It’s hardly unusual that rep‑principal relationships start off very well, but before anyone realizes what’s happening, things begin to sour.

Part of the cause for this disintegration of the relationship is that once reps are signed on, they are all too often forgotten. A bad situation can be exacerbated when principals fail to offer reps any orientation, visiting the home plant is not encouraged or there’s no strategic plan and no real commitment to the rep way of going to market. It would appear that as long as the orders keep on coming, nothing has to be done to maintain or improve the situation.

When problems such as leads not being followed up or quotes come in for the wrong product, however, both the principal and the rep get unhappy in a hurry and the strands of the relationships begin to unravel. Both are disappointed. The principal is upset and begins to think reps aren’t the correct way to attack the market, and reps are upset because their original satisfaction at landing a good line has quickly turned to disappointment.

For years Agency Sales has reported on this cycle, but it’s a cycle that doesn’t have to continue. There are a number of steps that can — and should — be taken that will alleviate this situation:

• Once reps are signed on, stay in close touch after the initial courtship period.
• Ensure that your company’s philosophy and story are clearly communicated and defined for your reps. Let them know exactly what your company is good at and educate them as to the type of customer that you’re after.
• Provide a steady stream of the tools they’re going to need to get the job done — and do it without them asking for it. By tools we mean everything from paperwork, copies of quotes, orders, invoices, sales literature, product samples, etc.
• It’s incumbent upon the principal to learn all they can about their reps. What’s their level of experience in your market — with the customers you want to attract?
• Are they the type of person you want associated with your company?
• At the same time, you must insist that reps visit your factory, make sure to visit with them and travel with them in the field.
• Communicate, communicate, and communicate some more. Establish a schedule whereby you’re in weekly and monthly contact with your reps. At the same time, encourage them to communicate with you on any and all matters of importance from the field.
• Encourage a teamwork philosophy among your inside people so reps know they have someone at the home office they can depend upon.
• Above all else, pay them accurately and on time.

Pay — Always Pay

An industry consultant voiced strong support for the last item mentioned in the previous tip — that of paying reps accurately and on time.

According to the consultant, “There’s no better way to be proactive with reps than to ensure they are being compensated fairly and on a timely basis. Look at today’s economy and you’ll see that reps are cutting back just as manufacturers are. They’re being extremely judicious about the application of their limited resources. And, just as manufacturers, they don’t have much, if any, excess capital. That’s why proactive principals are sure to keep a close eye on when and how they are paying their reps.”

Consultative Selling

More than two decades ago, Agency Sales reported on the results of a study that covered a growing trend among reps that called for them to adopt the principles of consultative selling. According to the study, making the transition from a product sale to consultative selling was the most frequent challenge faced by both manufacturers and their reps. Moving from a product sell to a “solution-type sell” was identified by 69 percent of the 134 sales managers that responded to the survey.

The article in Agency Sales continued, “The findings of the study suggest that today’s sales organization has a more sophisticated focus than a few years ago. While more than half of the study respondents still cite frustration with basic sales techniques, such as prospecting and closing, more encounter trouble at the higher end of the sales process, specifically consultative and value selling. This reflects a shift in emphasis as much as the complexity of the tasks involved.”

The challenge that reps were encountering then — and it’s a challenge that persists today — was described this way: “The accepted dogma is don’t push product on the customer. Rather, address his or her business problem and show value. Frequently, however, sellers have to deal with customers who need to be in control, want to define what they need and seek the best price. And when all else fails, the seller falls into old habits and ends up shaving the price in order to win the deal. A mistake made by management is to view consultative selling just as a technique. Effective solution selling requires a culture change, top-to-bottom engagement and an organization-wide commitment. Otherwise, the organization doesn’t speak a common language and sends out different messages.”

Making the Right Choice

Perhaps the primary concern any manufacturer has when they initiate working with a network of independent manufacturers’ reps is, “How do I know I’ve made the right choice with my reps?” In answer to that concern, not much has changed over the years.

The main ingredient for growing sales is for manufacturers to engage in the right relationship; it’s all about having the right partner.

When looking for the right partner, manufacturers must treat the search, interview and selection as though you are hiring a key executive for your own company. By following this path, you ensure that the key values and standards held by your company are present in your new partnership.

Cultivating these new connections is the first step. MANA and Agency Sales recommend several effective tactics to get started, including using the MANA online RepFinder® database; advertising in Agency Sales; asking other reps, customers and distributors; and building a solid initial list of potential reps you might choose to work with.

With that as a beginning, here are a few important steps to keep in mind:

• Conduct your research

Make sure you visit potential reps’ websites and line cards in order to determine fit, synergies, and complementary products. This is the ideal opportunity to gather as much information as possible prior to making a decision to call them.

• Contact potential reps

As many manufacturers know, it’s not likely that a potential new business partner is going to respond to just another email that appears to be no different than the hundreds of others they’ve received on a monthly basis. To counter that, simply pick up the phone, talk to them, and if they are not interested ask “Do you know someone else that might be interested in working with us?” People know people in the business — manufacturers and reps.

• In-person visits

After making that call and narrowing your list to a manageable number, take the step to get in the car or on an airplane and visit potential candidates. It’s imperative to get eye-to-eye with each candidate; see their people and operations, thoroughly discuss the territory, targets, marketing efforts, and evaluate their expectations; and candidly share information concerning strengths and weaknesses. Also review your products, policies, people, and the terms and conditions of your principal-rep agreement contracts. Know exactly what you’re looking for and be prepared. A second round of interviews in-territory can be of great assistance. Bring more of your team, or invite the final candidates to visit your headquarters.

An added emphasis on the importance of these in-person meetings was offered by one manufacturer: “I have to admit that in the past we all too often took the personal interview for granted. That’s changed entirely. Now we look at everything, the potential rep’s appearance, his enthusiasm for us and our products, and his interest in how we conduct business. We also take pains to make sure we share goals. We don’t want reps who are just interested in the monthly commission check. We’re looking for partners who see our line of products as a complement to what they’re already doing.”

• Make a decision

Finally, bite the bullet and make a decision. Now the real work begins for everyone on the team. Keep your new relationship growing and healthy. Lead and motivate, don’t manage and control. Once you have teamed up, set mutual goals and expectations. Develop strategies for breaking down any obstacles to capturing new sales in emerging markets and with new accounts or growing business at your existing accounts. The total focus needs to be on the customer. Be patient, be persistent, but most of all be fair and reasonable.

Why Me?

That’s a deceptively simple question that any manufacturer ought to ask when considering why a rep would like to work with them. Thankfully, the huge majority of manufacturers we ask the question of hardly skip a beat when they answer. Recently, however, one came up with what we thought was the perfect answer, and it’s a response others ought to consider: “We pay our reps on time, We’re honest with them. We communicate with them regularly, and we don’t play games with them. We treat them just as we treat our full-time employees. And, finally, we have a steady stream of innovative products that we bring to the marketplace.”

If that works for that manufacturer, there’s probably no reason why a similar response shouldn’t work for most.

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