Salesmanship |
Manufacturer's Reps: We've all heard the adage - Those that can -- do, and those that can't -- teach. In our industry, we have often modified it to say - Those that can sell -- do sell, and those that can't sell -- become manufacturer's reps. I'm sure those statements are going to get the blood pressure up on more than a few people in the RV industry when we start to challenge the value of an RV manufacturer's rep and the role he or she will play in the success of your dealer community. The point I am trying to make in the first paragraph is quite simple -- in every walk of life, in every profession, in every career field -- we have outstanding contributors and those who simply came along for the ride. Let's face it -- we all know people who watch things happen, and we all know people who make things happen, and unfortunately we all know people who wonder what happened! During the past year I've had the pleasure of speaking with many dealers at local RV shows, national trade shows and in response to something I may have written in this magazine. Interestingly, many times the conversation will somehow gravitate back to the role of the manufacturer's rep and the business relationship between the dealer and company. In my everyday job I deal with our industry's manufacturer's reps every day. Guess what? There isn't a whole lot of difference in the stories we tell and the stories the RV people tell. It's unfortunate that many companies don't pay enough attention to the very people who take their story to the street. Dealers are the customers of the manufacturing company. The consumer is the dealer's customer and the dealer is the manufacturer's customer -- so why is there such dismay at the value being delivered to the dealership. Here are a few of the areas of concern voiced by many dealers. Remote Reps: That's a term I use in my business for reps who are located at the manufacturer's plant and not in the territory. If I'm a manufacturer, I want my reps to live in the territory because they are supposed to be working the territory. If your reps sit at the home office and work the phones, then they are just order takers and telemarketers. In one case, I give one of my equipment suppliers over a million dollars a year in business and it has been over a year since the rep has been in my office. Just think how much more business they could have if they really worked the account and really knew what my sales people were doing everyday. If a manufacturer's rep lives in the territory they are responsible for, then they have no excuse in the world for not knowing what's going on and growing the business. Many industries have recognized this problem and have actually separated their sales teams away from the manufacturing facilities. Sales people get paid to sell. Production is responsible for building a quality product and they don't need the sales and marketing folks looking over their shoulders and telling them what to do and how to build it. Put the sales people where they belong -- in the territory with the dealers they serve. Constant Coverage: If a representative has "x" number of dealers in their territory, then they can be classified into four groups. The manufacturer's rep would determine the frequency of visits by the volume, or potential volume, of the business relationship. Many industries use a similar classification system to profile a sales territory and monitor the progress and development of their sales representatives. Every territory has two types of accounts -- existing dealers and potential dealers. We've all heard of the 80/20 rule, often referred to as The Pareto Rule. The rule states that 80% of a sales reps business will come from 20 percent of his/her accounts. This method of account coverage has been written about for many years in books, magazines, and seminar handouts. The rep should classify their accounts A, B, C, and D. An "A" account should be a high volume account that provides a steady flow of business to the manufacturer. A "B" account would be a dependable customer who provides a moderate amount of business. A "C" account provides a low volume of business and may be classified as "difficult to serve or penetrate." Last, a "D" account is a problem account or one that does not yield an acceptable level of profit for the investment by the rep.
Here's how a typical territory coverage plan might look: Let's assume that the rep has 20 dealers in the territory. Let's assume the rep only visits two dealerships per day. Let's assume that the rep spends four days a week at various dealership locations. Let's assume the rep spends at least six months (26 weeks) in the territory. 26 Weeks X 4 days X 2 calls per day = 208 dealer visits per year.
This is how those calls should be distributed in the territory: Therefore, if there are 20 dealers in the territory, and 10% are "A" dealers, then each one of those should be visited 52 times per year. That's almost once a week. You can't do that when you are glued to your seat in Eklhart or elsewhere -- away from the dealers you serve. The "B" dealers, all four of them, would be visited 13 times per year (52 divided by 4), or just about once a month. There is a methodology to territory and account management and it's all in the numbers. If the sales management team and territory sales reps don't understand their territory enough to do this simple exercise, then they have no idea what the potential business is. Working the territory: When the sales rep is in the territory, they should be working the territory. Why is it that so many dealerships tell me that the manufacturer's reps might show up for an RV show or a dealer lot promotion and then you don't see them again until next year. Everyday isn't show day and everyday isn't a dealer promotion, so why not use the time more effectively by visiting the dealer more often and contributing more to their success. If you allocate your time to be effective with your quality dealers, then it will allow you to do more one-on-one product training with the sales team; meet with the technical service staff to discuss quality issues; or conduct customer meetings to determine what the people who have purchased your product like, or don't like. We have written often about relationship selling. You build relationships by being there when the customer needs you. The dealer is the customer -- why aren't you there more often? An effective manufacturer's rep becomes a strategic business partner and will grow the relationship and increase sales. An ineffective rep will not be welcome at the dealership and will be viewed as a business distraction because he/she does not add value in the relationship. Out of sight -- out of mind. Out of the territory -- even further out of mind. Out of touch -- out of business. When you are not on the dealers lot, your competition probably is. If a sales rep lives in the territory then they get to know each potential dealer and existing dealer and can serve them to achieve dealer and manufacturer objectives. In an era when business relationships are handled via telephones, e-mails and computers, we can not forget the very basic selling philosophy that dictates face-to-face interaction between manufacturer and dealer. How much more productive could your sales rep be if they lived in the territory they were responsible for? A lot. Confidence and trust: If you are visited by a manufacturer's rep and they begin to tell you all the problems being experienced by the dealer down the street, do you then stop and wonder what they are telling that dealer about you. A rep that doesn't know how to keep his/her mouth shut and deal only with the relationship of the dealer being visited, is bad business for everybody involved. How often have you heard of another's credit hold problems, cash flow problems, personnel problems and other confidential business that should never be shared with a competitor or another company? Too often. If dealers do not respect their rep, then they have no reason to be loyal to the manufacturer -- despite how good the product may be. They may continue to sell the product due to customer demand, but think how much more product they might sell if they had a professional relationship based on confidence and trust that actually helped the dealer grow their business. Reps should have one set of rules and they should be applied fairly to all dealers, no matter what volume of business you may enjoy from each one. You don't sacrifice morals and ethics for dollars or it will eventually catch up to you and cost you more business than it was worth. A sales rep has one thing that matters above all else -- his/her reputation. A professional sales rep has no problem getting customers and increasing business. A non-professional sales rep is costing you money, because it's going to the other company. The manufacturer's rep is the first line of business for your company -- invest in quality representation and don't look at each sales rep as an expense. Sales reps make money for the company; they are not a line item on the expense tally. If the sales reps are not paying for themselves and making the company money, take another look at the level of confidence and trust that your customers (the dealers) have in your people.
RVN
|
