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The Role of the Independent Sales Rep
By George D. Krall
As a reference point, I feel
it is necessary to establish that this article is being written
from the perspective of a supplier to the juvenile industry. It
is also important to note that I have worked with independent sales
representatives (ISR's) for twelve years as a sales manager in this
industry. Having laid this groundwork, I will do my best to give
an unbiased assessment of the role of a juvenile sales rep.
Although the juvenile industry is a growing one, the majority of
the suppliers to the trade are small family run businesses with
limited product lines. In order for these companies to successfully
get their products to the marketplace, they utilize the services
of independent sales representatives. On the surface it appears
to be a rather straightforward business relationship. Rep sells
company's product. Company pays rep a commission. However, rarely
in life or business are things simple.
I think the hardest thing with which a company has to contend is
the fact that even though the company sends the rep a check, the
rep is not their dedicated employee. This dichotomy tends to create
great consternation on the part of the company. Unlike the other
staff members on the company's payroll, there is little or no control
over the day to day work schedule of the sales rep. For some companies,
this is a bitter pill to swallow.
Conversely, the ISR, by accepting the company's line and subsequent
commission checks, has a responsibility to represent the company
in a professional manner. The behaviors that constitute "a professional
manner" are the subject of this article. I believe a sales rep's
role can be outlined in three general categories: contact, presentation
and service.
It is a very reasonable expectation by a company that an ISR have
contact with their customer base. Contacts fall into several categories.
These include store visits, phone calls, faxes, e-mail and newsletters.
Without a doubt the store visit is not only the preferred contact
but also the most effective. There is no substitute for sitting
down with the buyer/owner in his/her environment and going over
product.
The frequency of in-store visits is subject to several variables
such as geography and product sell-through. Experienced reps generally
have a travel routine that is both efficient and thorough.
In between these store visits, contacts can be made via telephone,
fax or electronic mail. Company updates (e.g. closeouts, specials
etc.) can be disseminated in this fashion. Follow-ups to the in-store
sales call with product availability, ship dates and the like can
be effectively handled from the rep's office. It is important to
mention that companies and retailers alike have much disdain for
"telemarketers." The telephone is a valuable tool, but it is never
a substitute for the in-store sales call.
Desktop publishing has become very easy with the sophisticated
computers available today. Many ISR's are producing a monthly newsletter
for their customers. It is not always easy to make a phone connection
with the dealers in one's territory especially when there is new
or updated information to get to the retailer. A newsletter can
keep everyone abreast of that rep's lines in a concise organized
format.
A frequently overlooked contact is the communication between the
ISR and the factory. Many companies rely solely on the ISR for attending
to the customer. Even companies that have someone who travels to
the retailers still need to be kept abreast of what is happening
in the field. Keeping the factory updated on the current status
of their accounts, allows them to better service these accounts.
Similarly if an account is experiencing difficulty, a conscientious
ISR will alert the company as to the nature of the problem. I feel
comfortable stating that most companies are willing to work with
a dealer in distress to help them through the difficult period.
We would much prefer the account stay in business than to lose a
customer.
An effective sales presentation is a combination of technique and
product knowledge. Each salesperson will have developed a presentation
style with which they are comfortable. However all good sales presentations
will contain certain elements. Enthusiasm for the product, interaction
with the buyer and paying attention to the buyer's verbal and non-verbal
communications are an integral part of an effective sales presentation.
As previously stated each salesperson will have his/her presentation
style. How information is presented is not as important as having
the material coherently and effectively related. Preparation prior
to the appointment can achieve better results. Having a game plan
allows the ISR to focus on specific topics and products. Both the
buyer's and seller's time is more efficiently utilized with this
approach. If a broader presentation is required, the buyer will
let that be known.
All very successful ISR's have superior product knowledge. Not
only are they thoroughly conversant in the feature and functions
of their products, but also are familiar with the main features
and functions of their competitor's products. Part of the responsibility
for acquiring product information is the ISR. However, I feel that
the lion's share of the responsibility for procuring and disseminating
product information lies with the company.
