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Developing a Profitable Relationship

Working with sales representatives

Despite your best laid plans to have a structured, uninterrupted day devoted to work in your office, that day is often hard to achieve. Frequently, the interruptions come in the form of a surprise visit from a manufacturer or wholesaler sales representative.

While it can be difficult for a sales representative to let his retail accounts know exactly when he will be stopping by, retailers often have difficulty giving complete attention when the sales representative arrives unannounced.

These concerns, and others, are shared by many retailers. How can you make the best use of what sales representatives can bring to the business: product knowledge, industry news, and trends? Secondly, how can retailers work around the fact that there are fewer representatives in the field?

Every retailer knows what he or she wants from a manufacturer's or wholesaler's representative: know your products and the buying programs you offer; know what items your company sells to the retailer's competition and be able to provide information about competitive pricing, as well as respect the various nuances of each retailer.

If you have been in business for several years, you know that it is difficult, but advantageous to have a written policy describing how to work with representatives so that your relationship will be a win-win situation. Part of that policy could be to request appointments for occasions other than the usual sales representative's visit, such as viewing new product lines and placing seasonal bookings.

There are exceptions to every requirement, but this could help structure your day better, make better use of what representatives offer, and show respect for each other's time. In a written policy, you would also have the opportunity to explain what is needed. With an appointment, sales material can be mailed to you and reviewed before hand, as well as inventory counts being taken.

From the sales representative's point of view, successful salesmen know it takes dedicated communication and repeated visits to get orders. Unfortunately, for the large part, it is a thankless job.

"I need to be closing the visit and leaving before the buyer asks me to leave," explained a representative for a multi-line distributor. "If I respect his time by leaving, I stand a better chance of getting a future appointment."

This representative said he will stop in the store every time he is in the area as long as he receives a pleasant reception, a tactic which virtually guarantees orders and a relationship. A sales supervisor for one manufacturer says that his experience is that 80% of the orders are written through multiple visits to a retailer.

Yet, many of today's sales representatives lack this type of follow through. Many of those that you do not make time for on their first visit, or do not place an order within their first visit, never return.

A reason they might not have returned is that there are fewer representatives in the field. This makes territories larger and individual stores less important. One retailer reports that the number of sales representative visits at his store is down by more than 70% in the last 10 years.

Others say representative visits have virtually stopped. What are retailers doing without regular representative visits? Most retailers make sure they attend several trade shows. Other retailers say telemarketing can be an acceptable alternative, provided a telemarketing representative is as well versed as a sales representative.

"But, I believe I can make better deals when the salesman is here, eye to eye", said one buyer. There are many types of information that retailers need, and it is sometimes hard to get, even at shows. "Frequently, there are manufacturers that are new to our industry that have no idea about the mechanisms and inner workings of the industry," says one buyer.

Buyers complain, too, that markets sometimes make matters worse by having a "take a number and stand in line" approach to retailers who want to spend quality time with representatives who are in attendance at a show.

One of the biggest gripes retailers have is their perception that big box retailers get special treatment. "I'm upset at what they do for those stores, and what they do for us," said another buyer. "It is frustrating. They are merchandising, checking inventory, and writing orders for them."

Is there an imbalance? Manufacturers I spoke with said they were glad to provide assistance to anyone, when asked. "The independent is less likely to let us do the merchandising or ordering. Independents are more hands on people", said a sales manager who asked to remain anonymous.

Manufacturers also report that independents want their retail customers to be loyal, but are not willing to be loyal to wholesalers, often changing vendors based solely on price with no consideration for service. And as the same manufacturer's representative said, "We give service, but if I don't sell, I don't eat."

Both areas of concern are true. But the strong relationship between retailer and representative may have gone by the wayside. Too often like the strong relationship between retailer and customer.

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This article is copyrighted by Tom Shay and Profits Plus Solutions, who can be reached at: PO Box 128, Dardanelle, AR. 72834. Phone 727-823-7205. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.

 

APRIL 2024
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While titled, "If not price", the April Article of the Month is asking the question about the focus of your small business in attracting and keeping customers.

 

If there is not something very special about your business, then the only attraction to your businessis that of a low price.


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"The plan as you go business plan" is the April book of the month. The author is Tim Berry who has also created software on the same topic.

 

I do not agree with the concept of "fill in the blank" or "create the plan as you need it" because my experience has been that you do not have as strong as a connection and understanding to your business plan unless you do it yourself and you dedicate the time to create it.

BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

"What's your score"? is the name of the April Small Business Advisory. This provides an introduction to our return on investment calculator. It is a great way to understand how well the investment you have in your small business is working for you.

Small Business

News

 

Top Story

We believe Thursday, April 25 is an important annual celebration for small businesses. While the name of the celebration has varied over the years, the focus is for us to take kids to work with us.

 

This is important for the kids to see what it is we do. They definitely are not going to learn about it in school. Reading the April Small Business News you will see an example from community pharmacists that emphasizes it is up to us as small business owners to introduce kids to what we do.


Article of the Month

While titled, "If not price", the April Article of the Month is asking the question about the focus of your small business in attracting and keeping customers.

 

If there is not something very special about your business, then the only attraction to your businessis that of a low price.


Book of the Month

"The plan as you go business plan" is the April book of the month. The author is Tim Berry who has also created software on the same topic.

 

I do not agree with the concept of "fill in the blank" or "create the plan as you need it" because my experience has been that you do not have as strong as a connection and understanding to your business plan unless you do it yourself and you dedicate the time to create it.