Manufacturer and Rep — Working Together

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The running of the Indianapolis 500 earlier this year was one of the most exciting on record.

The winning driver, Simon Pagenaud, won by a mere two tenths of a second! It truly lived up to its reputation as the “Greatest Spectacle in Racing!” But did you know that another very exciting development this year was the entry of a new car owner who had developed a new business model that he felt to be not only more cost-effective,
but both revolutionary and a winner?

In front of a crowd of 300,000 his new team’s driver miraculously jumped out to an early lead and was ready to make the first pit stop. The car came into the pits and the car’s driver unbuckled, jumped out and plugged in the fuel hose, jacked the car up and changed four tires, made a couple of wing adjustments, got back in, buckled up and raced to get back out on the track. The only challenge was that the pit stop took so long, they were now down two laps and so far behind, catching up was impossible. Cost-effective? Yes. Chance to place first in the race? No. Sounds a little crazy, wouldn’t you agree?

Obviously, the experience of this team as an example is offered tongue-in-cheek. But, in many ways, it describes how the relationship between manufacturers and their independent reps in the field has evolved and, to a large degree, the way manufacturers’ reps are expected to operate in today’s world.

Reducing Support

Over the years — and especially since 2008 with the great recession — it seems that more and more manufacturers gradually have reduced their internal sales support teams, including customer service. Most would agree the trend was intended to be short-term so that as the economy got stronger and sales increased these key support positions would return. Unfortunately, it appears this is not occurring, and manufacturers are increasingly turning to their independent reps to fill many of these roles.

The question becomes, “What is the true cost of this evolution and how many relationships and sales are not being made with the manufacturers’ reps’ time, talents and resources being spent doing what manufacturers and their staffs should be doing and, frankly, probably doing better?”

How can the manufacturer and the independent rep work together in order to secure the win?

  • Set clear and concise expectations for the rep as to what the manufacturer expects of them. What part of the sales cycle can the rep bring real value to?
  • Provide real time data for order status and shipments that the rep can access from anywhere.
  • Provide internal sales support staff to assist the rep once the order is placed so the rep can move on to securing the next order opportunity.

The team owner (manufacturer) must ensure that the driver (rep) has a support team that works with the driver to remove tasks and issues that distract from the sole focus of the driver (rep), generate sales! Only then, can the driver (rep) beat the competition and win the race (order) for the manufacturer.

MANA welcomes your comments on this article. Write to us at [email protected].

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  • photo of Jim Baker

MANA member Jim Baker, president, the William Baker Company, has been an independent manufacturers’ representative for commercial building products for more than 34 years and is based in Indianapolis, Indiana. Now in its third generation, his company, comprising six people, represents for eight manufacturers in Indiana and Kentucky. Visit www.wmbakerco.com.