An independent manufacturers’ representative in the building materials industry must maintain strong relationships with the principals they represent to be successful and profitable. This relationship is critically important with primary principals whose product sales represent a large share of a rep’s business, yet it is also important to build relationships with those secondary, smaller manufacturers, whose products are complimentary to the primary principals. A strategy for building these principal relationships needs to be developed and maintained. To be smart, any independent manufacturers’ representative should always remember the following eight tactics: Agree on a fair contract Maintain regular communications Act as an employee Treat the customer service group as a customer Follow company procedures Aggressively market to architects, engineers and end users Travel with the sales manager Maintain an appropriate number principals These ideas might sound simple, but by putting effort forward in these areas, a manufacturer’s rep is significantly more likely to succeed. I have spent over 40 years as an independent manufacturers’ representative in the building materials industry representing both U.S. manufacturers as well as a few international ones. Although each manufacture operates differently the common thread that connects them is the importance of building personal business relationships with them as well as with their customers. Most of my career has been representing manufacturers of architectural products. This has been both challenging and rewarding since it required balance of time and effort marketing to architects as well as handling orders and service with the buying customers. The eight tactics discussed are ones I used over the years from trial and error experiences as well as from discussions with other successful reps during manufacturers sales meetings and building industry conventions and seminars. These tactics generally work with principals producing commodity products as well as architectural products. Let’s look at each of these tactics one-by-one. Agree on a Fair Rep Contract Most manufacturers in the building materials industry use contracts with manufacturers’ representatives that have a clause stating that either party can cancel the agreement for any reason with just a 30-day notice. Although contracts vary regarding how long a terminated rep can collect commissions, in the real world this is negotiable. Manufacturers might consider how many years the rep has had his contract. Most importantly, the time allowed is based on the rep/principal relationship and how the rep has performed over the years. Because of these one-sided termination clauses, much has been written about rep contracts for the building materials industry as well as many other industries. One of the best sources for additional information is the Manufacturers’ Agents National Association (MANA). Maintain Regular Communications As is true in all relationships, the proper level and type of communications is...Read More
Home » Posts made in June, 2018
Scott's Blog presents the opinions, conclusions, and experiences of Scott Lau on a variety of subjects. The blog invites feedback and encourages dialogue on the topics discussed.
- What are Product Specifications and How are They Created?
- Becoming an Independent Manufacturers’ Rep Who Develops Specifications with Architects and Engineers
- Building Positive Relationships with Rep Principals – 8 Tactics to Bring You Closer Together
- Marketing Building Materials – Will Your Company be a Disrupter
- Substituting Building Material Products
- Should Sales Teams use Email, Telephone or Personal Visits?
- Communication Begins with Listening
- 7 Essential Traits of Top Building Materials Sales Producers
- 10 Steps for Managing Customers to Maximize Architectural Sales Success
- A Successful Sales Representative Must Manage Time