The More Things Change, the More They Stay the Same

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© Photocreo Bednarek | stock.adobe.com

When an oft-quoted French phrase appeared in the opening pages of a New York Times best-selling novel late last year, MANA-member reps and manufacturers were quick to voice opinions that lent credence to the more than 150-year old saying.

Just so the reader doesn’t have to translate from the French, “Plus ca change, plus c’est la meme chose,” in English means, “The more things change, the more they stay the same.

How does this saying apply to the shared world of reps and principals? First up with his thoughts is Michael Roemen, the independent sales rep manager for 9Wood, a Springfield, Oregon-based manufacturer of custom wood ceiling systems. According to Roemen, there’s a lot to discuss here. “First up in addressing things that have stayed the same, I have to cite what MANA President Charles Cohon always refers to and that’s something I think he got from the legendary Green Bay Packers’ coach Vince Lombardi. It all comes down to basic blocking and tackling. That’s the cornerstone of the manufacturer-rep relationship. If we as manufacturers continue to provide a quality product, ship it on time, pay accurate commissions on time, all the time, and remain responsive to our reps’ requests for assistance, we’ll continue to be successful. That never changes. These are the main tenets of the manufacturer-rep relationship. If we continue to do all those things I’ve already mentioned, the natural outcome is a trust in each other. One of our most valued assets is the trust we share with our reps. That remains the same as it’s always been. That’s what I mean by continuing to perform the blocking and tackling.”

That’s not all he’s talking about, however, when it concerns aspects of the relationship that have remained the same. “New product development is key to the relationships. We’ve got to be cranking out the new quality products that the market demands.”

In-Person Relations

Then there’s the one critical variable of the relationship that will always remain the same — face-to-face contact. “I can’t emphasize too much how important our in-person contact with our reps remains. It’s evident in all the things that we do whether it’s attendance at trade shows and our annual sales meetings or joint sales calls with them in the field. We see our top reps at least once a year and get to see all of our reps at least every other year. Then there’s our effort to regularly get on the road with them. You can really get to know someone over the course of lunches and dinners in the field, not to mention all the windshield time you spend with them while making sales calls. I don’t believe anything will ever evaporate the need for face-to-face contact. We’re true believers in the importance of them seeing us and our ability to see them.”

One more thing Roemen identifies that hasn’t changed when it comes to working with reps is the fellowship or comradery that they share. According to Roemen, “Reps have always spoken with each other and compare notes on their customers and principals, and they continue to do so. For someone like a rep who generally works alone and is a bit isolated, this provides them with a valuable sense of fraternity.”

Plenty of Change

What’s changed in the relationship and processes between manufacturers and reps? Three aspects of the relationship head the list that Roemen cites:

  • Communication — “Right off the top of my head, this is probably one of the most obvious examples of how things have changed. I remember when I first got into the business that we all depended upon our land lines (remember there weren’t any cell phones then), ‘snail mail’ and fax machines to send in large plans. We even had an entire room where we kept large blueprint plans where we spread them out over a large table and used highlighters to work on projects. Today everything has gone digital. We’re all equipped with cell and Smart phones. Plans are downloaded immediately and I’ve got some reps that I only communicate with via text messages. The rapidly developing technology and efforts to go paperless have drastically altered how we communicate.”
  • Relationships — “While it’s imperative that reps must continue to be confident and engaging in their relationships with customers, I’d have to say that the ‘good-old-boy’ days of bringing donuts and playing golf with customers have gone away. Today it’s all about servicing the customer, identifying their needs and supporting them. Today the rep is much more sophisticated in his efforts to go to market.”
  • Identifying decision makers — “The best reps have figured out that they have point persons at the customers’ various departments. They know who their master is and they know how to leverage those relationships.”

Finally, he adds, “Another breakthrough I’ve seen with several reps is that they’ve learned the benefits of having an administrative assistant. There are huge gains to be realized by not doing everything yourself. Historically reps have done everything from setting up appointments, checking emails, etc. Typically there’s been a belief that ‘I can do everything myself.’ But by following that philosophy there are so many opportunities that are lost. Why not let someone else perform those functions and free yourself to do what you do best — sell.”

Taking the question of change to the future, Roemen emphasized that one thing that has become more important now — and will continue to be so in the future — is the importance of reps planning for their succession. “One thing facing us as a manufacturer when it comes to working with reps is whether reps have a suitable candidate in mind to work their agencies in the future. Looking forward we’ve got to be very careful in how we select the reps we go to market with.”

The Need for Communication

MANA Board Member Charlie Ingram immediately acknowledges that while some processes have changed in the relationships between manufacturers and their reps, “The major aspect of the relationship that hasn’t changed — and remains of paramount importance — is the need for communication.”

