With regularity MANA’s LinkedIn discussion page offers thoughts on any number of subjects important to manufacturers and their reps. A good example was posted earlier this year when Lisa Wilson, L.S. Wilson & Associates, Inc., Bristol, Wisconsin, shared her thoughts on what makes a good vs. a poor principal.

How would you define a really good principal vs. a poor principal?

Over the past 21 years, I learned the following about a good principal:

• Will pay commissions even when you retire.
• Will pay you for the life of the part or program.
• Will turn over whatever existing business there is

“The view is quite a bit different from the other side of the desk.”

That’s how one new rep who had just recently retired from a manufacturing company described her initiation to the world of reps. “After my company was sold to another much larger firm, I decided it was time for me to make a change. During the course of 23 years with the manufacturer, I had climbed the ladder from outside sales to a regional manager’s slot. When my company was sold, the whole culture of the place changed, and it just wasn’t where I wanted to be … Read the rest

As the time for his annual rep training program neared, a manufacturer let Agency Sales magazine know how much value he placed on the input he received from his outsourced sales force when it came to training.

The manufacturer enthusiastically reported, “One of the most valuable things I learned from my reps was their willingness to share opinions when it came to the types of training they needed. I’ll never forget one rep telling me that he made it a habit to rate his principals on how much importance they placed on training their reps. Here was a rep with … Read the rest

The question of how many agencies a manufacturer should have working for him in the field was raised during a roundtable discussion among manufacturers earlier this year. One manufacturer noted, “The real question shouldn’t be how many agencies you need, but how should the territories you want covered be created?

“It’s not unusual that agent territories that companies wind up with bear little resemblance to the territories the manufacturer had when they were working with a direct sales force. The typical rep has several people out in the field and they usually cover a much larger territory than the single … Read the rest

A manufacturer that has long depended upon the input it receives from the members of its rep council recently reported what it viewed was some critical advice on the subject of what attributes a manufacturer regional manager should possess. Here’s how the manufacturer stated the results of its most recent council meeting.

“We were at the point of selecting a new regional manager for our rep sales force. Since we have enjoyed such success with our rep council when it came to other matters of importance, we decided to put the question to them as to what they were looking … Read the rest

A manufacturer that joined MANA during the last year was looking for a way to support its newly created rep network’s efforts in the field.

Publicity came to the rescue. In researching how best to communicate its message to prospective customers, the manufacturer located a national trade publication devoted to its industry that was more than willing to publish an article on how this company was introducing its niche product to a new market — via independent manufacturers’ representatives. The only restriction was that this had to be a how-to article, not a commercial. The manufacturer jumped at the chance … Read the rest

When a manufacturer that was considering switching from a direct to an outsourced sales team voiced misgivings about making the move for two major reasons, another manufacturer seated at the roundtable discussion was quick to jump in.

According to the first manufacturer, “I have some serious reservations about whether any rep firm is technically savvy enough to sell my products. On top of that, I’m used to exerting complete control over my direct salespeople. If I make the switch, I’m not going to have that same level of control and I believe that’s going to adversely affect our sales efforts.”… Read the rest

One of the more common paths to follow on the way to becoming an independent manufacturers’ rep is to start as a manufacturer. Two manufacturers who followed that path compared notes at an industry meeting earlier this year and there were two areas in which they credited their former careers for providing them with some valuable knowledge.

In the area of being able to truly understand what the rep does, one rep emphasized, “One thing I’ll never forget is the fact that the rep owns the customer. That’s why when we made the move from a predominately direct sales operation … Read the rest

Following his attendance at MANA’s manufacturer seminar last fall, one manufacturer was thankful that he was able to take corrective action before any damage had been done. According to the manufacturer who was right in the middle of making the move from a direct to an outsourced sales force, “I thought that by making the change I was going to be able to kiss goodbye all the planning and budgeting that I had to do with my directs.”

He noted that when he brought up this subject during the seminar, he learned very quickly that wasn’t the case. “I learned … Read the rest

Point to a difference in cultures or an unfamiliarity with U.S. business practices, but whatever the case, an impediment to good relations developed when an overseas manufacturer began working with an independent manufacturers’ rep.

It was obviously a positive that the manufacturer was aware of the importance of communicating shared expectations and for the need of a written contract that insured the best interests of both parties. On the negative side, however, was the principal’s apparent lack of knowledge of how to establish, nurture and maintain good personal relations between his company (including his factory people) and his rep.

When … Read the rest

Being the biggest isn’t always the formula for success. That’s what one manufacturer maintained as he explained, “I know that I’m a small fish in a much bigger pond when it comes to getting the attention of successful reps.

