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Here’s why some manufacturers
go to market with independent manufacturers’ representatives:
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Left to right: Brian Jones, Regional Sales Manager,
Wepackit, Inc. and Scott A. Lincoln, Lincoln Packaging
Corporation.
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“Reps are ideal for us in that they bring with them
a vast contact database containing valuable intelligence
on their territory and market.”
• “We’re a small company with a distinct lack of
manpower. Working with manufacturers’ representatives
is the only way we can cover the nation the way
we need to.”
• “For the specific product we use reps for, we’ve
found that it’s a relationship sale and the rep
provides the plant-level sale infiltration that
does the job for us.” |
While the manufacturers in this case are speaking about
their experience with the same rep, the message contained
in their words can be extrapolated and used to describe
the feelings of many manufacturers across a broad range
of industries.
For the record, the manufacturers and the rep they are
speaking about are:
• Wepackit, Inc., Orangeville, Ontario, Canada.
The company is a manufacturer of case erecting, packing
and sealing packaging equipment. According to information
found on the company web site (www.wepackitinc.com),
“Our mandate is to offer automation solutions that truly
represent value for our customers.”
• Heat and Control, headquartered in Hayward,
California. Visitors to this company’s web site (www.heatandcontrol.com)
will find that the manufacturer designs, engineers and
builds the machinery that creates and packages prepared
meats, poultry and seafood, french fries, baked and
fried snacks, and other quality foods. “Our equipment
operates around the clock, around the world, giving
our customers the advantages they need to succeed in
today’s competitive markets.”
• Smalley Manufacturing, Knoxville, Tennessee
(www.smalleymfg.com), custom designs and manufactures
conveyors and conveying systems in North America. And
the rep in question is Scott Lincoln, Lincoln Packaging
Corp., Strasburg, Pennsylvania. Lincoln opened his doors
seven years ago and a visitor to his agency’s web site
(www.lincolnpackaging.com) learns the firm “has provided
numerous industries with packaging machinery produced
by quality machine manufacturers. Our main territorial
focus is the Mid- Atlantic States region with overflow
coverage in adjoining states. Our future growth includes
providing representation and consulting services along
the entire Eastern Seaboard of the United States.”
Gauging the Reps’ Value
What is it that these manufacturers
see in reps in general and in Lincoln specifically
that recommends their chosen method as the way to
go to market? According to J.P. Perreault, director
of marketing and business development for Wepackit,
Inc., “We’re a Canadian company looking to accomplish
product and market penetration in the United States.
Independent manufacturers’ representatives are ideal
for us in that they bring with them their vast contact
database for their territory and market.”
As Perreault continues to describe how he works with
reps in the United States, there’s one point he continually
returns to — the importance of relationships. “With
all the talk and predictions about how the Internet
and web advertising were going to affect the way we
do business with a net result that there will be less
of a role for the rep — we’re finding just the opposite.
Even with the new wave of younger engineers entering
the industry, we’re finding that what people want
are relationships, and that’s what the rep provides.
Relationships build a level of confidence between
the manufacturer and customer. To reach our potential
market in the past, I’ve tried everything — print
advertising, the Internet and the web. But what we’ve
found is that there is no better method for us as
an industry in transition to reach our market than
reps.”
| “With all the talk and
predictions about how the Internet and web advertising
were going to affect the way we do business with
a net result that there will be less of a role
for the rep — we’re finding just the opposite. |
If that isn’t enough of a positive
recommendation for going to
market with reps, Perreault continues that “United
States-based reps offer this Canadian company the
real strength of communicating the product value of
our offering that we couldn’t achieve otherwise.”
As if those strong comments weren’t proof enough that
the rep route works for Wepackit, Perreault adds that
“because of our efforts with reps, our gross sales
have increased 40% in the United States. That’s proof
to us that with the assistance of our reps if we can
position our product’s quality with potential customers
and provide a competitive price, we’ll be successful.”
