In a recent conversation with Agency Sales, the national sales manager for a Midwest-based manufacturer offered his take on what he considered is the rep’s value proposition. “After several years of working with a high level of success with a rep network, I’ve learned even more how valuable independent reps are for a manufacturer. The rep brings value to the manufacturer’s table.

“The rep has the sales organization in place in the territory that the manufacturer doesn’t have to create for himself. On top of that, perhaps the most valuable asset the rep has to offer is the relationships in the field — and that’s something the manufacturer can never duplicate.

“Then there’s all the overhead the manufacturer doesn’t have to pay for. The rep is responsible for his own travel, entertainment, meals, insurance, and other related expenses. That’s all paid for by the commission checks we pay the rep.”

He went on to note that “We’re not even talking about the selling opportunities that are presented to the rep that normally wouldn’t be there for the direct salesperson.”

With all those positives firmly established, he was quick to add that working with reps isn’t without challenges, the largest of which is to become the rep’s emotional favorite and to encourage them to continue to grow the business as much as they can.

Staying with that “emotional favorite” subject, the manufacturer added, “If there’s loyalty on both ends of the relationship, you can accomplish your goals. You instill a sense of loyalty by saying what you’re going to do, and doing what you say. Once a rep sees that, they’ll respond. An integral part of achieving that loyalty can come with the existence of written contracts, spelling out exactly what is expected of each party.”

Building the Relationship

As if that manufacturer’s input wasn’t enough, an industry consultant offered her take on how manufacturers can craft an effective working relationship with their outsourced sales force. According to the consultant, “Some principals take that first step into the trenches with reps completely unaware that they’ve got to be proactive in all their interactions with them.”

Defining what being proactive means, she explained, “Before a principal even approaches a rep, he must have well-defined goals and objectives. He’s got to be an excellent communicator and respond promptly with accurate and timely answers to questions and inquiries. In other words, he’s got to think and plan for that which he is about to do.

“The principal’s goal in working with reps should be to do things that will help reps work with you. By definition, at the end of the day, our goal is to get an order. There will be no order, however, if and until a customer has been satisfied.”

In creating that satisfied customer, the principal and his rep must work together as a team, according to the consultant. “The concept of proactivity for the principal enters the game when he decides what he’s going to do to make the selling process as efficient and effective as possible. I stress this because when it comes to being proactive, we’ve got to differentiate ourselves from the old ways of conducting business. That means the principal has to be the initiator when it comes to eliminating obstructive activities, busy work, and anything resulting in waste in the channel. That means studying anything and everything that may not contribute to getting the order at the end of the day.”

Zeroing in on the concept of proactivity, she continued, “I’d like to think that we’re all agreed that in order for the principal to be proactive, he must know what’s going on in the field. Is the rep reaching out to the principal and is the principal reacting? What I hope I’ve described is quite different from regular sales call reports that no one cares about and no one reads. What I’m stressing here is the need for timely, honest and worthwhile communication that will lead to proactively meeting customers’ expectations.”

Selling on the International Stage

Elsewhere in this issue of Agency Sales is a report on one of MANA’s International Territories Special Interest Group networking events. In addition to that report, recently an impediment to good relations developed when an overseas manufacturer began working with an independent manufacturers’ rep in the United States.

It was obviously a positive that the manufacturer was aware of the importance of communicating shared expectations and of the need for a written contract that ensured the best interests of both parties. On the negative side, however, was the principal’s apparent lack of knowledge of how to establish, nurture and maintain good personal relations between his company (including his factory people) and his rep.

When the manufacturer introduced this subject in a conversation with a non-competing U.S. manufacturer, the U.S. company advised the following: “Whether it’s a brand-new relationship or one that’s been ongoing for years, it’s always important that both sides travel the extra mile when it comes to regularly revisiting the terms of the relationship through the business cycle. This should be done because just as anything else in life, situations and people change. In any strong and lasting relationship, all parties have to pay close attention, re-evaluate and constantly ask questions concerning the relationship. Communicate with regularity and be sure to anticipate and answer all questions concerning what the relationship is all about.”

Supporting the Rep

When Agency Sales asked a manufacturer what he does in order to maximize his reps’ performance in the field, he offered the following: “I’d have to say my starting point in my relationship with reps was joining MANA. Then I went on to try something new for our company. I hired one of our best rep performers as a consultant. I know I could have put together a rep council just as many of our peers have, but I decided upon this approach because this rep — in addition to always nailing his numbers and being a terrific communicator — has never held back when he has an observation or suggestion on how to better our relationship and our performance in the field.

“When he started as our consultant, some of our people were a bit unnerved. It wasn’t unusual that we’d hear the question ‘This guy’s working for us. Why do we need him inside telling us how to run the business?’

“My response to that was I didn’t invite him in to tell us how to run the business. My goal, on the other hand, was to have him assist us in implementing a consistent plan for working with reps. I’d be short-changing us and him if I described the result of this plan as ‘good’ or ‘satisfactory.’ Actually, we wound up hitting a home run and, in fact, I’d advise other manufacturers to follow our path if they feel they can locate the right rep to work with.”

Technology’s Impact

It never fails that whenever Agency Sales conducts an interview with a manufacturer or rep, the subject of the impact of technology raises its head. At the same time, neither side minimizes the continued value of face-to-face contact in the sales process. For instance, here’s one manufacturer’s view: “There has been a virtual tidal wave of technological advances — especially following Covid — that have impacted the way we conduct our business. But even in the face of everything from email, voicemails, smartphones, the Internet, and Zoom meetings, the face-to-face contact that our reps provide to our customers is probably more important today than it has ever been.

“Look back just a few years and consider the technological innovations that have changed the way we conduct business. Many of those changes may have made us and our reps much more efficient and productive; but at the same time, they’ve conspired to make us much more dependent upon machines. That’s why when a rep shows me that he’s maximizing his time in front of the customer, I will always be impressed and convinced that reps are the way we want to go to market.”

What to Look for in a Rep

While the previous item emphasized how important face-to-face contact is for both manufacturers and their reps, another manufacturer took that a step further when he stressed how important strong relationships were between reps and manufacturers. “When it comes to establishing a partnership with a new rep firm, there are two things we always look for — relationships and length of tenure.”

He continued, “Replacing existing reps has never been one of our major concerns. We’ve got a network of reps that goes back close to 50 years in some cases, and I’d even go so far as to estimate that the average length of service with us comes to about 25 years.

“There are times, however, when we do have to replace a rep firm for one reason or another. When that occurs, we ask our remaining reps if they can recommend someone in the territory for us. That’s why our long-standing relationships are so important. We’ve found that through our reps’ networking activities over the years, the reps get to know each other and can recognize the qualities that will make them effective.

“Another good source for us is the MANA RepFinder® and recommendations we find through our industry-specific rep associations. Once again, it all comes down to relationships.”

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