When the sales manager for a manufacturing company that is committed to going to market with independent manufacturers’ representatives posed a question in the MANA LinkedIn discussion room, quick responses indicated that the subject of rep forecasting was still a hot topic among manufacturers and their reps.

Here’s how the manufacturer initiated the discussion:

“This is an ongoing topic back and forth. We as the manufacturer want to get better insight on what our reps are quoting and when they can expect to land orders. Reps like to keep their cards close to their heart. From a manufacturing standpoint, it … Read the rest

All too often when the subject of communication between independent manufacturers’ reps and their principals comes up the focus is immediately turned to call reports. That shouldn’t be the case. At least that’s what one retired manufacturing executive emphasized in a recent conversation. According to the former national sales manager, who left his position with more than 30 years’ experience working with reps, here’s what impressed him about reps that took a proactive approach to letting him know what was going on in the territory.

“Here’s one thing that always got my attention — the rep that let me know … Read the rest

Call it gathering support from the field or a backdoor approach, it really doesn’t matter. The important thing is that one manufacturer sales manager counted on his outsourced sales force to back him on a variety of marketing efforts — and his approach worked.

Here’s how the sales manager explained the situation: “I had a number of marketing ideas that involved my network of independent manufacturers’ representatives. The problem was the top executives of the company didn’t buy in. Rather than give up on what I thought were effective methods to expand our brand in a number of territories, I … Read the rest

We have long advocated for independent manufacturers’ representatives to be completely honest with their principals when it comes to letting them know that they’ve taken on a new line. However, the fact remains that often reps will be reluctant to pass that information along because they fear that some of their principals would view an additional line as something that would allow the rep to allocate less time on their own line.

When this scenario was laid out for one medium-sized manufacturer, he responded that he’d always want to be kept in the loop regarding activities of his reps. “I … Read the rest

One of the real benefits of attending and participating in industry-specific trade association meetings is the networking opportunities that present themselves. In addition to the obvious benefit of being able to meet industry peers is the opportunity to ask questions and get real-world answers to those questions. Obviously that means attendees don’t always have to “reinvent the wheel.”

As reported by one manufacturer, that point was made late last fall when he was in the midst of making the move from a direct to an independent manufacturers’ representative sales network. The manufacturer made the move armed with the mistaken belief … Read the rest

Last month a conversation with a manufacturer covered the benefits of conducting employee evaluations. The manufacturer didn’t leave it there, however, and continued by addressing the benefits of conducting such evaluations with its network of independent manufacturers’ representatives.

According to the manufacturer, it’s common in his company when conducting employee evaluations to have the employee also fill out a form evaluating strengths, weaknesses, goals, etc. With this company, one of the firm’s regional managers completes the same exercise with the rep agencies in his territory. The relatively short form covers the expected areas of performance. Both the regional manager and … Read the rest

It wasn’t the first time — and probably won’t be the last — when a manufacturer asked the MANA community for feedback on a matter that concerned him.

According to the manufacturer in question, manufacturers are constantly on the lookout for “insight on what our reps are quoting and when they can expect to land orders.” He admitted that based on his and many of his peers’ experience, “reps like to keep their cards close to their vest.” The importance of having such information available to principals, he continued is that “From a manufacturing standpoint, it helps us better forecast … Read the rest

A small manufacturer was extremely realistic when he contacted Agency Sales to describe what he did to get more of his reps’ attention. According to the manufacturer, “We’re hardly big enough or bring in enough business to rank high on our reps’ line cards. Our relative small size is one of the major reasons we’ve followed the rep business model for taking our product line national. We’d never be able to afford the investment it would take to have a direct sales force. On top of that, I don’t think we’d get the coverage we need with direct salespeople. Here’s … Read the rest

Following an internal reorganization, which included revamping the company’s sales effort, one manufacturer noted an immediate problem. “The first thing we saw was declining sales. Once we looked into the situation, we found that our reorganization had placed too many people in too many different positions. Our direct salespeople began to lose contact with their customers in the field.

“We had a history of working with independent manufacturers’ representatives several years ago and I’ve got to admit the experience was positive. We made a change to a direct sales force when new management took over our company.”

He continued that … Read the rest

“It’s easy to fall into the trap of believing that you know it all when it comes to dealing with your independent manufacturers’ representatives.” That’s how one manufacturer began a conversation that focused on the benefit of networking with other non‑competitive manufacturers — especially as it involves relations with agents.

According to the manufacturer, “I don’t think I’m alone when I say we’ve always done our due diligence when it comes to choosing reps. As a result, we’ve been lucky in building our network of true professional outsourced reps. I’d like to say that I’m well-versed in choosing our reps, … Read the rest

Here’s a typical scenario for going to market with independent manufacturers’ representatives that has been heard many times in the past — but it’s one worth repeating.

