Manufacturer Milk Runs Not Bringing Any Value - Agree? Disagree?

JH
John Honovich
•Jun 06, 2017
IPVM

Chris Peterson has a new post that shares 2 anecdotes talking about manufacturer RSM's 'milk runs', calling out the lack of value many of those visits have.

An RSM observed:

During that visit, he claimed that he’s become the highest paid and most glorified milk man in history.  I chuckled, but he was serious.  He felt as though he ran from partner to partner, dropping off the milk, but not really bringing any unique value. 

While an integrator owner noted:

You know, if these manufacturers would stop popping in every time they’re in town, I’d have a lot more time.  It’s not like they bring us anything – we’re just part of their milk run.

He then posts 4 recommendations for RSMs with perhaps most interestingly focusing on just the 20% of your channel partners ("The secret is to identify the top 20% and treat them differently. It’s not fair, but it’s effective.") and help them win specific end users.

So what do you think?

Integrators, are your RSMs helping you? Could they help more? RSMs, what do you think is the best approach?

UI
Undisclosed Integrator #1
•Jun 06, 2017

We work with two vendors that send people who are worth meeting with. DW and DMP. Both come and introduce new products, provide training on those products and help us with questions we have. Everyone else stops by, buys us lunch and blabs for an hour. This is the problem with earning commissions on things sold in your territory through distribution. Many of these people don't have to work for the sale. My guy at ADI does a better job of selling me equipment then most of the RSMs who are selling equipment through ADI. If I could chose who got the commission I wouldn't pay it to the RSM much of the time.

My advice, figure out if your RSM is actually bringing new deals to the table. If they're not, get rid of them. 

(1)
UI
Undisclosed Integrator #2
•Jun 06, 2017

I would fault the guy making it just a milk run for appointment count.

If you don't visit, you will lose the business.  Before and after the visit, honestly ask yourself "What was in this for them" and "Did I bring enough value to the dealer to cover their expense and effort".

For the manufacturer, I would highly recommend each visit include a tour of the stock room!  You can see what they won't tell you.

I was in an automotive shop yesterday when a auto rep came by, dropped off a manufacturer labeled gift and then asked "Can we start doing business now"? Only to be told they decided to go with a competitor because they were first to respond to the request.

 

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