply do a better job of fighting on behalf of the customer. They advocate for the customer at higher levels with our organization. The direct salespeople really didn’t seem comfortable going over the boss’ head. The rep readily did what had to be done.”

“They [reps] have always exhibited a long-term commitment to the territory and the customers in the territory.”

Getting the Rep’s Buy-In

When a group of manufacturers were discussing the push-back many of them experienced from reps when it came to getting them to participate in trade shows, one manufacturer noted that they should never expect buy-in if they (the manufacturer) don’t tote their share of the responsibilities. According to the manufacturer, “We’ve all got to recognize that it’s an imposition to ask the rep to leave his territory for a day or more to come help out at a trade show. You can hardly blame him for being reluctant to leave the activities where he earns his money. That’s why I make sure to keep trade show attendance requests to a minimum and share the requests among as many reps as possible. I also make it a point to be there before the rep gets there and stay after he’s done. I participate in the set-up and tear-down of the booth, I make sure all his meals and extraneous expenses are covered and, perhaps most important, I make sure he gets any and all qualified leads from the show.

“It’s my job to make his attendance as painless and worthwhile as possible. My experience has been that if I employ this approach, there’s little reluctance on their part to pitch in when I need help.”

Contracts — the Other Side

Elsewhere in this issue of Agency Sales is an article presenting the mostly positive views that reps have of written contracts. It isn’t just reps that think that way, however. One manufacturer weighed in with his view on the subject when he said: “I’m a little wary of the rep that doesn’t introduce the subject of a contract when we’re negotiating. To some extent it causes me to question his professionalism. I’m not new to this game, and I fully understand that there are some reps willing to take on lines notwithstanding the risks of taking one on in the absence of a written agreement. A contract works two ways, however. It not only protects the rep, many times guaranteeing payment for pioneering work or safeguarding their rights when it comes to post-termination compensation. But I prefer to look at it from my side of the desk, and that means it also protects me and my company. The well-written contract is fair to both sides. Just as important, it spells out all that is expected from both sides. As the relationship grows and develops, there should not be surprises in who should be doing what. It should all be spelled out beforehand. I not only recommend that reps insist on contracts, I’d say the same thing to my manufacturing peers.”

A Vote For the “Little Guy”

A conversation with a mid-sized manufacturer resulted in a vote of confidence in favor of the mid- to small-sized rep firm. This manufacturer self admittedly is hardly the number-one provider in its line; however, it can boast a long record of serving its customers well while providing quality products. According to the manufacturer, “Because we’re not the big guy on the block, we learned long ago we’re not going to attract the attention of the largest rep firms. In addition, because of our size, we know that we’re never going to be the top line that any of our reps work with. Since we willingly acknowledge the realities of the marketplace, we seek out reps whose lines truly complement our products. Besides, what good would it do us to sign on with a large rep firm and have us regularly reside on the bottom of their line card?

“Also, from the very beginning of our relationships with reps, we let them know that we’re aware they’re not going to be spending the majority of their time on our line — all we want is our fair share. And, our reps have told us (and shown us) that we get their fair share in return for the way we support and treat them.

“We provide them with all the product samples they need, keep them up-to-date with company plans and activities and perhaps most important, we pay them on time.”

Getting Your Fair Time

As an add-on to the comments from the previous manufacturer, another manufacturer has offered his thoughts on how and why reps spend time on various lines. According to the manufacturer, “Reps are only human; that’s why they’re going to spend the majority of their time with the products they’re most comfortable with and where the money is. To increase their comfort level and present the best chance for them for make money with our line, we regularly up the level of training we provide for new product introductions so the rep goes into the field confident that he can sell the product.”