“The people I report to have long insisted on the value of our reps submitting regular call reports so we know what’s going on in the territory. I can’t tell you how many times I’ve heard this. I, on the other hand, don’t believe it. I’d rather have the reps in the field selling product and proactively reporting to me about what’s going on. All I really want to do is judge their performance by how much they sell at the end of the month. By monitoring the MANA discussion, I’ve gotten a good deal of input that supports my view. I’ve been able to pass this along to my superiors and I’m slowly making some progress.”

He then went on to repeat some of the comments on the discussion board that supported his view — and continues to get the attention of his bosses:

• “As a representative for 25 years, I have had only two principals that have required formal monthly reporting. In neither case did the requirement last too long. Both were centered around a monthly phone call, and management at the principals’ offices could not keep up the schedule with their rep network for more than several months. I have to imagine that had reports been prepared they would have shared an identical fate, though I would still be expected to file them. I prefer conversations.

“I talk with the appropriate people within the principals’ organizations to keep them up-to-date on sizeable projects and provide copies of quotations to those that want them. With those that have regional managers, there are numerous opportunities to provide updates during the course of normal business activities.”

• “We always ask, ‘Would you like us to sell products out in the field or fill out reports from behind a desk in our office?’ We are in constant contact whenever there is something major going on, but the day-to-day stuff takes too much time. We did have a major line that started requiring reports, so we called their bluff. We started filling out weekly reports and after two months of no responses, we began to make up stories. First it was about major customers who “died,” then in the reports we had customers whose plants burned down, or were flooded out. As expected there were no responses. Then we stopped sending in the reports.

“When the reports stopped coming in, they called. We challenged them that no one was reading them and referred back to the ‘catastrophes’ in each report.
Obviously, we dropped the line, but it was fun!”

• “All sales reps — including in-house salaried ones — can claim that written reports take away from selling time, but the goal for all report systems should be for a streamlined, easy-to-complete process that satisfies and pleases both parties. Moreover, the expectations for a regular report must be included in the rep agreement. A rep council would be the ideal venue to work out the content and frequency of sales reports.

“We always ask, ‘Would you like us to sell products out in the field or fill out reports from behind a desk in our office?’”

“However, I believe we have an obligation to communicate and let our principals know what we are doing. I voluntarily send a monthly report to each principal of our sales activities unless they object. Believe it or not, many do object and are only interested in seeing purchase orders and sales action reports.”

• “This is one of the most age-old questions between a rep and a principal. I have served on rep councils and currently serve on one. In doing so, we have been the pathways for many rep/principal ideas, issues, etc. Remember, we are independent reps and per IRS guidelines a principal cannot tell us we have to send in reports. So legally you do not have to do this; however, any good rep would willingly and as good business practice, communicate regularly with their principal. It only makes sense to build that relationship and to help each other grow the business for both of you. I am on the phone and send e-mails weekly to my two main principals. With the other few, we communicate as needed.

“About twice a year I communicate with the top principals as to what I feel the area is doing, what I need from them to do it better, etc. Basically, they get an overview of the territory and what we can do to take it further. Again, we do not need to report all our activities to them, In many cases it can be mixed with other products/services, and other principals do not really care to hear all of that. So I would recommend keeping it very simple.

“Do what you signed on to do, excel at it, communicate regularly if you feel it is important or you know they feel it would be something worth hearing, and then recap with them at least once or twice a year on the overall territory. Regular reporting is just not a money maker and usually never gets looked at anyway.

“If you do not get Agency Sales magazine I would suggest subscribing to it. I’ve been reading it for many years, and it has been a great source of help.”

Proactive Communication….

Why not maximize our chances for success
by working hand-in-hand with our reps?

A timely follow-up to the above was offered by another manufacturer who described how one of his very best reps made sure the manufacturer knew exactly what was going on in the field. According to the manufacturer, “If I ever had any doubts concerning how this rep was working for me in the territory they were all put to rest when he proposed the execution of a monthly telephone conference call that would include all the major players from his agency with all the decision-makers in our office. The rep took charge of the call by making use of a number of provocative prompts that would jump start the conversation. Among those questions would be a number that pertained to what we were doing with the major accounts in the territory. He’d follow that by letting us know exactly what activities he was involved with for all of his and our customers and prospects.

“The call was never complete until both sides agreed upon what action plans we’d take before the next call.

“To say I’m overwhelmed by his approach is an understatement. And add to that the fact that he’s dramatically increased sales for us in the territory.”

Communication — the other way….

Lest there be the thought that communication is important only from the rep to the principal, another manufacturer voiced the opinion that he believes what the manufacturer has to say to his outsourced sales force is just as important as what the rep offers. According to this manufacturer, “If we want the rep to regularly tell us all that is going on in his agency and the territory, then why wouldn’t we see the importance of reciprocating by telling him everything he needs? For instance, what happens when we’re introducing a new product? Shouldn’t we tell him well in advance? Let him know exactly whom we’re targeting with the new product effort? Shouldn’t we share with him what we believe our goals are in the future?

“I’ve got to believe that our efforts are doomed to failure if we just put a product out there and hope the customers come to us. Why not maximize our chances for success by working hand-in-hand with our reps? I’ve got to believe they want to operate the very same way.”

Sharing the rep’s load….

All too often Agency Sales magazine hears from reps that their principals are shifting more and more tasks to the rep. Whether it’s additional marketing tasks or more paperwork, reps feel that as their manufacturers have been downsizing their own staffs, they expect reps to make up the difference. Well one manufacturer has turned the tide and come up with a number of steps he feels lightens the rep’s load. For instance:

• If there occasionally is a backorder, the manufacturer will have someone from its organization call the customer and explain the situation. According to the manufacturer, “That’s just not something we expect the rep to do. We feel it’s our responsibility.”

• “In addition, in the case of a backorder, we normally take a percentage off the order. That makes the rep look good in the eyes of the customer.”

• The manufacturer also ships orders within 24 hours, or they take five percent off the price of the order.

• With the goal of full communication, the manufacturer sends the rep an e-mail notifying them when a shipment is made.

There’s more to what the manufacturer does, but these examples just serve to illustrate some of the relatively small steps that a manufacturer can take when it comes to lessening the load that reps normally carry.

© Juha Tuomi | Dreamstime.com