According to one manufacturer, “We decided to make the move to reps six or seven years ago because it was difficult if not impossible for me to get all around the country meeting customer needs. It just seemed like a natural fit to hire reps and have them work on a commission basis. The reps we ultimately chose to work with were already calling on the customers we served. At the same time … Read the rest

Taking a break from a roundtable discussion at an industry meeting earlier this year, one manufacturer described his major reason for making a move in the direction of independent manufacturers’ representatives vs. a direct sales force.

“We’re simply not getting the bang for our buck that we need. In our case the cost of paying and supporting our direct salespeople isn’t being covered by their performance in the field. Our thinking is that if we replace them with an outsourced sales force, all we have to do is pay commissions and the reps support themselves.”

Two of the manufacturer’s peers … Read the rest

While in the process of establishing its network of independent sales representatives for the first time, a manufacturer sought some advice from a non-competitive manufacturer that had years of experience working with agents.

According to the manufacturer, “We’re right at the point where we’re close to choosing our agents. While we’re doing that we’ve become acutely aware of the potential benefits and even the negatives that might accompany going to market with reps.”

He then went on to describe his exchange with the manufacturer he sought advice from.

“One of our worries was that we’d have to train our new … Read the rest

Don’t ever underestimate the value of the advice you receive from members of your rep council. That was the recommendation from one manufacturer fresh off his first rep council meeting of the year.

“You put the group together with the hope that they’d be honest with you when it came to the most effective ways to work with your rep network. If you’ve gone to the trouble of all the work of selecting members, planning agendas and executing your meetings, why not take advantage of it?”

What spurred this reaction from the manufacturer was specific guidance his company received on … Read the rest

“We’ve always done a good job of providing product information to our network of independent manufacturers’ representatives especially during our annual sales meetings. But after that, experience has shown us that our sales meeting content sort of falls flat.” That’s how one manufacturer described his company’s experience when it came to providing information for their outsourced sales force.

In an effort to counter a good amount of wasted time during these sales meetings, he went on to explain a couple of things he incorporated into the meetings that have really paid dividends “for both us and our reps.”

“In addition … Read the rest

A manufacturer that was relatively new to the concept of working with independent manufacturers’ representatives voiced two important concerns about the rep business model when he was speaking with a fellow manufacturer at an industry meeting last fall. The two areas of concern were the following:

• “We’re probably going to have to train our new reps from a zero knowledge base.”
• “How do we know that we’re going to get our fair share of the reps’ time since agencies represent other non‑competing lines?”

Thankfully the manufacturer he was speaking with was able to respond from his historical perspective: “You’re really … Read the rest

As reported by one manufacturer, making the move from a direct to an independent manufacturers’ representative sales force is hardly as easy as flipping the light switch on a wall. According to the manufacturer who made that move seven years ago, there’s a good deal of preparation that goes into the change.

“Here’s the process we went through,” he continued. “First of all, the preparation for such a switch from direct to independent agencies should actually begin even before the final decision is made. It’s commonly maintained that a major reason for using agencies is that they reduce a manufacturer’s … Read the rest

A call to MANA headquarters from an independent agent was the starting point for a timely discussion on the viability of the independent manufacturers’ representative business model.

This manufacturers’ representative’s point was that with e-commerce sites like www.instrumart.com (instruments and sensors) and www.usabluebook.com (equipment supplier for water and wastewater operations), customers now buy what they need online from these and other sites at low cost. They don’t need manufacturers’ representatives calling on them. Following the call, the subject was discussed by the MANA LinkedIn discussion group.

One of the first respondents to the question opted for the view that the … Read the rest

How do you know that an agency is right for your company? That’s the question posed to four MANA manufacturer members and their responses provide some valuable guidance to other principals searching for that right fit for their companies.

First up, the national sales manager for one company explained, “Recommendations from existing sales reps are key in our decision-making process. After we gather the names of potential reps we’ll often call their references and principals to confirm their capabilities. We look at this as just a normal part of our due diligence — it’s hardly an invasion of privacy.” He … Read the rest

It was telling when one manufacturer asked another about independent representatives’ willingness to introduce new products. Here’s how the conversation evolved: “We have a new product line and we would like to introduce it with reps. Are reps willing to undertake such a task?”

In response, the second manufacturer voiced the opinion that his fellow manufacturer sounded a little inexperienced when it came to working with agents. “Sure they’re more than willing to undertake the introduction of a new product line but there’s more to the manufacturer-rep relationship than that. I’d have to say that most of us see the … Read the rest

“How do I get more of my reps’ time?”
“What can I do to get them to keep me informed about what’s happening in the territory?” “Why don’t my reps effectively carry my marketing message to customers?”

