As a distributor, dealing with manufacturers' sales representatives is inevitable. Since 1992, I have encountered over a thousand such reps from various companies, including large and small manufacturers, state-owned enterprises, township enterprises, and foreign-invested companies. Although industries and companies differ, overall, one can clearly sense the varying levels of competence and personal quality among these reps. Over the past two decades, the overall competence of manufacturer sales reps has been on a declining trend. This is not just my personal view; many fellow distributors share the same sentiment. Today's reps cannot compare with those from ten years ago.
So, what were manufacturer sales reps like over a decade ago? What are they like now? What factors have led to this decline in their competence and quality?
Characteristics of manufacturer sales reps in the past, especially those from large companies, were generally stable at a good level, with the following traits:
1. Older age They were older, with richer life experience. Reps in their 30s and 40s were common (many were former supply and marketing personnel). Many were of similar age to distributor owners, facilitating better communication and mutual understanding, at least on a personal level.
2. Solid product knowledge They had strong professional product knowledge. Many early reps were selected from production departments, having personally participated in product manufacturing. They possessed practical knowledge in raw materials, processes, procedures, and warehousing, which provided practical guidance in later manufacturer-distributor cooperation.
3. Adept at social nuances They were skilled in handling interpersonal relationships, thanks to their age. They could quickly read distributor owners' facial expressions and implied meanings. When visiting, if they encountered loading or unloading, they would proactively help. Many veteran reps remembered owners' and their families' birthdays, even chronic illnesses, and noted them for future use.
4. Lacking theory but strong in practice Reps from over a decade ago did not have modern theories like the 4Ps or 5Ps. Their methods were simpler and less clever, but they were hardworking and practical. In fact, sales work is not deeply mysterious; being diligent and down-to-earth suffices.
5. High stability It was common for reps to have over a decade of tenure with a manufacturer. Their stability meant they avoided short-sighted actions, considered long-term cooperation and market plans, and enhanced their sense of responsibility. They could view issues from the distributor's perspective and empathize with their difficulties.
The above describes the situation a decade ago. Now, what is the current state of manufacturer sales reps?
1. Young age. Some reps enter the sales department directly after graduation, being naive and unable to communicate properly. They often cite company requirements and regulations without understanding basic social cues. They fail to read owners' expressions or implied meanings, even missing clear dismissal signals. Communication is exhausting; to distributor owners, some reps seem like children.
2. Little ability but big attitude. Some young reps learn to put on airs, treating themselves as leaders and distributors as subordinates, speaking in a condescending tone.
3. Lack of patience. When new distributors show slow initial sales growth, reps do not investigate the market, analyze problems, or find solutions. Instead, they cut off the current distributor and recruit a new one. If the new one fails, they cut again. This often leads to a situation where reps have exhausted all potential distributors in a region, leaving no one to develop, effectively killing the market. In such cases, their solutions are either to request a transfer to another market or simply change jobs.
4. Using distributors to climb the ladder. To achieve personal promotion goals, they ignore market conditions and distributor situations, disregarding the harm of overstocking to distributors' working capital and the risks of large-scale new product purchases. They deceive distributors into paying and stocking excessive amounts, leading to frequent cash flow collapses.
5. Widespread deception of distributors. The recent buzzword is "fooling." To facilitate their work, meet sales targets, or even gain improper benefits, reps use various tricks. For example, they impersonate the manufacturer's headquarters to deceive distributors, even forging official documents. Many reps believe that deceiving distributors is necessary; otherwise, work cannot proceed.
6. Not helping distributors solve problems. They only make demands, such as requiring payments or stocking, and rarely help solve any issues.
7. Unfamiliar with basic product knowledge. They lack product knowledge but memorize commission and bonus schemes.
8. Believing distributors grow only because of the manufacturer. They think distributors should be grateful to the manufacturer and, by extension, to the reps personally.
9. Lack of creative thinking in market work. They rely on a few standard tactics. When they cannot devise new methods, they blame distributors for not working hard or claim insufficient company resources, refusing to self-reflect.
10. Not caring about distributor owners' personal or company background. After years of cooperation, they do not know the owner's age or birthday, let alone the company's internal management and development issues. These details are not impossible to learn; reps simply do not bother, thinking it unnecessary.
