 |
Today the concept
of support for customers includes more than ever. You might be surprised
how much your vendors are working to please you and keep your business.
By Paul Hull
"Quality at its
best!", "We support what we sell!", and "We
don't forget you!" are found in an endless number of variations
and colors on the brochures, letterheads, and business cards of
manufacturers and distributors. In our lives, as both businesspersons
and private consumers, we see these kinds of claims all the time
at the local and national levels. Sadly, we have learned to treat
them as marketing hype and are skeptical about their sincerity.
The concept and promotion of partnership have been especially strong
in the last three years; in the construction industry, that partnership
involves manufacturers, dealers, and end users. The manufacturers
all say those "feel-good" words, but do they mean it?
If recent conversations are any indication, yes, they do mean it.
With sales of construction equipment crawling along like a filled-to-capacity
wheeled loader in deep mud and forecasts that growth in the next
year will be minimal, manufacturers and their dealers have been
investigating ways in which to retain their existing customer bases,
let alone expand them. The word service comes up in all the
solutions, and it increasingly applies to programs after the sale.
Service includes all you can imagine related to maintenance, warranty,
troubleshooting, improved profitability at the site, inventory,
spare-parts availability, and site-specific advice about machine
operation.
In the late 1990s the
rental sector of the construction industry generated many sales
but at the same time seemed to welcome the new century with a downturn.
"An advantage in this flat period is that there could be some
good used equipment available," notes independent contractor
Lew Senneker in Denver, CO. "A disadvantage is that you don't
always know what you are getting with the best bargains. They might
not be bargains if they break down with no warranty." When
the markets in Asia became so weak a few years ago, there was a
flood of construction equipment from yards in Japan and South Korea
into both North America and Europe. Some of it did not meet local
regulations for design or safety; some contractors bought "fantastic
deals" in that gray market and never used them. Conditions
are right today for the same thing to happen again. Dad was probably
right: Beware the deal that is too good to be true.
 |
| Bobcat offers
several levels of protection programs to its customers. |
 |
| With Volov's
Matrix system, users can learn a wealth of information about
the use and condition of a machine. |
One of the most interesting
offerings we found at ConExpo earlier this year came from Caterpillar's
Power Systems Marketing Division. Cat is introducing a service tool
to its dealers that enables original equipment manufacturers (OEMs)
the opportunity to provide Cat dealers with model-specific information.
This intranet database will be secure; the system also can notify
an OEM when a Cat dealer accesses the database to service its product.
What it means is that any machine that uses a Cat engine or component
will have its full details on file with the Cat dealership. If a
machine stops running, it might be the engine or it might not be.
With this proposed system, the dealer support network will be able
to access a complete range of product information so that the person
on-site won't have to guess, "Oh, that must be the engine"
or "Sounds like it could be the hydraulics to me" or "It's
always the linkage on these models." At one site, the "engine
failure" was caused by a mounting bracket that snapped, not
by any more complicated component than that. The user paid several
hundred dollars to find that out because the technician did not
have knowledge of, nor a way to access information about, all the
components of the loader.
What information could
be available with such a system? You could see a PDF document that
would present the OEM operation manuals, parts books, and machine
service manual. You could access wiring diagrams, warranty statements,
and technical-support literature. Does the technician need a photo?
He could get a JPG digital photo of, say, the engine, the raise-and-lower
system or the whole machine, or photos that explain the easiest
servicing procedures. With a PowerPoint capability, the dealer's
technicians could have files such as troubleshooting instructions,
a service training course, or a maintenance training course.
We perceive that this
OEM Service Interlink would benefit the Cat dealers, but it would
benefit customers and OEMs as well. Not all manufacturers that use
Caterpillar engines are big or sophisticated enough to have extensive
national product support networks, but they will be able to provide
information on servicing their products through the comprehensive
Cat network. Most importantly, these manufacturers (some that might
be naturally cautious about having their products' information
at what could be a competitive manufacturer's dealership) will
be able to receive an e-mail providing them with the customer name
and telephone number, the phone number of the Cat dealer involved,
and the reason why their customer visited the Cat dealer. From the
customer's point of view, it means that the likelihood of the
wrong service or incorrect diagnosis being done is minimized. There
are many horror stories about expensive service calls and parts
shipped in at the greatest cost to solve a problem at the site,
only to have the owner discover that the suggested parts and service
were not what was required. Any system that eliminates that kind
of costly headache seems worth consideration.
 |
| Sometimes local
distributors have useful knowledge about soil conditions that
others, based farther away, might not have. |
 |
| Kobelco says
its representatives have hands-on, in-the-dirt relationships
with their dealers to give end users the best service. |
Knowing exactly where
your equipment is can be a good start to successful service. Mobile
resource management is the art of keeping all your machines
busy and in good condition. The bigger your fleet, the more obvious
that can be, but contractors with only a few machines also understand
the importance. There have been systems offered that require considerable
investments in computer hardware, software, and integration (plus
a new employee who knows what all that is about!). Trimble, a global
positioning system (GPS) company that provides instruments for accurate
site layout, grading, and excavation, has introduced Telvisant,
a mobile resource management system (or, as the company describes
it, "a wireless location-based platform for companies with
mobile assets"). Use of it requires only a computer, a browser,
and an Internet connection. Telvisant uses GPS technology to locate
a mobile worker or machine, wireless technology to transmit information
to Trimble's data center, and the Internet to give complete mobile
work-force management from a user's computer. Apart from knowing
where your equipment is, it would be wise to know that it will stay
there when your operators have gone home. Security devices for your
machines could prevent theft; their availability and installation
are other practical subjects for discussion before the purchase
for peace of mind afterward.
