Due diligence, referrals and maintaining a solid business reputation lead the way for independent reps and manufacturers as they seek out each other to efficiently and professionally reach their respective markets. At least that’s the opinion of reps and manufacturers when they were asked to describe how they’ve been able to develop successful relationships and form effective marketing partnerships.

When he’s asked to describe some of the basics for locating professional representation for his company’s product line, Jeff Grubich, Scot Forge, Spring Grove, Illinois, points to referrals and his company’s involvement in MANA as main contributors. Agency Sales readers may recall that Scot Forge, a 100-percent-employee-owned manufacturer of custom open die and rolled ring forgings, was featured (May 2005) in the series of articles entitled “The Search for the Perfect Principal.”

According to Grubich, “We’ve located any number of independent reps through referrals — either some of the reps we’ve worked with or our existing customers have referred us to reps.” He says that combining those referrals with use of the MANA online database has proved a successful means of locating reps.

A Valuable Reputation

At the same time this combination approach to locating prospective reps has proven effective, Grubich maintains that perhaps the company’s number-one greatest weapon when it comes to attracting reps’ attention has been the company’s ongoing reputation in the industry. “Over the years we’ve been very supportive of the rep way of going to market. People know about that. Our name in the marketplace speaks for itself. What that has resulted in is that reps will approach us because they understand how we actually covet the rep relationship. We know and appreciate how the ‘feet-on-the-ground approach’ works.”

Grubich says that he’s well aware of the fact that technology has impacted the way suppliers deal with customers, but that has done nothing to diminish the importance of relationships and face-to-face contact. That’s why reps are so important to the company.

Reps are so important to Scot Forge, according to Grubich, that the company has developed a behavioral interview process for prospective reps that emphasizes the importance of understanding how the company sells and what customers want/need to buy. “There’s more to it than just relationships. We cover all the value engineering concepts needed to sell to high-end customers.”

Grubich continues that the company’s interview process has resulted in some interesting results. “There have been times when someone has impressed us during the initial contact and then they struggle during the behavioral interview. Conversely, we’ve had those who have initially not done well but then shine during the behavioral interview. The results can be confusing at times, but overall the process works well for us.”

When principals and reps are in the midst of developing their relationships, Grubich stresses the importance of communication and understanding each other’s needs. “From the very beginning it’s important that each side understands the other’s expectations. Sometimes reps will come to us and indicate that they have the contacts in the territory and that’s all that they need to get a product line. There’s much more to it than that. They have to have an understanding of our company and possess the ability to sell deeply into each customer’s company.”

He continues, “For companies (reps and principals) to work well together communication is key. And by communication I mean all forms (e.g., electronic, personal, face-to-face). And, I continue to stress the value of face-to-face contact. All too often incorrect assumptions can be made via voice- or e-mail. I place huge importance on eye-to-eye contact. That’s what can really put the rep over the top in a relationship.”

More than One Approach

It’s a combination effort that has spelled success in finding principals for Bob Wilson, Techni-Reps, Inc., Greensboro, North Carolina. According to Wilson, “I’d point to networking with principals and other reps, attending local and national trade shows and our exposure in MANA as major ways we’ve been able to connect with manufacturers.”

Techni-Reps, established in 1979, represents various electrical, industrial control, safety and power quality product lines.

“Over the last few months, for example,” he continues, “as we’ve been attending trade shows and participating in sales meetings, reps got together and made referrals for each other. At the same time, it’s not unusual for manufacturers to compare notes and give us referrals for non-competing lines.”

Wilson also notes that his membership in MANA has been especially beneficial when it comes to finding principals and having principals find him. “I’ve made it a habit to scan the manufacturer-seeking-reps ads in the pages of Agency Sales magazine and other industry journals. At the same time, I’d estimate that about 50 percent of the manufacturers who contact me about repping them say they found me through my presence in the MANA RepFinder.”

Staying on the subject of manufacturers contacting him for representation, Wilson says that can be an activity when manufacturers make a mistake. “When things don’t work out between a manufacturer and an agency, you can sometimes point to the fact the manufacturer hasn’t done his homework or completed his due diligence. Maybe I already carry a competitive line or don’t serve the market they’re looking for. It all comes down to the need to research who and what we are and that’s not always done.”

Another rep’s perspective on the matchmaking process is offered by Bud Given, American Manufacturers Agency Corporation, Oxford, Pennsylvania. The agency represents assembly automation equipment: vibratory part feeders, 6 axis robots, auto screw-driving, belt turn conveyors, spiral lifts, leak detection instruments, roller gear cam indexers, 3D printers, torque testing equipment, air caster material handling.

