Several years ago, Agency Sales magazine took a close look at coping strategies independent manufacturers’ representatives would need to master as they grow their businesses through the 21st century. In the years since, the importance of those coping strategies has hardly diminished. That’s why this month we’re going to revisit them with the goal of allowing us to refocus our energies and to ask if any new strategies ought to be suggested for reps who may wonder how they’re going to weather the economic and business climate currently facing them.

Being the Complete Businessman

When MANA members are urged to become the complete businessman, that’s hardly an admonition to be taken lightly. Perhaps the best place to begin the quest to become a well-rounded and complete businessman is with a personal, business and continued education. The Renaissance scholar Montaigne noted, “The Romans taught their children nothing that was to be learned sitting.”

So too is it with for independent manufacturers’ representatives — there is nothing to be learned by just sitting. In addition to the education each rep brings to his profession (i.e., college, previous employment experience, industry-specific educational programs), it’s incumbent upon the rep to seek out all that is available for him to be able to professionally practice his craft.

The example Agency Sales cited for the rep as complete businessman several years ago was long-time MANA member Charley Cohon, CPMR, Prime Devices Corporation, Morton Grove, Illinois.

Cohon brought the expected college degree (journalism major) to his career as rep, but he wasn’t done there. Shortly after becoming a rep he went to night school to study a variety of electrical topics. His thinking was that armed with that knowledge, he’d be much more comfortable making product presentations. That was hardly the extent of his “formal” education, however.

First, there’s the CPMR that appears after his name. The completion of the MRERF three-year certification program for reps reflects Cohon’s belief in the need for professionalism and continued education. He followed that with a correspondence course on electrical controls from the University of Iowa and participation in any number of seminars (including MANA’s). Cohon wasn’t done yet. While he admitted “I took the program at the slowest pace possible,” he completed the University of Chicago’s MBA program. He described the importance of that accomplishment: “More and more of the presidents of companies that we deal with have their MBAs. I’ve found that the people I interface with have achieved this level of expertise. If I want to continue to be successful, I’ve got to be at their level.”

Consultative Selling

If the days of reps just making sales calls and then following up aren’t up yet, they had better be. The successful rep of today is hardly the salesman who makes the regular calls, takes orders and makes sure the delivery has been completed. Instead, the rep is the solution provider, the problem solver, the resource for answering questions. In fact, if the rep doesn’t fill the role as consultant to his customers (not to mention his principals) then the question must be asked: What is his value add?

All too often when a rep is asked what sets him apart from his rep peers serving the same customers in the same territory, he’ll respond: “I bring value.” If that value isn’t comprised of all the elements that constitute the concept of consultative selling, then he’ll fall behind the pack.

Among the many elements the make up consultative selling is knowledge — knowledge of the principal and his products, and knowledge of the customers and his anticipated needs. The rep has to understand all there is to understand about the customer and he’s got to be nimble enough to work across departmental lines. If consultative selling is executed properly, the rep may often find himself calling customer personnel together who normally don’t interact.

The concept of consultative selling shouldn’t be practiced solely on customers, however. It’s just as important to anticipate and meet the needs of principals well in advance.

How does this concept show itself in the trenches of the real world?

• One agency doesn’t focus on the needs of the end user, rather he makes sure his customer “has all the tools he needs in order to close the sale. For instance, a contractor will come to us for guidance and information. We make the appropriate recommendations that will guide him in his selection of the best equipment.”
• Another rep offers that “Because of the markets we’re active in, it’s hardly unusual for us to be problem solvers and answer providers for our customers.”
• Armed with an attorney on staff, one rep firm provides principals and clients legal services when needed. According to the rep, “By having an attorney at the ready, we can minimize the unhealthy, tension-laden sales environment created as a result of what might be perceived as an insurmountable obstacle.”

Synergistic Selling

The concept of synergistic selling is hardly new to the rep world, but to practice the concept and to employ it as an important coping strategy is probably more important today than ever before.

Jack Berman, a consultant long recognized as an expert on the rep profession, has done much to popularize the concept of synergistic selling. Berman maintains that the major reason for a rep to exist, resides in the concept that “he can spread his investment on a sales call over the breadth of many lines. As a result, he can make more calls for his manufacturers.”

Contrast that with the factory direct salesperson. He’s strictly defined by the manufacturer he works for. He’s got a single line of products and is relatively handcuffed when it comes to meeting related customer needs. The rep, on the other hand, has the ability to listen to the customer, learn about his problems and needs, and very probably be able to meet those needs with a product or service that is available from another of his principals.

Berman continues that “Because the rep is armed with complementary products, he can sell more of each by combining more into one sales call than he could if he was selling them alone. This is an obvious benefit to the customer because the customer is able to accomplish several purchases at the same time and in a relatively short period of time.”

Compare what the customer buyer could accomplish if he had to complete appointments with factory direct salesmen from several manufacturers over the period of a week. He can achieve the same results, often by meeting just a single independent rep who carries complementary lines.

Finally, Berman maintains “There is benefit for the manufacturer because the rep is able to make many more sales calls than his direct salesman counterpart. And, by having his products aligned with other compatible products, he can sell more of each manufacturer’s products.”

Importance of Technology

If there’s any single development that has impacted the rep profession more than anything else, it’s probably technology.

