By Christopher Lyon, NTEA Director of Fleet Relations
This article was published in the October 2017 edition of NTEA News.
Is your company a preferred supplier? Any business providing a service should be able to achieve this status, but some fall short. Although you may have a large portion of repeat customers, you may not be a preferred vendor.
A company may have only one or two attributes that help it retain fleet business, such as superior sales support, price point or physical location. However, fleet managers may just be dealing with the situation because it’s easy. This enables repeat business as long as the status quo remains the same, but it leaves your organization at risk if any factors change.
Defining preferred suppliers
Pinpointing the definition of a preferred supplier can be challenging, and incorporating it into a business model may prove even more difficult. Take a step back and look from a customer perspective. Many fleet managers identify excellent communication, flexibility, honesty and solid after-sale support as factors that boost a vendor’s preferred status.
Educating for best value
While it’s said that money runs the world, more and more fleet managers are shifting from low bid to best value. This can be a difficult subject to broach with your customers, but if done appropriately and respectfully, it can result in long-term partnerships.
Communicating with actions will go further than words. With the sheer size of the work truck industry, there are bound to be minor quality, workmanship and performance issues. While major concerns will likely be reported, smaller issues may not, which is why it’s critical to conduct follow-up appointments after new equipment is delivered. Often, fleet managers are designing complex equipment and may not have considered some small operational function that could have undesirable effects. Although it may not greatly impact overall productivity, customers may view it as an annoyance or defect in workmanship instead of a design oversight on their part.
Asking if fleet managers are having any issues will go a long way toward demonstrating concern. It also enables the opportunity for corrective action. This legwork on your end provides superior service.
Talking with your customers and prospects
Fleets that buy solely on low price do not understand the value of total cost of ownership or quality service — elements that will save time and money in the long run. Something as simple as a pre-delivery inspection can make all the difference, but that may not be obvious to some fleet managers.
Often, specifications exclude things you already do. For instance, while vehicle certification is required, it’s not always explicitly written into the spec’s. Opening a door and pointing out the vehicle is properly certified can spark a conversation. There are fleet professionals who don’t realize something like adding a snowplow or vehicle partition may require certification. Having this dialogue can open the door to other business opportunities.
If you have any questions on this article or other fleet-related matters, contact Chris Lyon or visit ntea.com/fleetresources.