Get the most out of your reps

by Dan Beaulieu

It’s no secret that the independent representative/principal relationship is one of the rockiest in the manufacturing world.

The dance between reps and principals usually starts this way: A company decides it needs more sales and wants to leverage its sales budget, so it recruits a network of reps.

But once they are signed on, these reps are often forgotten. They are offered no orientation, no visit to the principal’s company, no strategic rep plan and no real commitment on the part of the principal. After all, management expects that if the reps are any good, the orders should start rolling in.

Soon the quotes do start coming, but chances are they are for the wrong products. The principal is angry. The rep is disappointed, and management assumes the reps are no good. Even worse, after more sales mishaps, management concludes that the rep route just doesn’t work.

This cycle can continue, but it doesn’t have to. There are things that can be done to make sure that the rep/principal relationship turns into a win/win for both parties.

Here are 10 tactics to get the most from your reps:
• Find our about your reps. What kind of experience do they have? Have they been successful with your type of product? Are they the kind of people you want to work with?
• Fully explain the company’s story and products to the reps. Tell them exactly what you are good at and what kind of customers you want. Be specific.
• Stay in touch with reps after the initial courtship and signing.
• Visit reps in their territory on a regular basis.
• Insist the reps visit your company.
• Provide new reps with the basic tools they need to do their job – paperwork, copies of quotes, orders and invoices, etc.
• Hold weekly phone meetings with each rep firm.
• Hold monthly meetings with your entire rep network.
• Make sure your in-house sales team knows about the independent reps and are encouraged to partner with them.
• Pay your reps on time.

How to find great reps
Make sure you know exactly what you want from your new reps. What market(s) do you want them to target? What products do you want them to sell? Then develop a profile for the ideal rep firm.

Here are 10 “must-haves” to look for:
• the selling and technical expertise needed to sell your product;
• relationships with your target accounts;
• reputation as the top firm in their territory;
• financially sound;
• well run and organized;
• dedicated time to selling your product;
• well thought of by the companies you want to sell to;
• great references;
• easy to do business with; and,
• a track record of success.

Please make sure that the reps you interview meet or beat these criteria. Do not sell your company short, or you will pay for it in the long run.

Also, don’t forget this is also a selling job on your part. The better the rep firm, the more persuasive you must be to convince them to work with your company.

Remember that independent reps must commit a great deal of time and money to sell your product(s). It will be months before they see a penny of income. This means you must sell a good rep on your company if you want his firm to sign up. Just like you, they don’t have the time, the energy, or the money to waste on something that won’t work.

Be a great principal
Finally, you have to be a great principal to sign great reps. Your company must do everything possible to help its independent reps succeed. Remember, the fatter the checks you write these reps, the fatter your sales will be. That is an indisputable fact.

Here are 12 things that successful reps look for in a principal:
• a great product;
• well run company;
• good reputation in the market place;
• excellent technology;
• efficient quoting;
• customer-oriented organization, with a solid customer service department;
• well-defined sales strategy;
• good and fair contract;
• a proven track record;
• financially solid;
• treats reps as partners – other reps speak well of them; and,
• pays their reps promptly for the full amount due.

A good and fair contract
Once you have chosen the reps you wish to sign on, don’t just offer them a boilerplate agreement. Write a long-term contract that’s fair and compensates them for getting exactly the type of business you desire. If you want more military business, offer an additional financial incentive for military business. If you want to gain new customers, offer your reps a bonus for signing new customers.

Follow up by paying your reps like clockwork. It will motivate them to stay productive and make more sales for your company.

In short, take care of your reps, and your reps will take care of you.

Dan Beaulieu is a sales and marketing expert who helps companies win new business with targeted strategies and communication plans. After working as a top sales executive for three fabrication companies, he founded D.B. Management Group. For more go to www.dbmpcb.com, or write danbbeaulieu@aol.com.