These questions are hardly new, but they did come to the fore this summer when a group of manufacturers participated in a roundtable discussion.

The consensus of the group of five manufacturers was that the answers to these and other questions reside in the word ‘motivation.’ “In order to be truly successful in managing a team of agents, the principals must take into … Read the rest

When one manufacturer asked some of his non-competitive peers what they did to keep their independent manufacturers’ representatives informed and motivated one of them was quick to offer several suggestions she found to be especially worthwhile. Among the tips she offered were these:

• Be even-handed with all agents — Be sure to not favor one over the other because of longer service, past performance or personality factors.
• Training — Time and again agents have communicated their desire to have access to product knowledge and applications as aids in performing their jobs. Remember they already know how to sell; what they

An independent manufacturers’ representative related a conversation he had with a manufacturer who was a personal friend. The manufacturer worked in an industry different from the agent, so he felt free to discuss some of the problems he had in the past in finding and working with an outsourced sales force.

According to the agent, “My friend was relating a history of bad experiences he had with reps. It reached the level where he had been turned off by the entire experience. After asking a number of questions, I felt free to offer him my perspective, which I hope encouraged … Read the rest

Teamwork and its importance to the principal-independent sales agent business model brought to mind a basketball game late in this year’s NCAA basketball tournament.

In two instances, the center (a very large import from Europe) for Gonzaga University successfully negotiated no-look passes to a teammate that resulted in easy baskets against UCLA. Both times the announcers marveled at the player’s unselfishness and
dedication to teamwork.

This is noted at this time because early this summer an industry consultant was using basketball as an analogy for the principal-agent relationship. According to the consultant, “Think for a moment about that basketball player. … Read the rest

Two manufacturers were bemoaning the reluctance of their agents to embrace the benefits of cold calling when a third weighed in. According to the newcomer to the conversation, “I’m a production equipment manufacturer so I’m well aware of the reluctance — if not the lack of success — my agents have had in making cold calls. At the same time, however, I don’t completely ignore the benefits of cold calling.

“I’ve made it a habit of regularly citing what can happen when they call on someone with the prospect company who doesn’t make the final decision on purchases. Rather, I … Read the rest

During an agenda break at an industry meeting earlier this year, the president of a manufacturing company fairly new to working with independent representatives, posed the following scenario to one of his peers: “Here’s something I’ve run into several times. One of my reps did absolutely nothing to get an order, but he expects me to pay him the commission. I don’t understand his thinking.”

His fellow manufacturer, who admitted to having worked with an outsourced sales force for more than 35 years, jumped at the opportunity to respond. According to the second manufacturer, “You’ve got to realize that there … Read the rest

A Q&A session on MANA’s LinkedIn Discussion page recently struck at the heart of a subject manufacturers and their representatives have undoubtedly encountered several times in the past.

The question that kicked off the discussion was: “What can be done about customers who want principals to deal directly with them and remove the manufacturers’ representative from the relationship?

“For example, one MANA member recently told us he’s seen RFPs where the customer requests two quotes; one with the manufacturers’ representative and one without. A principal who recognizes the value the manufacturers’ representative provides would return that quote with a higher … Read the rest

In the midst of conversation between two manufacturers on the subject of how best to control the activities of their respective independent manufacturers’ representative sales force, a third manufacturer with more than 35 years’ experience working primarily with agents, weighed in with his thoughts on the subject.

According to the third manufacturer, “When it comes to the subject of control, manufacturers should recognize that control is not an objective in itself. Rather it is merely a management style. The key to top sales channel performance is to partner with rather than to dictate to the channel. This is true whether … Read the rest

A manufacturer was hardly reluctant when it came to patting himself on the back as he detailed his success in choosing the independent manufacturers’ representatives with whom he goes to market. According to the manufacturer, “I’m hardly the biggest fish in the pond and never will be. What I’ve done in selecting reps, however, has been remarkably successful for me and them.”

“Here’s what I do. I take a look at the rep’s entire product offering and make a determination as to whether or not there’s a void in his line card. If there is, I make every effort to … Read the rest

Just as manufacturers have a checklist made up of the attributes they’d like to have in their independent manufacturers’ representatives, so too do agents have a wish list. During an industry meeting last fall, a group of representatives at a roundtable were discussing what they’d like to have in a marketing partner. Among their considerations were these:

Manufacturer’s current market position — Since agencies spend a great deal of their time promoting new products, they want to know that a prospective principal is active in this area. At the same time, they need to be apprised of the manufacturer’s current … Read the rest