“What has worked for me is that I’ve had great luck when I take a really close look at the other lines the manufacturers’ representative represents. After looking at the rep’s entire offering, I determine if there’s a void. What that void represents is a niche for me to fill. Once I identify that void, I’ll contact some of his other … Read the rest

When there’s been a strain in the relationship between principal and rep, the cause of any friction may often be traced to a failure in communication. That’s the view of one manufacturer who noted, “I can’t count the number of times I’ve heard my fellow manufacturers say their reps claim they didn’t know what the manufacturer wanted out of the relationship.”

He explained, “I’d maintain it always comes down to keeping open the lines of communication. And to accomplish that goal, what has to be done? I’d maintain that it’s not all that difficult; but it does take some time … Read the rest

Here’s how one manufacturer described his company’s experience with rep councils:

“We have 22 reps on our team. Early on we started a rep council and learned that it was a very effective way to build the cooperative links that have made us successful. However, we soon discovered that the work of the rep council was diverse and often time-consuming. It seemed to us that we were often asking the council members to do too much for us, although none of them ever complained. However, we thought a lot about this and came up with the idea of having two … Read the rest

A manufacturer recently related to Agency Sales magazine how when one of his best performing reps erred in a personnel decision, a potentially disastrous situation was quickly defused.

Here’s how he described what happened: “A one-man operation that I’d describe as one of our very best reps had reached a growth point where he had to hire another rep to take some of the load off himself. Unfortunately, he made the wrong decision. From the first day the new rep started working, there was a falloff in performance from the rep firm. We noticed it right away when we didn’t … Read the rest

In the course of a conversation late this summer, a rep put forth his thoughts on the type of relationship he looks for with his principals.

“I’ve been in this business for more than 30 years and my agency has been in business a little over 50 years. During that period of time, I’ve learned to truly value working with new companies that have a continual supply of new and innovative products. On top of that, I’ve learned that any time I am able to locate a manufacturer that appreciates the synergy that exists between their products and all the … Read the rest

Independent manufacturers’ representatives are hardly the only participants on MANA’s LinkedIn discussion page. A recent visit to that location on the Internet found two manufacturers weighing in on issues important to them and their peers.

For instance, in a contribution entitled, “What Do Manufacturers Look for in a Rep?,” Charles Ingram, vice president of sales & marketing for Eriez Magnetics, maintains that “The best manufacturer-rep relationships are those where both parties respect each other, understand their mutual expectations and have shared business values. While manufacturers may have some variations on the attributes of rep organizations they wish to represent them, … Read the rest

Concurrent with the publication of an article on the importance of succession planning in Agency Sales earlier this year, a manufacturer wondered how far he could go when it comes to asking about an agency’s future plans.

According to the manufacturer, “Thankfully, I’ve been in the position where I really haven’t had to worry about what my reps are going to do in the future because, by and large, each of the firms I work with have been more than willing to share information that pertains to how they operate now and what their future plans might be. These are … Read the rest

Don’t ever underestimate the value of being able to network with non‑competitive peers.

That’s what one manufacturer found during his attendance at an industry meeting. While this manufacturer had been working with reps for years, he had recently undergone considerable turnover among his reps. As a result, he was faced with the prospect of hiring new firms. But since it had really been several years since he had to go through that process, he was a little wary of what he was going to do. Coming to the rescue were several of his industry acquaintances, who offered a number of … Read the rest

“There’s much more to judging performance than just looking at the numbers.” That’s what one manufacturer emphasized in a recent phone call when the subject came to evaluating reps’ performance. The manufacturer admitted that he — just like so many of his peers — had spent years measuring their reps’ performance by just looking at sales figures.

“I’ve been the head of sales for more than 20 years and most of that time has been spent working with our outsourced sales staff. During the majority of that time our reviews were pretty standard. We looked primarily at sales figures from … Read the rest

The following by Scott Lau, Scott Lau Consulting, Midlothian, Virginia, appeared on MANA’s LinkedIn discussion page earlier this year. His consulting firm specializes in working with independent manufacturers’ representatives to increase sales and profitability and with small and medium-sized American and international manufacturers of architectural products to improve sales force effectiveness and increase sales.

While the emphasis of his column is on the effectiveness of the independent manufacturers’ representative in the building materials industry, his message certainly applies to other industries.

The goal of building material manufacturers is to maximize sales at the lowest possible cost and at the same … Read the rest

The vice president of sales and marketing for a manufacturing firm was quick to cite his early career as an independent manufacturers’ representative as the major reason for his current success in working with reps.