It is incumbent upon the factory to provide the sales reps with
the tools with that they need to be successful. This includes samples,
brochures, swatches, catalogs and the like. Most importantly the
company must provide hands-on training with their products. After
having received the aforementioned materials and training, the ISR
must familiarize himself with the information and the operation
of the product(s) and become proficient with them. Any company interested
in maximizing their marketing potential will be extremely motivated
to educate their sales force. Likewise any sales rep looking to
excel will maximize this opportunity. The independent sales representative,
who is not receptive to this training or chooses not to take advantage
of this information, is probably in the wrong profession.
Of all the tasks that an independent sales representative addresses,
none consumes more time than servicing the customer. There is a
legion of duties from handling defective merchandise, returning
phone calls, checking ship dates, reporting on production dates
and on and on. Although all of these functions are important, I
feel that the conducting of sales seminars for the retail salesperson
mandates special consideration.
Regardless of how adept one is at selling product to the buyer,
if the merchandise does not get rung up at the cash register, nobody
profits. The infantry in the war of retail is the store salesperson.
They have the most contact and the most influence with the consumer.
There is no magic formula. People sell best what they know best.
The ISR who realizes this indisputable fact and seizes the opportunity
will be most successful.
Too often, the rep feels his/her duty ends with placing the product
in the store. For some reps and companies this is acceptable. However
those individuals and companies who want to gain an edge over their
competitors will not only conduct seminars but also insist on it
as part of product placement. This necessitates a great deal of
effort and time on the part of the ISR. I view this as a long-term
investment. Immediate rewards may not be forthcoming, but there
is no doubt that this strategy is a proven winner.
The training seminar is the ultimate win-win proposition. The retailer
profits by having a competent sales staff. The rep profits with
re-orders that come at a more frequent pace and invariably at larger
quantities. Is it easy? No, but that is why they call it work. It
is also why everyone is not doing it.
For the majority of this article I have outlined the role and responsibilities
of the independent sales representative. I would be remiss if I
did not address some of the responsibilities of the retailers and
factories to the rep.
A rep's time is as valuable as the dealer's. Likewise a rep may
have three or more appointments on any given day. The buyer should
respect the ISR's time and schedule by being prepared with inventory
counts, etc. and by being on time. I am aware that running a business
has situations that occur which need to be addressed quickly. Reps
are very alert and flexible to these occurrences. It is still more
beneficial to all parties concerned if these interruptions are held
to a minimum. More can be accomplished in a shorter time period.
The most important obligation a company has to their sales representatives
is the prompt and complete payment of commissions. There is no monthly
salary on which these people can depend. Like all of us, their bills
come due too. I find it reprehensible that companies are three and
four months behind in their payments to the reps. There is a very
simple agreement between the ISR and the company. If the rep sells
the product then he/she gets paid for it.
Because reps are self-employed, they are easy targets for unprincipled
companies. An ISR has little or no recourse to recoup their unpaid
commissions and these companies know it. If a rep sues for his/her
unpaid moneys, he/she becomes a pariah in the industry. If the rep
resigns the line, he/she gets "stiffed." It saddens and disgusts
me that this goes on in our industry, but the fact of the matter
is that this is undeniably true.
There will always be the ongoing debate among suppliers regarding
the necessity and effectiveness of independent sales representatives.
I for one am a strong supporter of the ISR. I have had the pleasure
of working with many very highly motivated, hard working, conscientious
men and women. They are a credit to both themselves and their profession.
Identifying these quality individuals is a painstaking procedure.
I believe that a key factor in the success of a company/rep relationship
is founded in the selection process. Choosing an individual that
most closely reflects the identity of the company goes a long way
in establishing a positive partnership. An independent sales representative
that shares the goals of the company can and will produce great
results.
George D. Krall is currently the National Sales
Manager for Regal Lager/Baby Björn. He has held the position of
National Sales Manager in the juvenile industry for twelve years.
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