The Value of Multi-Line & Factory Reps

When I was a distributor (I really dislike that term, you are more than that), I had a very jaded view of multi-line and factory reps, however my view was framed by not having any “real” knowledge of first, what they did, and secondly how they did it. Some of the early reps only provided token information, much of which I could read in a catalog or on a website, in a word, no real substance. How were they selected? What criteria was used in making the decision to hire them? What did they need to do to “qualify” for the position? Was it education, industry tenure, reputation - what? My cynicism is gone, I am a true believer in multi-line and factory representation and the effectiveness, if utilized correctly, as an excellent asset to your business.

As the former CEO of a rapidly growing headwear company, I had the experience of selecting, hiring, training, and working with who I would consider some of the best multi-line reps in the industry; truth is the vast majority are. Once I understood what a rep goes through, and what they face day to day, and the tangible results I witnessed during my two-year company launch, we’ll let us just say, my experience certainly changed my perception.

Multi-line reps, good ones, are as valuable to your company as any machine operator, top level customer service rep, or marketing director. They are in a word your eyes and ears in the field, your conduit as it were to the distributor channel – and vice versa.

As a Supplier…Why Hire?

You may find that business is trailing off or you may feel that your business needs a motivational shot in the arm, so you may consider a MLR. Not a bad idea, but before you do, be sure and do your homework. Ask yourself these questions:

• Why am I considering a MLR?

• Do I have the budget to market their efforts?

• Do I have the budget, workforce, assets to FULLY support their efforts?

• Funds

• Staff

• Samples

• Bandwidth to manage more business

• What are my expectations?

Let us stop here for a moment! While speaking and consulting with many suppliers, this is the biggest problem of all. Many suppliers DO NOT have the answer to “What are my ‘specific’ expectations”? Without that it is much like the old saying; “Ready, SHOOT, Aim,” it makes no sense. Do not fire off prematurely; establish what your expectations are for your company, first, before you venture off. It may be a promising idea to hire someone who can help you navigate those questions to give you a deeper understanding and viewpoint. Other things to consider:

• How will I divide the territories?

• What are the current sales numbers in those territories?

• What do I feel each territory can generate?

• What statistics do you have to support that claim?

• Why hasn’t the business grown to that level?

• Who is your competition?

• What will they say to the distributor?

You MUST have your expectations laid out to have a sound discussion during the interview process, I can promise you the BEST reps will know what they want, need, and expect, as they should. When everyone in the process understands each other’s expectations, then it makes it easier to see where the challenges are and more importantly how to correct them. Clarifying and establishing joint expectations helps in setting realistic targets and aids in tracking results and milestones.

Who To Hire…

I have come to believe there are several distinct quantities that a MLR must have. It is true, that I am speaking from the foundation of my last company experience; so, each of you may have different ideas as to what qualities you want to see in a rep, and that is fine, but consider these points.

• Reputation – a person’s reputation speaks volumes. A rep that is extremely near and dear to me once told me that “…a rep is ‘ON’ 24/7 at shows…” how true. You want to avoid anyone who does not always display the highest professional standards & integrity; this is a direct reflection on you and your company.

• Desire – having a fervent desire to excel and excellent work ethic are essential for a good multi-line rep. You want these folks in front of distributors, they must have the desire to get out there even when the weather is unfavorable, or the business climate is slow.

• Belief - each company has their own methodology in doing business, it is your plan, and the reps that “by-in” to your way of doing things will be successful. At the Headwear company I last ran, we had a business that was a total departure from industry norms, those M.L.R.’s who bought in to our methods were successful, those who did not – were not.

• Persona - A great rep must be good with and in front of people, they must be an articulate presenter that is credible and believable. They need to know their material and lines and when they come to a question never addressed before to have the confidence to say, I do not know – and then get the answer in a timely manner – that is where you come in!

• GREAT Communicators – a rep must have the confidence in the company they represent to know they can come to the principals and share information, sometimes information which may not be favorable; remember they are your pipeline, and often a distributor will share information with then, that they will not share with you – be open.

Do you want to know who to hire? ASK! Call ten distributors in the specific territory,  ASK THEM, of all the MLR’s who would they want representing their company? And furthermore, WHY? Chart the answers. Ask the same of a few suppliers that you know. Chart the answers. And surprisingly, ask other reps. “If you were in my shoes, which rep would you hire?”  Why? Chart your answers. If you have established a set of criteria that fits your business model, then you will see who and who does not fit your plan. Lastly, take your time with the interview process, minimum, three interviews at various times of the day.

