In this context, manufacturers must be more than quoting entities, says Allen J. Simon, president of Datatel Resources Corp., a manufacturer in Monaca, Pa., and DMIA's vice president in 1997-98. (Simon was DMIA's Manufacturer of the Year in 1999, and Buck won the same award in 1994.) Manufacturers should suggest a joint selling approach as often as distributors ask for it, he says. A key factor for joint selling, Buck says, is when gaining contractual business and major program sales requires more resources than either party--the distributor or manufacturer--can offer alone.
As an established manufacturer of high-volume custom forms and documents, Datatel has succeeded in joint selling for products such as preprinted jumbo rolls used for data processing applications--specifically monthly, quarterly and annually delivered statements. Datatel also has teamed with distributors to offer ongoing direct marketing campaigns that contain full-color personalized information.
As the influence of major direct-selling manufacturers dwindles, more independents are called upon to quote such applications. To compete, distributors need to provide not just a competitive price, but also a program or solution that improves end users' businesses. That's where manufacturers can step in. "We welcome the opportunity to tell customers what we're all about," Simon says, adding that it's important to do so "within the tone and strategy" distributors want.
Respect, Trust Help Joint Sales Calls
An important point for manufacturers participating in joint sales calls: Listen to distributors and let them take the lead. Buck says Ward/Kraft typically joins the sales call for a new or replacement application such as a pressure seal product or form/label design. "If it's a new product design to create a more effective solution, we often go in on the second or third sales call with the distributor to gather on-site information," he says.
This gives Ward/Kraft firsthand input and the chance to see the application's environment, which Buck says is critical. "If we're replacing a current application with our product," he says, "we might only go in for the test run. If it's a pressure seal product that requires supporting equipment to be purchased, then we would join the distributor in the mid-sales cycle for a product and equipment demo. This shows the end customer that the distributor has technical support during and after the sale."
For Datatel, support also comes in the form of inviting customers to its manufacturing facility. "We want to show the customer that we're a sophisticated supplier with the capacity, capability, support and professionalism to handle their program," Simon says. "Having the end user and the distributor in our plant is a wonderful thing. It puts everyone in the comfort zone that they have chosen a reputable supplier."
Sometimes the only competitive advantage for distributors and manufacturers is the relationship between the two parties. In his book How to Excel at Distributor Sales, author Dave Kahle writes, "In a world where the distinctions between your company and your competitors are growing less and less clear to your customer, your relationship may be your only real competitive edge."
Simon distinguishes how Datatel handles its "A-list" relationships. He says a joint sales call is the distributor's decision, and in secure relationships, end users know they have access to Datatel's manufacturing facility and upper management. The company targets and provides joint program and contract opportunities that generate $250,000 annually, so it sees benefits in investing a few thousand dollars in the sales process.
Buck and Simon agree that honesty is a prerequisite of joint selling between distributors and manufacturers. It's best to be open about who you are and what you do, Simon says. A good relationship with a customer requires communication from more than one person at each company--a group of people forms an impression about each company, he says.
In his book, Kahle advises firms to facilitate the "broader" relationship at every occasion. Whenever possible, he suggests, bring your manager to see your customer. And conversely, bring your customer to see your facility. "The broader the relationship, the stronger it is," Kahle writes. "The more your customers know you, your company and the other employees within your company, the more comfortable they are with you."
Distributors almost always take the lead in defining the nuts and bolts of joint sales calls, including the schedule, content, number of people, presentation order and necessary technology. In short, plan the call well. Be there to bring value, either through your own words or a customer's testimony. Have a goal for the sales call that creates a specific course of action.
Tag Teams Can Win Accounts
Buck believes the manufacturer/distributor presence at a customer meeting should confine itself to "one role to achieve one goal." Consider it a tag-team sales call to win the business, he says. "You don't need too much discussion on who does what in this partnership," Buck says. "It takes away from the focus of the meeting, which should be giving the user a better solution." Focus on the customer and divide the labor after the meeting, behind closed doors, he suggests.
Buck and Simon don't think joint selling has major drawbacks, though Buck says Ward/Kraft has learned to be a better qualifier of opportunities and projected costs before becoming involved in joint calls. "If you pick your partners and opportunities well, it's a powerful sales tactic," he says. Simon adds that "opportunities exist like never before," and joint selling gives Datatel the chance to partner with distributors more often.
Contributing Editor Dennis McGarry, CDC, is vice president
of manufacturer and technical programs at DMIA. Email him your comments at dmcgarry@PSDA.org.
