Question For INDEPENDENT Distributors........

[Mike Brummett]

This question is for Taf and John Olson, Jim Pemberton and Larry Cobb and anyone else here, that is a truly INDEPENDENT distributor of TM's, Equpment and Chems.


How the heck do you compete with the Jon-Don's, big chain franchises, and Interlink/Bridegepoint's ?

In their latest "Truckmount Bonanza" mailer, they (Bridgepoint) are giving you up to $8000 worth of free accessories, chems, equipment, etc PLUS 3 years of FREE oil changes/maintenance if you buy your TM from them.



For Joe Carpet Cleaner that looks like a deal that is hard to pass up.

Could any of you match that deal?

What is their market share vs. the independents?

How the heck do you guys do it?


Details please. Specifics.

Thanks!

MIKE

 

[Larry Cobb]

Mike;

Let's break this down:

If they are giving $8000 in "free" merchandise

+ 3 years of oil changes & maintenance:

18 oil changes @ $29 = $522

9 maintenance Jobs @ $30 = $270

Total = $792 for 3 years of oil changes & maintenance

Grand Total = $8792

Add that to our 24 HP Truckmount = $11,995 + $8792

Grand Total = $20,787

Pretty close to what some of them charge the carpet cleaner for 24 HP TM and Accesories.

You have to decide if it is a good deal.

Larry Cobb
Mikey Board Supporting Member

 

[John Olson]

They arn't GIVING you anything. The "restrictions" that apply make up what they are supposedly giving you. Read the fine print and I am sure there is a clause that to receive all the freebies you have to go through aztec leasing which they own. I also know they quoted a New BlueLine Blue Wave Diesel for $1000 over list so this person is actually paying $250 MORE then he would have if he had just bought the $750 in supposed free stuff. You will also pay for the Shipping AND handling of the machine which I never charge for so that's $500-600 more plus they charge about 3-4 more hours for installation then it takes Kelly to install a machine so that's another 180-240. So it will actually cost someone over $1000 more to buy a machine from them with their "Bonanza" then to just come in an buy what they want at a Fair and Reasonable price without the smoke and mirror gimmicks.

 

[RLitwin]

I bought my first TM through Bridgepoint. I was given all the free stuff. They didn't care if I paid cash or leased it. I paid under list price for my TM. There wasn't any fine print that I found. The free stuff is to keep you coming in and buying supplies, parts, repairs, ect.


The service that I received was worth the purchased price - nothing. That was my first and most likely my last TM that I will buy from them.
I'm much happier with the indep. distributor that I have been using.

 

[floorguy]

uh huh..see...

I hate the big boys...on anything(OK yes i love walmart for the cheap kids clothes but hey...i have 5 kids)

only problem with me getting stuff from john is the DRIVE TIME...he is about 90 Min's from me...

now if he had a late night thing every now and then...then when i come to do a job i can leave a little earlier and pop in.....cant guarantee a purchase every time but hey...

 

[Mike Brummett]

One of the local independents who competes with BP says that he is pretty much "locked-out" from being able to purchase Dri-Eaz stuff for re-sale because of some contract they have with BP.

It really bugs him that guys will purchase their TM from BP because of the low price AND buy most of their chems there as well, but then, when they really need their unit fixed RIGHT, they come to him.
Then after he gets them up and running, guess where they continue to buy their supplies? HINT - Not from him.

I've also been told by several distributors that they don't make much profit on a Truck-Mount. Usually less than $1000. So there is not very much room to negotiate a lower price. Do the large chains get a cheaper price than the little guys? Or do they sell at or even slightly below their cost to try to put the small distributors out of business?
:?: :?:
MIKE

 

[Duane Oxley]

Mike...

I don't want to mention a competitor by name in what I'm about to say, but this might give you some insight...

About 2 weeks before Christmas, a local guy called me to basically beg me to work on his machine, to change a hose. There was no need to "beg", but that's how desperate he was. See, he had a system that's notoriously difficult to work on, and the supplier of that system told him that they couldn't get to him until Jan. 3. I agreed to do it (which took the better part of 2 hours...), and took care of it for him.

Why did they tell him that it would be 3 weeks, before they could get to him? Because they were backlogged already with repairs, and I'm guessing that if a simple thing like changing a hose (or belt, from prior experience...) takes 2 hours, then they can only do 3 or 4 a day, much less if it's something seriously involved.

