“The purpose of a business is to create a customer.” This Peter Drucker quote resonated with me when I first heard it years ago, shortly before I started my career as a distributor outside salesperson. As I was driving to make a call on my first prospect, I asked myself a question. Who — other than me, my company and my competitors — wanted this prospect’s business? Who else could or would benefit? I concluded that a significant beneficiary group was the major manufacturers that we were a distributor for.

Researching how these manufacturers approached the market, I learned that in addition to distributors, they also employed exclusive professional regional manufacturers’ representatives to execute their sales and growth strategy.

I then decided to investigate who they were and to reach out to them to learn more about their role and market approach. How could we partner for the benefit of mutual customers? It didn’t take long for me to realize and appreciate their important role. I clearly saw the opportunity and the benefit of developing strategic partnerships and sharing market intelligence that would maximize our time, efficiency and value.

Together, we enhanced our chances of success to the benefit of the manufacturer, distributor and, most importantly, our existing and potential new customers. It also improved our project win rate significantly. From getting product specified, tracking job quotes, developing project logistics plans and educating contractors, property owners and project managers, we focused on the value provided, not the cheapest price.

The more we worked together, the better we became. Specifications were held, our win rate and profitability increased, and our customers did, too. Together, we coached contractors on how to sell the job, install it correctly, manage cash flow and not get mired in a price auction. We emphasized the total cost value to them and the property owners. From the start of a project to its conclusion, we would ensure that all challenges were met with enthusiastic response and commitment.

Doing the Heavy Lifting 

In my long career in sales and management and my present role as a manufacturer consultant, I have gained enormous respect for manufacturers’ representatives and the value they contribute to our dynamic industry.

I had intended this column to be about another topic, but I noticed on my calendar that the Association of Independent Manufacturers’/Representatives was having its annual meeting in one of my favorite cities, Nashville, Tenn.

It made me think of how many wonderful people I know and have worked with over the years who belong to and are represented by this fantastic organization.

Theirs is a challenging job. Reps do a lot of heavy lifting for our industry. In addition to calling on architects and engineers to get products specified, they work all the trade shows, do a huge amount of product training, provide spiffs and swag, and attend open houses, distributor events and customer outings. 

Reps are expected, without much warning, to respond to customer 911 calls and be in multiple places and states at a moment’s notice. With their distributor partners, reps must deliver heroic recoveries when the product works but was not installed correctly or no one read the instructions. They are challenged with new and innovative product introductions and must overcome the inertia of fans of the status quo. 

And, of course, they must be ever vigilant as with frequent merger and acquisition activity, they could be notified that their No. 1 brand or distributor was acquired by brand X and must reboot their game plan.

Trends and New Products

Reflecting back, in addition to the serious side of our business, we inevitably find humor. I remember a few situations where I went on joint calls with a rep where the expression, “What you don’t know can’t hurt you!” proved to be simplistically inaccurate. 

In one case, the contractor installed a wall furnace in a small Italian restaurant. The owner was upset; when the unit came on, it melted the candles on the tables beside the furnace. My customer had yet to read the installation instructions, and the rep and I learned some new cuss words in Italian. 

On another job, a customer installed a boiler but undersized the piping. The factory engineer who came with the rep asked loudly, “Who installed the Mickey Mouse piping job?” My customer responded, “Did he have to say Mickey Mouse?” I explained that engineers aren’t good at sales. 

I have many more tales, but that would be a book.

In speaking with industry friends around our great country, they echo my sentiments and gratitude for our marketing and sales partners in the rep industry. We all thank you!

With the changes and opportunities facing our mutual contractor, institution, industrial and property management customers, we can shine a light together and help them continue to grow and benefit from trends and new products and face the future with enthusiasm and confidence.

I would only add one word to the Peter Drucker quote: “The purpose of a business is to create a customer.” I suggest keeping the customer is an important step No. 2.