Ingram, vice president and chief marketing officer, Eriez Magnetics, Erie, Pennsylvania, continues, “I’ve been around long enough that I can remember the need for knowing where the banks of telephones were in hotels in your territory. Compare that with today where cell phones are ubiquitous and we work with instant communication. This points to the need for all of us to learn how to successfully adapt to evolving technologies; but nothing has really changed when it comes to reps and manufacturers communicating with each other.”

On a related item, Ingram says, “I think back when we first established our rep council in 1995. While the methods of working together (e.g., YouTube videos, the Internet, email, etc.) have certainly changed, we still get together on a regular basis with our reps to work on the basic objectives of developing an alignment of strategies and plans to serve our mutual customers. That’s something that hasn’t changed at all.”

Eriez is an authority in separation technologies. The company’s magnetic lift and separation, metal detection, fluid recycling, flotation, materials feeding, screening, conveying and controlling equipment have application in the process, metalworking, packaging, plastics, rubber, recycling, food, mining, aggregate and textile industries. Eriez manufactures and markets these products through 12 international subsidiaries located on six continents.

If technology has seriously impacted the way manufacturers and reps deal with each other and their customers, even the most cursory look at the Eriez web page (www.eriez.com) points to another way things have changed. The Erie, Pennsylvania-based company boasts of locations in India, China, Mexico, Australia and Canada. According to Ingram, international activity marks a major change in the way business is conducted today. “In the past, U.S.-based companies might have considered that trading with Mexico and Canada meant they were going international. Things have changed today to the extent that now there’s an ability to have your product viewed on the Internet at any time and in any place in the world. It used to be that the first time a customer got a look at your product was when the salesman was making his sales call. It was during the course of that call that the customer first got a chance to get a leg up on your offering. That’s all changed.”

Succession Planning

Something else that’s changed — and it’s an area that Ingram and Roemen agree upon — is that of the importance of the rep of today planning for the tomorrow of his or her agency. Like Roemen, Ingram maintains that if there’s “One area manufacturer sales managers agree upon and lose sleep over it’s the need for their agencies to have succession plans. Our average tenure with agencies is around 20 years and we even have one agency that’s been with us for 70 years. There’s a struggle for agencies, in general, when it comes to recruiting and retaining sales talent and planning for the future. I am very concerned about reps being able to attract the next generation for their businesses.

“Succession planning has always been a number-one concern for us. It’s something that has to be discussed by manufacturers and their reps and in order to have those discussions there has to be a great deal of trust between the two. It remains a matter of concern.”

These changes or alterations to the business model between manufacturer and rep have increased the need for reps to become more professional in all that they do. According to Ingram, “There was a day when the rep was viewed as just a sales arm of the manufacturer. For his part, the manufacturer performed all the advertising, attended trade shows and gathered leads that were forwarded on to the rep. The rep, in turn, had the relationships with customers in the territory and made the expected sales calls. Today, it’s the professional rep who has evolved with time who is more than just a sales company. He’s a business person who must develop his own marketing plans and brand his own agency. It used to be that reps would carry as many as 10 different business cards. Not so today; they carry one that brands their own agency. They are the solution providers for the territory.”

When asked if all these changes positively or negatively impact relations between manufacturer and rep, Ingram maintains, “They serve as a positive if you have a good relationship with your principal. Eriez, for example, has long-standing relationships with agencies, many stretching back three generations, including some that surpass 50 years. We’ve gone over any number of bumps in the road and have shown that we can work together over the long haul. If you have those kinds of relationships and continually align your business objectives, then you can work through any changes that occur.”

Internet Impact

Manufacturers are hardly the only ones with thoughts on what aspects of the manufacturer-rep relationship change and remain the same. For example, equipped with more than 30 years as a rep, Marty Grimes, Assembly Solutions, Inc., Covington, Kentucky, points to the impact the Internet has had on the way reps work.

Assembly Solutions represents assembly automation companies who provide the solutions and help manufacturers successfully deploy either automation or an assembly system. Based in Northern Kentucky, the agency services parts of Southwest Ohio, Southeastern Indiana and the entire State of Kentucky.

“When I speak about the Internet what I’m talking about is the way we communicate,” maintains Grimes. “It’s a wonderful business and sales tool and it’s something I use to do everything from booking appointments for the next couple of weeks to scheduling meetings and keeping the books. Just think for a moment how we used to do things like relying on voice mail ‘jail’ or dealing with receptionist gatekeepers. That’s all become so much easier for us.”

