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Due Diligence: Dealers & Distributors

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In this final entry in our Due Diligence series, we take a look at the importance of dealers and distributors in both the equipment purchase and service processes. Some contractors prefer to buy direct from the factory, and that has its advantages. But over the long haul, many find that developing a relationship with a local or regional dealer or distributor the preferable option. Let’s explore the advantages of that scenario, and the questions you need to be asking to ensure you get the most out of such a relationship:

Consultative Approach

When you deal with the distributor, are they making sure you get into the best unit for your needs, or for their bottom line? This will be apparent in the kinds of questions they ask you. You want to feel that they really understand your needs, by really listening to the answers you give.

Make sure they use a consultative approach to selling. They should be asking as many questions as you are, as you tell them about your equipment feature and performance requirements. It may be that what you think you need and what you actually need are different. Only a seasoned, experienced representative will understand this and be able to ask the right questions to figure that out. Consequently, they can lead you in the right direction toward equipment that will actually help you accomplish your goals in the field.

Know-It-All…Or Not?

If the person you’re speaking with at the dealer or distributor doesn’t seem to know the answer to some of your questions, are they willing to admit this and find out from the right person? Or do they seem more interested in appearing to have all the answers?

You can’t afford to sacrifice getting the right product to their ego or pride. If you don’t feel satisfied with the answers you receive, find a way to politely ask for a second opinion. This purchase is too large and important not to make the right one the first time.

Does Staff Inspire Confidence?

Do a little homework before you even approach the dealer/distributor. Find out if its staff is fairly stable, or if they have high turnover. The latter could indicate a poorly managed company that may not treat its people well. This could mean you may end up dealing with a constantly changing assortment of representatives. Such a situation won’t inspire comfort or confidence in you…and probably shouldn’t. As the customer, you should expect to come first, not behind a line of internal management issues.

After The Sale

Lastly, you’ll want to find out if the distributor has the capacity (and willingness) to provide a reasonable amount of after-sale service. After all, the initial transaction is a one-time thing, but ownership of the product will hopefully go on for quite a few years. You want this extension of the relationship to be convenient and satisfactory, not fraught with stress.

Can the dealer service the equipment nearby, or will they need to send it back to the factory, perhaps far away? The latter doesn’t always mean a bad deal for you: In fact, sometimes factory refurbishment is the best possible option for keeping your equipment operating at peak condition and warranty compliant. But when that happens, does your dealer offer loaner equipment to keep you productive, while yours is in the shop?

How do they handle communications while they have your equipment?

  • Will they be proactive in letting you know when you can come pick it up, or will you have to babysit the process with several phone calls?
  • What’s their track record on delivery as promised? When they say they’ll have it ready, will it be?

Managing your expectations at this point is one of their most important jobs, and you need to know that their information is reliable. Otherwise, frustration can set in, and create a lack of confidence in the dealer. No one wants that. So do your due diligence at this end of the deal, and everyone should end up happy.

We hope you’ve found this Due Diligence series helpful, and that you’ve learned something of value that will help you get a handle on the process, the next time you need to make a major capital investment in your pipeline inspection or other professional equipment.

 

 

 

 

DueDIligence Part 4 header

Manufacturer Considerations, Part 3: Just What You Need

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Due Diligence Series Post #4 – Manufacturer Considerations, Part 3

In your manufacturer considerations thus far, you’ve vetted potential big-ticket equipment vendors for flexibility, both in attitude and ability to deliver. Those are both pillars of a solid vendor foundation. But what about the things that set them apart from the competition? What about surpassing your expectations into the realm of “above and beyond?”

The ability to deliver in this realm rests largely upon business philosophy and the vendor’s sense of their mission. This is the area where, handled properly, everything else in your manufacturer considerations becomes run-of-the mill. In this area, even parts of the rest of the transaction that may have seemed ho-hum turn into the Deciding Factor; the thing that exceeds expectations and delights the buyer.

Have It Your Way

Those of a certain age will remember the old 1974 Burger King commercials, proclaiming “have it your way.”

It was a brilliant campaign that allowed the #2 fast food provider to pull a lot of market share away from McDonald’s. The #1 giant had demanded everyone simply accept that their burgers were going to be delivered with the standard ketchup, mustard and chopped onions…no exceptions.

It was a classic example of the business success principle of putting the customer first, rather than trying to shoehorn them into what works best for you as a business. It’s no less effective today.

With that in mind, you need to ask of a potential equipment vendor is whether their standard stock is all that’s available, or if they offer customization. Clearly, the ability to have an off-the-shelf item tailored to the specific way you and your crews will actually use it is a serious advantage; not just in outcomes, but also in making that equipment pleasant and satisfying to use.

When you’re shelling out the kind of money it takes to outfit yourself well for CCTV inspection, why not hold out for a solution from a vendor who’s happy to let you have it your way?

Help Along The Way

One of the significant determiners of satisfying, long-term business relationships with an equipment vendor is whether the manufacturer works through a dealer network to help with delivery and repair. While the manufacturer must set the tone of how they expect customers to be treated, it’s often far more convenient to work with a local distributor or dealer, whose primary business is the service of the products he delivers. These middlemen more than earn their keep by helping you navigate any warranty policies and performing maintenance work on your purchase close to home.

It’s no secret that CCTV equipment necessarily has parts—such as the optics—that regardless of ruggedization by the manufacturer, are still vulnerable to the harsh environments and sometimes necessary rough handling they’re subjected to. So when those or other parts need replacement or repair, it’s important to have someone not too far away you can depend on to get you back in the field and productive as soon as possible.

Along those lines, we all know that sometimes, a part may take a bit longer than expected to arrive, or some other factor can cause delay in getting your equipment back. But the jobs don’t wait, and you don’t want to create a disgruntled customer. Does your potential vendor have a loaner policy, providing a temporary replacement to keep you working until yours is returned? This is one question that you may never really need to know, but if you do, it can make all your due diligence efforts worthwhile.

Can you get the equipment the way you need to?

Another really important question to ask, if you’re responsible for purchasing equipment for a municipality, is whether the vendor makes its products available through the channels you’re required to use to buy it. More and more public works departments are coming under blanket purchasing laws that require them to use online purchasing cooperative interfaces, commonly referred to as “buy boards.”

If you’re one of them, you want to make sure that the equipment you spec in your capital expenditures is available for purchase through this channel, or you can find yourself out of luck and disappointed when it comes time to issue the purchase order.

Increasingly, manufacturers serious about competing in the marketplace are understanding that they need to have a presence on these boards. Although lack of such a presence doesn’t automatically disqualify a vendor from consideration, it should raise concerns about how serious they are about maintaining a serious, long-term presence in the industry.

So when you’re considering a vendor for such big-ticket items, it’s clear that doing your due diligence is an investment of time and effort that can pay off long into the future. We hope this series has been helpful in outlining some best practices in planning for and protecting your equipment investment.