The Changing Face of the DSR

Dealers, suppliers and operators are realizing that working together as partners is the most effective way to do business.

By Lisa White, Contributing Editor -- Foodservice Equipment & Supplies, 4/1/2008

Technology has changed the pace of business. Paper and pens have been replaced by computers and hand-held devices. Tasks that once took days or weeks now take just hours and minutes.

This evolution has been both beneficial and challenging for the operator/DSR relationship. The advantages include quicker and easier information sourcing for clients. Simultaneously, the demands clients place on their DSR partners continue to grow exponentially.

Patrick Bailey Vice President F.G. Schaefer & Co.

“Once we understand what they want, it is easy to come up with a solution. Technology has played a big part in this. We can submit drawings, quotes and spec sheets in seconds.”

Specifically, the evolution of the marketplace demands that DSRs begin to act not only as a consultant for their individual customers but also as an interpreter. With more operators researching products online, DSRs need to understand how their clients function and help determine whether specific products would benefit their customers’ businesses. As a result, the way operators and DSRs interact continues to change dramatically.

As part of their consultative role, DSRs are now expected to serve as a conduit that connects their customer with a specific solution. In some instances, they must defy old industry practices that were once considered taboo, such as getting factories or independent reps involved with the customer.

This willingness to go against the old grain will help DSRs continue to provide value as defined by their customers.

A Role Re-Evaluation
Hank Kraft, COO of Oklahoma City-based Hal Smith Restaurant Group, which has a chain of 61 restaurants, considers dealers and suppliers as partners in his business. As a result, he depends a lot more on his DSRs and expects a higher level of involvement. “DSRs become very involved in what we do. They are concerned for our business, and there is more follow-up. If we don’t work together, things won’t get done,” he says.

In the past, operators relied on DSRs to communicate with suppliers about products and pricing. Now, with the internet playing such a prominent role in business, operators are able to do their own research and, in turn, have become more knowledgeable.

Consequently, operators today are able to be more discerning about who they do business with than they were in the past. “We have to be more critical. We shop the market harder to get the right price, and reps work with suppliers to get a better discount for operators,” Kraft says.

Years ago, DSRs would make a point of visiting every customer on a weekly basis and were considered order takers rather than problem solvers. These days, more operators place orders directly with suppliers online or communicate electronically with DSRs.

Michael Gold Key Accounts Manager Edward Don

“DSRs need to work with clients to figure out a way to complement what they want to get done by focusing on what you can do, rather than what you can’t,”

“This evolution means that DSRs have a more consultative role than they had in the past,” says Steve Don, president of Edward Don & Co., a dealer with locations in Illinois, Georgia, Florida, New Jersey, Texas and California. “Because everyone is a smarter customer, DSRs must stay up-to-date on their product knowledge.”

Edward Don offers a college training program for those interested in a DSR career. “We are finding many people are interested in becoming a successful DSR. This is a growing segment in our company,” Don says. Still, he admits foodservice is a competitive business that will only become more competitive in the future.

Because customers now expect instant communication, successful DSRs must be able to multitask. They also need to keep current on the multitude of different equipment and technologies offered today.

Increasing local or regional regulation, such as the West Coast’s ban on polystyrene, also makes it necessary for DSRs to do their homework when recommending equipment. “Sales reps must be aware and stay current on health codes and legislative changes by going to trade shows, reading trade publications and checking on the internet,” Don recommends.

While the basic notion of customer care has not changed, what goes into this has changed dramatically.

Patrick Bailey, vice president of F.G. Schaefer & Co., headquartered in Cincinnati, and FE&S’ 2007 DSR of the Year, says DSRs not only need passion and preparation to be successful, but should understand that they serve both their company and the client. “Sales reps are the middleman,” he explains.

Focusing on maximizing sales and profits without taking into account the client’s best interests is a mistake.

To best serve clients, Bailey imagines himself as the operator. “I spend their money like it is my money. It is about building trust. Unless you have a client’s trust, you won’t sell anything easily. DSRs earn trust by treating customers fairly and spending their money wisely,” he says.

Today’s successful DSRs also listen before they sell. Those who jump to conclusions before speaking with their customers or try to sell before knowing what a client’s needs are will run into trouble.

Bailey says by listening and understanding clearly what a client wants, not what they say they need but what they are actually trying to accomplish, DSRs can make the appropriate recommendations to earn an operator’s trust. “When you understand why customers want to deal with you, then you start to get a good handle on how to best serve their needs,” he says.

Zena Dater Multi-Unit Outside Sales Rep Oswalt Restaurant Supply

“They need a dealer who knows what they are doing. Yet, if I’m not equally as smart as my customer, I can lose the sale.”

In today’s competitive business climate, how can a DSR meet a client’s unreasonable or unattainable expectations? Many say it helps to think creatively.

Michael Gold, a key accounts manager at Edward Don and FE&S’ 2006 DSR of the Year, has run into this situation and tries to look at it from a different angle. “DSRs need to work with clients to figure out a way to complement what they want to get done by focusing on what you can do, rather than what you can’t,” he says.

DSRs must maintain an open mind and a certain level of flexibility. It also helps to be aware of trends in the marketplace, which makes it easier to develop other suggestions to help meet customers’ business objectives.

“Operators are looking for DSRs who bring ideas to the table. It is not always necessarily about price. It is OK to spend their money, as long as you are helping them to make money in the end,” Gold explains.

