References

[69Baracuda]

I contacted a distributor and following our conversation, I asked for references and locations. The distributor said that he would have to get permission from the owners to release their names and I have not heard back for nearly two weeks. Is this common practice in the industry? I find it an unusual business practice and am curious if my expectations are out of line.

 

[briteauto]

I contacted a distributor and following our conversation, I asked for references and locations. The distributor said that he would have to get permission from the owners to release their names and I have not heard back for nearly two weeks. Is this common practice in the industry? I find it an unusual business practice and am curious if my expectations are out of line.

I have not heard of that practice before.

It kind of worked in reverse for me - I visited installations and either knew, or found out who did the work before my initial contact with any distributor.

Once I contacted distributors, they then pointed me in the direction of other installations they had done, but I never had to wait to get any of the information - it was pretty instantaneous in our initial conversations.


Mike

 

[Waxman]

it's a $100k investment. find someone more responsive.

if they can't get this right, how will they be when your machine is down and all your customers have dirty cars???

 

[robert roman]

“I contacted a distributor…asked for references….. I have not heard back for nearly two weeks. Is this common practice in the industry?”

Providing references depends on circumstance. However, you have not provided enough information to give a qualified answer.

For example, dealers often put photos of completed projects on their website. These operators have agreed to chat with potential customers about the dealer’s capabilities.

Otherwise, references are usually provided after the potential customer has made some type of commitment such as requesting a quotation, proposal, engagement letter, deposit, etc.

For example, if you called me out of the blue and asked for a reference for Joe Blow’s Car Wash on XYZ Street (one of my customers), I wouldn’t give it to you.

 

[mac]

I don't know about this one. To me if someone won't respond in a timely way for references when you are looking to spend 100K, that's a big issue. I had a customer call a few days ago to see a machine, and I flew him there to see it, since it was a few hundred miles away. Robert, if you would not give out a reference to someone out of the blue, would you tell that person why? I mean on a purchase this size any half way sane buyer will want to talk to others who have bought this. BTW, I love hearing stories like this. A lot of my competitors make me look good this way.

 

[rph9168]

Do some legwork on your own. Do you really think a distributor would give you a reference of a customer that was not happy? Find locations that have the equipment you are interested in and talk to the owner. You will get more honest answeres that way.

 

[robert roman]

“I had a customer call a few days ago to see a machine, and I flew him there to see it, since it was a few hundred miles away.”

By customer, was this person someone who previously bought from you or a complete stranger?

“if you would not give out a reference to someone out of the blue, would you tell that person why?”

From time to time, people ask me to show them someone’s technical report to demonstrate my capabilities. I can’t do that. One reason is confidentiality of proprietary information.

I’m not a good sales person but I have attended professional sales classes. All of which suggest a sales person should first qualify buyers to some degree to better assist them.

For example, when I sold cars, the conversion rate was one new vehicle sold for every 75 to 100 people who walked into the showroom. On average, 10 of out of 50 would obtain a quote. 1 out 10 actually bought. An estimated 4 out 10 who obtained a quote used it to negotiate a lower price somewhere else.

This was when the Autoway format was introduced. Back then, it was 8 a month or it’s the gate.

My hit rate is one customer for every ten proposals, in other words, I get a fair amount of tire kickers.

I’m not going to waste my client’s time by asking them to speak with someone who is not serious or is looking just to get information rather than service. Of course, it is part of the business, but I like to keep it to a minimum.

Selling capital equipment may be different but if a customer doesn’t want to be a reference, would you still give out their information anyway?

I made my initial comment because “no” not responding to an inquiry is not an industry norm.

Big or small, two weeks says something is amiss.

 

[69Baracuda]

Do some legwork on your own. Do you really think a distributor would give you a reference of a customer that was not happy? Find locations that have the equipment you are interested in and talk to the owner. You will get more honest answeres that way.

Please tell me how I will find locations? That is why I asked the distributor for references. I live in a big state and can't just cruise towns looking for IBAs and I have not found much on the internet or the yellow pages. I think I will take the advice of others and contact a different distributor.

 

[69Baracuda]

“I contacted a distributor…asked for references….. I have not heard back for nearly two weeks. Is this common practice in the industry?”

Providing references depends on circumstance. However, you have not provided enough information to give a qualified answer.

For example, dealers often put photos of completed projects on their website. These operators have agreed to chat with potential customers about the dealer’s capabilities.

Otherwise, references are usually provided after the potential customer has made some type of commitment such as requesting a quotation, proposal, engagement letter, deposit, etc.

