WINTER 2016
Distributor's Link Magazine Winter Issue 2016 / Vol 39 No1
Distributor's Link Magazine Winter Issue 2016 / Vol 39 No1
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70 THE DISTRIBUTOR’S LINK<br />
GLOBALFASTENERNEWS.COM<br />
by JOHN WOLZ EDITOR<br />
editor@globalfastenernews.com<br />
WHY DO CERTAIN MANUFACTURERS GET<br />
MORE ATTENTION FROM REPS?<br />
A manufacturer’s rep may have 10 lines, but “for some<br />
reason one manufacturer gets 20% of the rep’s time,” a<br />
reps’ association executive said during a conference in<br />
conjunction with the National Industrial Fastener & Mill<br />
Supply Expo.<br />
Why? More important than money for manufacturer<br />
reps is knowing their manufacturer “cares and feels like you<br />
are their prized race horse,” said Charles Cohon, CEO of<br />
MANA – the Manufacturers’ Agents<br />
National Association.<br />
A rep may “crawl over broken<br />
glass” for the preferred manufacturer,”<br />
he added. “It’s not just business, it’s<br />
personal,” Cohon said of reps favoring<br />
certain manufacturers. “It’s how they<br />
feel about the manufacturer.”<br />
Among the reasons reps may favor<br />
a company: “Respect” of the agent by<br />
the manufacturer, Cohon said. “They<br />
make me look good to customers.”<br />
The preferred manufacturer will use<br />
a “collaborative style. The principals<br />
treat us like partners,” Cohon explained.<br />
There is a difference between<br />
manufacturers who “reinforce” the<br />
agent vs. “contradict” the agent with customers. Also the<br />
preferred manufacturer develops a personal relationship<br />
between principals.<br />
Manufacturers must understand that reps have their<br />
own company pride – “especially because they probably<br />
started their rep agency,” Cohon noted. “Keeping reps<br />
happy means a manufacturers get an unfair advantage” over<br />
the other lines a rep has, he pointed out.<br />
Of course the basics count too: Make a quality product<br />
and ship on time, Cohon summarized. The manufacturer<br />
needs to “communicate quickly and accurately with reports,<br />
quotes, answers, quality and handling issues.”<br />
The preferred manufacturer “takes care of issues<br />
quickly,” Cohon added. Manufacturers need a good catalog<br />
– or website, Cohon said. “That is a selling tool.”<br />
“And, oh yes, pay reps on time,” Cohon added.<br />
The manufacturer needs to understand the rep needs to<br />
make a profit. “They don’t expect you to work for free.”<br />
BUSINESS FOCUS ARTICLE<br />
CHARLES COHON, CEO OF MANA –<br />
THE MANUFACTURERS’ AGENTS<br />
NATIONAL ASSOCIATION.<br />
Cohon’s Advice To Manufacturers<br />
Working With Rep Agents<br />
•<br />
the loop.”<br />
• •<br />
When communicating with the customer, “keep the rep in<br />
“Tell the truth. Don’t hide problems such as not being<br />
able to meet a shipping date. Be transparent,” Cohon advised.<br />
Don’t expect too much bill collecting by reps.<br />
“Don’t have too many ‘house accounts’ in the rep’s<br />
territory,” Cohon urged. “Some may be<br />
necessary, but those should be the<br />
‘exceptions’.”<br />
• Training is important. “We need to<br />
know the products and therefore are<br />
comfortable selling them.” Training<br />
needs to be regular and not just one time.<br />
• Reasonable paperwork. If you require<br />
paperwork of reps, “then read it.”<br />
Cohon cited a rep who month after<br />
month inserted the Indiana fight song on<br />
the second page and the manufacturer<br />
“never noticed. He noticed only when<br />
paperwork wasn’t submitted.”<br />
• Cohon suggested having a “reps’<br />
council” of the top four to six reps to “fly<br />
in to talk and create a joint report.”<br />
What Hurts A Manufacturer With Reps?<br />
“Reps don’t want to worry that they’ll be replaced with<br />
in-house personnel, cutting corners or shrinking their<br />
territory,” Cohon cited.<br />
Or, “they give my customer better prices or terms than<br />
I am empowered to give,” he added. “That undercuts the rep.”<br />
“They hire a sales manager who doesn’t understand the<br />
rep business,” Cohon warned.<br />
“They don’t listen to my input and afford me no<br />
respect.”<br />
“They don’t set realistic goals or have no shared goals<br />
or expectations.”<br />
Announcing annual sales goals needs to be in January<br />
– not November, Cohon said. “Set mutual goals at the<br />
beginning of the year vs. surprise goals.”<br />
Cohon summarized that what a manufacturer needs to<br />
do are “things you want to do anyway – the basics.”<br />
GLOBALFASTENERNEWS.COM