Category Archives: Principal Focus

A Welcome Change

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Early this year Agency Sales reported that a major electrical manufacturer — Schneider Electric — had decided to depart from its traditional method of taking products to market via factory salespeople in favor of 10 U.S.‑based independent manufacturers’ representative agencies. The reps that the manufacturer decided upon boast an average of 25 years’ experience selling automation and controls products and have a combined total of 100 salespeople selling the Schneider package in the local market areas.

In announcing the sales and marketing change, a company press release noted, “In addition to extensive market knowledge and expertise of the motion, drives … Read the rest

Manufacturer Believes In Superstars

When he was asked what he liked best about his top-performing reps, one manufacturer pointed to an axiom he had recently become re-acquainted with thanks to a book that had come across his desk.

According to the manufacturer, in the book How to be a Sales Superstar, by Mark Tewart, the author emphasized how important it was to “Dance with the one who brought you.” He pointed out that the author said “Most salespeople and businesses totally ignore this notion. They make a sale and then move on as quickly as possible.

“Our good reps don’t do that.

… Read the rest

Just The Facts

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Years ago there was a television police show called Dragnet. Whenever a witness or a suspect would get off track or offer a little too much useless information, the hero, Detective Joe Friday, would say, “Just give me the facts.”

This came to mind recently when a manufacturer was copied on an e-mail that a customer sent to a rep. Evidently, like so many business people today, the customer is used to getting swamped with calls and information from all sorts of salespeople —except one. Here’s how the e-mail reads: “Just wanted to drop you a note to thank you … Read the rest

The Rep-Principal Relationship

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When a manufacturer asks reps for some advice as he is about to put together a staff of inside sales support people for his reps, there’s no shortage of feedback. Here’s how the discussion progressed.

imageHere’s the question as it was originally proposed: “What are the three most important aspects of your relationship with your principal(s)? I am building a team of ISRs and want it to be a real win-win for us both.”

Wasting no time coming up with a response, one rep offered the following: “Having been both a rep and on the manufacturer’s side of the desk, … Read the rest

Why Reps?

There’s probably no better endorsement for the rep way of going to market than one from a manufacturer who has long-established ties with reps. That is just the case with a manufacturer who participated in an interview with The Thinking Salesman Letter (www.TheThinkingSalesman.com). Written and produced by former MANA Board member Al Brosseau, the interview covered major reasons why the manufacturer has enjoyed a long and fruitful relationship with its rep network.

At the outset, the manufacturer explains that the 100-year-old business, which works with a mixed direct sales staff and network of 21 rep firms, started with reps because … Read the rest

Determining Who Pays For What

As has been mentioned previously in Agency Sales, the MANA discussion group on LinkedIn can prove a valuable resource to learning what’s on the minds of principals and their reps. For instance, recently the ever-present subject of sharing expenses was presented to the group and there was no shortage of input from both sides.

As presented, the question was: How do you share the cost of visiting a new principal when airlines and hotels are involved? I have always felt the principal should share the cost if they are serious about hiring your rep firm, although I find it

… Read the rest

Manufacturer Values Time Spent As Rep

Spend time speaking with manufacturer sales managers and independent manufacturers’ reps and chances are it will be a common occurrence when you run into a rep who was once a manufacturer and vice versa. For manufacturer sales managers especially, their time spent as a rep can prove valuable in their dealings with their rep networks.

One manufacturer notes, “Since my reps know that I was once a rep, I come to the table armed with a great deal more credibility than someone else might have.” He goes on to say that many reps go out of their way to seek … Read the rest

Manufacturer Gets an Earful When He Charges for Sales Lit

When a manufacturer notified its rep network that starting immediately, reps would be charged for the sales literature they use when selling that principal’s products, it sparked a spirited discussion among reps that deserves some exposure in this column. While the written agreement between principal and rep allowed the manufacturer to do this, the decision was hardly met with any widespread approval among reps.

Admittedly, this isn’t a move that’s entirely new. Other manufacturers have taken this step in the past with various levels of success and a mixed bag of reactions from their reps. Speaking of a “mix bag

… Read the rest

Looking for Territory Stability

It was a little bit like a self-fulfilling prophecy when one manufacturer described the difficulty he continually faced in filling direct sales positions in a number of his territories. According to the manufacturer, “It seems as if they (factory direct salespeople) can’t wait to get out the door. We just get them trained and attuned to developing relationships in a territory and then they either take another position in our company or leave the company entirely. It’s like being on a merry-go-round that keeps spinning people off.”

This manufacturer is hardly alone in facing this problem. This has long been … Read the rest

Getting Reps To Respond

A principal presented the following dilemma:

“After trade shows we often send out an Excel spreadsheet requesting that the rep fill in certain fields (date and a few notes) to keep us aware of lead follow-up. Sometimes the reps respond; often they do not. We’re now planning to ask reps to also keep us aware of follow-up of non-trade show leads via a separate spreadsheet that we’ll format and send. What can we do better to encourage our reps to complete these items?”