Given explains that since his agency opened its doors in 1980 the primary means of finding and gaining the attention of prospective principals has been through his agency’s solid reputation and the resulting word-of-mouth endorsements. “It’s a little bit like considering what makes a successful movie,” he explains. “Someone sees something, they like it and then they tell you about it. Likewise with us — we have other reps or principals pass on the word about us and we’ve been very successful that way.”

He also notes that through his agency’s membership in MANA, “We regularly see the ads in Agency Sales as well as the premium ads that appear on the MANA website.

Updating MANA Profile

Given notes that he’s certainly aware of the fact that prospective principals can find him as they go through the MANA Online Directory, and that caused him to recently update his agency’s profile in the directory. “That’s something we hadn’t done in a few years and if reps want principals to learn about them, they would be well-served to keep that up to date with accurate information.”

Before exiting the conversation about reps and principals finding each other, Given complimented MANA on the work it does for reps and principals who search out each other. “Many of the things I repeat about business I learned from MANA. That’s the case when it comes to the association’s products and services for reps searching for principals and principals searching for reps.”

Word-of-Mouth Referrals

A second rep, Lou Basta, Design Metals, Old Chatham, New York, agrees with Given that word-of-mouth referrals and MANA’s capabilities have been major contributors to his agency making productive contacts with principals.

“The two major ways I’ve obtained lines in the past,” he explains, “have been that reps who are familiar with me suggest that I take on a line when they know a manufacturer has been looking for representation; or, I’ll be looking for a line and I simply ask my circle of rep friends for a referral. In addition to that, I’ve been using MANA’s resources for years. But by and large, word-of-mouth has been the most effective means for me.”

Interestingly, Basta reports that he’s currently in the process of searching for a sub-rep for his agency. “I’m looking for coverage in the Western part of New York State because of the travel it involves for me. For that search I’m using MANA’s resources. I’ve gone online to the website, identified the territory for coverage. Next I look for reps who carry complementary lines. Thus far, I’ve whittled it down to three prospects and am close to making a decision.”

Based on his own experience in seeking lines to rep, Basta recommends that reps always keep an open mind when it comes to negotiating with principals. “While reps in general like to avoid house accounts, I’d recommend being flexible. If it’s a case where I believe I can sell deeply into an account, I might be agreeable to taking on a line with a house account. You really can’t do everything by the book. You’ve got to consider what’s best for yourself and then make your decision.”

Variety of Approaches

When he’s asked for the secret to successfully locating and making lasting connections with independent reps, Doug Biggs immediately responds with “That’s a fairly tricky question and not one that’s easy to answer.” In offering an answer, Biggs, vice president, sales & marketing for Gilman USA, Grafton, Wisconsin, considers three perspectives.

“The first thing I’ll talk about — and this is a little awkward — is you really want to be with a rep who doesn’t outwardly show how much he wants to be with you. An example of this could be a rep approaching us at a trade show and explaining that they’d like to do business with us. Let me explain it this way: You don’t necessarily want the cardinal to be pope when the cardinal shows how much he wants to be pope.

“On the other hand, I recently had a rep call me who wasn’t in discussion to take on our line. Rather, he led with, ‘I was out with a customer this week and was talking about these product lines and he asked me if I had access to this and that. I said that I’d reach out to some of my contacts to see what I could do for him.’

“That was an example of a rep serving as a service provider or facilitator. That was an excellent way to make contact with us and that’s an approach that can be most effective.”

Just as others interviewed for this article, Biggs emphasizes that he’s had success locating representation via referrals from reps he already conducts business with and via the MANA RepFinder. He adds that while he’s aware some manufacturers actually sign on reps with only telephone contact. “We won’t do that. We’ll have a minimum of two in-person meetings. During the first meeting I visit them on their turf and if all goes well, they’re invited back for a day or two at our factory. At that point, they’ll meet with company owners and other personnel.”

Absent the rep-selection approaches he described, Biggs said, “You almost get to point of having to cold call prospective reps and then it can be a fairly lengthy process to determine the right fit.”

In conclusion Biggs offers some advice on the selection process to both reps and manufacturers. “First for reps, they’ve got to make sure they bring something to the table. If a rep wants to partner with us, they’ve got to let us know early in the conversation that they already know the territory and have contacts with several customers that would be a good fit for us. Odds are we’re already working with many of those customers, but at least that lets us know the rep is knowledgeable about what we do.

“Next for manufacturers, they’ve got to have a clear understanding of the territory they’re interested in. Too often manufacturers have a belief that the ‘grass is greener’ with another rep. They aren’t introspective enough about the needs and wants of the territory. They’ve got to have that to be truly successful with their reps.”