EXPERT ADVICE
Do Due Diligence
BEFORE buying anything for the company
By Jeff Winke
W hen making a decision to purchase any new product , it is imperative to do research and information gathering in order to ensure the right decision is being made . Yes , there is the upfront cost to consider , but the purchase will reverberate beyond that initial cost in terms of its expected productive impact on your business .
The question becomes what kind of research , soul searching , and analysis should be done before making the purchase decision to ensure the purchase will help your business grow ?
“ Research , compare , try !” stated Michael Blake , director of marketing , KM International , North Branch , Mich . “ The more research you conduct , the better informed you become before making a buying decision . Don ’ t be afraid to ask questions regarding the proposed product or service you are considering purchasing . However , don ’ t get caught in the trap of over researching and postponing a buying decision , after all ... the worst decision you can make is no decision at all .
“ A lot of people will purchase a particular brand name or manufacturer that they want to work with . However , ALWAYS do research on other options out there , you don ’ t know if there is a better choice or cheaper price available elsewhere . If possible , always get a demonstration of the product in action as well . Often , seeing is believing and if you can see a product in action it will give you that much more confidence that you are buying the right product or service .”
Conducting thorough research is crucial , especially when adding a large machine to an equipment fleet .
“ When purchasing equipment , a contractor needs to look at reviews online to make sure that the piece you are buying is well suited to your needs ,” said Mark McLeod , president , Maintenance , Inc ., Wooster , Ohio . “ When buying a larger piece of iron , like a paver , you need to make sure that your transport equipment can haul it and your operator has the skills to successfully operate the machine .”
McLeod added , “ Also , you need to make sure a new machine fits your company size as well as the price tag . Some people might think that buying a 1500-gallon sealcoat rig is a great upgrade , however if you do not have the work under contract to keep the rig busy , you may have just wasted your money . Consider if those big jobs could be done with your 550-gallon spray-rig , thus saving that investment . Make sure that the equipment fits your company ’ s expected needs . Some contractors have foresight and look to the future , but longterm upgrades are generally determined by their sales and operators capabilities , and their expense sheet .”
Underscoring what has been said , Curt Conrad , president and chief marketing officer , GIS Dynamics , Cincinnati , Ohio stated : “ A buyer should examine the ways in which their business can improve before creating a purchase . By understanding where their business can improve , a buyer can better understand the benefits that a new software or machine purchase will bring to the company .”
A product manufacturer or technology developer can be a key ally in making the best decision when making a new investment for a paving contractor business .
“ The manufacturers / developers are the ‘ go-to experts ’ for their respective products , so ask them as many questions as you can ,” Blake said . “ From my experience , sales reps in our industry are not stereotypic ‘ used car salespeople .’ They actually care about the success and objectives of their prospective customers ; so , they are , or at least should be , willing to offer advice , expertise , and knowledge to you to help you make a good choice .”
McLeod offered : “ Manufacturers should be your partner when purchasing equipment or systems . They have the history and know the most recent updates of that piece of equipment . They can help you with new features and benefits of the unit as well as industry contractors who have purchased that piece of equipment and can give you needed insight before purchase . There really isn ’ t any hard schedule as all contractors have different applications and needs for the unit . Manufacturers are your friend when looking for good iron .”
To boil things down , what are the key considerations that go into a buying decision . Can they be reduced to a few items ?
“ In our experience , we see three key considerations when making a significant investment in your company ’ s business ,” Conrad said : 1 . “ ROI : Determining whether the investment will help a
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