Vendors vs. Partners

In today’s world, with consolidation going on in the automobile business, it is more important than ever to maximize your team. Not only has the market changed, but so have the needs of every dealership in America. In the past, we could get by with a good sales and service team. Outside vendors were optional and usually on an as-need basis. Most of the time, the factory took care of many of our needs, and we just kept selling cars.

Post COVID, not so easy. The data we collect daily needs to be evaluated and used to grow our business. The turnover and the new employees we have hired in the last three years need to be trained and managed. How many times have you heard the expression, “When business gets back to normal, nobody will remember how to sell a car”?

These forces are what are leading to all the consolidations. The need for an HR department, data mining, personnel training, digital marketing and customer retention has surpassed what our sales and service teams are capable of handling on their own. Unless you are in a dealer group of 50 or 60 stores, many of these applications/programs are beyond our reach.

When to choose a Vendor

This is where the need for outside assistance comes into play. Bringing in vendors to help manage some of these problems can save money and be a great asset in running a smooth operation. You want to partner with people who care about your business and want to help grow it as much as you do. The question now becomes, how do I find good vendors?

Every vendor will tell you: I want to be your partner. Not every vendor qualifies or even knows how to do it. There are multiple ways to know the difference between a vendor and a partner. A vendor is someone who sells you a product or program and you never see them again. A vendor is someone who sells their program and stops back two or three times a year, drinks coffee in your office and tells you how great you are. A vendor is someone who sells you their product and never even attempts to train your staff on how to use it and see how effective it is. Vendors don’t mean to be this way, it’s just their nature. They don’t see your business as their own, they just see it to make a paycheck.

The Partner difference

A partner, on the other hand, looks at your business as their own. They don’t charge you a set-up fee to install their program. A partner knows they are in this for the long haul and want to invest in your business. When they set up their program, they bring a team of professionals with them so every one of your people is trained properly. A partner won’t come by two or three times a year but every month or more often if necessary. They give you constant feedback on how the program is working or, in some cases, not working. A partner is so important to your business that you can’t imagine how you could get by without them. They are truly involved in all aspects of your business, not just the areas that deal with their product. They are your R&D department. A place to outsource problems. Someone to share ideas with and bring back the answers you need.

The next time you are looking for a new product or help managing part of your business, don’t just sign up with the first shiny nickel (vendor) who knocks on your door. You wouldn’t hire an office manager without a thorough interview, nor would you bring in a manager from outside your organization without checking their background and references. The same standard should be set for new outside partners. It’s not always the lowest price or who has the most tickets to a ball game. Your outside partners are becoming more and more important to developing and growing your business. Bringing in a strong professional partner to help grow and improve your operation is a win, win for everyone.

Originally published by Auto Success.