Customer Smart The most commonly asked question I get during teaching seminars is, “Whom do you use to buy your compatible supplies and parts?” In the past, this question was usually asked by smaller dealers or start-up companies. Today, even the larger OEM authorized companies are facing the daunting task of figuring out whom they should use to fill the supply and parts needs of equipment covered under their Managed Print Services agreements. Longtime OEM dealers were built on the foundation of only using OEM parts and supplies, and in many cases OEM authorized dealers were forbidden to use compatible supplies and parts under the terms of their dealer contract. But those days are gone. Today even OEM branches are using compatible products to lower the cost of their MPS agreements. Many dealers are struggling, trying to understand all the options being offered. The pages of ENX Magazine are laced with compatibles manufacturers and distributors who are vying for your business. There is no easy answer to identify which vendors are best for you, as every dealership has its own specific needs. When a servicing dealer decides it is time to investigate the opportunities of selling or using non-OEM, remanufactured supplies and parts in their CPC and MPS agreements, here are some of the items to consider: • Figure out what brand and which models you will be using most, and then find compatible resellers that offer the products you need. Take the time to run reports on equipment and usage being covered under your own MPS / CPC agreements. You’ll find several companies can fulfill the needs of most of your product mix. • Have a back-up vendor for all the products you buy. Periodically buy from other vendors to keep an eye on competitive pricing. Having a secondary open account simplifies things in case the primary vendor is on back order, puts you on credit hold, discontinues handling the product, or your favorite sales rep moves on. Having a primary and secondary vendor enables a potential sourcing emergency to be an opportunity to explore a better option. • In some cases you may find an authorized OEM distributor that also sells compatibles. Cross reference your OEM authorized wholesale prices and quota fulfillment bonus opportunities when comparing prices of distributor offering OEM pricing. Many OEM authorized dealers buy from their OEM until their quota is reached. Then they buy their needed supplies, parts and even equipment from a distributor that offers a lower price. It also lessens the chance of your quota being increased the following year because your dealership over achieved. • Look for a compatibles supplier that offers patent infringement indemnification. This lessens the chance of having to deal with lawsuits if the OEM brings legal action against the manufacturer of a compatible product you purchased. An ounce of protection is worth a ton of cure. • Consider the convenience of choosing a supplier that offers easy to understand, cross reference Web based compatible charts. Having access to a cross reference of different supply and part compatibilities greatly simplifies and economizes purchasing, inventory levels and the number of products a customer requires. • I am willing to pay more for the convenience of having a dedicated sales rep who knows both the compatibles business and my business. It is music to my ears and money left in my supplies budget when my rep directs me to different model product that is compatible with my needs and that sells for a lower price. Furthermore, ongoing sales and marketing support, including customizable brochures, email advertising, templates, Webinars, advertising inserts, and in-person visits, can kick-start your sales department. • Having access to a technical support hot line is extremely valuable. MPS now requires service techs to work on a wide range of equipment. In many cases the field tech may be able to figure out how to do the Preventive Maintenance on a never before seen printer. However, without a reset code the printer will not work, so having a technical hot line that has ready reference to reset codes is necessary. • Providing rebates or buying empties is big business, so take advantage of any money offered for returned/exchanged empties. Be aware how return freight on empties is handled. Many servicing dealers are actively maintaining Green return programs with their clients. Every dealer should be aware of the savings that are available through aggressive recycling of the products you buy. • Does your remanufacturer have a Green initiative? No matter how you feel personally about the sustainability of the earth, many customers have written green initiatives in their Request for Quote, and governmental agencies and enterprise level businesses often give an adjusted bid discount for companies who have a written Green policy or guarantee products are manufactured in certified Green facilities. • MPS software offerings are increasing with many of the larger compatibles distributors. Most offer click retrieval, total integration into your operating system, information gathering and analysis, reduced software cost, technical assistance and staff training. • The shipping location of your compatibles partner can make or break the ultimate cost. When pricing products be aware of the total cost of product and freight. Many offer next day or 2 day freight at ground rates. What happens when a product shows as in stock, but is not available locally? Who pays for the cross-country shipping? Is local same day will-call pick-up from the local warehouse available? Is blind drop shipping available? If so, how is the receipt of product tracked? Can you use your own UPS or FedEx account number for direct billing of freight cost? Must you still pay a handling charge? • Before you buy, ask if the products are domestically produced or imported? What certifications have been earned by the manufacturing What organizations do they support? You can determine the significance of the answers. If the factory is local, take a tour. You will be amazed at the difference of manufacturing techniques. • Investigate joining organizations that will provide additional discount pricing. Trade associations (BTA, AIMED, CompTia), buying (IBPI) and user groups all have affinity programs that can provide additional discounts. When you find a compatibles dealer you like, ask your sales rep if they have a discount relationship or buyer program that can save you additional money. • 100% guarantee on products with a no hassle return policy is always appreciated. Be an informed buyer and be aware of the big picture. Sometimes the lowest price isn’t the best deal. Do your research and consider how easy it is to get hold of a knowledgeable human. Advance research will provide a long-term, mutually advantageous buying partnership. Ronelle Ingram, author of Service With A Smile, also teaches service seminars. She can be reached at ronellei@msn.com