When To Fire…

What a terrible thing to discuss, but in some cases inevitable. My experience says that when the expectations of either party are not being met it will sort itself out, and believe me both parties, if honest, know when it is over. Key is not to be premature in your willingness to create the departure, and on the flip side, do not wait too long.

It a good point to remember that you the supplier, are relinquishing your company’s excellent reputation over to the multi-line rep but make NO MISTAKE; they are relinquishing theirs as well. If your customer service calls go unreturned to the distributor, if you ignore the repeated concerns your reps share like, poor communication, late shipments, no shipments, delays, lack of decorum, and tact on the part of your CSR’s all of which affects the credibility of your rep. No matter how effective a presenter, no matter what the individual’s reputation, and no matter how hot the desire – no credibility, no sales.

Internal Support

Your internal team must know who the reps are that are representing your company in the field as mentioned before they are the eyes and ears out there on the front lines. Establishing an open stream of communication will allow for more productive discourse and solutions. Many of you may sit there scratching your heads, but I have encountered on more than one occasion, the CSR’s had no idea who the M.L.R.’s were for their company.

Hold sales meetings and keep the reps informed. Any added information that you can feed to them are great talking points while out on calls. When you hold your meetings, try, and have the reps into your manufacturing facility at least once every two years, let them see first-hand, how things are done, made and assembled. Be sure that your meetings are seeded with pertinent information, cases histories, outlooks for the companies, sales projections etc. Also,  be sure the one who is delivering the information is a GOOD presenter and knowledgeable about what they are saying. Mix it up, do not let just one individual speak, let your customer service manager, credit manager, marketing director and production manager all have a role in the meeting, you will be surprised how the synergy will have a positive outcome for all involved. During my tenure at the Headwear company, we had the reps come in and had significant input as to the layout, content, as well as product selection, by far it was the best catalog the global company had put out in decades.

Take time to collaborate with your reps in the field, see that they are articulating your company’s story correctly, have a debriefing session or YOU make the presentation and let them see your style…make it brief!

Give them latitude and limitations – once you have done your proper due diligence give them some set perimeters to work within. Be sure that it fits your plan but be open to suggestions. The success of last catalog I developed was due in large part to the valuable input from ALL the multi-line reps that collaborate with our company. If you allow your reps to give EQP, make sure they understand who gets it and what the criteria is to give it out. Do you offer free spec samples? That is good, but how many, what dollar sales volume, what are the limitations…spell it out and be specific.

Distributors

Lean on your reps, give them feedback, both positive, and on ways the companies they represent can improve services. L.T.C. – leverage the community, ask, and take advantage of all the companies have to offer; free specs, virtuals, 3D renderings, physical samples, EQP, etc. Be consistent with these efforts. I was in a sales meeting with a rep and one of my consulting clients, we were speaking specifically about virtual specs and renderings, I asked the rep Mark, “Percentage wise, when you do virtuals, and they are presented properly to the client, how many convert to orders?”, he said, “Sixty percent”. I would be doing these ALL DAY LONG!

My friends, if the supplier partners you are working with, have followed these and other guidelines to vet out the absolute best MLR’s you would be foolish NOT to take advantage of their expertise and talents.

Most MLR’s are amazing, they can help and assist in a multitude of ways if you connect with them. Get to know them, work with them, lean on them, get their advice – remember, they are seeing a multiple of challenges and SOLUTIONS as they are dealing with hundreds of folks just like you.

In closing…What is your story?

What do they say about your company? Have you told them? They too need training on your product, and they need it continually. Long gone are the days of, “…here’s our product and some catalogs (oh, and don’t forget specials); now go get ‘um tiger…” that is over. The competitive landscape has changed dramatically, and it happens daily, be sure to get them and keep them in the game, remember they are out there representing you. Give them the tools to deliver the message by the most cognitive and thorough means possible. And be sure to be specific about your message, I might suggest that you develop nine key points you want them to deliver a sales meeting or at a show. It is up to you.  You can have tremendous success with the right multi-line reps; establish your respective expectations, train often, empower them and your staff and watch the excitement flourish.

Personally, I have the deepest respect and admiration for multiline and factory reps, I know a ton of them, they are amazing. Want further insights, give me a call, let us chat.

As always, continued “profitable” selling - CQ