Communicate and Appreciate

Insights from a MANA Member on the Perfect Principal

One MANA member, Dean Baum of Southrep, Inc., Newnan, Georgia, has been reading the series of articles in Agency Sales devoted to the Perfect Principal. After carefully following the series, he’s come away with some thoughts that he generously offers to principals.

"The words ‘Perfect Principal’ sound like something you might hear in a ‘pep rally,’ and maybe they are. In this case, maybe you — the principal — are our source of ‘pep.’"

"Remember, the rep is out in the field or alone much of the time. He has a tendency to work more for those who communicate and show appreciation for his efforts and who give him the support he has to have to do the job."

"Good salespeople are personality types that are sensitive to how their efforts are appreciated. Most appreciate that without sales growth, their company would be in a ‘pretty pickle,’ meaning it would be in serious trouble. If you depend upon reps, then you need to regularly encourage them and respond to their needs."

"You know about the urgent need to respond to quotes, samples, etc. promptly, but what about the real need for regular communication to assure the rep that you are behind him and to find out what is new in the field and what he may need? It never ceases to amaze me how a manufacturer will respond to large customers promptly and even small ones when they ‘make a racket.’ But a rep, who may be responsible for the revenue of 100 customers and who can affect the future of a company, may not get regular attention or encouragement."

"Can the attitude of a manufacturer toward his rep sales force make a difference? Just one real-life example may provide an inkling."

Real-Life Example of Neglecting the Rep Sales Force

Here’s an example of a firm that was the leader in its field and the innovator of the technology needed by its customers. Even with extensive competition, they managed to maintain an easy 33 percent of their market. However, a buyout occurred and new management arrived. They were centered on profit because that is how their bonus was structured. First thing they attempted was to make some product available for multi-channel selling as they called it. The reps turned that down. Second thing they tried was to cut commissions on large sales, after the sale. That cost them a ‘pretty penny.’ Still trying, they took their largest rep and cut his territory without consulting him. He jumped ship. That cost them dearly. So, what do you imagine is their situation today? Serious loss of market share, which translates to millions in lost revenue. All because of lack of ‘appreciation’ of the value and power of their experienced rep sales force.

How to Better Support Your Rep Sales Force

The above is admittedly an egregious example. But the question here is do you fully appreciate and encourage your rep sales force? How can you more fully do so? Good examples are continually published in Agency Sales magazine under the ‘Perfect Principal’ series. Do you think these firms are stable and growing? Take a look at their ‘stats.’ What do they do to support their reps?

• Consider a regular, at least once a quarter, newsletter to your reps. This newsletter gives you a chance to compliment their efforts. It need not be extensive. Develop standard sections — news about the field, the plant, the people, new products, new directions.
• Have you established a rep council? Why should you? There are those words again — ‘communication,’ ‘appreciation’ and ‘understanding.’ If you don’t understand what is going on out in the field, you could have serious difficulty.

You can take the lead and make a difference in the motivation of your valued sales team. Have you ever paid any rep an unexpected bonus for an exceptional job? Try it and publish it to all your reps. Does your commission schedule slide up or down with volume? Which do you expect better motivates a rep? Do you call the rep regularly, at least once a month, and just ask how things are going or what is new in the field or what you can do to help or if he is experiencing any issues at all that you can help with? Try it — it costs almost nothing, and it is enjoyable. See what a difference it will make. Who are your top reps? When is the last time you took the initiative to talk to them? Have you ever complimented a rep for a job well done? When is the last time you or your managers worked in the field with one of your reps?

AT&T came out with a picture some years back. It had a bunch of people floating in balls up in space. Well, one ball had unfolded and was looking up at the other balls. The title of the picture was: ‘Communication is the beginning of understanding.’

So, don’t float around in your own little ‘cocoon’ or ‘ball.’ Unfold, communicate, appreciate, understand, grow and prosper with your reps and find more enjoyment with your valuable rep force — after all, they are the keys to your continued growth.