The Role of the Independent Sales Rep
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.
Contact
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.
Presentation
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.
Service
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.
Your Responsibility to the Rep
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.