A conceptual model for building and maintaining relationships between manufacturers' representatives and their principals

As more and more firms decide to outsource their sales function, the entire topic of partnering with resellers has taken on greater importance. An increasing number of firms have turned to the contract salesforce, commonly called manufacturers representatives, to handle the safes function for their products. In an increasingly competitive environment where distributors, original equipment manufacturers, and end users have more choices, building and maintaining solid relationships between manufacturers' representatives (reps) and the companies they represent (principals) has become more critical. This paper uses the results of a qualitative study and proposes a conceptual model for building and maintaining effective relationships between manufacturers reps and their principals. The results of the study indicate that there are sir Core Values in these relationships: Shared Goals and Objectives, Mutual Dependence, Open Lines of Communication, Mutual Commitment to Customer Satisfaction, Concern for the Other's Profitability, and Trust. In addition, there are four supporting factors: Investment of Effort by Top Management, Continuous Improvement Over Time, Having a Professional Respect, and Developing a Personal Relationship. The paper goes on to propose a Relationship Audit that reps and principals carl use as a diagnostic tool To evaluate the status of their relationship. (C) 2001 Elsevier Science Inc. All rights reserved.