... So, hypothetically, if they have someone coming in that they know is a "freebie", vs. someone that they know is going to take a few hours (plus parts), I'm guessing that they'll "prioritize", to put it politely.

... Then again, a $30 "maintenance" disappears quickly, when the charge is $60 or more per hour, most types of repair require considerable time, and they charge by 1/4 or 1/2 hour increments......

The chemical thing is another area entirely. Based upon what I've seen of so- called "national brand" pricing, I haven't seen much to give me pause or concern, regarding their competitiveness of pricing or their concentration of strength.

I think that regarding truck mounts and chemicals, a smaller company can actually have an advantage. In addition to what I've mentioned above, we have less "inertia" behind a system's design, which means that we can innovate and implement new ideas quicker...

... and, with less overhead, our prices are quite a bit more competitive.

But, hey, spend $20,000 on a system of ours, and I'll be sure to give you $200 a month in chemicals for a year.

...Of course, none of our systems cost that much... :wink:

 

[Guest]

These are my thoughts on this matter

1st of all I have to say that I respect BP and JD a lot. The reason for this is, because a lot of us wouldn't be where we are without them. Magic Wand Co does not compete with them. We are a mail order/internet company. We make our own stuff, so we have no middleman. The local guys will go to the local dealer regardless, the mail order/internet guys will go to us and others.
There is a place for everyone. I don't think anyone of us wants to rule the world, but all of us just take care of our customers. This is a $5.1 billion dollar industry and there is plenty for everyone.
I commend others who have taken steps to help the carpet cleaner succeed. Without you, none of us would succeed.

 

[Guest]

I bought a Prochem performer 405 from Taf in 2002. The service I received from Taf was awesome. After Taf left and went to Vegas I went to Jon Don for service.

I really missed Taf. I won't say more. I think you get the point.


Dave

 

[STEVEC]

It's interesting to see how many o/o's soon forget what it was like when they first started out. By that I mean, when they started their business, they went out of their way to provide better, higher quality service, than the competition, at a fair price. This is because they were building their own business and most likely did the little extras to keep their customers calling back for the next cleaning instead of looking through the mail for carpet cleaning coupons for the best deal.

Now as a customer, what do you look for when you need equipment & supplies ? Do you look for coupons in the mail, call around price shopping or are you willing to pay a fair price for quality products and great customer service after the purchase?

As an independent distributor for 2 years, I know how tough it is to compete with the BIG BOYS. There are several lines of equipment and accessories that are unavailable to me because of the BIG BOYS. My customers are happy to have an alternative source for equipment and supplies, and appreciate the customer service they receive from the owners of a small business. When they have questions or concerns about products, they get answers from someone who actually uses these products to clean carpet, uph, t&g with.

If you're NOT supporting your local independent distributors, then you're helping the BIG BOYS to eliminate them.
If you DO support your local independent distributors, then you help them to have more buying power, so they can get volume discounts and in return, pass the savings on to you, the customer.

I would hope that as small business owners, you would want to buy from other small business owners.

Just something to think about, if you're helping the [/b]BIG BOYS get even BIGGER

Steve

 

[Mike Brummett]

If you're NOT supporting your local independent distributors, then you're helping the BIG BOYS to eliminate them.

Taf says othertwise, Steve.

You little guys and all the mega-giant supply houses are gonna hold hands in a circle and sing about world peace.

Didn't you know that?

MIKE

 

[joey895]

You must also take into consideration that when they give you $8000 worth of supplies that is at retail. Their mark-up is likely 50% or better therefor they are really only giving you ~$4000.

 

[STEVEC]

Joey,
The 1200.00 of free BP label chemicals that they make themselves is alot higher mark-up than 50%.

Mike,
It seems to me that Taf (bless his heart) tries to play on both sides of the fence so as not to offend anyone.

 

[John Olson]

I'll have to get my customer to bring in his quote and post it. We looked it over and it would cost him almost $800 more to buy a machine and get the free stuff from them then to buy EVERYTHING out right..Things like that is why I do not call myself a salesman. I will never use smoke and mirrors to "get" a sale. A honest and fair price with fair, honest and RELIABLE service should be enough of a reason for someone to bring their business to our store/shop. If that is not enough then I wish them the best of luck with their choice