There is absolutely no need to stretch one’s memory to recall the days when a rep used to travel the territory armed with a telephone calling card or a bag full of change allowing him to stay as connected as he could with his own office, customers and principals. That was quickly replaced with bulky car phones, soon to be pushed aside by multi-tasking cell phones and streamlined IPhones. And, we haven’t even begun to speak about laptops, contact management and accounting packages, digital cameras, voice mail, e-mail capabilities and management, PowerPoint presentations and the importance of a variety of other handheld appliances.

And, once we’ve got our arms around all of that, here comes the age of social media. Facebook and MySpace are no longer the bailiwick of our younger generation. Not only will you find today’s rep fully equipped with a Facebook presence, but you’ll also find him toiling on LinkedIn, Twitter, YouTube, and any other Internet tool that will help him and his business.

What does all this mean? The rep who isn’t up to speed and fully acquainted with all these developments and their accompanying tools, is a thing of the past — and, he’s got a ton of catching up to do.

The question remains: how does one catch up? According to one social networking consultant, “Time is the first challenge. But, how many businesses have an excess of that valuable commodity?”

Perhaps it’s best to just consider the wisdom inherent in the Nike sporting goods slogan: “Just Do It!”

Importance of Strong Principal Relations

In the years between our first consideration of these important coping strategies and today, Agency Sales published a series of articles under the umbrella headings of “The Perfect Principal” and “The Perfect Rep.” The goals of these series of articles that stretched over several years, was to explore why some principals and reps were viewed as better than others.

The fact remains that since more than half of the rep’s selling effort is expended on his principal, it’s critical that the rep establish the best possible relationship with those principals. The only way to achieve that goal is to by treating the principal as you would a customer.

That philosophy, at least according to the articles that appeared in Agency Sales, result in a quid pro quo, in that, the rep who extends himself to treat his principal well, is often rewarded in return with a similar kind of treatment.

Over the course of those “Perfect Rep” articles, a number of traits emerged that form the foundation for a strong rep-principal relationship. Among those traits were:

• Face time — Reps should complete any and all paperwork during those times when there are no opportunities to meet face-to-face with customers and certainly with principals. During the time spent with principals, maximize the experience by touring plants, developing contacts and relations and talking directly to them.
• Persistence — “Never underestimate the importance and the results achieved as the result of hard work — especially as it involves relations with principals.”
• Follow-through — “If you told a principal you’ll get back to him today, do it, no matter what you have to report. If you’ve told a principal you’ll be calling on this or that account — do it. Then make sure you report back to the principal.”
• Integrity — Principals will appreciate you long term if you are honest and forthright with them.
• Focus — Stay on message. Show your principals what you’re talking about and then give them results.
• Enthusiasm — “If you have enthusiasm for the principals that you’re representing and the products or services they provide, then you’re going to want to do all you can to learn more about them. Once done, you’ll incorporate that knowledge and enthusiasm into what you do in the field with your customers.”

International

The world isn’t going to get any bigger. Figuratively speaking, as the result of the way business is conducted, by the time you read this, the world will have become smaller than it was when this was written.

The subjects of technology and international business have probably occupied more pages in Agency Sales than any other subjects. When it comes to globalization, there’s little debate over whether an individual rep should engage himself or not. The reality of the discussion is that the impact of international trade is here, it’s here to stay and it is what it is.

For those who have jumped with both feet into international waters, there are a number of truisms that they’ve discovered, either by doing much research ahead of time or by often painful trial and error. Among the facts that reps who ply their trade internationally have discovered are:

• Foreign manufacturers are exploring any and all opportunities to enter the U.S. market.
• Foreign markets often are the source for the niche products the rep is looking for.
• Technological communication tools allow the rep to conduct business for anyone, anywhere in the world.
• Due diligence prior to signing any agreement with a foreign manufacturer is an absolute must.
• Part of the rep’s due diligence includes engaging the services of legal counsel familiar with conducting business with foreign principals; get a written agreement; meet foreign principals face-to-face; visit overseas’ manufacturing facilities prior to partnering with a foreign principal.
• Ask rep peers what their experiences have been working with overseas’ principals.
• Educate foreign manufacturers that you’re conducting business with concerning the independent manufacturers’ representatives’ business model.

There’s much more to be learned about honing coping strategies related to dealing with overseas’ principals. Read past articles that have appeared in Agency Sales, to learn what other reps advise and what they’ve experienced.

Importance of Associations

MANA and its sister industry-specific rep associations have long extolled the value of membership not only in their own associations, but in all rep associations. But membership is only half of the winning equation. Membership without participation is useless. Considering the benefits of participation in MANA alone, the active member has available to him:

• Agency Sales magazine, MANA’s monthly publication.
• Online RepFinder.
• Advocacy for the rep way of going to market.
• Special reports, surveys and publications.
• Contract guidelines.
• Educational seminars.
• Telephone counseling.

(A complete list of the products and services available form MANA may be found at  www.MANAonline.org).

Add to this the benefits for reps in belonging to MANA and an industry-specific rep association. Industry-specific associations produce annual conferences, conduct business development and work one-on-one with key manufacturers in their industries. Many of them publish their own publications, run industry-specific educational/training programs and provide a rep-friendly environment where reps and principals can network.