If your supplier offers
round-the-clock service, that's what it should be. It means
24 hours a day, seven days a week. Godwin Pumps, which manufactures,
sells, and rents Dri-Prime pumps and related equipment, maintains
a fleet of radio-dispatched road mechanics in fully stocked service
trucks who routinely service and repair rental and customer-owned
equipment on-site. They combat downtime, the enemy of all contractors
and project owners. "We now have a fleet of 2,500 rental pumps,"
states President John Michel Paz. "Our rapid growth has been
built on having not only the best portable pumping technology but
the finest customer service to support it." Paz also emphasizes
the importance of selecting the right equipment before the
project starts. That, too, is part of good manufacturer or dealer
service. Have you ever heard of a machine failing because it was
the wrong machine to start with? It might have been too big or too
small. Either way, it cost the contractor too much profit to use
it.
"We believe our
service is superior to that of other manufacturers," asserts
Dan Collins, warranty manager at Kobelco. "We have field service
representatives to support our more-than-250 distributors. These
people have firsthand, in-the-dirt relationships with the dealers.
They go to sites, work in hands-on projects rather than be known
as just names at the end of a telephone line." Kobelco's
standard warranty on construction equipment is one year or 1,500
hours, but the company prides itself on having flexible warranties
available for specific applications. Recently Kobelco offered its
well-established Ultracare Long-Term Risk Protection program with
new coverage options and price reductions. "We have now revised
our pricing and significantly reduced the price in most cases,"
adds Collins. "We have also extended the terms to include a
variety of coverages such as power train, power train with hydraulic
parts, full machine, and used-machine coverage. If a major component
should fail outside of standard warranty, Ultracare quickly pays
for itself and adds a sense of peace of mind and security."
As we have advised so
many times in this magazine, do your homework before you acquire
fresh equipment for your business. It is clear from conversations
with manufacturers of different machines used in grading and excavation
that a variety of warranty and service options are available today,
but you must ask about them to know them. If you negotiate the purchase
price, why not negotiate the warranty too? "Our Contractor
compact backhoes offer a two-year warranty where major competitors
offer only one year," points out Dusty Sprague of Allmand Bros.
in Holdrege, NE. For your business, the standard warranty might
be adequate, but it seems worth the effort to find out if the cost
of further protection is worthwhile.
"We enhanced our
warranty because, in routine satisfaction surveys, customers told
us how important it was to them," observes Joe Feldhausen,
business unit manager for Miller Electric Manufacturing Company.
"We just expanded our twin-cylinder offering with the new Bobcat
250 NT, Trailblazer 301 G, and Trailblazer DC, and now we are the
first welding equipment supplier to announce that it offers a three-year
warranty on twin-cylinder, air-cooled products." Kohler makes
many of the engines on Miller gasoline engine-driven welding generators.
"The engineers and quality-assurance personnel from Miller
and Kohler work together on a daily basis," adds Feldhausen.
"This collaborative effort is indicative of our mutual commitment.
End users count on our products for their livelihood, and we want
to demonstrate that we're behind them 100%." The new three-year
warranty includes total parts coverage for all Miller's twin-cylinder,
air-cooled, gasoline-driven welding generators, as well as parts
previously not covered, such as relays, slip rings, and brushes.
This innovative step forward seems similar to Caterpillar's
system mentioned above in that it includes not just the brand-name
manufacturer of a piece of equipment, but also other manufacturers
whose components are used–for example, Kohler for engines in
Miller's equipment and Cat engines in an excavator or a loader
not known or marketed as a Cat.
Contractors with big
projects and matching budgets can use several distributors to supply
the equipment and service–even pitting one against the other
to find the best deal–but that power is a luxury few of us
enjoy. Some of their strategies and tactics are considered so important
and worthwhile that they will not divulge them to anybody else.
When there is competitive bidding, it might be difficult or impossible
to discover what your competitors are asking or receiving from vendors.
On the plus side of the equation, however, is the fact that our
local distributor is likely to help us with problems more quickly
and cost-effectively than somebody based hundreds of miles away.
