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 too much to ask, when you begin to
investigate and interview prospective vendors, to
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 some way to judge fairly
is definitely required to level the playing field.
I pose this question and make these statements for
many reasons, not the least of which being that 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
and watch, 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 beware”. 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 that you need a device 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 of 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 theprincipals? 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 be (or not to be)
in this business? What and how do I benefit from
their decision?
2. Whom 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 timeline required for
equipment manufacture? 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 they met 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 “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 you 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?
The key to this whole
process is that:
• The vendor I’ve chosen has both our
interests at heart.
• I feel I am receiving honest
information
• I am comfortable that my
projections support the investment.
• The numbers are realistic.
• I am on a program that will create
wealth