While the previous article details some of the general thoughts reps have when it comes to describing what it takes to be a professional principal, the following is a bit more specific as reps describe what sets one principal apart from others.

The waste of time that is cold calling is one of the things Bryant Callaghan focused on when he considered the subject of what defines a professional principal.

According to Callaghan, Tri-State Marketing, Inc., Cincinnati, Ohio, and the former chairman of the board for MANA, “We just completed a sales meeting with one of our very best principals — a long-time MANA member — who truly gets it. They understand the value of reps and they know what reps do. They understand that customers don’t want or need people walking through their doors trying to sell them something. Customers just don’t have time for that anymore.”

Callaghan explains that the manufacturer learned cold calling isn’t effective the expensive way. “They actually hired a company to make scripted phone calls in an effort to drum up new business. After close to 800 calls and an investment of several thousands of dollars, they realized nothing was there.”

He contrasts this with the cold calling experience of years ago. “In the past if you completed a mass mailing or made about 100 phone calls and got as much as a five percent response, you’d consider the effort successful. It doesn’t work that way anymore, not even at trade shows.”

Callaghan emphasizes that times have changed and professional principals have changed with the times. “Agency Sales readers are referred to MANA President Charley Cohon’s recent editorial where he repeats a customer’s admonition: ‘Thanks for stopping by, please leave your catalog in our recycling bin on your way out.’ Read and understand those words and you’ll know what I mean.

“It’s not just younger people today but even older engineers and other decision makers who have become very comfortable receiving their product information online in the form of photos, drawings, brochures and prints. At the same time, manufacturers have become just as comfortable and adept at putting all their company and product information online.

“Today’s true professional principal understands the real value of the rep getting face-to-face with the customer. That’s where we shine! That’s why it’s so critical for the professional principal to provide his reps with qualified leads — not cold call information. While I’m not saying the rep shouldn’t ever call on someone out of the blue, but in general, prospecting is a waste of time and principals and reps know it.”

While cold calling is obviously a hot button for Callaghan in his thoughts on what constitutes a professional principal, there are additional considerations. For instance:

•   Adapting to change — Explaining that as times change, so too must companies change, Callaghan stresses how important it is for manufacturers to change the way they work with reps.

“One company that we’ve been working with for more than 15 years,” he says, “realizes that there’s no longer a need for me to be on the road as much as I was in the past. The president of the relatively small (but large to us) capital equipment company understands that even though I cover the entire Northeast, he’s comfortable with me and knows I can cover all that ground from here (Cincinnati).

“Admittedly, this approach may not work for all product classifications, but it reflects how this company in particular has changed its practices.”

•   “A professional principal today must have a well-put-together and creative website. On top of that, they must have the ability to drive traffic to that site. That’s all a part of developing qualified leads for their reps.”

•   “The principal must have a constant supply of top-quality products.”

•   “Their products must be delivered on time, all the time.”

•   Written reports — “The reason I hesitate to even mention this is that it’s not really on my radar. There’s not one of my principals that asks for written reports from us. They expect us to perform as professionals, and that’s exactly what we do.”

•   “It goes without saying that for a principal to be considered professional, they need to pay their commissions on time. If the agreed-upon commission doesn’t arrive at the same time every month, that’s unprofessional. My belief is if I do my job, pay me — and I don’t want to see it coming two weeks late every month.”

If the previous words describe some of what it takes to be professional, a missing piece of a puzzle might present itself to many reps — How and where does a rep find these professional principals?

A couple of key areas where these much-desired principals can surface, according to Callaghan, is in their membership in MANA and via tapping various networking sources. “Most of the manufacturers that take the time and make the financial investment to join MANA would fall into the professional category. If they regularly read Agency Sales and show that they’re dedicated to the rep way of going to market, then they’re the ones you want to partner with.”

Complementing the value of MANA, he continues, is the ability of the rep to network on their own behalf. “It’s hardly unusual for a rep to arrive at his current position without the benefit of a previous career with another company. Use your contacts — including customers — from where you worked previously. Pick up the phone and call around.

“In addition, we’re lucky here in Cincinnati that we have an organization called Manufacturers’ Agents of Cincinnati (MAC), a professional organization that focuses on fostering the relationship between manufacturers and independent manufacturers’ representatives serving primarily in the OEM markets. At our scheduled meetings there’s always someone whose brains you’re able to pick.”

Callaghan isn’t the only rep sharing his thoughts on what it takes to be described as a professional principal.

•   In the first issue of Agency Sales for this year Keller Industrial Products, Inc., Clarence, New York, was listed in the “New Member” section of the magazine. It was noted that Keller, among several other agencies, was sponsored for their MANA membership by Eriez Manufacturing, a company that has been featured several times in the pages of Agency Sales. When he was asked whether Eriez would qualify as a truly “professional” principal, Keller’s Jim Rhoades never hesitated before stating “Oh, yes! They distinguish themselves in all areas including quality products, service, response time. They are truly one of our very best principals.”

Those words serve as the perfect starting point for Rhoades to talk about what constitutes a professional principal. “It’s those principals that understand what the rep does. They know what we bring to the table. There’s consistency in the way that they work with their reps.”

When he’s asked how a principal can accrue the high level of knowledge of reps and how to work with them that would allow them to be placed in that professional category, Rhoades explains, “If you’re a good, well-run business, you’ve already got that knowledge of how to work with reps. I guess part of the job of educating manufacturers to that point rests on our shoulders, but I’d have to say that the principals we work with already know how to partner with us effectively.”

He continues by noting there are some principals who will work with reps until sales get too good and then they terminate them. Conversely when sales turn down they go back to reps. That’s not the case with Eriez. “Eriez has been very successful with reps over the years and I can’t overemphasize how impressed I’ve always been with their people, service and the company in general.”

If it’s a quality product, service, response time and people that provide the ingredients for a professional principal, Rhoades stresses that it’s obviously the absence of those attributes that would cause a manufacturer to be labeled as unprofessional.

•   While echoing much of what Callaghan and Rhoades say, Mary Ann Kelly, Specialty Valve & Controls, Charlotte, North Carolina, adds a bit to the mix. “Certainly fair pricing, quality product, timely deliveries and strong relationships are key to our definition of a professional principal. But I’d add trust to the conversation. It’s just like a relationship in a marriage, once the trust is violated, the relationship suffers.”

•   A product offering that is unique is what gets Robert Longo’s attention. Longo, Simply Surgicals, LLC, Manlius, New York, explains that “Certainly cost of a product remains critical, but quality is a bit of non-issue in that everyone today operates on a fairly level quality field. What is important, however, is uniqueness — something that’s different from others. There’s no reason for me to rep a product line, unless it is truly unique.”