© Andres Rodriguez | Dreamstime.com

When a manufacturer let Agency Sales magazine know that it was cutting way back on its direct sales force and expanding its rep network nationwide, a number of reasons (all based on past experience with its limited rep network) were cited as to why this move was going to be fairly painless.

According to the manufacturer, “Over our years of working with reps we’ve learned a number of valuable lessons that indicate we know how to accomplish this move, and we know it’s the right thing to do.” For instance:

Due diligence — “Maybe it’s by learning the hard way, but nothing can replace a personal visit to the rep prior to signing an agreement. That means meeting at their place of business, learning how they conduct themselves, seeing how they cover the market, and getting to meet all their key players. This approach has rarely, if ever, failed us.”

Strategic plans — “We’ve learned that it’s important for us and the rep to work with a mutually-agreed-upon strategic plan. Such a plan spells out expectations and allows each of us to work off the same page. We’ve made it a habit to have these plans updated at the beginning of each year, and we and rep review the plan on a quarterly basis.”

Rep councils — “If strategic plans are critical to the rep-manufacturer relationship, so too are well-thought-out rep councils. Our rep council meetings are intimate, small groups created to really draw out feedback from reps. They’re hardly the same as sales meetings — which at one point we used interchangeably. In our more than three decades of working with reps, councils have proven invaluable to cementing our relationships. We’ve started our efforts by working with outspoken, top-performing reps and we let them know from the start that we wanted them to be honest with us. Their feedback has proven to be invaluable and their efforts have saved us from mistakes and constantly pointed us in the right direction.”

Emotional favorites — “Working with the relatively small network of reps that we had, we’ve learned how important it is for us to be their ‘emotional favorite.’ That means we strive to create a relationship that is not only profitable for both of us, but fun. The fact is we’re never going to be the rep’s top line. Given that fact, there’s a great deal we can do to make sure we’re in their minds and on the table in front of the customer to a greater extent than our commissions might dictate. As an example, reps are provided easy access to their own location on our website; we’re accurate and always on time with commission checks; whenever they need them, there are plenty of product samples for them; if the rep poses a question from the field, he’ll get an answer that same day.”

Field visits — “If there’s one thing that really annoys a rep, it’s that surprise visit in the field from a manufacturer. That’s why we never do that. Instead, our reps can expect two-three months’ notice before we appear in their territory.”

Taking a back seat — “When those field visits and joint sales calls do occur, we always defer to the rep during the call. He’s the one with the customer relationship. When called upon during the joint visit, we always back up the rep and show the customer that we’re there to support him.”

Praise — “You’re always going to have your top-performing and less-than-stellar-performing reps. Our practice has been to heap praise on those top performers and never make a public proclamation concerning someone that is not carrying their weight. More times than not, those that aren’t bringing in the numbers will look at the top performers and learn by their example.”

Examples of Hindsight Being 20/20

Reps who used to be manufacturers haven’t forgotten all they learned on that side of the desk. Consider the following:

Large vs. smaller rep firm — According to one rep (who used to be a manufacturer), “I could never come to terms with the fact that so many manufacturers would search out the ‘mega’ agency to work with. It just didn’t make any sense to me to be aligned with an agency where I’d firmly bring up the rear of their line card. Does the manufacturer really think he’s going to get any attention from the rep when he’s the 25th line on the line card? My approach, and I’ve got to admit it worked beautifully for me, was that I wanted to be as important as I could to the rep. If I made the connection with the right-sized agency, I was assured to be given more than my fair share of their time in the field.”

The rep continued, “With several of the one-three man agencies that I worked with, we were always provided with the time and service we needed simply because the rep couldn’t afford to ignore us.”

Understanding what the rep does — Another former manufacturer noted, “Probably the most important thing I ever learned when I was a manufacturer was the fact that the rep owns the customer. That’s why when we made the move from a largely direct sales operation to one that was dominated by reps, we experienced increased sales mostly because of the long-standing relationships the reps already enjoyed with the customer base. I can vouch for the fact that when we put a new direct salesperson in the field, it would take months before we saw any appreciable results. Compare and contrast that to our experience with reps. After signing on with a number of established rep firms, for the most part they hit the ground running and had sales for us right out of the gate.”

Learning From a Day-in-the-Life

“I’ve always enjoyed reading articles that describe the ‘day-in-the-life’ of people engaged in various professions.” That’s the way a manufacturer’s regional sales manager opened a conversation recently. “Whether it’s describing a typical day of a policeman, teacher or newspaper reporter, it’s always interesting to learn what they encounter. That’s why when I took over my job one of the first things I did was to ask a number of our reps how they spent a couple of typical days or weeks.”

It’s from that initial approach to his reps, he continues, that the manufacturer learned how important it was to ensure that his approach to dealing with reps was one that would be favorably received by them.

As an example:

• “One of the first things I learned was that as much as I like to hear on a regular basis what’s going on in the field with our reps, so too do they like to hear what we’re up to. That’s why I make sure there’s a constant flow of information out to the field. By following that simple step, I’m usually guaranteed that the rep will deliver the most up-to-date information to the customer.”
• “When it comes to communication, I’ve taken steps to ensure that there’s only one voice communicating a message to our reps. That way, I know we’re all operating off the same page and there’s going to be no miscommunication.”
• “Prior to initiating any new promotions or programs with our reps, I’ve learned how important it is to take steps to provide them with the tools they’re going to need to get the job done. When I say proper tools, I mean products, samples, ad reprints or direct support from the plant. It’s critical that the rep shouldn’t want for anything.”
• “Finally come the subjects of interest and enthusiasm. If the rep lacks either of these attributes for what we’re doing, we’re doomed. That’s why we always make sure presentations can be made using the most up-to-date technology, whether it’s the Internet off something like an iPad, a PowerPoint presentation, or some sort of a hands-one demonstration. Bottom line, the rep has to be comfortable with and enjoy the method of presentation. Otherwise, it’s not going to be effective.”

No “I” in Team

After a couple of false starts working with independent manufacturers’ reps, one manufacturer looked back at his personal history in team sports to determine what the problem was.

“I played basketball all through high school and college, and even continued socially until I was 50. Then when aches and pains began to take over my life, I realized golf was my future. But one important thing I remember from my basketball days was the fact that no one person can do everything himself.”

Here’s how that lesson resonated with the manufacturer as he thought about his experience with some rep firms. “In all honesty, I didn’t do much to create the team environment that was needed,” he admits. “What we had from day one, was an ‘us against them’ environment. Part of that grew out of my organization’s lack of openness and communication. As a result, I convinced myself that I didn’t have the time to do anything to improve the situation. By making that decision, however, things simply got worse. Near the end, one rep explained to me that he felt this just wasn’t going to work and we’d be better off parting company. While I had to agree with him, I’m determined to move ahead because the concept of working with reps looks like it would be ideal for me and my organization. But it can only move forward if we eliminate the adversarial environment and work together.”