At the Associated Equipment Distributors Executive Forum last month, a panel of contractors discussed what they expected from the dealers and rental companies they do business with.
These particular contractors are in business for the long term. It was quite clear that they expect to do business with distributors and rental companies that also have long-term goals. It is important to them that their service providers constantly work to improve efficiencies. They want to know what their service providers are doing to improve service ability, the ability to obtain parts quickly, to fix breakdowns immediately, to service equipment ever more effectively.
They are concerned about establishing partnerships. This means certain commitments from their suppliers. First, they want relationships — some reasonable sense that they can continue to work with the same sales and service representatives from one day, week or month to the next, rather than having to communicate with a different person every time they deal with the company. Recognizing that attrition is a part of business, they still value some stability from their service providers, a sense that they aren't constantly moving people around or losing people to competition because those people aren't satisfied with their terms and conditions of employment.
They pointed out that they expected their suppliers to develop an understanding of their business. One contractor said that his business operates on a 24/7 basis, but he wondered if his suppliers understand that, if they were set up to be responsive on that basis. They discussed the value of communication. If they are waiting for service and the distributor or rental company promises to respond that day but then finds out they can't get the parts until the following day, the contractor said, that is understandable and acceptable. What is not acceptable, however, is failure to communicate this information.
“Why should I sit around and wait and then have to call them to find out when my machine will be fixed when all they had to do was call me and let me know the parts will come in the morning?” the contractor said.
These contractors also emphasized that they are in the solutions business. They can only win contracts by solving problems for their customers. Likewise, they expect their suppliers to come to them with that same philosophy. They all agreed that they didn't need rental companies knocking on their door every day with the special discount of the moment. What they do need is relationships with professionals who want to help them solve problems, who understand fleet management, life-cycle costs, preventive maintenance issues and are interested in helping them improve their bottom lines, just as they have to demonstrate that same concern to their customers.
This level of establishing relationships and doing business professionally is a tall order in this era of price competition and commodity mentalities. The message from these contractors, however, is crystal clear. Those that can think that way will be around doing business with them in 10 years. The fate of those that can't adapt wasn't even worth discussing.
