Training and motivating reps on an ongoing basis

Modern Machine Shop, Jan, 1991 by Bert Casper

Over the past few months, we have discussed the process of finding and training a rep organization to sell for a contract shop. Some training of our reps is done with videotape. These "shows" are popular, because people learn well when they can listen and watch at the same time. Reading a paper or listening to a voice carries less to the viewer's memory than a color, action, sound video.

Still, additional training is always needed. Because people learn best when they can actually profit from their education, we have our project managers, engineers, and sales people visit new reps shortly after they are appointed. They make actual sales calls with them on their prospects. During these visits, presentations are made, projects are evaluated, and the new rep can quickly understand how to better select appropriate industries, clients, and projects.

We like to send a new rep a commission check as soon as possible so we are very aggressive on the first several requests for quotations from the area. During these first critical months, we try to identify technical shortcomings in the rep, and help overcome them. We also encourage another visit to our plants to further the education process. Customers today typically want to discuss their manufacturing problems with a knowledgeable person who can help them, not with a salesman". Harvard Business Review recently published a study about buyers, which shows that they will "get right down to business" with reps who are seen as well-informed and reliable. Our responsibility to a new rep is to provide enough training and education so that the buyer will evaluate our reps in this light.

Training and motivation are necessary on an ongoing basis. Training is needed because our business changes rapidly; motivation is needed because the contract shop business, by its nature, has daily disappointments. Since the average contract shop is successful only on 5% to 10% of bids, the rep fails to make a sale about nine out of ten times. This "failure" rate can be devastating unless continued motivation takes place over time. Our reps get a weekly package of mail that includes such things as requests-for-literature, RFQ'S, quotes, P.O. copies, invoice copies, and commission checks. Because we pay the rep his commission the same week that the customer pays us, chances are that a check will be in any weekly mailing. We also send samples of new literature, and a weekly "rep letter."

This letter typically carries some market and competitive information, news about changes or new equipment, sales data, planning, and a little humor. The reps read it, and use the information in their sales calls. It's a weekly contact, rather than the more common infrequent communications, which are usually negative in nature, that most reps get from their principals. It keeps the reps thinking about the company, especially when they read a "success story" about another rep with similar customers.

Sales meetings are held only when we have a lot of new equipment and capability to demonstrate. Bringing forty people in, from all over the continent, for three or four days of plant tours and classroom training along with several social events, costs lots of money. Even though the reps share in the travel costs, we don't want to budget for such a meeting every year.

One major benefit of these meetings is the contact reps have with each other. They talk about projects, sales techniques, and their dealings with our company. They discuss industries that are hot, or becoming so. They give each other ideas and suggestions. The result is more motivation to sell for our company, and that's what makes the technical training and tours palatable and long-lasting.