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BedTimes, Cover Story, February 2008

Building a better rep
Manufacturers revamp the way reps work

by Karl Kunkel

They are roving ambassadors for their companies’ products; the eyes and ears of the industry.

A good bedding manufacturer’s representative juggles varied responsibilities—training retail sales associates, opening accounts, creating and supporting merchandising and advertising programs, explaining new product features, ensuring prompt delivery and addressing customer complaints.

Reps have long been a vital link between the manufacturer and the retailer. But the rep’s role—and how they work—is changing, in part because of the high cost of keeping reps on the road, in part because of improvements in technology, in part because of competitive pressures.

The rep’s core role
“Our reps are the living, breathing personality of our company,” says Kerry Tramel, president of the Oklahoma City-based manufacturer and licensing group Lady Americana. “They inform, train and solicit the messages that we need to convey to both our current and prospective accounts.”

Kevin Toman describes the rep as the connection among the manufacturer, the retailer and the consumer.

“They are out there day-to-day,” says Toman, president of Englander, a licensing group with headquarters in Olive Branch, Miss. “The rep has his hand on the pulse.”

Jimmy Orders, president of Park Place Corp. in Greenville, S.C., describes reps as problem-solvers, business consultants and lifelong friends to dealers.

According to Bob Quinn, president of Sleep Products Inc., a Restonic licensee in New Albany, Ind., a rep’s key role is simple: “Sales training, sales training, sale training.”

For a small manufacturer, a good rep can get the company much-needed exposure among retailers, says Scott Carwile, vice president of family-owned Vivetique in Arcadia, Calif. He notes that his company recently hired a small rep group in Ohio to help open up new dealers in the Midwest.

And because reps hear all sorts of ideas from both retailers and consumers for improving sleep sets, Dennis Boyd, president of Boyd Specialty Sleep in St. Louis, has installed some of his reps on his company’s product design committee.

Remaking the rep
Though the varied roles of manufacturers’ reps aren’t changing dramatically, there are significant transformations—especially at the majors—of the ways those roles are acted out.

Last spring, Sealy created a “three-legged” sales support structure, with territory managers, retail sales specialists and call center representatives. Territory managers and retail sales specialists work directly for Sealy. Call center reps are employed by ActivLink, an outsourcing facility near Sealy’s headquarters in Archdale, N.C.

Territory managers work with retailers at every level—from store owner to merchandise manager to buyer—helping with proper merchandising and warranty issues. Sealy’s retail sales specialists train store associates to sell the product.

“They are very focused,” says Nat Bernstein, Sealy vice president of training and development. “The dealer gets better service because there is sufficient time and effort put forth in each of those areas.”

Retailers serviced by ActivLink tend to be smaller accounts, often located in more rural areas. The ActivLink agents contact those dealers twice a month and are available five days a week to handle questions.

Bernstein’s staff was responsible for training the ActivLink agents. He continues to visit them at least twice a month and is available by phone for questions. Bernstein also keeps a Sealy employee on-site at ActivLink to answer questions.

“As a former retailer, I think it is less disruptive having someone call you than it is showing up,” Bernstein says. 

Atlanta-based Simmons undertook a similar reorganization of its rep system in December 2005. Out went journeyman reps; in came strategic account managers, who deal with store buyers, and retail account specialists, who work at the store level with store managers and sales associates on selling Simmons products effectively.

At the same time, the company introduced the Centralized Dealer Services Group, a communications center in Appleton, Wis., similar to Sealy’s ActivLink arrangement. CDS reps, working exclusively for Simmons, help smaller dealers operate more effectively, according to the company.

“Instead of having a sales rep visit once every few months, the CDS rep gets to them more often through the Internet, telephone, mailings and Web services,” says Steve Fendrich, Simmons president and chief operating officer. “This has worked out better than our expectations.”

When Spring Air underwent a corporate reorganization and absorbed several licensees into the parent company last summer, its rep system changed, too.