Our local dealer or distributor needs our business, especially in
today's flat economy. We're not suggesting blackmail,
but it might not hurt to remind him of that fact when we are talking
about new equipment, warranties, and service agreements. Another
point in favor of local dealers or distributors was mentioned several
times by contractors–these tended to be the bigger companies
with projects away from their home base–namely, that local
distributors and dealers tend to know the soil conditions well.
Knowledge of soil structure and experience in the best ways to handle
local soil conditions are as much part of the "service"
aspect of buying and renting equipment as knowing when to change
the oil filter.
With one of the most
visible and reputable dealer networks in North America, Bobcat assures
customers that the dealership is their source for service and support.
"When your Bobcat equipment needs the care of a service technician,
you can trust it in the hands of your Bobcat dealer's expert
staff," remarks Dick Gerriets, marketing services manager.
"These service professionals have the training, expertise,
and diagnostic tools to properly service and repair your Bobcat
equipment with a minimum of downtime for you." Bobcat also
offers several programs designed to make service and maintenance
a simple job. Bobcheck performance inspections involve the Bobcat
service technician making routine service checks, adjustments, and
any maintenance that the user might have overlooked. The service
includes checking hydraulic, drive, hydrostatic, and electrical
systems. "It's accurate and complete and costs you nothing,"
adds Gerriets. If an owner signs up for Bobcare Planned Maintenance,
there is no need for another service contract. You choose from four
levels of maintenance provided by Bobcat service technicians. One
choice would be daily checks of oil, coolant, and hydraulic fluid
levels. Another choice would be the 1,000-hour service and replacement
of fluids, fan, filters, and drive belts. Whatever level you choose,
you can lock in the price of parts and labor for one year. The initial
warranty on a new Bobcat excavator, loader, telescopic, or attachment
is for free parts and labor to fix any problems from defects in
material or workmanship for the first year. "That year applies,
no matter how many hours you operate your machine in that time,"
comments Gerriets. "You can lengthen the machine warranty with
our Protection Plus program, to 24 months/2,000 hours or 36 months/3,000
hours. That offers protection against major or catastrophic failure
and allows you to predict equipment expenses during the warranty
period. If you sell your Bobcat loader, excavator, VersaHandler
TTC, or attachment during the warranty period, it transfers to the
new owner and adds value to the equipment."
It seems that good customer
support after the sale is not the prerogative of large companies
such as Bobcat. "We have the best reputation in the business,"
claims Barbara Cavender, marketing manager at Terramite. "Our
stocking dealers can provide immediate service, and we offer overnight
shipping of parts. Our experienced service technicians can walk
customers through many problems and have earned a good reputation
for that." What do users think? "We have learned that
our customers find the Terramite easier to use than the diesel tractor
that we used to offer with a backhoe attachment," observes
G.H. Henshaw of Lincoln Rental and Hardware in Ohio. "The Terramite
offers easier customer training, loading, and operation too. The
few parts we've needed for our T5C have always been shipped
the same day we ordered them." Mark Bradley of Greenville,
NH, who rented a T5D from Taylor Rental in Fitchburgh, MA, echoes
these sentiments.
It's not just a
good warranty or extended service program that keeps contractors
and distributors in harmony. Sam Gaines, owner of a contracting
business in Jefferson City, MO, has been most loyal to his favorite
brand of loader (a Bobcat), but not only because of the features
of the machine. "Superior service has influenced my buying
decisions," declares Gaines. "My dealer, Forklifts of
Central Missouri, takes good care of us. If one of my machines is
in the shop, they'll give me another one to use so that I have
no downtime. That's very important to me." And to thousands
of other contractors, it seems, based on our research.
"A great loader
without strong dealer support is less than great," asserts
Gerriets. "Strong dealer support means your dealer stocks the
parts you need or can get them [for you] quickly. It also means
having factory-trained technicians to respond fast and get your
machine up and running again." For some buyers, the cost of
delivery can be prohibitive. "We deliver free within 500 miles
of our plant," notes Payton Morrison Jr. of Prime Manufacturing,
which has been making scrapers for more than a century. "This
is not an after-the-sale feature, but our customers have told us
that a box scraper causes less downtime going to final grade than
the heavier pan, which is designed primarily to do the heavy scraping
and hauling, not the grading of loose dirt. Prime doesn't know
everything, but we do know the science of moving dirt and that can
help contractors before they decide what to buy."
We buy a machine, we
like the new features, we like the warranty promised … but
sometimes we forget to fill out the warranty registration card.
A good distributor will do that with his customer when he delivers
the product. Manufacturers of construction equipment use serial
numbers to track the history of their products, their quality, and
longevity. It is important to fill out that warranty card–now!–for
another perfect reason. Let's say you bought the machine in Colorado
but you're using it three weeks later on a project in Kansas or
New Mexico. The local man will contact the manufacturer's warranty
center to verify the legitimacy of your request for warranty work.
If you have not bothered to fill out the card and register the serial
number with the manufacturer, the warranty service will not be done.
Frequent contributor
Paul Hull writes on construction and environmental topics for several
international magazines.
|
|
