Global Fastener News

FEATURE

A manufacturer’s rep may have 10 lines, but “for some reason one manufacturer gets 20% of the rep’s time,” a reps’ association executive said during a conference in conjunction with the National Industrial Fastener & Mill Supply Expo.

Why?  More important than money for manufacturer reps is knowing their manufacturer “cares and feels like you are their prized race horse,”  said Charles Cohon, CEO of MANA – the Manufacturers’ Agents National Association.

A rep may “crawl over broken glass” for the preferred manufacturer,” he added.

“It’s not just business, it’s personal,” Cohon said of reps favoring certain manufacturers. “It’s how they feel about the manufacturer.”

Among the reasons reps may favor a company:  “Respect” of the agent by the manufacturer, Cohon said. “They make me look good to customers.”

The preferred manufacturer will use a “collaborative style. The principals treat us like partners,” Cohon explained.

There is a difference between manufacturers who “reinforce” the agent vs. “contradict” the agent with customers.

Also the preferred manufacturer develops a personal relationship between principals.

Manufacturers must understand that reps have their own company pride – “especially because they probably started their rep agency,” Cohon noted.

“Keeping reps happy means a manufacturers get an unfair advantage” over the other lines a rep has, he pointed out.

Of course the basics count too: Make a quality product and ship on time, Cohon summarized.

The manufacturer needs to “communicate quickly and accurately with reports, quotes, answers, quality and handling issues.”

The preferred manufacturer “takes care of issues quickly,” Cohon added.

Manufacturers need a good catalog – or website, Cohon said. “That is a selling tool.”

“And, oh yes, pays reps on time,” Cohon added.

The manufacturer needs to understand the rep needs to make a profit. “They don’t expect you to work for free.”

Cohon advised manufacturers working with rep agents to:

•  When communicating with the customer, “keep the rep in the loop.”

•  “Tell the truth.  Don’t hide problems such as not being able to meet a shipping date. Be transparent,” Cohon advised.

•  Don’t expect too much bill collecting by reps.

•  “Don’t have too many ‘house accounts’ in the rep’s territory,” Cohon urged.  “Some may be necessary, but those should be the ‘exceptions’.”

•  Training is important.  “We need to know the products and therefore are comfortable selling them.”  Training needs to be regular and not just one time.

•  Reasonable paperwork.

If you require paperwork of reps, “then read it.” Cohon cited a rep who month after month inserted the Indiana fight song on the second page and the manufacturer “never noticed.  He noticed only when paperwork wasn’t submitted.”

•   Cohon suggested having a “reps’ council” of the top four to six reps to “fly in to talk and create a joint report.”

What hurts a manufacturer with reps?

“Reps don’t want to worry that they’ll be replaced with in-house personnel, cutting corners or shrinking their territory,” Cohon cited.

Or, “they give my customer better prices or terms than I am empowered to give,” he added. “That undercuts the rep.”

“They hire a sales manager who doesn’t understand the rep business,” Cohon warned.

“They don’t listen to my input and afford me no respect.”

“They don’t set realistic goals or have no shared goals or expectations.”

Announcing annual sales goals needs to be in January – not November, Cohon said.  “Set mutual goals at the beginning of the year vs. surprise goals.”

Cohon summarized that what a manufacturer needs to do are “things you want to do anyway – the basics.” Web: Manaonline.org