The above lists the current state of some manufacturer sales reps. Compared to a decade ago, their overall quality and ability have significantly declined. Yet, over these years, marketing theory and technology have advanced greatly, and reps' theoretical knowledge has improved. Why is there such a gap in practical application?
Everything has a reason. The decline in reps' competence is primarily the responsibility of manufacturers' management and owners. As the saying goes, "Problems lie in the front rows, but the root is on the rostrum." The owners' attitudes and practices are key factors. As companies grow, owners are surrounded by flatterers and increasingly believe they built the market themselves. They think distributors are just following the manufacturer's lead to get rich, so they should obey. Many owners look down on distributors, viewing them as uneducated nouveau riche who deserve to be fooled. Even when designing training programs for distributors, they openly talk about "brainwashing." The owners' attitudes directly influence reps' attitudes toward distributors. Additionally, as companies expand, owners focus on government relations, new investments, and new fields, leaving sales management to deputies or marketing directors. They become distant from frontline employees and distributor customers, leading to a lack of awareness of market changes. Fewer meetings between owners and distributors also give unscrupulous reps more opportunities. Besides these, there are issues in the management philosophy and systems for reps. Of course, reps themselves have problems. Here, I analyze some reasons:
Rapid company growth leads to fast employee recruitment, but management systems lag behind, especially in management personnel. Many managers only pressure subordinates without providing guidance, leading reps to use simple or even crude methods with distributors.
To gain government support or go public, owners expand scale and capacity abnormally, increasing sales pressure. Sales management then only values sales volume, with rewards and promotions driving reps to focus on short-term sales, neglecting market-building activities that do not yield immediate returns.
As companies grow, bureaucracy increases, leading to internal friction and infighting, especially in joint-stock companies. During the founding phase, shareholders worked together, but once stable, each believes their contribution is greatest, leading to power struggles and factionalism. Reps must choose which leader to follow; if they back the wrong one, even excellent performance is futile, leaving no time for market work or distributor management.
Veteran employees now hold positions and power, some in middle management. They believe they deserve to enjoy life and show off their seniority to newcomers. Market visits become leisure trips, and promotions become opportunities for personal gain. Although internal competitions are held, they are mere formalities to please the boss. To secure their positions, veterans emphasize the value of their experience and ideas, suppressing newcomers and rejecting new ideas, which kills creativity among reps.
Some reps are overly eager for quick success, believing that building relationships is better than working hard, and that direct money-making is faster than sales bonuses. They switch jobs frequently, lacking interest in studying business. Some even collude with colleagues or distributors to embezzle funds.
Owners' management ideas are exploited by unscrupulous employees. For instance, supervision systems become like the Eastern Depot, making employees fearful. Corporate culture, which owners promote, is used by middle managers to exclude dissidents, suppress subordinates, and advance themselves.
Some manufacturers' salaries remain unchanged for years. For example, a famous grain and oil company I worked for still implements the salary standard from 2000. Some companies cut costs by reducing employee income rather than optimizing systems, leading to the loss of excellent reps and forcing others to find ways to increase their own pay.
Regarding stocking pressure on distributors, many owners believe that by pushing goods to distributors and draining their funds, they force distributors to find ways to sell inventory. This also prevents competitive brands from pressuring distributors to stock, which is another reason reps force distributors to stock up.
Although every owner talks about brand, innovation, and strategy, daily work focuses on promotions, sales, and expenses. They only consider hard indicators like sales volume, not soft indicators like distributor satisfaction. If owners do not care, subordinates naturally do not either.
There are many other reasons for the decline in reps' quality. I have analyzed a few for reference. In conclusion, I believe the core issue lies with the owners. As the saying goes, "What is done above is followed below." Owners' thoughts, ideas, and practices directly affect their subordinates. To reverse the decline, owners must lead by example, starting with self-change and adjustment, to gradually improve reps' abilities and stop cultivating those who rely on deception.
Author: Pan Wenfu Born into a private business family, he managed a family distribution company for years and concurrently served as a business manager and trainer in several production enterprises. His research focuses on internal management of small and medium-sized private enterprises, with main topics including personnel management, cost control, management backend construction, and military veterans entering private enterprises. He continuously breaks down over 400 topics related to private enterprise internal management, maintaining material collection and solution updates.