Coaching Manufacturers & Sales Reps on the Same Team
Independent manufacturers sales representatives and
manufacturers have often accepted their relationship as undesirable but
necessary. But this relationship can just as easily be a
mutually-beneficial partnership if both parties consider each other’s
needs.
First, two common misunderstandings must be
clarified:
1) Manufacturers
must accept that independent reps are not their employees. Independent
manufacturer sales representatives (MSR’s) are self-employed, autonomous
business entities who are under contract with several companies at the
same time and must accommodate for each of their manufacturer’s needs.
For reps to be considered as peers, manufacturers must take into account
the same business concerns that affect their own ability to function: cash
flow, available supply, market demand, competitive constraints, time
management and travel limitations.
2) MSR’s
must select manufacturers based
upon on criteria beyond product and commission. Manufacturers have
specific needs and expectations that must be clearly defined, such as
pioneering, house accounts, commissionable sales and marketing support.
Just giving reps a line to run with is a high risk unless their role is
qualified. In return, reps have requirements which vary territory to
territory: new product training, customer service, field support,
advertising, marketing and promotions
Define Your
Job
To improve this relationship, manufacturers can begin
by listing and defining criteria they require from MSR’s. General areas
include time requirements, communication skills, professionalism,
attention to detail and willingness to do whatever it takes to get the job
done. Specific criteria include territory, markets, commission
percentages, commissionable sales, contract length, trade show
participation and non-compete requirements. No one rep firm will meet all
of a manufacturers qualifications or expectations, but the closest match
will help foster a closer working relationship.
Manufacturers and MSR’s share the same business
goals of success, growth and increased sales and profits. But
manufacturers sometimes kill this entrepreneurial spirit by requiring
MSR’s to submit every initiative through top-heavy, bureaucratic
corporate channels. MSR’s know their customer’s needs and every local
marketplace, and if they are to be held responsible and accountable for
sales in their respective territories, manufacturers must be open to
supporting them with the appropriate levels of customer service, marketing
and promotions.
Define Your
Time
Manufacturers must also define theMSR’s time
commitments both on the road and at trade shows. As MSR’s do represent
other manufacturers, they cannot afford to dedicate 100% of any given road
trip or trade show to one specific manufacturer. Given this understanding,
manufacturers can elicit more support if they work with their MSR as
opposed to trying to control them.
On the Road: This
means allowing MSR’s to present other lines after the manufacturer’s
initial involvement. Manufacturers only create resentment by “cramping
their style” and insisting that only their line can be presented. Allow
the MSR to lead the sales presentation and use the manufacturer as their
special guest star. MSR’s know their customers and how best to take
advantage of the manufacturer’s presence on each respective sales call.
At Trade
Shows: This means understanding that MSR’s have time commitments
with many of their other manufacturers. Manufacturers who schedule their
marketing in advance for the year can be first to request booth and/or
meeting times from their MSR’s, and have a better chance of coordinating
their needs with the MSR’s show schedule.
Define Your
Sales Quota
Traditionally, corporations only focused on - and
rewarded - the top salespeople, those top 10 or 20 percent who generated
80% of the company’s national sales. But today many Fortune 500
manufacturers are realizing higher and more consistent gains in annual
sales by working as a team with their regional MSR’s. This new “win-win”
sales quota results from models and management that include MSR’s as
part of the corporate team.
National sales managers meet with regional MSR’s on
a quarterly basis to hear feedback, exchange ideas, evaluate individual
account sales and discuss sales and marketing programs and trends. Then
specific, achievement-oriented sales goals are set in response to this
information, and the progress is reviewed in monthly reports and at the
beginning of the next regional sales meeting. Often a commission bonus,
based upon a percentage of their total annual commissions, is included to
reward the MSR’s efforts in achieving these specific sales quotas.
This team approach works to acknowledge, motivate and
reward the other 90 percent of a company’s MSR’s. By the second year,
everyone becomes involved, sales quotas become viewed by all MSR’s as
meaningful personal goals - and annual sales climb closer and closer to
the more realistic sales projections.
Overall, if both manufacturers and MSR’s spend more
time listening to one another,
they will begin to work together as a coordinated marketing and sales
team. This means accepting critical
feedback without being judgmental. MSR’s know their customers;
manufacturers know their products. Working together they can increase
sales and profits far beyond any annual sales quotas.
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