If the Internet has presented a change to the manufacturer-rep-customer dynamic, Grimes (like Roemen) is quick to note that whatever benefits this tool has provided, it never will replace the benefits of face-to-face contact. “Because of the automated tools we’ve come to rely so much upon, too often principals can fall into the trap of devaluing the hidden value of having a rep live and work in a territory and having relationships that they’ve fostered for decades. There’s no substitute for the use of good-old-fashioned ‘shoe leather’ when it comes to working with customers.

“At the same time, however, because of these various automated tools, it’s getting more difficult all the time to get that face-to-face contact that we need. I work with control and plant engineers and they’re all doing the jobs of three people. I know their time is valuable. That’s why it’s critical to learn to be skillful when it comes to communicating with them. It can be a struggle putting together a face-to-face routine to establish the rapport that allows you to infiltrate your customer’s organization. Remember, you’ve not only got to get to engineering personnel, but all the other decision makers in an organization.”

The Need for Respect

“Two things that haven’t and never will change are the importance of relationships and the need for mutual respect.” That’s how Michelle Jobst responds to the question of what’s changed and what’s remained the same.

Jobst Inc., Eden Prairie, Minnesota, represents leading manufacturers of custom molded rubber, cast and molded polyurethane, thermoset and thermoplastic composites (fiberglass and carbon fiber) EMI/RFI shielding materials, precision machined & progressively stamped metal, plastic and rubber extrusions, and VPI encapsulation.

In referring to relationships and trust, Jobst returns to the theme others have cited when it comes to change. She notes that face-to-face relationships remain critical. “Just think for a moment about how valuable the experience is when you deal with someone face-to-face. It’s during the course of live meetings that you can read what the requirements are for a job, determine the financial condition of a company, not to mention being able to read the body language of the person you’re dealing with.”

If live in-person relationships remain the constant, a change that she’s encountered over the more than 25 years as a rep is seen in the pace of change in the personnel that she deals with. “I think the change of ownership of principals coupled with changes among their personnel has been occurring at a pace we haven’t experienced previously. What that does is to place a responsibility on the reps to communicate the value of the services that they provide. That’s important because all too often new personnel may not truly understand what reps provide. That includes a number of things beyond just selling products. It involves everything needed to get the job done efficiently.”

Additional Responsibility

Begrudgingly another rep based in New England notes that one thing that hasn’t changed is the fact he’s still representing principals who continue to pay an industry-standard five percent commission on the products he sells. “But, at the same time they are constantly coming to us and asking us to do more and more for them with no change in the commission rate. What we’ve had to do is to acquaint them with the fact that there’s a cost involved in doing what they want. We’ve also attached a marketing fee to the some of the tasks they require. We’ve had mixed reactions from the manufacturers we’ve worked with. Bottom line is that a number of principals look at the commissions we earn as something that goes directly into our pockets. That’s hardly the case and it’s something we’ve got to educate them about.”

At the same time, this rep cites the difficulty he’s encountered when it comes to establishing that invaluable face-to-face contact that his fellow reps have already mentioned. “Getting to see some of our customers is next to impossible, especially when it comes to meeting with people you haven’t had contact with in the past. There are so many levels of doors you have to navigate.”

If he works hard at it and manages to get across the desk from that customer decision maker, then there are a couple of other things that have developed that he hasn’t seen in the past.

“I can remember how in the past I used to mail postcards and brochures to customers to help establish a relationship. Just recently my agency produced a three-page fold-out brochure that told customers everything they needed to know about the agency and the products we represent. When I visited the customer, all he asked was ‘Is it online?’ So at the same time it’s difficult to get into see customers, once you get there, no one wants paper any more. All they want is something that they can quickly view online.”

Then there’s the problem of providing added services to a customer. “During the last couple of months one of my customers had a need for a machine that would grind medical waste so the waste could be properly disposed of. They were looking for a manufacturer that could build a machine for them. Over the course of several meetings, I helped them design such a machine, and worked with them on developing drawings and answering all their questions. Finally we got to the point where I asked them when they were going to place an order for a prototype. Their answer was that they already placed the order with an overseas’ manufacturer. All the work I did was for nothing. That’s something we really didn’t run into in the past. If anything, I’d say there’s been a loss of appreciation and loyalty among customers we serve.”

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

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Jack Foster, president of Foster Communications, Fairfield, Connecticut, has been the editor of Agency Sales magazine for the past 23 years. Over the course of a more than 53-year career in journalism he has covered the communications’ spectrum from public relations to education, daily newspapers and trade publications. In addition to his work with MANA, he also has served as the editor of TED Magazine (NAED’s monthly publication), Electrical Advocate magazine, provided editorial services to NEMRA and MRERF as well as contributing to numerous publications including Electrical Wholesaling magazine and Electrical Marketing newsletter.