I’m not sure there is a total solution because of the multi-line selling that is such an integral part of a rep’s identity and value. Few, if any, distributors support an agent on every line he represents and therein lies the potential for the negatives to surface that are posed in this forum topic. Inevitably, the dichotomy of - friends one day; foes the next - will continue to exist. However, implementing the intangibles of acceptance and communication into the process would probably improve the situation. Acceptance by the distributor that reps are directed toward end user calls by the manufacturer and, through proper communication, help the distributor understand the dual role we perform in a marketplace. On one hand, we are a direct employee of the manufacturers we represent and are charged with specifying their products and pulling orders through distributors. The distributor stocks 10,000 SKU's; the manufacturer's rep sells few in comparison. A distributor will rarely have the same expertise on a particular product that a rep possesses because the agent completes factory training to learn the product in depth and is exposed to it on a more regular basis. The manufacturer needs and directs the rep to market their products to the specific end user, pointing out the competitive advantages of said particular product or family of products in the line which will, hopefully, create a brand preference. Therefore, it is imperative that we execute the manufacturer's initiatives of calling on end users. Congruently, we are charged by distribution to support the common interest of moving the products we represent off their shelves. We are also their advocate toward the manufacturer for quotes, pricing, inventory, credits and the like. Subsequently, if an agent is successful in those tasks and if a distributor faithfully stocks the rep’s line and promotes it (by brand name, not generically), there should never be an issue of mistrust or "working at cross-strategies". A distributor should pick allies that make a reputable product and that hire an ethical, skilled, knowledgeable and professional agent - attributes that can only enhance their position in the marketplace. A good product, sales talent, intelligence, hard work and an excellent relationship will usually prevail in the end. If it doesn’t, spend time improving those traits; not on worrying about if reps are calling on the end user.

Since NEMRA was founded 40 years ago it has referred to the three legged stool. A Manufacturer, a distributor and an independent manufacturers representative. When working in unison the most effective channel to market. All three provide functions critical to each others success. So are reps really on a collision course with distribution? Or are manufacturers on a collision course with how they take their products to market? Or are customers on a collision course with how they procure their products? No question the answers can be learned simply by communicating. I believe that is what the three legged stool is all about. What are the top 5 challenges for each business type? What can each do to improve each others efficiencies? A commonality for all companies is the bottom line. The bottom line can be improved for all through effective communications. It's important that the manufacturer, distributor, rep and customer are all involved and that there is a direct line to all parties. Perhaps that is where the rub is coming from. I know that if we fail to satisfy the customer's needs there will only be three of us left standing around wondering what happened....

This shouldn't be an issue about control, and distributors need to get over the fear of having reps make end user calls. We work for the manufacturers we represent and in conjunction with our distributor partners, we bring our manufacturer's products to market. When we make end user calls, we discuss features and benefits which should enhance (not deteriorate) a distributor's position if they are stocking our manufacturers' products.

There are several factors to consider to understand this market situation: 1. There are requirements and expectations from the manufacturers to their reps (direct or agent) to create market demands. This can include distribution and end user calls, together or independent. We must all remember that most manufacturers sell thru distribution vs. to distribution, meaning the end user is our common customer. 2. It is the role of distributor, manufacturer, and rep management to communicate their market and channel strategy,establish joint sales & marketing plans, and to apply a disciplined approach for effective implementation. 3. With diligent planning, disciplined implementaion of the plan, and results of increased sales & market share, there would be lesser need for rep calls without distribution. If a distributor sales team is consistently adding value in the channel relationship, and keeping the rep busy with effective training, marketing, and sales calls there is no time for direct end user work. Most reps would rather make joint calls vs. direct given the choice, provided there is sufficient planning and effective results. 4. The above factors are most relevant with key & target suppliers, and does not always apply. The key is to understand which vendors & reps have a strategy consistent with yours and be willing to make decisions of future vendor relationships to create favorable opportunities for your future.

In the market today there are people who are confident in their position with their customers and there are those that are not. Many distributors are professional and will share in the work to be done with the users and contractors and there are those that fall short on a regular basis. The Rep is charged to go out and develop the market with or without the distributor. The good ones see the value and the ones that are not confident in their position will view any rep as a threat to their position.

Most distributors do a poor job of marketing new products and services. If they are not going to educate themselves and their customers on new solutions then they have to rely more heavily on the reps making those calls at the end-user/contractor. The only real concern that a distributor has is losing margin because once they feel the rep has a contractor relationship then direct numbers start getting solicited and the distributors margin is set. If done properly, the rep/manufacturer should partner with a distributor on the initial sales call to the end-user/contractor. This makes it clear to all parties how relevant the distributor is to the process. At that point it’s up to the distributor to control the numbers and make sure the rep/manufacturer understands that. The distributor is being short-sided if they are not allowing the reps. face time at the contractor level. The reps. know the products and how to present them to add value to the contractors construction process. If the distributor has any “balls” they should be able to control the numbers and add value in a collaborative effort.

The rep of the future will know his/her market top to bottom. From the largest distributor to the smallest contractor and all spec/eng between. Two key points to remember, 1, distributors work as the bank, 2, reps are able to walk into all office's in the market. 1, It only takes one bad order for a rep to lose face with their market. If a rep goes and does all the end user work, quotes the contractor direct, gets the po, walks the order in to his/her best distributor partner, ships the order, everything is working great. Until, the contractor can not pay the bill, or is slow pay, or the job gets cancelled. The rep has lost credit within his/her market. Seen it happen, not fun 2, Reps are able to walk in most/all offices in their market place. A rep with a complete line card is able to see all distributors in a market place, a factory direct person can't say that. The more we know the more power we have. I feel that reps are the way of the future, but we all need to get better at branding our selfs and truly be the strongest knowledge and sales in our respective markets.

Tom, I would love to ask the distributor who shared his/her concerns if they also object to direct factory salespeople making end user/contractor calls. And here’s the reason why. Direct factory salespeople and reps are two alternative methods from which manufacturers choose to field a sales force. Reps are a manufacturer’s outsourced sales force, and have the same functions and responsibilities as a direct factory salesperson. I can’t imagine a distributor objecting to having direct factory salespeople make end user/contractor calls, and when a manufacturer chooses to use reps instead of direct salespeople, those reps perform the function of a direct factory salesperson on behalf of that manufacturer. If that distributor objects to having any manufacturers’ salespeople, direct or rep, make end user/contractor calls, that objection seems unrealistic. If the distributor only objects to having reps make end user/contractor calls, then that distributor is asking that manufacturers that sell through reps be excluded from sales calls that manufacturers that field direct sales forces are allowed to make, an unfair penalty on manufacturers that use outsourced sales forces. Reps are responsible for providing the same service and maintaining the same high ethical standards as direct factory salespeople. If the distributor who shared those concerns has had a problem with one rep, I respectfully suggest that it is a problem with that one rep and not the rep system of selling, and that distributor raise that issue with that one rep to the rep agency owner or the manufacturer involved for resolution. Charles Cohon President Prime Devices Corporation P.S. More about my company’s relationships with electrical distributors at http://primedevices.com/customers_dist.asp

Calling on end-users in a down market/economy is where they real headway will be made. Cultivating these relationships now will bode well for anybody as the business cycle ultimately rebounds.