It’s an interesting time for sales reps in the furniture business thanks to disruptive business conditions like the Internet and growth of Big Chains. Many factories like to think they can sell both channels as house accounts and cut out the sales rep on this big volume of business. Maybe they can, but they are never as effective.
In my 25 years on the rep side of the equation, I believe a factory is being shortsighted by not using the services of professional sales reps on all accounts. Consider the following advantages:
1. Professional sales reps are paid to know the product well. They can train retail floor associates to help the sales to end consumer. They can help retailers position the offerings in the marketplace, provide competitive market analysis, and work with retailers and factory to develop new offerings.
2. Professional sales reps carry an authority in the space that retailers can trust. It’s different than a national guy you see at market who doesn’t really know the markets or the culture of the retailers organization.
3. Professional sales reps give referrals that are not just about a particular factory. A rep is only as good as the factory they represent. If the factory is not hot, the professional sales rep seeks other products. If the rep is having lots of success, of course they will share this knowledge with their retailer customers. A factory guy only knows what he sees from his factory, whereas a professional is always looking around and providing feedback to factories. Retailers will judge the referral based on the character of the individual giving the referral.
4. Professional sales reps provide connections that a factory guy would not have access to. I know reps that have connected different factories together for mutual benefit. A factory guy just dealing with their own offerings cannot make those connections.
5. One major reason professional sales reps can increase sales is they are independent and carry multiple lines. If a sales rep has a relationship with one line, sales from a second line are easier to make. With multiple lines, reps are more effective in calling on more customers in their territory. The result is more cost effective sales and better market share.
So what happens when a factory chooses to take the growth accounts away from professional reps? It is not as cost effective to broaden the territory. A rep will not be able to subsidize his or her travel to certain areas thereby limiting the products exposure.
Ultimately, good reps will find elsewhere to make a living. Factories will need to recruit less experienced reps to take over and prospect new customers. This is a thankless job that could take months or years to break through. If a rep only gets paid commission when something sells, and if the sales cycle is upwards of a year or more, then the good reps will steer clear of new lines unless there is a monetary stream that will help pay their time prospecting. In fact good reps may start looking around at other industries because there are fewer and fewer opportunities to sell in the home furnishings industry.
So as we go to Las Vegas keep in mind that a professional rep does more for a factory and a retailer than they are given credit. If a factory and retailer want the services of a sales rep, they should not be looking at cutting them out but rather treat the rep as a partner and benefit from all that industry knowledge.
We need to make the industry enticing for good people to enter and prosper bringing their fresh ideas or we will continue to see our share of market spend decline. If all the Professional sales reps retire or leave the industry, not only will the factory suffer but so too will the independent retailers who depend on reps for a variety of servicing from factory communication of problems to training floor staff.
Make sure you tell the good reps how much you appreciate what they do for your company or they may someday decide to do something else. As always, feel free to leave your positive comments below.