How does this manufacturer find the reps that he’s
so high on? According to Perreault, “MANA, with its
directory and ads in Agency Sales, has been very helpful.
With that as a start, our efforts to find new reps
have been somewhat self-perpetuating.” He adds that
the company may not respond to every inquiry from
reps and in general terms, it employs a philosophy
that leads them to partnering with quality agencies
and searching for long-term relationships.
On the subject of relationships, Perreault has some
very firm opinions. “Relationships — business and
personal — are very important and many times you can’t
separate one from the other. But relationships between
you and your rep will only take you so far. There
comes a time when you have to deliver — that’s the
bottom line. It all comes down to performance. In
the case of Scott Lincoln, he gets the job done for
us, and that’s what it’s all about.”
A part of Lincoln getting the job done, according
to the manufacturer, “is that he is so incredibly
detailed with his front-end communication when it
comes to defining a project. The type of input he
provides allows us to easily respond to his inquiries
in a quality manner. He gives us this type of information
because he realizes the potential of what he’s working
on. As a result, we’ll support Scott to the nth degree
in everything he does. If he says he needs more support
from us, he’s got it.”
Another of Lincoln’s strengths that Perreault refers
to when speaking about the rep concerns his ability
to “stay focused on his core products. This is something
that he is especially adept at. Sure, there may be
some short-term opportunities that are presented to
him, but rather than follow them, he always stays
focused. He’ll pass up an opportunity like that, stick
to his guns and resist temptation.”
Perreault qualifies his praise for reps with one measured
observation. “Sometimes, and I emphasize it is sometimes,”
he explains, “we run across reps and agencies that
don’t know when to disengage themselves from the process.
In these cases, we found that they are so protective
of their customers, they have a feeling that once
they open the door to the manufacturer with the customer,
their relationship is in danger. They don’t or won’t
back out at the logical time. What happens then is
because they want to ensure that everything flows
through them, we have a useless layer of communication.”
Selling A Specific Product
Another of Scott Lincoln’s
principals is Heat and Control, Inc., headquartered
in Hayward, California. Brian Barr, sales and applications
manager for the manufacturer, explains that for one
of his company’s product lines, the Checkweigh inline
weighing product, reps were the only way to go. “For
this specific product manufacturers’ representatives
offer us the best market penetration at the right price
point.” He adds that the Checkweigh product is a plant-level
decision buy.“What it comes down to is relationship
selling, and that’s what the rep does best.” He adds
that how the rep performs for the company in this area
is a perfect example of the rep’s value — achieving
market penetration.
Heat and Control uses reps nationwide on this product,
and Barr explains that the company has been able to
find reps through word of mouth from their existing
reps or from recommendations from current customers.
“We’ll ask some of our customers who the reps are that
call on them for other products and have done a good
job for them. This has been a big help to us in locating
reps.”
Barr explains that many of the reps the company does
business with — including Lincoln — originally came
from the manufacturing side. “As a result, they know
all the concerns and problems the manufacturers have
to face, and that’s a big help in our relationship with
them.”
While reps have done the job Heat and Control needs
and wants them to do, Barr adds that a continuing concern
for his company is to ensure they gain a fair share
of time with their reps. “We know that we have to compete
with other manufacturers for the rep’s time. We feel
we do that by partnering with the reps we do business
with.” He explains that the company has at the ready
all the tools and support they will need to get the
job done in the field. “We make sure our internal service
structure is set up so our application people are always
there to support the reps. Our whole effort is focused
on treating our repsjust as we would treat our customers.”
He adds that Scott Lincoln fits the description of the
kind of rep that they like to do business with, especially
considering “his attention to detail.”
Serving The Small Manufacturer
As Keith Iddins, head of marketing
for Smalley Manufacturing, Knoxville, Tennessee, describes
it, the reason his company goes to market with reps
sounds like one ripped right from the pages of a marketing
textbook. “We’re a small business, and the cost for
us to cover the country with direct people would be
very expensive. As a result, we work with reps nationwide
and have three of us internally work with those reps.”