With equipment knowledge at everyone’s fingertips, DSRs have had to become equipment specialists, as opposed to just being route managers that showed up to collect orders. By doing this, they must remain one step ahead of their clients. “A DSR is not just in sales. I can’t just be an order taker, I need to offer more,” says Zena Dater, multi-unit outside sales rep at Oklahoma City-based Oswalt Restaurant Supply.

For example, DSRs can advise end-users on how to cross-use equipment that serves multiple purposes. This not only saves an operator money, but also provides more profit for the DSR, Dater adds. “Consequently, DSRs are expected to provide product knowledge and other extras to set themselves apart,” Dater says.

Operators want to know how a DSR will serve them after the sale and how the equipment they are recommending will make the client’s business more profitable.

Still, many contend that the DSR’s role has not changed much in the last two decades.

John Breznikar, president of East Bay Restaurant Supply, located in Oakland, Calif., says an increasing number of people with varying skill sets and responsibilities now operate under the DSR designation. “We have DSRs who are on our territory staff soliciting business from large companies as well as DSRs who are specialists in equipment that serve a different function. All have DSR roles that, for the most part, have not changed much,” he says.

Dan Beltram, CEO, Beltram Foodservice Group

The exceptions are the sales reps working outside of urban areas who may compete with e-commerce sites, Breznikar notes. “The abilities and effectiveness of those working in more rural regions may be challenged,” he says.

With customers able to easily find prices on web sites and some manufacturers contemplating a move to implement minimum advertised pricing policies, DSRs are more focused on selling value-added services, according to Breznikar, and this needs to be communicated to customers so they can be charged accordingly. It is important to deliver a higher level of sales because to make the math work, DSRs must do more with less.

Marty Cox, project manager at Tampa, Fla.-based Beltram Foodservice Group, agrees, saying it is important to develop cost-saving techniques. “Whether this means making deals with freight companies or asking installers to cut their costs, you need to lower prices by cutting costs in different areas,” he says.

It’s no secret that technology has changed the focus of a DSR’s role. Instead of spending time tracking down products and quotes, there is a greater emphasis on communicating with customers, writing more business and keeping up with industry changes and advances.

Bailey says the difficulty lies, not in transmitting information to clients, but in deciding what information to transmit. As a result, more time is spent determining what customers need, rather than doing the work that is required.

Due to the fact that Bailey concentrates on design and project management, the majority of his time is spent interviewing, probing and validating clients’ needs. “Once we understand what they want, it is easy to come up with a solution. Technology has played a big part in this. We can submit drawings, quotes and spec sheets in seconds,” he says.

Although today’s technology has allowed DSRs to do more in less time, this has not resulted in more downtime. On the contrary, sales reps are even busier taking care of a larger roster of customers.

In addition, many say that the ability to pass and exchange information at lightning speeds has raised the bar considerably. “A decade ago, we would get back to them with an equipment quote in a week and now it’s the same day or sooner,” Gold says.

Reps who are not on the ball, will most likely not make the sale. “Now, end-users can get one or two equipment quotes from other dealers before the first dealer they contact has a chance to get back to them,” says Dan Beltram, CEOat Beltram Foodservice Group.

DSRs today are more likely to receive a call from an operator looking for something specific that they sourced themselves online. “They most likely will not have a relationship with an equipment manufacturer, so even if they do the research over the internet on their own, this helps prompt conversation with a DSR. It also typically provides us with better direction on sourcing a like or better item. In this way, technology creates conversation that may not otherwise happen,” Gold explains.

Even with the advent of technology, the DSR is still involved in a relationship-based business. Successful DSRs have developed relationships and use technology to build more time for cultivating these relationships, Don says.

The extra time afforded by today’s technology has allowed Dater to become more involved in the restaurant industry and buying groups’ training. “This makes me more knowledgeable and gives me a leg up on other DSRs,” she says.

Technological innovations have also allowed more time for sales reps to research end-users before making the sale. Dater educates herself as much as possible on potential clients, including finding out about their business and potential needs, prior to walking through the door. “I used to mainly do cold calls, but now I walk in already feeling like a partner in their business,” she says.

Even though many customers have already done their homework on the internet when they first contact a DSR, they realize that ordering on their own is not as simple as it may seem. “They need a dealer who knows what they are doing. Yet, if I’m not equally as smart as my customer, I can lose the sale,” Dater says.

Looking Ahead
To be successful in the future, DSRs need to provide knowledgeable, value-added service to the end-user as defined by the end-user. They need to determine the real problems, and not the symptoms of these problems, by getting to the core issues. “The way to do this is to ask questions and make sure there is proper communication. Communication is the root of what we do,” Bailey says.

In the coming years, technological advances will provide DSRs with more opportunities to be creative, resolve issues and bring new and creative ideas to the table, Gold notes.

It also will be important for DSRs to bring value to end-user purchases by offering consultative selling and additional services.

Breznikar says DSRs must be able to do all of the things an operator needs them to do or they will go elsewhere for this information.

In addition, adapting to new technology and continuous training will give DSRs an edge on the competition.

“DSRs today have to do more than just sell equipment. Anyone can get their own price. We have to offer more; customers are demanding it,” Dater says. Staying up-to-date, working smarter and partnering with customers will become even more important in the future.”

As an end-user, Kraft expects the DSRs he deals with to stay on top of the equipment innovations. “As long as they stay on top of it and make us feel that we are getting the best price out there for the job we need done, that is the key. When we present our plans and tell them what we want, the DSR needs to have the knowledge to answer questions quickly and help us save money,” he says.