As presented, this was a subject for discussion that reps warmed to immediately. For instance:

• “I … Read the rest

The More Communication, The Better

It would appear that it’s not just independent manufacturers’ representatives who read and/or comment on the MANA LinkedIn discussion group. One manufacturer recently contacted Agency Sales magazine with a recommendation that a forum examining the value, or lack of value, of regular call reports was must-reading. Especially worthwhile, he said, was one contribution from a CPMR rep who didn’t necessarily believe reps should automatically shut the door to all types of regular reporting to their principals. The rep had attended a MRERF continuing education session conducted at Arizona State University that was devoted to “Understanding Your Manufacturer.”

According to

… Read the rest

Kudos to Reps

A retirement dinner earlier this year for a manufacturing executive provided an ideal opportunity for a bit of a primer on what manufacturers should value in their rep partners. As the executive was recalling his more than four-decade sales and marketing career, he made it a point to mention how reps — many of whom were in attendance at the dinner — had played a major role in his success. The manufacturer vouched for the fact that the reps who got his attention and proved to be the best business partners to go to market with possessed the following characteristics:

… Read the rest

What’s the Worth of a Rep Council?

“I came fairly late to the party,” was how one manufacturer described his experience with rep councils. When the manufacturer was contacted for the article on rep councils that appears in this issue of Agency Sales magazine, he readily admitted that when a couple of his reps suggested he create a council, he viewed it as a bit of a threat.

“My view had always been that I signed up reps to provide me with more efficient, productive coverage than I could ever achieve with a direct sales force. Their job was to sell products and communicate market

… Read the rest

To Call Report Or Not….

A manufacturer that has long been committed to using reps recently reported that he’s become a regular reader of the discussion group formed by MANA on LinkedIn. One discussion on call reports really got his attention.

 

“The people I report to have long insisted on the value of our reps submitting regular call reports so we know what’s going on in the territory. I can’t tell you how many times I’ve heard this. I, on the other hand, don’t believe it. I’d rather have the reps in the field selling product and proactively reporting to me about what’s

… Read the rest

Changing With The Changing Times

Historically, if the role of the rep could ever be described as one where “he makes calls and follows up,” changing times have dictated that’s no longer the case, and one manufacturer especially is well aware that he has to change just as the rep does.

Keeping apace with the conversation on “change” that’s taken place in the pages of Agency Sales magazine since the beginning of the year, this manufacturer continues: “None of us — rep, manufacturer or customer — has the time we used to have for what I’d refer to as ‘social’ sales calls. Technology has … Read the rest

Continued Practice of Consultative Selling

The focus of one of the articles in this issue of Agency Sales is the importance of consultative selling. In consideration of that subject, the following oft-repeated words come to mind: “The more things change, the more they stay the same.”

A full 10 years ago, Agency Sales magazine reported on a study covering the growing trend among reps to adopt the tenets of consultative selling. According to an article in the magazine, making the transition from product to consultative selling was the most frequent challenge faced by sales professionals — including manufacturers and their reps. Moving from a product

… Read the rest

Can a Rep Be Too Successful?

One piece of baggage that many reps will never get rid of is the feeling that if they’re too successful for their principals, they are doomed to being terminated at some point. The thinking goes this way, according to one rep: “I built the relationships and grew the business that didn’t exist before. Unfortunately, once the manufacturer considered the size of the monthly checks he was sending me, he felt he could save money and serve my territory with a direct salesperson.”

Thankfully, not all manufacturers feel this way. That point was driven home when several manufacturers, who work exclusively … Read the rest

Performance: Measuring Reps vs. a Direct Sales Force

It’s interesting that a number of manufacturers who decide to direct their marketing and sales efforts to independent reps have already done their homework. As a result, when they contact MANA or take the beginning steps in forming their rep networks, they’re already following a map they’ve drawn for themselves.

For instance, consider the words of one manufacturer who described his efforts in working with reps: “One of our major goals is to create and enhance our presence in the marketplace as quickly as possible. At the same time, we knew we had to keep our eye on expenses and … Read the rest

Firming Up the Relationship

In the article that appears on page 24 in this issue of Agency Sales, Jerry Leth, MANA’s director of membership, and Joe Miller, former president/CEO of the association, detail steps manufacturers should take in order to establish and firm up the relationship between principals and their reps.

What frequently happens in the principal-rep relationship is that things can start off well but then sour in a hurry. Part of the cause of this disintegration of the relationship is that once reps are signed on, they are all too often forgotten. A bad situation can be exacerbated when principals … Read the rest

Building Your Deal Team: Assembling the Right Players

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If it’s time to buy or sell a company, don’t make any moves without the strategic advice of an experienced team of financial experts.

Thinking about selling your company, buying a competitor, or maybe raising capital? You need a deal team with the right mix of talent and experience to get the best value and to assure the transaction actually happens. As economic activity starts to pick up, some small and mid-sized companies are testing the waters and seeking to launch strategic initiatives to move their businesses forward. In some cases this means raising capital, and in other cases it … Read the rest

Debunking the Myths of Using Indpendent Reps

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Many manufacturers make uninformed decisions about working with independent reps. Consultant Tony Higgins lays to rest many common misconceptions.

