A rep contacted Agency Sales recently to relate how two manufacturers recently terminated him and several of his peers throughout the country.

According to the rep, “With the first manufacturer, a change in their sales management pointed them in the direction of going direct rather than staying with their rep network; we had heard of their decision early on via the industry grapevine. When we asked them about it during the year, they confirmed what we had heard. Instead of bailing immediately, we opted to stay with them without seeking an immediate replacement on our line card. We did that so we could continue to serve our distributor customers. We had a couple of goals in making this decision. First, we wanted to ensure that our customers — to whom we sold plenty of other products — had no interruption in their supply of products and the service that would go with those products.

“Second, I’d like to think that this decision was simply a reflection of our professionalism and dedication to those we serve in the marketplace. We were fully confident that we’d be able to line up a replacement for this line. At the same time, any poorly thought out or quick decision by us would not reflect well on our organization.”

The rep continued that when the time came, a replacement was lined up with no delay and there was no interruption in the servicing of customers.

The second case that he described was a bit different. “With no warning and completely out of the blue, we received a phone call from the principal. The regional manager got on the line and explained that he was reading a prepared message — ‘After I read the message, there will be no questions and I will hang up the phone.’ For all of the feedback we were allowed, this might as well have been a recorded message.”

When the above scenario was bounced off a few manufacturers who dealt extensively with reps, there was relative agreement that the first case was at least bearable. The second situation, however, seemed to leave a lot to be desired. Typical of the reactions were the following: “As a manufacturer who has worked for years with reps, this was hardly the way to handle the situation. The level of unprofessional behavior was heightened by the fact that this was the same way they terminated other reps throughout the country. If they ever decide to go back to reps, they’re going to have a heck of a time getting anyone to believe they want any type of long-term relationship.”

Other manufacturers who were contacted concurred that when it comes to implementing any decision, manufacturers should go out of their way to communicate — and allow for feedback — as well and as fully as possible with their marketing partners.

“We all understand that manufacturers can and do alter the way they go to market. Naturally, reps want to be their partners in the marketplace, However, when a change occurs, there’s simply no excuse for not handling the decision in a professional manner.”

Building Relationships

A manufacturer turned management consultant who boasts of several years of experience working with reps offered the following on the subject of manufacturers and reps working together to build customer relationships: “In my opinion most reps and manufacturers fail to properly implement a plan to continuously pursue new customers and evolve relationships that turn prospects into customers. The most difficult part of the process is developing that relationship when no sales exist.

“The initial contact part with a customer is easy — the process may involve a simple phone call or sending some brochures or literature by mail. Either way, there needs to be a plan to make initial contact with each potential customer and follow up on a regular basis. The entire process works best when both the rep and the manufacturer participate in creating the plan. The rep can share territory knowledge and the manufacturer can define the budget and manpower limitations. Focusing on developing new relationships with potential customers is the challenge.”

Learning from Past Mistakes

A regional manager for a manufacturer admitted that a mistake he made early in his career was to look for reps who were just like him.

According to the manufacturer, “I quickly learned my lesson. Whoever is charged with signing reps may be very successful and think that his way is the only way, but flexibility and diversity ought to be the buzzwords here. Apart from missing out on the strengths that someone like you might not have, appointing an agent in your own image tends to build an organization that will lack the strength of diversity. Appointing agents is a critical step in building a strong company. Do it carefully, and don’t be surprised if you find that the agents you speak with are interviewing you as you interview them. When each knows the strengths and weaknesses of the other, the potential for success is multiplied.

“As you progress through the process, keep in mind that reps, just as anyone else, are never created the same. For instance, some are the craftsman type who are usually very product-oriented and are often engineers who have turned to selling. Then there are the entrepreneur types who are focused on building the business. Let’s add the bureaucrat types who look at business from the perspective of being a strong leader.

“There is no right or wrong type of rep. What you’re looking for is the best fit for you and the relationship that you want to grow.”

Modesty Is a Must

“Over the years I’ve learned that many of my best reps aren’t those who rush forward to tell me how great they were going to be. It reminds me of something my mother always told me: ‘Self-praise is as none at all.’”

Those are the words of one manufacturer who notes that it’s the rep who “wants to know about me and my company who has proven to be the most dependable. The truly effective reps are those that want to know all they can about us. When I gauge their high level of interest, I know they’re going to communicate their interest and enthusiasm for our products to customers in the field.”

She adds that it’s also the effective and professional rep who comes to “our first meeting with a wealth of knowledge about us, our company, history and products that really gets my attention. They’re more than prepared to make a good impression on me.”

Motivating Reps

“We’ve worked with shared territorial development fees with our reps, and we’ll do so again in the future. When we work on that basis, we’ll agree on a monthly payment covering a period of 12-18 months that’s geared to give the rep some time to let him develop a level of comfort with our products. However, I’ve found that guaranteed income such as that isn’t the only effective means to motivate your sales force.”

That’s the view of one manufacturer who is willing to negotiate such fees when it comes to pioneering work. He continues that what has really worked for him is a philosophy of support that complements such fees. “By that I mean sparing no effort when it comes to new product development, product samples, literature, training and communication. Added to that is from the beginning we let the rep know that we’re devoted to working by his side, not behind his back.”

Why Reps?

As more manufacturers continue the move to downsize, many opt to go to work with reps for a number of reasons, not the least of which is that reps possess the sales, product and territorial knowledge to get the job done. According to one manufacturer, “Whether it’s through retirements or attrition, we’ve been losing a lot of our seasoned people. As expected, when they leave, they also take with them the years of experience and knowledge that they’ve accrued. When we wisely partner with reps, especially those who have well-thought-out succession plans, we go to market with them with the expectation that they’re going to be with us for the long term. What recommends that we continue to work with these reps is the fact they have all the attributes we’re looking for in that they are self-motivated, will stay in the territory (i.e., they’re not looking for promotions to the home office), and they are performance driven. It couldn’t be a better match.”

Making Reps Team Members

Rather than being completely introspective with its sales and marketing plans, one manufacturer decided that to become truly effective with its team of independent manufacturers’ representatives, it would include them in their corporate sales and marketing plans.

According to the manufacturer, “I developed a specific plan for working with reps based on a great deal of material from MANA. In addition, I’ve been working closely with the first rep I ever appointed as a consultant for my company.

“Our first rep pointed out that it was important that we have a consistent plan for working with reps, and we contracted with her to help us develop that plan. I’ve got to admit, we felt a bit as if we were inviting the fox to come into the hen house because we didn’t have any real knowledge of working with reps and we were depending so heavily upon her.

“In hindsight though, it really worked out well. Our choice of that rep and our decision to have her develop the plan was the best course of action. I’d suggest that other manufacturers follow suit regardless of how they develop it. In addition, I’d suggest that even manufacturers who have been selling through reps for an extended period of time should develop a plan if they don’t already have one. It will help them clarify relationships, while at the same time point out areas that need bolstering and areas that can be augmented to be even better than they are.”

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