“In the merger of the businesses, we had to eliminate redundant positions,” says Kevin Damewood, executive vice president of sales for Spring Air in Elk Grove Village, Ill.  “Subsequently, we had to completely restructure into one consolidated ‘Spring Air-owned’ sales organization vs. 13 different sales teams that frequently competed against each other. We have three different types of sales positions, all with their own structured compensation plans designed to encourage market share growth and points of execution.”

Kingsdown, based in Mebane, N.C., revamped its rep program in 2002. The rep position morphed into a retail training specialist, a full-time Kingsdown employee who doesn’t open new accounts but helps retail sales associates sell more and better product. The cultivation of new accounts rests at Kingsdown’s vice president level.

Under that structure, says Kingsdown President and Chief Operating Officer Pat Flippin, the number of retail training specialists actually has increased.

New ways to communicate
Key to many of these restructurings is high-tech communication.

Manufacturers have beefed up their Web sites as a reference and educational tool for retailers. For instance, using manufacturers’ sites, retailers can access directly advertising and point-of-purchase materials. Electronic linkups allow retail sales associates to get on-screen training. Online video permits real-time interaction.

Each Kingsdown retailer using the company’s BodyDiagnostic program is linked by computer to Kingsdown headquarters, which constantly collects information used in product improvement and development. New technologies also allow Kingsdown’s training specialists to develop a schedule for store visits.

“We have almost daily contact with a thousand different locations throughout the world,” Flippin says. “Technology has allowed us to help our dealers understand what is going on in their stores.”

Sealy’s online training, initiated a year ago, is available 24 hours a day.

“(Retailers) can go online, study and take quizzes and become certified in every single product category we have,” Bernstein says. “They can learn about sleep wellness, FR, everything.”

Even reps still on the road are outfitted for instant and constant contact: A rep without a cell phone, laptop and handheld BlackBerry-type device is rare.

But not everyone is convinced of the utility of new communication methods.

“The phone is useless,” says Bob Naboicheck, president of Hartford, Conn.-based Gold Bond Mattress, adding that at Gold Bond the phone is used “only to double-check issues or return calls.”

Getting into the stores
Person-to-person contact, long the basis of the relationship between manufacturer and retailer, remains important, even as the frequency of visits changes.

Spring Air expects its reps to visit retailers in person on a bi-monthly basis, Damewood says.

“Spring Air is still a firm believer in having our sales representatives hold regular face-to-face meetings with their retailers,” he says. “Our reps need to be in the stores, teaching retail sales associates how to sell the product, explaining features and benefits.”

Personalized attention is particularly critical to small and mid-size players as they try to compete with the majors, Naboicheck says.

“Our reps are in front of those customers on a two- to three-week turnaround, continuing to familiarize and train the RSAs (retail sales associates),” he says. Naboicheck himself is on the road 26 weekends a year, as is Andrew Freedman, Gold Bond vice president of sales and marketing. They frequently spend a Saturday or Sunday morning on the retail floor, having working breakfasts with sales associates and Gold Bond reps.

Gold Bond makes special efforts to gets its reps on the retail sales floor—selling product along with the store’s associates—during big sale days, such as Memorial Day, the Fourth of July and Labor Day. Gold Bond reps also are expected to be available to work the floor when key retail accounts host big events.

Gerry Borreggine, president of Therapedic Sleep Products in Princeton, N.J., says, at times, nothing can replace a rep visiting a store. 

“They are most effective by bringing their expertise from the entire territory into the corner of the world the dealer lives in,” he says.

Borreggine believes that if companies pull their reps off the road in significant numbers, or even completely, it’s the consumer that loses.

“The transference of information will decline, and retailers will know fewer things,” he says.

For its part, Wickline Bedding in Escondido, Calif., is putting more reps in the field: “In 2008, we are looking to add sales reps in various territories,” says President Mike Malkiewicz.

And, even as Vivetique’s ranks of reps grow, it is unlikely that the Carwile family will relinquish its own close personal contact with dealers.

In late December, Carwile drove up the California coast to deliver a bed to a retailer himself. Riding shotgun was his college-age son, Matthew, who is learning the ropes from dad. 

What retailers are getting—and what they want

By Barbara Nelles

BedTimes spoke with a number of U.S. retailers about their experiences with their manufacturers’ reps. The tone of their comments ranged from cool to effusive, but compliments far outnumbered complaints.

