The manufacturers' agent can be your most valuable marketing asset.
But before you even look for an agent to market your product, there
are some things you must know about yourself:
Specifically, what are your sales and marketing goals? "Lots
of Volume" isn't enough. Determine just how much volume in each
territory is realistically attainable. Which of your product lines
must be pushed first, which will be the leader, with the rest to
follow. Analyze the marketing needs of each territory! Each territory
is different -the customers, prospects, and certainly the agency.
Consider each territory a separate marketing organization.
Examine your cost of sales. It's necessary to know
in the beginning what it will cost to get your product to the marketplace.
Be sure to include the costs of samples, literature, and engineering
assistance.
Determine how much you will need to participate in each territory. It
is never enough to sign a contract with an agency, and expect the
orders to start pouring in with no further involvement from you.
The manufacturers' agent is part of the team and must be kept informed
if you wish to achieve the ultimate sales goal.
Determine realistically how fast you must penetrate the market. Many
products require intensive sales efforts at the beginning, just when
the agency will be expending the most in time, distance, and dollars;
while earning the least in commission.
Know the trade practices that affect your marketing through
a manufacturers' agent. Even though your new agency may
have sold products much like yours, he or she may never have
handled a product identical to yours. Be prepared to give your
agents all the competitive and industry information you can -it
will shorten their indoctrination time.
Selecting The Agency
That Is Right For You
The selection of a manufacturers' agent should be looked at in the
same way that you choose a supplier. You are not hiring a salesperson
when you elect to work with a manufacturers' agent, you are making
an agreement with an independent businessperson. Here are some guidelines:
Establish standards for the selection of your agency. It
is necessary that you choose a manufacturers' agency that is right
for your company and your product. Draw up a complete, realistic
set of standards, and the qualifications you desire in an agency,
prior to getting into the selection process. This way you can compare
one agency with another, thereby assuring yourself of a greater degree
of success in working with an agency.
Plan the marketing functions you will expect the agency to
perform. It is helpful during the interview process to
have a written marketing plan for that territory. The reaction
to that plan, expressed by the interviewee will help you choose
the right agency for you.
Develop a plan for finding the right agency. Often,
the best qualified agency in a territory is unable to absorb a new
line at the time you are in the selection process. It is a matter
of delicate decision whether or not to choose an agency you might
consider second best or to move on to another territory.
Qualify and screen the agency by interviewing in his territory. Meet
the head of an agency in his or her office, in their own territory.
A great deal can be learned by observing the office efficiency, as
well as gauging the type of employees in the agency.
Make one person responsible for choosing the agency. The
person responsible for the success of the manufacturer/agent relationship
should choose the agency with which he or she must work. The chance
for success is greater if the final decision rests with the person
who will make it work.
Thoroughly investigate the agency's background. Some
of the people most able to assist you in coming to a decision regarding
your agency are:
· references
· other principals
· customers in his or her territory
· trade and credit references
Be sure you and your agency are compatible. Sounds
simple, but in the final analysis, after all the investigations have
been performed, it is compatibility that will determine the success
or failure of your manufacturer-agent relationship. Ask yourself, "Do
I like and respect this organization, and can I assure myself, from
what I know, that this will be a lasting relationship?" It's
a costly matter for you, as well as the agent, to make changes.
