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I guess loyalty means nothing....

Discussion in 'Business Fundamentals' started by JohnnyRoyale, Oct 26, 2009.

  1. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    We’ve been VERY loyal to a particular equipment dealer over the last 15 or so years. I mean VERY loyal, buy almost all of my equipment through them, get almost all of my service done there, and buy almost all of our parts there too. We are considered to be a “tier-1 client” according to one of their last e-mails.

    Their service is second to none, and their location is central to most of our work. We go to the front of the line every time we have an unexpected breakdown, and get in and out very quickly. We have a great personal rapport and relationship with everyone there, have recommended lots of people to them, and until this weekend thought respect was reciprocal.

    I got dragged out (out of town) to another dealer Saturday morning with a buddy of mine to look at a used backhoe. Get talking to him about a tractor and blade combo and he tells me the manufacturer has a zero percent-48 month program on now. I quickly did some fast math and then the little vein in my forehead began to swell.

    Last week I got quoted on two new tractors and blades from my current suppliers and thought-wow, these are pretty expensive machine when you consider the interest or leasing costs (almost $32,000.00 per machine) over the next five years. I thought I may as well go get a couple of loaders or look for a few used tractors.

    I decided to buy a couple of used ones instead, and got them to give me a quote on the lease. I also got them to quote me on a particular bucket I need for one of my backhoes.
    This new guy informs me the manufacturer is promoting a zero percent 48 month lease or finance terms until the end of the month on new and a low rate on their used equipment.
    At the end of the day, that means almost 200 bux a month less on the two used machines, and almost $32,000.00 less per machine on the new ones if I went that route. That bucket I was looking at came in at almost 1500.00 less too.

    I don’t know about you guys, but I have yet to graft a money tree, and I don’t wake up at 4:30 every morning because I love the smell of fresh country air. Needless to say, I feel scorned, and will not buy another piece of equipment from them again. I would also consider going elsewhere with my service business, but don’t want to be a ‘just a number’ at another dealer.

    Moral of the story-constantly re-evaluate your business decisions and business relationships, even if only in your head for a brief moment.

    I guess loyalty means nothing at the end of the day. :drinkup:
    Last edited: Oct 26, 2009
  2. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    take this information to your equipment dealer, confront him with it, you are the customer here, and deserve and explanation. I have had this happen before too, buying a car last year, i was all set to buy used until i looked at the new financing on the same care, boy was i furious, the 2007 with 23000km on it was $1000 more then the brand new one, same options. needless to say i didn't go with that dealer.
  3. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    Could it just be your sales guy? Maybe he was new? If I were you I'd go to the owner/sales mgr and tell him whats on your mind
  4. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    yeah before going all ballistic just ask the owner whats up? I deal with the same biz for eq and repairs for the last 10 years and was kinda pissed when I needed what I thought was a standard part for a push mower, it had to be ordered and I payed shipping:mad: so when it came in I was busting the owners chops about it, long story short things are different now, he is paying shipping on all kinds of things he never used too, and his suppliers are now selling to the box stores (granted HO quality but stupid customers don't know the difference) blah blah blah. So I don't feel so bad, just kinda sign of the times. at least I still get great service and good conversation...kinda the whole "Norm" thing. although it usually comes out more like"what do you want now you pain in the ass":laughing:
  5. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    I've cooled off a bit since then, and have promised the new dealer I wouldn't cause any sh!t, because he would be affected and has some business ties to my first supplier.

    I've decided to stop all future new equipment purchases there, and give them the service business when I absolutely have too. I have alot of equipment still under warranty with them, and have to maintain like nothings bugging me for the time being.

    I know for sure they pass by my yard on a regular basis, and they pass my crews on the highway every morning racing down to the city. I'm sure they will question me when they see new stuff on the roads and highways. I guess I'll have to let them know at that point.
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Sorry to put a damper on this but, some of it is your fault to. Even if you do deal with one dealer you should always look around at other dealers ,quietly if you have to.Dealers love blind loyalty and try and take advantage of it.

    If need be call the manufacturer directly and ask what's going on

    Sorry to rain on the parade
  7. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    I know part of its my fault too. Over the last couple of years I have been buying some equipment elsewhere-alot of it has been coming from south of the border.

    There are alot of things they are great at, and make the purchase very easy-usually just a phone call.

    Its evident they did take advantage of my blind loyalty-but that ship has sunk for them now. Turn the page.
  8. Ketch

    Ketch Member
    Messages: 48

    ForestFire and Buckwheat are on the right track, buddy. I'd seriously go down there - calm, cool and collected - and gently ask what's up. Don't get frisky and whip out your flaming dragon sword of the apocalypse too soon, just be chill and do it. Don't name names, but don't be afraid to stand up for yourself. If they start something, finish it by interrupting them to politely (oxymoronic?) thank them for their time and walk away, boldfaced last word in hand, exclamation point applied. Remember, not only are you standing up for yourself by acknowledging and confronting the problem, but you're also standing up for the next guy who may not have learned this lesson yet.

    Now, if you wanna get really nasty, go down there acting ready to buy a few big ticket items, play your 'better deal' card when it starts to get thick and see what happens. If you suspect something, it'll come out right about now. If confirmed, turn 'n' burn when they don't match it or fess up. They'll kiss your grass when you come in for service to try to earn your business, knowing you're scorned. Of course, I wouldn't condone this - being an ethical person and all - but it sure would be cool. :gunsfiring:
  9. J HIsch

    J HIsch Member
    Messages: 66

    Always, keep your dealers on your toes, never let them think you cant go somewhere else. Our accounts sure can.