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25 Questions to ask your Car
Wash Provider:
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Wouldn't
life for a buyer be so much simpler if the car wash industry standardized
and developed a code of ethics for all manufacturers and suppliers!
After all the accounting, legal and architectural industries have
a set of standards why shouldn't the car wash industry? Is it to much
to ask when you begin to investigate and interview prospective vendors
that you know that they have a set of standards, a code of ethics?
Don't they/we profess to be professionals? I'm one and I do feel that
someway to judge fairly is definitely required, level the playing
field.
I pose this
question and make these statements for many reasons, not the least
of which, I have been in the shoes of both buyer and seller. I have
listened to, watched and seen some things in our industry that I find
despicable, irresponsible and unfortunately unaccountable. So do you
sit by watching or do you stand up and be counted? I'm for standing
up and suggesting that our industry hold its members accountable.
Unfortunately my soapbox antics will receive little attention and
I'll be an audience of one but I will not be dismayed or swayed from
my task nor will I accept the old scapegoat of buyer be aware. So
if I can't change the vendor community I can offer some tools and
thoughts for would be buyers.
In any endeavor
you need a starting point, a place where you can interview and evaluate
fairly your potential provider. Now at this point you might ask why?
Why do I need a tool to assist me in my decision? The answer is you
need a devise to provide a logical and factual answer to all your
inquiries; you want to make decisions based on fact! Remember it is
not about equipment it is about the business. The business is assisting
you to be in a place where you can be profitable and create wealth,
car washing is just the vehicle.
As in any
interview you need a starting place. In the sales arena we call this
the "address" period, the time we get to know one another,
look each other in the eye, explain our needs, and what each can bring
to the table.
Before we
get to our "25 Questions to ask your Vendor", you need to
come prepared. This would include an interview plan as well as your
assessment of the project. Your goals, financial commitment, type
facility you are envisioning, and the level of involvement which you
expect from your vendor. Pre-planning is critical to a successful
meeting. Prior to your meeting I suggest you use the SWOT (strengths,
weaknesses, opportunities and threats) approach to evaluate your competitors
as well as yourself. Use this as part of your overall planning strategy.
Twenty
five (25) questions to ask your vendor!
1. Tell me
about your business? How many years in business? Who are the principles?
What is their experience in the car wash industry? Do they own and
operate car washes, if so how many and what kind? Why did they make
the decision (to/not) be in this business? What and how do I benefit
from their decision?
2. Who do
you represent? Why did you select them? What enables them to offer
me a competitive advantage? Who are some of their key accounts? How
long have they been in business? Describe your relationship and the
support you get that will benefit my business.
3. If I were
to select you as my provider what tools and or assistance would I
receive as it relates to; Design, consultation with engineers/architects,
meeting with and representing me in front of government boards, sitting
with my lawyer and any other member of a team I put together? Is there
a cost for this service? If so how much? What success have you had
in these areas? Would you demonstrate and validate your statements?
4. How do
I do business with you? Terms and conditions of sale? Deposits, refunds,
payment, guarantees? Will you provide me financial references, vendor
and or primary bank relationship?
5. Who is
your customer? How do you serve him? What references can you provide
me?
6. What is
the normal time line required for equipment manufacturer? Delivery?
Installation time?
7. Regarding
the equipment and installation what are my responsibilities? Yours?
Do you have a list that clearly delineates each of our responsibilities?
Will you acknowledge and have this as part of our agreement?
8. Based
on my site what will you do as to site review, financial projections
and suggestions as to which type of wash and the methodology of wash
(friction/touch free)? Do you offer various types of systems? What
are the advantages and disadvantages of each system, mechanically
or financially?
9. Based
on what I have shared with you what do you feel is the best approach
to my market? Why do you feel this way? Are there similar locations
to mine and if so now that they are up and operating have that meet
the stated projections? Does your customer feel they have met their
expectations? If they (have or have not) why.
Assuming
we have gotten through the "address", and now the "interview"
stage, and are comfortable with the answers the next stage is to begin
creating our car wash. What type, where located, how big, how costly,
what kind of return and timing.
10. How and
why would you lay out my property? What would you project the total
cost to be?
11. I have
been told that "highest and best use" is the mantra for
all real estate investments. Based on what we have discussed, does
what I am proposing meet that requirement? Will the income projected
support the investment?
12. You have
suggested a certain approach to my market, although I have done a
SWOT analysis, how competitive will I be to other car washes? What
threats are there that you know about that could affect my business?
What opportunities?
13. What
is the life expectancy of the equipment you have proposed? What programs
do have that will minimize downtime? Do you provide cost per car programs
for maintenance and chemical? What is my commitment? Yours?
14. Car washing
is a cash business, what systems are you recommending that will enable
me to manage and track the variable expenses of my business? What
are the costs? What is the benefit?
15. Although
we have spoken about service and maintenance, how far from my operation
is your service facility? Will you guarantee a certain response time?
Will you consider a program guaranteeing a certain uptime? If so tell
me how it works?
16. One of
the items needed to assure adequate financing is a good business plan.
What assistance will you provide? Is there a cost? Will you meet with
my bankers if required?
17. I know
you can't legally control competitive locations from being placed
in my market however what can I rely on from you to keep me informed
and competitive?
18. What
assistance will you provide for marketing? Is there a cost? Are there
any co-op advertising dollars available? How do they work? What are
the various advertising and or public relations mediums I should be
using?
19. What
assistance will you provide for training? Is there a cost?
20. Do you
have complete service manuals and install drawings? When may I receive
and review them?
21. Do you
have contractors that you recommend? Will you assist me in making
that contact?
22. Will
you walk through all the mechanical requirements of your system with
my team?
23. I understand
that some of the equipment you will provide comes from a number of
various suppliers will all equipment be guaranteed the same?
24. As you
can well imagine this is a very significant investment what ongoing
assistance can I rely on.
25. Why should
I buy from you?
I'm sure
you can come up with some things that I may have forgotten. The key
to this whole process is, do I feel I am receiving honest information,
that the vendor I've chosen has both our interests at heart, the numbers
are realistic, I am comfortable that my projections support the investment
and that I am on a program that will create wealth.
Car washing
is a relationship business, it is important that the chemistry is
working.
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