Whether it’s an agency that’s just starting out, one that needs to fill out its line card under pressure or another that is simply looking for the most effective way to grow the business, the question remains: “How do I find the lines that will allow me to prosper?”

There’s no simple answer to that question — no one size fits all — but it’s been asked often enough that MANA has tried its best to provide answers via Agency Sales magazine over the years.

Among the many considerations that any rep should have when it comes to finding, attracting and keeping quality lines are the following:

Synergy or product compatibility — Perhaps the first thought here is considering what line of products the agency presently sells. Add to that:

• Products that would complement the existing line.
• Products that present and prospective customers want and need.
• Products that would open the door to new markets and new customers in the territory.

But, that’s not all. Think about quality. It’s critical that a prospective line of products offers the same level of quality and customer service (including availability and delivery) that the agency’s current suppliers offer.

Think for a moment about the irreparable damage that could result if new lines suffer by comparison in those areas. Even though the agency has nothing to do with manufacturing standards and quality control, customers are bound to include the rep if problems occur in those areas.

New product R&D — The cornerstone of any manufacturer’s efforts in the marketplace is its research & development efforts that obviously lead to the steady supply of new products that anticipate and answer customers’ questions and problems. If a rep’s customer base is one that depends upon new ideas and innovative products, it’s incumbent upon the rep to keep the pressure on the manufacturer to meet that demand. The manufacturer who fails in that area is not one that’s going to enjoy a long and fruitful relationship with a rep. How’s this for a criterion when it comes to sealing the deal with a prospective manufacturer? Zero in on those manufacturers who have proven that they can out-think, out-perform and out-manufacture the competition.

Commissions — It would be naïve to think this shouldn’t be a major consideration for a rep but there’s more to it than just thinking about what percentage commission the agency will be earning. It’s critical to know ahead of time what industry-standard commissions are, but add to that a knowledge of how and when commissions will be paid. Elsewhere in this issue of Agency Sales, reps report how they are negotiating for commission payment upon invoice and direct deposit of commissions. Then there’s the long-standard subject of negotiating shared territorial development fees with manufacturers that have no existing business in a territory.

And, while the rep is at it, he or she should be sure to glean as much information as they can from prospective manufacturers’ other reps regarding their history of paying commissions.

Corporate philosophies — A number of sales and marketing managers have worked their way up the ranks of the manufacturer’s sales department to their present position. Over the years, their philosophy of working with reps has evolved to a point where it’s very important for the rep to sound them out regarding how they view the role of the rep. One thing that has made reps feel confident in working with a new manufacturer is the fact they have a “rep champion” on staff. That champion is someone who will always speak up for the rep and is also someone the rep can contact with a question or problem.

Manufacturer stability — In these days of merger/consolidation mania, not to mention the havoc caused by a challenging economy in the last couple of years, think for a moment about whether a manufacturer you are considering to take to market will be here in the very near future. Brands and companies tend to come and go with the regularity of the changing weather. Weigh that heavily before making a decision.

Manufacturer relations with or attitudes toward reps — This is a subject that’s clearly related to a previous item, and it’s one that’s not always simple to assess. The best way to learn about a principal’s attitudes toward reps is to ask other reps. Hence, the value of reps networking with their peers.

Written contract details — Keeping in mind the admonition that “handshake agreements aren’t worth the paper they’re written on,” remember that no matter how attractive a prospective manufacturer or product line might appear, it may not be ideal for a given agency. MANA has long advised reps of the need for carefully negotiated written contracts to the point where the association has developed a standardized contract for its members. In addition, a network of rep-savvy attorneys works closely with MANA and its members whenever contractual issues arise.

Locating the Right Principal

If these are just some of the considerations a rep ought to weigh — and there are more — before taking on a line, then the question remains: How and where will the rep locate the very manufacturers he wants to consider? Some resources that reps use to search for high-quality manufacturers include:

Directories — There’s an association for just about every industry and along with that, these associations are known for publishing (either online or printed) directories that list manufacturers serving that industry. This is a good place to start.

Magazines and trade journals — Along with the directories that cover virtually every industry, there are magazines and other publications (either online or printed) that are receptacles for a wealth of information concerning manufacturers that sell into that industry.

Trade Shows — Attend trade shows for your industries and you find many prospects for companies to represent. As you travel up and down the show aisles, it’s not uncommon to see “Manufacturers’ Reps Wanted” signs posted in booths.

Network with other reps — Either formal (annual conferences or manufacturers’ annual sales meetings) or informal (weekly/monthly breakfast gatherings) meetings are ideal opportunities for non-competing reps to get to know each other. And, reps that follow that practice wind up sharing best practices, not the least of which is how to locate quality principals.

Communicate with existing principals — Knowledgeable principals that you already work with ought to be concerned about your business well-being — both present and future. That being the case, the majority of them will be more than willing to pass on leads for good principals that don’t compete with their lines.

Customers — Likewise, your existing customers can serve as an ideal source of information on potential principals. On the one hand, they’ll let you know about their needs for certain products; on the other hand, if they’ve had positive experiences with principals in the past and those principals don’t have representation in your territory, chances are the customers will let you know about them.

Research new contracts — Local business publications are ideal sources for information about major new projects in your territory. Once that information is made public, the proactive rep should research potential suppliers of the products that will be needed for the projects.

MANA — It’s inevitable that this publication refers you back to MANA. The LineFinder, the association’s Online Directory helps reps locate prospective principals. The MANA classified ads in Agency Sales and the premium web-based ads also work to connect reps with manufacturers. They publish Selecting the Right Representative or Principal, a guide to take you through the interview process. These resources go a long way to make the rep’s task a bit easier.