Manufacturer's Corner

Agency Sales,  Jan 2005  

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The Newsletter For Sales Executives Who Use Manufacturers' Representatives Sharing best practices to help you get the most from your rep partnership

January 2005

HEARING WHAT THE REP HAS TO SAY

In an effort to smooth out some of the rough spots with one of his reps, a manufacturer proposed a full-day meeting specifically to tackle the subject of how best to launch a new product offering. When all was said and done this manufacturer walked away with a workable plan that he's convinced will maximize both his and his reps' efforts.

According to this manufacturer, "I've complained long and hard about how all of my efforts have failed to get reps to jump on board when it conies to promotional efforts or new product launches. In hindsight, however, what I've never done is ask my reps what they need to get the job done. This time, that's exactly what I've done, and Fm convinced it's going to work."

At his expense the manufacturer asked one of his "best" reps to come to headquarters. His only request of the rep was to be open-minded and not to hold anything back. To his and the rep's credit, the rep spoke his mind and the manufacturer listened. What resulted was a workable plan.

First up was a discussion of marketing promotion programs. It was agreed that to effectively hit the ground running, the manufacturer needed to employ a variety of methods to communicate their marketing/promotion goals. Among the agreed-upon methods was the use of the company's annual sales meeting to spread the word to all its reps. Backing up that method was the possible use of a web cast and a conference call. Naturally, the physical launch of a marketing program or product introduction follows the announcement, and the manufacturer noted that input from his rep was especially valuable in this area. He said he knew what to do and what not to do, but just hearing it from the rep grounded many of his decisions. For instance, "We, like so many other manufacturers, have been posting a great deal of our program/product literature on the Internet. Then we'd ask our reps to download and print anything they need. Did we get an earful on this."

"Don't expect the rep to do your printing for you," was the admonition offered by the rep. In general, the rep's objections to such a policy centered around the following:

* Downloading and then having to print material is an added expense for the rep - and it's an expense he's not reimbursed for.

* When the rep does agree to do the printing - however reluctantly - there's no doubt that the quality of the printing is inferior to that which a professional print job would provide.

* And finally, such a policy causes the rep to question the manufacturer's commitment to the program launch if he won't even absorb the cost of printing.

Next, the rep emphasized the importance of the manufacturer providing all his reps with product samples. Naturally, this isn't always possible, such as when a major piece of equipment is involved, but generally he emphasized how important it was for the rep to have the product in his hands well in advance. This allows him to familiarize himself with the product, ask questions himself and ensure that he has answers for customers. He cautioned that "the fewer the product samples, the slower the response to the launch. For example, if you launch to seven outside salespeople and you have only one product, expect reports back in 10 weeks, not one or two."

In addition, by having plenty of product samples, the manufacturer explained that his rep provided him with a number of additional "launch" tips that he plans on employing. For instance:

* Don't make a major launch of a minor program and don't overload your reps with such programs.

* Build some sort of incentive into your program for not only the end-user customer, but also the rep. "If you want your rep to go the extra mile for you, make sure there's something in it for him."

* Value your rep's time. Allow plenty of time for your "launch" efforts. Plan ahead.

* Make sure field sales support is available if needed.

* Don't pre-launch anything that isn't in stock or in production.

* If the program/product launch doesn't work, don't be too quick to blame your reps. A key to maintaining a strong relationship with your reps resides in the manufacturer's ability to accept responsibility for an effort that doesn't work.

EMPHASIZING THREE POINTS OF IMPORTANCE

"I don't know if this works for everyone, but I've got three focal points I constantly keep in mind in my relations with reps." That's how one manufacturer summed up major communication points he constantly emphasizes with his rep. The measure of whether this approach works or not is seen in the length of tenure of the majority of his reps. One- and two-decade tenures are the norm. Here's what he deems as important to keep in mind when dealing with your reps:

* New product development - "If I expect to achieve success by my reps selling the same old products, the same old way, to the same old customers, I'd be fooling myself. In addition to being entrepreneurs, reps are creative people who want to be challenged. The way to keep their interest high and to raise the bar of their performance is by providing them with a steady diet of innovative and "bleeding-edge" products. This challenges their sales skills and communicates to their customers that we're not a manufacturer that stands still."