The Importance of Dealership Agreements With Manufacturers in the Trailer Industry
As someone who has worked on the manufacturing and retail sides of the industry , I believe that written dealership agreements with manufacturers are crucial for dealers ’ and manufacturers ’ growth and success . While not common in the trailer industry , they play a pivotal role in a solid and productive partnership .
What is the benefit of a dealership agreement with your manufacturer ?
A well-written dealership agreement brings dealers and manufacturers to the same page regarding expectations and accountability . A clear , official understanding of each other ’ s expectations is vital for establishing a healthy business relationship and preventing misunderstandings , conflicts , and disruptions .
The importance of a mutual understanding When a manufacturer suddenly decides to stop servicing a dealer ’ s account or when a brand you ’ ve been selling for years appears at your main competitor , it can be frustrating . A dealership agreement that includes language on how these scenarios will be managed provides a framework for dispute resolution and clear guidelines for navigating such challenges .
A business tool , not an adversarial document A dealership agreement should not be an “ I got you ” document but a collaborative effort between your dealership and the manufacturer . It helps both parties understand their roles and responsibilities .
Fostering cooperation and growth Dealerships rely on manufacturers to supply quality products ; manufacturers depend on dealers to sell them . A dealership agreement enables effective communication by defining both parties ’ expectations in terms of pricing , product availability , marketing support , terms , and other crucial details that support mutual growth and prosperity .
A testimony of professionalism As someone who worked in manufacturing for 16 years , I always respected dealers who asked for a written agreement . It reflects professionalism and commitment to the business relationship , and demonstrates a dealership ’ s dedication to transparent and fair dealings , earning respect from the manufacturer .
Sincerely , Ryan Cope Sales & Marketing Manager Korral Supply / www . korralsupply . com ryan @ korralsupply . com
Examples of what dealership agreements might include :
• Formalized agreements on current terms & discounts
• Designation of protected territory
• Specification of your delivery hours
• Notice of intent to cancel partnership clause
• Agreed upon labor rates for warranty work
• Details regarding growth incentives or volume rebates
Have a question for the NATDA Dealer Advisory Council ? Contact NATDA at council @ natda . org . Please use subject line “ Advisory Council .”
The opinions here represent the diversity of opinion within the light to medium-duty trailer industry . The views and opinions expressed are those of the contributor and do not necessarily reflect the official position of the North American Trailer Dealers Association who shall not be held liable for any inaccuracies presented .
8 NATDA Magazine www . natda . org