Retailers value reps as a source of training, problem-solving and industry information. As disseminators of information about competitors, reps are welcomed by some dealers but worrisome to others, who perhaps worry that reps are sharing details about their own stores, as well.

Retailers we interviewed appreciate most those reps who display a willingness to sacrifice their personal time. They also like those who are not just promoting their brand but appear to genuinely care about the retailer’s business.

But retailers do wish their reps had more leverage within their own companies. For instance, they’d like reps to have more leeway to allocate advertising dollars and to offer special promotions and product exclusives.

Visitation rites
Retailers, especially smaller retailers, appear sanguine about the fact that the amount of attention they receive from reps is generally decreasing. And yet—manufacturers take note—bedding lines supported by frequent rep visits get sold more enthusiastically, retailers say.  

Typically, large retailers and chains continue to see reps from all brands they carry once a week or every two weeks, if not more frequently. Large retailers often dictate a rep’s schedule, requiring them to attend regular meetings with store staff and management.

Smaller stores report receiving far fewer visits, perhaps one per month or even less.

Gallery Furniture in Houston holds a weekly one-on-one management meeting with each of its manufacturers’ reps, says bedding manager Brandon Jackson. And the retailer expects reps to check in on the bedding department regularly during the week and on weekends.

“I like that,” Jackson explains. “It gives me the opportunity to say, ‘Hey, I need help’ or ‘Nope, see you later.’ ”

Bruce the Bed King, with stores in Hackensack and Paramus, N.J., sees one of its reps about once a month but “the other two are never around,” says co-owner Robert Wiener. Ideally, he’d like to see each of his three reps about every 10 days.

Larry Cole, owner of Furniture Mart in Roxboro, N.C., is satisfied with monthly rep visits. However, he says, when problems arise, having to rely on phone calls to customer service instead of personal assistance from a rep is a nuisance.

“You get so much bad information over the phone. It can take four or five calls to fix a problem your rep could have resolved in one visit,” he says.

While on-site, retailers expect their reps to provide product training, inspect displays and point-of-sale items, deliver educational materials, offer information about new sales and promotions and process warranty returns.

“Their main focus is on training salespeople in their products—motivating the staff and showing them how to sell their product over other manufacturers,” says Chuck Kill, chief executive officer of the 25-store BedMart chain, based in Tucson, Ariz.

Some retailers value selling assistance during key periods, such as sales or when new products are being introduced.

“We have manufacturers’ reps that come out on the weekends and spend their own time out on the sales floor, getting belly to belly with customers, offering assistance and answering questions,” Jackson says. “They’re full of great information about their products.”

“Two of our reps always offer to come out and sell off the floor,” Cole adds. “It comes in handy when you have customers who need more detailed product information.”

Mark Luhman, sales manager at Sleep Center in Lakeland, Fla., likes  when a visiting rep jumps in to lend a hand if sales associates are busy.

“That’s nice—as long as they don’t push too hard or throw the other brands under the bus,” he says.

Things past
Recent changes in the relationships between retailers and reps are perhaps inevitable, but not always welcomed by retailers, especially smaller players.

“It’s a different world if you’re a small retailer today,” Wiener says. “I’ve been in the mattress business for 37 years, and the old days are gone. The personal contact when we were dealing with family-owned and operated factories is over. We’re dealing now with large, distant corporations, and we’re ordering online. We manage fine with the way things are today, but I did enjoy the old style of doing business—the guys who came in regularly, shook your hand, gave you a pen and knew all your kids’ names.” 

Retailers take turns speaking out
We asked a wide variety of retailers—from large chains to small shops—their opinions on three important rep-related issues.

Q: What services do reps provide you?
“I rely on them to help me stay abreast of what’s going on in the industry and in their own company. Ideally, they will inform me about trends and provide the kind of competitive information that will help me sell their product better.” (Brandon Jackson, Gallery Furniture, Houston)

“They fill a real need as far as the independent retailer is concerned and can keep you updated on important issues like flammability regulations—they continuously updated us on the issue and gave us materials to post and hand out.” (Larry Cole, Furniture Mart, Roxboro, N.C.)

