Estimated reading time: 4 minutes

It's Only Common Sense: Finding & Keeping Reps

Editor's Note: To listen to Dan's weekly column, as you've always done in the past, click here. For the written transcript, keep reading...We all know that finding and maintaining great reps is one of the industry’s greatest challenges. It's getting more and more difficult to get good reps--often because so many board shops screw them over.

I know that of all the services I provide, finding good reps is the most challenging. Many of them just don’t trust us anymore. Some have completely given up on the PCB fabricator as a viable principal. They tell me that it is difficult to get and keep customers for a PCB shop when the on-time performance is less than 85%; or if they are successful, they can become “too” successful and the board shop cuts them off because their commissions are seen as too large.

Now, to be fair, this week I am going to talk about things from the rep's point of view. Next week I'll approach the subject from the board shop's perspective.

Here are seven secrets to finding and keeping great reps:

1. As always, make sure you're performing. This rule applies no matter how your sales force is made up. If you don’t perform you're not going to grow your business whether you have direct or independent sales reps. In this highly-competitive environment performance is king and value is prince--if you don’t provide these to your customers your're doomed.
2. Make the rep an offer he can’t refuse. By this, I mean tear up your traditional contract. Who said that we have to keep using the same old contract over and over again? Man, that thing is over 50 years old. The world has changed and so should we. Who said that commissions had to be from 3 to 5%, or 7 to 10%? Who said that commissions had to be paid only when you get paid? Who said that 30-day cancellations are cast in stone? Think out of the box. If you're going after a rep you feel is so good that she can really boost your company’s sales, figure out what will be a great deal for both of you. Offer her a percentage of the profit on the part number; offer him a longer-term arrangement. Do whatever it takes (and makes sense financially) to get that rep signed up.
3. Make the rep your partner. Bring him into your business family and treat him just like one of your own in terms of regular communications. Listen carefully to what he says. You're paying this person to be your hired expert with his customer base. You are hiring this person to bring you the customers he knows. Be good enough for him to do that. Follow his instructions about how to win business.
4. Pay reps on time. Pay the rep when you are supposed to pay the rep, and make sure you include a comprehensive commission statement. If you don’t pay your rep, he will not perform. Get it? Don’t even think about not paying your rep if you want him to work for you. Not paying him on time breaks the contract and disqualifies you as a valid principal.
5. Include the rep in your marketing plan. You do have a comprehensive marketing plan, right? You're marketing your company through advertising, social media, newsletters, trade shows, etc., right? Make sure you include your rep in all of that marketing. Think of your rep as a franchisee of your company. The reason people invest in a Subway restaurant or a Midas muffler shop is so they can take advantage of their huge marketing budgets, so make sure you provide your rep with the same marketing and branding advantages. Don’t be afraid to provide her with the qualified leads that come out of your great marketing efforts.
6. Welcome him to your facility. Bring him into your company, insist that he visit before you sign with him, and then make sure you provide him with the opportunity to come out to your plant whenever possible. Have a sales meeting once a year and make sure that he is there to take part in strategy meetings and that he has a say in the direction of the company including service, technology, and quality.
7. Trust your rep. If you don’t trust her enough to share company information, you are wasting your time and the partnership will go nowhere. If you don’t feel the rep is trustworthy, she's not the right rep. You must be open and honest with your rep--you must share as much information as possible so she will be successful selling your company and your products.

Finally (I always deliver more than I promise), have regularly scheduled meetings with your rep to discuss territory plans in detail. This is critical. Please don’t tell me you talk to them all the time because I know it’s not true--you're fooling yourself.

Instead, have a regular, twice-a-month meeting with each rep to track the progress of his sales efforts. Communication is the backbone of the rep/principal partnership and if you want to have a great relationship with your rep, you must talk to them. It's only common sense.