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In the course of examining the importance of sales training for this issue of Agency Sales, one manufacturer offered what he found was a major incentive to get his independent representatives to the training table. According to the manufacturer, who works with a network of agents throughout the United States, “We’re well aware of the built-in reluctance some of our reps hold about taking time away from selling in their territory. It makes sense to us that if they’re out of the territory they’re not where they belong — selling in front of their customers.

“However, just as important as it is for them to have time across the desk from a customer, it’s just as important for them to hone their skills in the sales area. That’s why we’ve made it a practice to pay for our reps to attend training programs we think are worthwhile.”

But rather than just surprise agents with a notice of a product-training program, for instance, “We contact them well in advance; let them know that we’ll be covering the expenses. For the most part, these sessions are conducted by our own engineers, and we don’t overdo it in frequency. We only schedule programs and contact our reps when we determine there’s a need and a shared benefit for both of us. Our experience has been that our reps have been appreciative of what we’re doing and they’ve been quite enthusiastic about our process.”

More on Training

Not to leave the subject of training just yet, a constant message delivered by individuals interviewed for this issue of Agency Sales was the importance of sales training. According to the consultants Agency Sales spoke with, “Independent manufacturers’ representatives who are armed with a sophisticated and comprehensive background in developing and nurturing relations as well as more than anticipating customer needs are the ones any manufacturer should be seeking — for long-term relationships.

Proof That Silence Is Golden

A manufacturer with years of experience under his belt of working with an outsourced sales force related how he learned something valuable about working with agents by driving his teenage children to various events.

“When my children were quite young,” he said, “a friend cautioned me that once they hit their teenage years they’d probably stop talking to me. As a result, the best way to learn what they’re doing and thinking about is to remain silent when they’re with their friends. By being a ‘fly on the wall,’ you’ll learn everything about them.”

At the same time, he continued, “Whenever I’ve conducted a joint sales call with one of our agents, I’ve adapted that process a bit. From the beginning of the call, I let the customer know that the agent is handling the sales call. That means he takes care of all the introductions, answers questions and generally does all the talking. In addition to supporting the rep’s position as the go-to guy with the customer, this also allows me to learn quite a bit about how the rep has developed a relationship and how he handles a sales call. Basically, silence has provided me with a great evaluation tool.”

Ensuring Effective New Product Introductions

When a manufacturer was asked during a round-table session late last year what he did to build his track record of solid new product introductions, he pointed to an article he had read in Agency Sales close to 15 years ago.

“Most manufacturers — myself included — have a pretty good idea how to bring a new product to market with my independent representatives. But the article I cut out and refer to constantly highlighted a couple of important points that have proven invaluable to me.”

• Market research — “If there’s one thing I’ve heard loud and clear from our agents it’s that the worst thing we can do is put out a new product with little or no knowledge of its potential. As a result, we’ve made it a habit to identify our objectives and our customers ahead of time and pass that information along to our reps.”
• Support — “Here’s what we’ve heard from reps about their manufacturers: ‘They can be a little slow when it comes to providing the supporting literature that we need.’ That’s why we make sure we have everything in line when it comes to introducing a new product. That includes advertising in industry publications, providing plenty of product samples, and making sure the inside sales support is at the ready.”
• Training — “Here’s our goal in this area: We want to be considered the company that isn’t in a hurry when it comes to new product introductions. And, a part of that is that we want to be positive that our outsourced sales staff is properly trained with the product before they have their first interactions with customers.”
• Product quality — “We’ve learned from others’ mistakes. Our reps have told us about other manufacturers that send their rep sales staff out in the field with new products that are accompanied with numerous problems. On top of that they make little if any effort to communicate those quality problems to their reps. That’s not the way we operate. Our reps have been very clear in letting us know they appreciate the smoothest path for new product introductions that we can provide them.”

Focusing on the Representative’s Needs

When a group of manufacturers got together late last year to compare best practices, the subject of how best to build a strong agency network came up almost instantly. After hearing how his peers had spent so much time, money and effort using rep search firms and consultants, one manufacturer offered his somewhat simplistic — yet effective — approach.

“I’m not saying search firms and consultants aren’t effective, but I’ve learned to lean very heavily on what I can discern from the rep during our interview process. I listen carefully to the rep’s thoughts on the territory and what his plans for the future might be.”

As an example, the manufacturer noted that he makes it a habit to always inquire of a prospective agent where he thinks his agency will be in five to 10 years. “This tells me something about his needs and goals. And it lets me know something about how he’s looking at us as a part of his plans. Depending upon the answer I get, I’ll be better able to make a decision.

“Consider for a moment if the agent’s territory is small and not showing a great deal of growth. The rep, who tells me that he wants the agency to stay pretty much the same in five years as it is now, is actually being realistic with me. I may very well go ahead and appoint him because he’s showing me practical knowledge of the territory. Conversely, if I’m speaking with an agent in a rapidly growing territory and he gives me the same answer, chances are I’m not going to work with him.”

He concluded that asking the right questions and listening carefully to the answers goes a long way in allowing him to make the right agent pick.

Learning From Others

The many benefits of manufacturers who work with agents getting together to compare notes was never better shown than when the subject of rep councils came up at a rep association meeting late last year. One manufacturer was bemoaning the fact that he was having difficulty populating his re-start of a rep council. According to the manufacturer, “I had two top-performing reps I wanted to serve on the council because they had served with us before and we greatly valued their input. Unfortunately, both of them refused and said their past experience showed them rep councils were a waste of their time.”

One of his fellow manufacturers was quick to offer his advice. “There’s a good chance those two reps have been burned in the past. Rather than simply give up on the idea of reconstituting your rep council, move on to some other reps. Once you get up and running and are successful, you can always go back to those original two, and you’ll have a successful track record to refer to.”