For example, if you called me out of the blue and asked for a reference for Joe Blow’s Car Wash on XYZ Street (one of my customers), I wouldn’t give it to you.

I understand your point of view, this distributor did not have any proof of my level of intent...nor did he ask. A friend suggested it was because I am female in a male dominated industry? whatever the reason, I will approach the next distributor by requesting a quote. Do you think I will get a quote without a letter of intent or a face to face visit?

 

[briteauto]

Do some legwork on your own. Do you really think a distributor would give you a reference of a customer that was not happy? Find locations that have the equipment you are interested in and talk to the owner. You will get more honest answeres that way.

Right on - that is the way to do it.

 

[briteauto]

I understand your point of view, this distributor did not have any proof of my level of intent...nor did he ask. A friend suggested it was because I am female in a male dominated industry? whatever the reason, I will approach the next distributor by requesting a quote. Do you think I will get a quote without a letter of intent or a face to face visit?

Quote - at this point - why would you even want one yet?

At this stage of the game a distributor should be showing you machines and telling you why he thinks his particular machine, level of service, chemical line, etc. are exactly what you need and will surpass what others can offer. When you find the distributor and equipment you want, based on that, then he can give you a quote.

I understand they may not all work this way, but they are the seller, and should provide you with much more information than the dollar amount if they wish to earn your business.

Mac flew a guy to see an installation - that's what you do to earn business.

 

[robert roman]

“I understand your point of view, this distributor did not have any proof of my level of intent...nor did he ask.”

“A friend suggested it was because I am female in a male dominated industry?”

Although you are in Montana, I highly doubt the alleged “diss” had anything to do with sexism. After all, a woman’s money is just as green as a man’s. So, his lack of response is his loss not yours.

I’m guessing, but one reason might be that Montana and region have low densities – people, carwash and dealers. Moreover, carwash equipment spending is down 80 basis points from 2005 and equipment is not flying off the shelf - industry growth is between one and two percent per annum.

So, there may be some contestability or territorial issues at hand such as building close to a dealer’s existing customers, etc.

“Do you think I will get a quote without a letter of intent or a face to face visit?”

It is commonplace to approach a dealer with a request for proposal. RFP contains intelligence and key project information so a dealer can develop a meaningful quotation – matching quote to project requirements and specifications.

Quotations prepared from the same RFP would allow for apples to apples comparison.

 

[MEP001]

I’m guessing, but one reason might be that Montana and region have low densities – people, carwash and dealers. Moreover, carwash equipment spending is down 80 basis points from 2005 and equipment is not flying off the shelf - industry growth is between one and two percent per annum.

I would think that would make more of an incentive for him to put together a timely response.

I worked for a distributor for years, and no request for information would get ignored. There were levels of responses based on what we felt the intent of the customer was; for example the ol' "I've always thought it would be cool to have a car wash" would get the level 1, which was just a binder of equipment flyers, some very general blueprints of property and equipment layouts and info on what was generally required for financing.

 

[mac]

Good discussion about sales. Many good points. When I get a call out of the blue, I try to qualify the person. I want to know WHY they want to buy this, why they called me, if they have been in the business, where they will be putting it, if they will have to borrow money for this, and if they have a budget. There is no shortage of poor, incompetent, and dishonest salespeople. Here in Florida all of my competitors tell people how slow their business is, especially compared to the boom years. Yet recently when a city near me requested bids for a wash operation I was the only bidder ! And I saw the list of the people they requested bids from - all the big name people down here. Sweet deal. Like I say, my competitors keep making me look good. And Robert, yes this guy that I flew has bought from me before. They don't get a plane ride on a wing and a prayer so to speak. Sarah, I would contact as many of the manufacturers as you can. The more the merrier. Contact the factory and ask to have a salesman call on you. Think of this as a free way to qualify them. As has been said many times here, it is not the machine so much that is important, as it is the distributor who will be installing and servcing it. I can take the worst piece of cr#p machine, and install it in a good location, with good chemicals, and make money with it. Likewise an inept salesman can install the greatest whizbang machine in a poor location and you'll lose money. There are lots of nice machines out there that will do well for you. Think of it this way, do you go to your favorite restaurant because of the make of the oven in the kitchen?

 

[mac]

Just a little follow up. Got the check.

 

[Gabriel]

The degree of interest and assistance prior to the sale will be a whole lot better than what you will get after the sale. This is your chance to evaluate the Distributor. You are the buyer and the one spending the money. If they show little interest in you now you can bet it will not improve after they get your money.