Independent manufacturers’ representatives have a believer and a friend in Tony Higgins. Higgins is from Windsor VIII, LLC, a Savannah, Georgia-based company active in the sales outsourcing and management field that works with a select group of business-tobusiness manufacturing companies. He recently posted on his blog philosophies that echo many of the same ideas that MANA and ASM have been preaching for years concerning the benefits manufacturers can gain from working closely with a well-chosen network of reps. Entitled “The Myths … Read the rest

Rep-Principal Communication

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Good communication with your reps ensures you are working toward the same goals.

One of the biggest problems that rears its ugly head between reps and principals is rooted in communication. The rep often expresses this lack of communication by saying “I didn’t know that is what you wanted.” It is not enough for a principal to just communicate a sales goal for the year.

So how do we improve rep-principal communication? It’s not that difficult; it just takes time. Here are some suggestions for what a principal should share with his reps.

Your vision of the future for your … Read the rest

Examining the Rep’s Value Proposition

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A rep spends valuable time and money building beneficial relationships and sales skills, making them a cost and sales-saving choice for many manufacturers.

Several years ago, Debra Woods was faced with the task of justifying the continued use of her company’s network of independent manufacturers’ representatives. She quickly offered a convincing value proposition that tipped the scales in favor of retaining reps. Her experience serves as a valuable lesson to others faced with the same dilemma.

Woods, who is currently the national sales manager for Control Instruments Co., Fairfield, New Jersey, details the scenario that involved a company she previously … Read the rest

7 Habits Not to Break

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Hank Bergson weighs in on Covey’s The 7 Habits of Highly Effective People and what they can mean for manufacturers in conducting smarter business.

A year ago, Agency Sales engaged in a dialogue devoted to attributes that independent manufacturers’ representatives ought to possess if they hope to be successful with their principals and customers. Moving to the other side of the aisle this year, we’re going to consider what principals must possess in their relationships with reps.

To get the conversation off the starting line, consider the 1989 book by Stephen Covey, The 7 Habits of Highly Effective People. Since … Read the rest

Say Goodby to Voicemail?

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When a rep, who obviously had a good relationship with his principal, started complaining about the number of voice mail messages from manufacturers he had to deal with, the principal nodded knowingly. He quickly offered that “I’m hearing more and more of this from my reps. That’s why I’ve changed the way I communicate with them. I’ve drastically cut back on phone calls, especially when all we’re dealing with is general information and answers to questions—instead I’m using e-mail and text.”

As if this scenario needs any proof, here’s what Piers Fawkes wrote on a website (www.PSFK.com) devoted to … Read the rest

Reinventing a Rep Training Program

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Instead of believing what he was hearing from many of his reps as the reason why they couldn’t or wouldn’t attend any of his regularly scheduled training sessions, the manufacturer decided to turn a critical eye on what he was offering.

“I’ve been having my reps come to the factory with regularity so I can bring them up to speed with our newest products and applications and provide all of us with an opportunity to compare marketing intelligence. This year, however, more and more of my reps are telling me that with the economy so bad, they can’t afford the … Read the rest

Taking to the Field With a Purpose

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One manufacturer recently related his philosophy concerning field visits with his reps. According to the manufacturer, “There’s got to be a reason to go there, and by that I mean you’ve got to do much more than just look at the calendar, say, ‘I haven’t been there in a while,’ and decide to go. Rather, ahead of time consider what the value-add is — to not only the rep, but also to the customer. Gone are the days when a trip to the field is just a ride along and a chance to shake a few hands. The savvy principal … Read the rest

No Cutting Back With the Sales Force

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Let’s not call it “misery loves company,” but more like a case of appreciating he was not alone when one manufacturer discussed his concerns with others. The manufacturer in question was relating the challenge he was faced with in terms of cutting costs while maintaining his market share. Like so many other companies today, this company chose to control one area of its costs by cutting personnel. That left the remaining people with two jobs — their own and the job of the person next to them who was let go. As he was relating his problem, another manufacturer smiled … Read the rest

Reestablishing the Inside Connection

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Open Communication With Inside Sales Strengthens the Rep Bond

“We’ve always prided ourselves on the support our company has provided to our network of independent manufacturers representatives — that’s why when we began to hear some complaints, we paid attention.” That’s how one manufacturer was alerted to a weakness in his sales and marketing operation, and once alerted, he took quick action to correct the situation.

For years, according to this manufacturer, “We figured that our inside salespeople were doing all they could to support our outsourced sales network. However, over the course of two rep council meetings, the number … Read the rest

Opportunity in This Economy

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As he was leaving his position as national sales and marketing manager for a major manufacturer, an executive was asked his opinion of what he thought were the major challenges facing reps today. In the face of the economic challenges just about all businesses are facing today, his answer was especially optimistic. “It would be great to entertain the question of potential challenges in a healthy economy, but that’s not the case,” he said. “However, the economy we operate in today is not without tremendous opportunities. For instance, there are many manufacturers that historically haven’t used reps who are … Read the rest