Just as the other manufacturers before him, Iddins
praises Lincoln for his front-end work. “He takes
care of the customer and thoroughly follows up on
all leads.”
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NAM - Another Manufacturer
Asset
Valuable information
is provided for manufacturers when they
visit the MANA web page and follow directions
to click on the NAM location.
MANA and the National Association of Manufacturers
(NAM) have entered into a strategic partnership
for the benefit of the members of both trade
associations. It is noted that “small and
medium-sized manufacturers and professional
field sales companies have been partners
in profits since the early 20th century,
and today their respective trade associations
are partners in advocacy, education and
other key areas.
“Today, more than ever, MANA and NAM members
are teaming up to penetrate mutually profitable
markets.
“The NAM members have the technology, manufacturing
skills and the personnel to produce world-class
products at very competitive prices. MANA
members, in turn, have the sales and marketing
skills to present the products of NAM members
to customers all over the world, and to
do this in a manner that presents the manufacturing
concern in the best possible way. Today,
the U.S. economy is the envy of the world
because we’ve learned how to focus on what
we do best and to outsource to partners
what they do best.”
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A Rep's View of The Relationship
It wouldn’t be fair to limit this manufacturer/rep
discussion to one where only the manufacturer has
a word, especially when Scott Lincoln is anxious to
weigh in with his thoughts on the relationship.
At the outset, just as we asked the manufacturers
in this article how they found good reps, we also
asked Lincoln how good manufacturers can find him.
In response he offers an endorsement for MANA, which
he joined last year. “Unless a manufacturer knows
I’m here, he’s not going to find me,” he says. “I
can be the best rep in the world, but unless someone
has heard of me, that won’t do me much good. In addition
to word-of-mouth recommendations, which are very worthwhile,
MANA has been great. It’s an organization that works
hard to build relationships between manufacturers
and reps and to create matches between the two.”
Completing The Educational Loop
For years, MANA seminars
have led the way when it comes to acquainting
manufacturers with the best ways to find and
work well with their reps. In the pages of
this issue of Agency Sales, for instance,
readers will find information concerning the
MANA seminar schedule as well as an outline
of the program. Complementing the seminars
are the articles that appear in the pages
of this publication and the complete inventory
of MANA publications that is available to
manufacturers.
But there’s more.
The Manufacturers’ Representatives Educational
Research Foundation (MRERF) offers a full
range of educational tools of interest to
manufacturers. A visit to that organization’s
web site (www.mrerf.org), results in a wealth
of information including details covering:
• Course on Managing the Manufacturers’ Representative
Network
• Evaluation of Prospective Reps
• Guidelines for Planning the Business Year
• Guidelines for Negotiations between Representative
and Principal
• Cost Comparison worksheet, Captive vs. Outsourced
Sales
• Guide to Successful Territory Visits
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Having spent time as both a manufacturer and a rep,
Lincoln knows what it takes to do both jobs, and much
of what he talks about points directly to the importance
of relationships and teamwork. “As a rep, I have a
mixture of exclusive and non-exclusive agreements
with principals. Some have written contracts and some
exist on the basis of a handshake. I’m from the school
where it’s perfectly all right to do business with
a handshake. In such arrangements, I find you have
to pay much more attention to the relationships. With
a contract, after a couple of years, no one really
remembers what was agreed upon anyway. What’s important
is the relationship.”*
Lincoln continues by defining the terms of the relationship.
“As a manufacturers’ representative, it’s important
that the rep think of himself as a direct employee
of the manufacturer and strive to conduct himself
accordingly. Just as any direct salesperson, you are
paid to sell. And, whether it takes six months or
longer to get the sale, you benefit from the selling
of the manufacturer’s product.”