“Sometimes we get some useful advice from a rep’s experiences in other stores. They might say, ‘I have an account showing this mattress in a larger size and they’re doing much better with it now.’ ” (Robert Wiener, Bruce the Bed King, Hackensack, N.J.)

“Typically we discuss promotions and advertising support ideas. They offer input on what’s worked for other people in their advertising.” (Joel Huseby, Becker Furniture World, Becker, Minn.)

“I want them to come in and shed light on what’s going on with their company and their products. I want to hear their opinions about what we need to do.” (Dennis Miles, Mattresses Unlimited, Nashville, Tenn.)

“My rep lets me know when she spots new trends. She fills me in on industry news and how others are merchandising particular items. Before we opened this store, I worked other places and got to see other salesmen’s pitches and how they interacted with customers. You miss that (when you are) out on your own. The only way I can learn new things now is through trial and error or learning how other people do it through my rep.” (Neil Costello, Sleep Center of Bend, Bend, Ore.)

Q: What do the best reps do?
“The good ones are accessible. They know their product, they understand how their products fit into the marketplace, they follow up promptly and they’re trying to grow your business with you. Good reps know how to find the funds and get you the support you need for special promotions and advertising.” (Joel Huseby, Becker Furniture World, Becker, Minn.)

“They aren’t always pushing products. They stop in occasionally for a half-hour just to see how business is going.” (Mark Luhman, Sleep Center, Lakeland, Fla.)

“The biggest thing we expect is product knowledge and an ability to get along with our salespeople.” (Chuck Kill, BedMart, Tucson, Ariz.)

“It really helps me when they can differentiate the products they sell to me to make sure my products are not the same as the models in other stores. They give input and help me merchandise the store and keep me up-to-date on new products.” (Neil Costello, Sleep Center of Bend, Bend, Ore.)

“The good ones, many of whom I’ve known a long time, will come around just to maintain the relationship. We chat about business, the family, what’s going on.” (Robert Wiener, Bruce the Bed King, Hackensack, N.J.)

“Reps should be about helping you sell beds. I never freeze them out like some retailers do. I want reps to look at my stores and give me their assessment.” (Dennis Miles, Mattresses Unlimited, Nashville, Tenn.)

“They show real concern for your business. I don’t know if that makes much sense at all, but they want your business to do well, regardless of what brand you’re selling.” (Larry Cole, Furniture Mart, Roxboro, N.C.)

“We expect reps to take the time to learn about this company, its processes and psychology in order to be the most helpful to us. The best reps offer care and assistance even when your business is down.” (Brandon Jackson, Gallery Furniture, Houston)

Q: Besides visits, how do you stay in touch with reps? 
“It seems like we’re moving more and more toward digital communication, if only because everything associated with the rep job is getting more expensive—travel, gas, hotels. I think a lot of reps would like to cut down on all the traveling. Email is a convenient communication tool with our reps. We’ll coordinate everything beforehand using email when we have a new product line to introduce, then we’ll get everyone together for one big meeting.” (Mark Luhman, Sleep Center, Lakeland, Fla.)

“I have my reps’ home and cell numbers and call them routinely when I have a special order or request.” (Larry Cole, Furniture Mart, Roxboro, N.C.)

“We’re in constant contact. There isn’t a three-day stretch when I’m not either physically with them or communicating via phone or email. Our conversations are pretty much constant.” (Dennis Miles, Mattresses Unlimited, Nashville, Tenn.)

“I’ve got a ‘CrackBerry’ and so do most good reps. But it’s sort of amusing that some reps still have an ‘I’ll be out of the office traveling this week and will return on Saturday’ phone message. My best rep is in his 50s and has new technology down.” (Joel Huseby, Becker Furniture World, Becker, Minn.)

“I get a lot of new product information from them in email, and that’s often preferable. We don’t have time to hold meetings and train, train, train all the time. I can review the information myself and teach it to staff members using our own selling style.” (Brandon Jackson, Gallery Furniture, Houston)