According to the manufacturer, “When I started at ground level as a rep, I was doing changeovers in auto parts stores. I knew that if I began by doing everything I could I would eventually get out there in the field. That’s exactly what happened and I wound up being the agency’s top guy and took over an entire region for them. I knew that … Read the rest

When a manufacturer was marking its 30-year anniversary as a member of MANA, he mentioned something that for him is as true today as it was three decades ago.

“When I first joined the association I had occasion to call someone at headquarters when I was seeking some advice concerning how to maximize my relationships with what was then a brand-new rep network. I was told that paying commissions on time — all the time — was of paramount importance, but there’s more to the relationship. A few of the additional functions I had to be sure to pay attention … Read the rest

There’s a common refrain heard among manufacturers that they’re not getting enough of their reps’ time.

Meeting that concern head on, one manufacturer admits that he hears remedies from his peers that run the gamut from paying higher commissions, to providing more support to reps, to increasing joint sales calls in the field. Here’s what he’s done for himself that seems to work pretty well: “I share the same concerns as other manufacturers, but I counter that by making fewer demands on my reps’ time. But when I do contact them, I feel it’s fair to expect their attention. For … Read the rest

Last month when Agency Sales explored the differences between the Millennial and other workforce generations, it was probably unavoidable that the subject of effective communications between principals and younger-generation reps came up. As one manufacturer put it, “Whenever I’m with younger people — my own employees and those that work at independent agencies — everyone is always on their phone, but they’re not necessarily talking. They’re either responding to e-mails or texting someone about something.”

The subject was further driven home when one manufacturer noted how several of his reps were suffering from “e-mail overload.” It wasn’t until one of … Read the rest

While begrudgingly acknowledging the benefits of “shared territorial development” fees, one manufacturer bemoaned the fact that such agreements can put him in an untenable financial position.

Here’s how he stated his predicament: “I’m in the process of making the move from a direct to an outsourced sales staff. As I’m progressing with locating and hopefully signing independent reps, more and more I’m encountering those who require a fee or some sort of retainer since I don’t have any sizeable business in their territory.

“On the one hand, I recognize why they ask for such fees. Their time in the field … Read the rest

Reps, their customers and manufacturers applaud the use of manufacturers’ websites as marketing tools.

At the same time, however, some reps get the feeling that they’re being left out in the cold when principals fail to list them as the major sales contact in the field. In speaking to a number of reps, this usually happens in a couple of ways:

• Failure to list all reps — Among some manufacturers, the trend of failing to list all of their reps continues. As one rep noted, “How do you think that makes us feel? As far as the customer knows, there’s

There are any number of MANA members who began their careers on the manufacturing side of the desk. At the same time, there are manufacturers who can boast a true appreciation for the rep’s view of the world because they were once reps.

It’s a case of the latter situation that got our attention recently when a rep-turned-manufacturer offered to discuss the concept of outsourced sales. According to the former rep, who’s been a manufacturer for a little over a decade, “There has to be a true understanding of the fact that outsourced sales are exactly that — outsourced sales. … Read the rest

If this manufacturer subscribed to the belief that “you can’t go home again” when it comes to revisiting the rep business model, he learned in a hurry that he was wrong.

Here’s his story: “A little over a year after we moved away from using reps and reinstituted a direct sales force, we had to face the error of our ways. Not only did we encounter the economic hardships of finding, employing, supporting and paying factory-direct salespeople, we learned in a hurry that we had lost the relationships that were the backbone of our success in the field.”

Here’s what … Read the rest

Once he had completed his due diligence regarding his company’s rep selection search, the national sales manager for one manufacturer was frustrated. He had narrowed his search to three independent agencies, but here was his problem — in his opinion they were all in a dead heat when it came to which one was most qualified to represent him in the territory in question.

Thankfully, this manufacturer had plenty of non-competitive manufacturer friends who weren’t bashful when it came to offering suggestions about how to break what was a virtual tie. According to the manufacturer, here’s one of the most … Read the rest

After completing a two-day rep council session where the subject of house accounts was addressed, a manufacturer had this reaction: “If you’re dealing with house accounts it’s really like being a little bit pregnant. Either you’re all in with your reps or you’re not. Either you use independent reps or you do not. Trying to do both is unfair, greedy, and plainly not what I’d consider to be the ethical way of conducting business. Having said that, manufacturers simply have to make decisions concerning how they want to serve the marketplace.

“If a particular rep group takes advantage of the … Read the rest