Perhaps, drawing from his time as a manufacturer,
he adds that “often within the manufacturer’s organization,
there may be several who have negative preconceived
notions about the rep — notions such as reps are just
order takers, and nothing more. I know that’s far
from reality. Those people aren’t the ones who are
there when you’ve worked 12-14 hours a day and late
at night check into a hotel exhausted. Then, at the
end of many weeks, nothing has happened and none of
the orders have come in — yet you still did all the
work that had to be done. There’s obviously a lot
more to the job than just taking orders.”
In terms of doing away with those pre-conceived notions
and working to improve relationships, Lincoln is quick
to talk about the importance of teamwork. “I don’t
have an MBA, nor am I a Business 101 kind of guy,”
he explains. “But I can use a computer, create spreadsheets
and I know how to work between engineering and accounting.
One thing I’ve come to realize through all the downsizing
and the resultant pressures that have been placed
on our customers is that customers today expect more
from a sales agent than ever before.”
* Editor’s Note: While
we agree that relationships always come front and
center, readers might remember that in general, MANA
and many others who have appeared in the pages of
Agency Sales don’t necessarily recommend conducting
business solely on the basis of a handshake. MANA’s
legal counsel has regularly recommended the preparation
of contracts. To that end, the association offers
its members a recommended standard contract guideline.
To provide the products and service
that the customer needs, Lincoln maintains that he
has been able to work with manufacturers that provide
him with the kind of support allowing him to better
serve the customer. The three manufacturers already
interviewed for this article fit the bill for what
Lincoln is speaking about, so much so that all were
the recipients of “Awards of Excellence” from the
rep. According to Lincoln, “Two years ago I instituted
these awards based on criteria reflecting the manufacturer’s
performance.”
Among the criteria that Lincoln uses in making the
awards are:
• Timely response to inquiries
• On-time delivery
• Successful installation — “Did we, as a team, get
it right? Does it work? Did we quote it properly?”
• Satisfied customer — this includes long-time support
in terms of parts and service.
• Pursuing a competitive edge in the marketplace —
“If I bring good potential business to a manufacturer,
have they followed through from their end by being
competitive in the marketplace? What good does it
do for me to do my job and then we never get any business
because they are not competitive?”
Lincoln adds that “these awards have really helped
me take a harder look at my top — and low-performing
manufacturers and encourage the low performers to
either come up with solutions to problems or perhaps
I’d even consider changing companies.”
If the aforementioned Awards of Excellence are any
indication, it doesn’t appear that any type of “change”
will occur in the relationship between this rep and
these manufacturers.
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Rep Search Engines For Manufacturers
Manufacturers that have
made the decision to go to market with reps
are faced with the task of finding the right
reps to establish their sales networks. How
do they get this job done? There are a variety
of methods to follow to ensure that the manufacturer
has the best chance of getting the most professional
and productive reps in place.
A good place to start is MANA. A visit to MANA’s
web site (www.manaonline.org) will acquaint
manufacturers with the association’s Directory
of Manufacturers’ Sales Agencies — the industry’s
most comprehensive guide for finding the right
sales agency. The information contained in the
directory is always current. The MANA membership
database is updated daily to add new members
and to reflect important profile and contact
information changes of active members. The database
may be searched for sales agencies by one or
more of the following criteria:
• Territory
• Agency location
• Product classification
• Customers served
• Services offered
• and the popular “Keyword” feature.
In addition, for manufacturers that are seeking
manufacturers’ representatives overseas, MANA’s
web site offers a link to the International
Union of Commercial Agents and Brokers (IUCAB).
But there’s more that the manufacturer can and
should do. In his book Selling Through Independent
Reps, consultant Harry Novick advises manufacturers
to “Pick the right reps and support them well.”
In terms of where to find potential reps, he
advises, as we’ve already done, to consult the
MANA Directory, but he doesn’t stop there. In
addition, he urges manufacturers to:
• Check with key customers and specifiers for
potential candidates
• Consult with existing reps and non-competitive
manufacturers of compatible products.
• Check your own files
• Peruse reps’ ads — especially those that appear
in Agency Sales Magazine — and the Internet
• Participate in trade shows
• Check with distributors and sales organizations
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