Dear Stephen,
I'm a regional sales manager for a major manufacturer in a large metropolitan area. Our region has A&D reps, dealer reps, and global account and end-user reps. Like many manufacturers today, a significant portion of our business is specified by major commercial architecture & design firms. #Gensler is one prominent example.
You and everyone reading will recognize this scenario. #Gensler, along with dozens of other important firms, are highly coveted accounts among salespeople. Ironically, while design firms experience employee turnover—with people retiring or changing firms—the same sales reps often continue calling on the same firm for years.
This has become an increasingly significant problem as I try to hire new salespeople. Moreover, as my salespeople become more senior, they tend to know only the older designers at a firm and become less relevant to the new, younger designers doing business at these major firms.
I've lost potential A&D reps I wanted to hire because I can't offer them one of our major A&D accounts, even to share. This is all because our #AccountHog issues an ultimatum—they refuse to give up the account, not even a portion of it. How do I address this? I hear similar stories from floor covering companies, contract furniture companies, and contract & residential companies.
The manufacturer and managers like myself then become beholden to this one individual. I've never understood why companies like mine don't have a team of two or three A&D reps covering a major design firm.
Firstly, it would provide better service for the design firm to have multiple resources. Secondly, there's so much work coming from some of these firms that it's impossible for just one rep to do a quality job. Just as importantly, if I could have a team cover a major firm, it would give us the opportunity to grow our business and hire new talent with the incentive of handling a major account.
Every time I discuss this with the individual I consider the account hog, she threatens to leave and take her business with her. What should I do?
Signed, I Have A Hog!
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Dear Hog Keeper,
Don't be afraid. You're absolutely right that important design firms should be covered by several individuals with equal status, particularly at big manufacturers. It's impossible for just one person to maintain good relationships with everyone at a large company like Gensler.
As you pointed out, many of the best reps are aging out. Their relationships retire, and they may struggle to relate to the new, younger designers coming on board.
As a recruiter, I frequently see companies fail to attract quality salespeople because certain accounts are off-limits to newcomers. This is a significant mistake.
Having multiple sales reps on a major design account isn't practical for all manufacturers. I understand that smaller manufacturers and independent rep groups often have limited human resources, making it logical for one person to cover an entire account. There's a long history of salespeople in floor covering, office furniture, and textiles building their own fiefdom with one major design account, but it's time for a change. While I'm not fond of your phrase "account hog," everyone reading this will know exactly what you mean.
As a regional manager in a major market, you have considerable influence with your corporate HQ. You need to share these thoughts directly with your VP of Sales and perhaps HR simultaneously. Explain that you need a new approach to hiring, and that having so many 'blocked' accounts isn't working. You're looking to hire more people, not just by offering more money, but by providing a better variety of quality accounts to call on. You also don't want one salesperson controlling the flow of all your business—that's not good practice anywhere. Let's face it—most great design firms care more about the product and how it suits their design; it's rare that an individual truly "owns" a relationship, especially if you work for an iconic brand. If that big design firm wants to specify an #Eames chair, do you really think they'll stop just because their sales rep left for another manufacturer? You get the idea.
So, share your concerns with your bosses and start making some changes!
Signed, Stephen