WORKING WITH REP FIRMS Leaning on Their Knowledge and Support
by Maggie McFadden
April 1, 2008
Working with a manufacturer’s representative
firm can be a needed advantage for dealers or integrators aiming to make their
next sale. But what exactly is a manufacturer’s rep firm and how can a dealer
benefit from such a relationship? SDM talks to a few rep
firms to find out.
The Role of a Rep Firm
In general, a manufacturer’s rep is an
independent contractor representing the product line or lines of a
manufacturing company. “You could term what we do as an outsourced sales
organization,” says Joel Schwartz, president of manufacturer’s rep firm LCA
Sales, Hawthorne, N.Y. Most manufacturer’s rep firms represent a small number
of non-competing product lines from different manufacturers.
“We are not distributors. We work under contract with a handful of
manufacturers that provide products in the security surveillance business that
we can sell along with other products…non-competing products, but all are
compatible,” Schwartz explains. “Our job is to sell these products to dealers,
integrators, and distributors.”
Many rep firms work with distributors, dealers and integrators — and even end
users — to provide training and support for the products they represent. Matt
Martinez, vice president of sales for Security Marketing Consultants Inc., a
rep firm with two locations in Aurora, Ill., and Rochester Hills, Mich.,
explains that a reliable rep firm is well-versed in the manufacturer’s products
and is factory trained.
The knowledge that rep firms have built over time, and the training they
receive directly from the manufacturer can be a large advantage for a dealer or
integrator. While a distributor might stock and sell a large volume of
different products, a rep firm’s small number of product lines allows them to
be experts in the products they represent.
“We come in and are the face of the manufacturer to train people on the
products and show them how they work,” says Keith Pope, president of Security
Marketing Consultants Inc.
What’s the Advantage?
Rep firms spend a lot of time working with end
users and consultants to specify the products they sell and get them
comfortable with their solutions.
“We actually spend about 50 percent of our time with end users or consultants.
We show them that [our products] are worth having. We then feed projects back
to our integrators,” Schwartz says. Therefore, a good working relationship with
a manufacturer’s rep can help a dealer clinch a current or future project it
might not otherwise have gotten.
The ideal relationship, he adds, is one where both the rep firm and
dealer/integrator have a reciprocal relationship, getting one another involved
in appropriate projects.
Mark McCormack, vice president of sales for rep firm Keith Parker &
Associates, Northbrook, Ill., also emphasizes the advantage of having a
knowledgeable rep firm on your side.
“We are frequently contacted by customers, dealers and integrators, and — now
more than ever before — end users, who want us to meet and discuss a specific
project design and ultimately provide a video security solution for their
facility. They come to us for advice and to learn about our product feature sets
and system capabilities. The end user will often ask us to refer them to a list
of qualified dealers or integrators,” McCormack says.
When working with dealers and integrators, rep firms are able to provide them
with value-added services at any stage of the sales process, including
demonstrations and training to the customer before the sale; acting as an
extended arm of the manufacturer and helping the dealer throughout the
installation process; and also aiding in support after the sale when necessary.
A Sales Ally
The rep firms we talked to agree that
relationships are a key advantage of working with their firms, as their
reputation with the manufacturer, end users, and distributors in their area can
provide a knowledgeable ally for a dealer or integrator aiming to make a sale.
Schwartz adds that, in addition to knowledge and training, another benefit for
the dealer or integrator is having an advocate work for you in the case of a
dispute or problem with a particular product or manufacturer. “Rep firms, in
many ways, serve as an ombudsman for the [dealer/integrator]. We are not
working directly for the manufacturer so we can go to bat for the customer more
than a direct salesperson might.”
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