Estimated reading time: 4 minutes

It's Only Common Sense: Rethink the Rep

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...For years now I've been working with reps, acting as the liaison between them and the board shops I work with. During that time, I've seen the reps' interest in working with shops diminish as quickly as the market for fax machines. Most reps seem to have lost interest in our shops. They seem to want to work in other markets and sell connectors, or ICs, or sheet metal, or cables, or anything that is not a circuit board.

I have spent the past few months thinking about this, mulling over this dilemma and trying to figure out what to do about it. Look, the fact is that we need good reps now more than ever. Yes, we can use direct salespeople--actually, that's my preferred method of developing a sales force--but direct sales people are expensive, especially when you're trying to cover the entire country. In the end, we always turn to the reps as a good solution for expanding our sales coverage.

Currently, this is much easier said than done. There are many more veteran reps out there than there are newbies. and the vets, for the most part, have had it with board shops. Reps are tired of being treated like third-class citizens; they are sick of being the last person paid at the end of the month--if they're paid at all. I know companies who owe reps tens of thousands of dollars in back commissions and whose reps are actually being held hostage because they know if they resign they'll never get the money.

In the past year, I, along with some of my partners, have been diligently looking for new reps for customers, and we might as well be standing on the corner singing “The Impossible Dream” for all the good it's done us.

What do we do about this? How can we turn things around? How can we develop a package so appealing to independent sales reps that they will be calling us to see if we're willing to take them on? That would be a welcome change, wouldn’t it? The last time a rep called a circuit board shop to see if he could represent, he most likely used a rotary dial phone.

I have a few ideas for turning things around and developing an offer that a good rep will not be able to pass up:

1. No house accounts. It’s as simple as that--no exceptions. If you're already doing business with a major account in his territory, work it out at reduced commissions until he can grow that account past the annual average bookings number and then take him to full commissions.
2. Pay the rep. His is the most important payment you should be making. A happy rep means a strong sales effort. And here is one that is going to curl your hair: Pay him weekly. Send him his money the next payroll after you have received payment from the customer.
3. Provide all the right paperwork; all the backup should go with that commission check. Also, provide the rep with copies of the quotes and orders and invoices. In this electronic age this is easier than ever.
4. Treat the rep like a member of the family. Treat them exactly like one of your direct salespeople. This means access to your company information, being copied on pertinent reports, and included in company meetings and phone calls.
5. Let the rep share in your marketing efforts (yes, you need to have marketing--it's all part of the sales game). Market for the rep in his territory. Include her in your marketing. If you send out newsletters, create a special edition for each territory. Work side-by-side with your rep to develop the business in her territory. It will be a win/win.
6. Offer special incentives for the type of business you want. This can be a special incentive for new customers, a new technology, or a new service. Whatever, pay the rep extra for him to be specifically focused on selling the products, technologies, and services you most want to sell.
7. Communicate, communicate, communicate: Hold a one-on-one update call with each of your sales rep firms every two weeks and then a general call at least once a month with the entire sales force. Do this religiously and track the progress. Do it and you will see progress.
8. Invite reps to your annual sales meeting. It’s customary for you to pay all travel expenses. This will go a long way toward making them part of the family…it will be money well spent.
9. Treat them with respect. Respect your reps as you would want to be respected--it’s as simple as that.
10. And, finally, make sure your product works. Make sure that your reps have a great product to sell. You want your reps out there selling, not apologizing.

There you have it: 10 ways to make reps want to come and work with your company. Here's one more: Listen to your reps, and talk to them; ask them what they want to see from you. Ask them who they consider a great principal. Work with them to develop a good working environment one that both of you want to exist in.  

It’s only common sense.