Sales agent Neil Greenwood has a message for suppliers who try to skimp on commission
North West independent sales agent Neil Greenwood shares his views about suppliers’ different approaches to sales enquiries…
Having worked in the greeting card and gift industry for over 15 years I’ve seen many changes come and go, as well as designs and trends that have done the full circle – but one thing that’s always been a bone of contention is how different companies treat direct enquiries and orders.
As an agent representing a number of different businesses, I’ve found everyone seems to have a different policy. Some don’t pay you on the first direct order, some don’t even tell you about direct orders and enquiries. Others say they only let you know about an account if the customer specifically asks to see an agent – that’s code for never!
Then there are my personal favourite suppliers who are fully transparent and see the relationship as a partnership and know we all have the same goal, which is to bring in sales.
The process they follow is simple, if someone enquires about becoming a stockist, the enquiry is sent directly to us, the agents, to review and either approve or decline the request.
If we approve them as a stockist, we tend to let the supplier know it’s a yes but ask them not to set the customer up with an online login until we’ve visited them in store. We then contact the customer as the supplier’s representative to explain we’d like to visit them to set up their account and take along samples.
We find this works best because then, as agents, we have full knowledge of every account in our area, even house accounts, so we can ensure we protect these customers’ exclusivity in their particular area.
If a supplier simply looks at active accounts in an area and sees no customer nearby then approves them without consulting the agent, they have no idea what appointments their agents already have in their diaries. We may have dropped a brochure in a particular shop and been asked to come back to show samples as they love the product and want to order a large spinner and display of gifts.
But the supplier’s lack of openness could see them approve the shop next door as a stockist and accept a £100 minimum carriage-paid order of which the agent is completely unaware.
We then carry out the arranged appointment and the customer places a £1,000 order for cards and gifts but, before the order is dispatched, they see the product they’ve just ordered in their rival next door so contact the agent to cancel their order as a very unhappy bunny.
And if an agent isn’t aware of this customer in their area, how do they know to service that account going forward?
The customer won’t feel very valued when no one from the company ever gets back in touch so they’re having to troll the internet in their free time to top up their stock, if they can be bothered when the supplier shows no interest.
The more probable scenario is that another agent will call in, whose suppliers are fully transparent, and the space will be filled with a different company’s products.
The only reason I can see for a company not wanting to tell their agent about a direct enquiry or order is to avoid paying commission. However, by saving paying the agent commission on a £100 order they have, in fact, just lost a £1,000 order.
After all the enquiry came through via the supplier’s website so the agent has had nothing to do with this sale, right? Wrong!
As proactive agents in this new digital world, we often post about new products on all our social media channels to promote our suppliers. When I post my Instagram and Facebook stories I usually put a link to the suppliers’ websites, so both existing and potential customers can see the complete portfolio online.
We also prospect potential new customers by dropping into shops in our area to leave a brochure or samples which also have suppliers’ website information in them.
During the past two years, while having to worry about social distancing and not really wanting to have too many people in the shop, a lot of customers ended up placing orders online even though it wasn’t their preferred way of operating.
One of our suppliers even asked us to actively try to direct people to their website promising we’d still get to know about the orders and be paid commission however orders are received – funnily enough, I can’t recall receiving details of any new stockist that signed up via their website and, by the law of averages, there must have been at least one!
So, who benefits from this cloak and dagger approach?
The customer who receives little or no service from the agent unless they’re discovered by accident?
The agent who feels they’re actually working in competition with the supplier so, in effect, there are two agents working the same territory?
The supplier who saves a bit of cash in the short term by not paying an agent for direct orders, while potentially missing out on repeat orders because no one is servicing the customer who doesn’t have time to put together their own order online or from a catalogue?
Obviously, it doesn’t really work for anyone!
Nothing beats being able to see the cards or gifts in person so you can check out the finish, the quality, etc. I do have customers that prefer to order online, but I’m still happy to drive over to see them so they can see the new product lines or ranges before placing their orders.
One of my suppliers says they can always tell when I’ve been active on social media, sending out our newsletter or emails and ringing round, as they suddenly get an influx of orders coming in either direct or via us – thankfully, they do keep us in the loop because, if we don’t get to hear about the direct ones, it would start to feel that the extra activity wasn’t worth doing.
So, if you are a supplier who thinks paying your agents for direct orders is something you’d rather not do, please consider all of the above. You aren’t paying them for nothing, you’re just compensating them for the days they drive to appointments to find a customer forgot they were coming, or the days when they see a customer and come away empty-handed because of the need to discuss it with their business partner. The fuel for those days still has to be paid for, the parking, the hours spent putting together Instagram reels and Facebook posts, etc.
Those emails with leads or orders from suppliers really do help brighten our day and show that the work agents do behind the scenes does pay off.
And if you’re a customer, we love all orders so really don’t mind how you place it, please continue to do so in the way that suits you. Just maybe keep your agent in the loop because, if we aren’t aware of the direct orders you’re placing and haven’t been able to get an appointment with you, then our records will show the last time you made an order for that company was so long ago we’ll have to assume the products can’t have worked for you and a new stockist is needed in the area. And that would generate competition right on your doorstep.
Working across the north-west, we have fabulous scenery and fantastic people which all goes to make our job as sales agents a joy – most of the time.
It would just be great if we could add in the certain knowledge that all suppliers will be fair with their agents so we know it’s worthwhile making the hours-long trek north to Cumbria or north Wales in all weathers to nudge a customer whose orders have gone off the boil.
Neil Greenwood runs Reil Agencies, greeting card, giftwrap and gift agents, with Rachel Williams, covering the whole of the north-west from Manchester up to Carlisle and across into north Wales.
