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Very informative and telling blog here. It is insane for small business to have to compete with corporations. I think Jon from New Gen (plug because we bought from him) expounding in all directions at vendors, customers and manufacturers is very telling of the current business trends in our country. Just an opinion/observation with respect to some companies (not all), but I think it is due to tight resources coupled with lean manufacturing on a JIT type schedule. So many customers do without parts while vendors hold the cash as long as possible due to the wait time on manufacturing. I mean do people pay for a 300,000 dollar car, house etc without it being built yet? Up front? OK yes, that's how the government operates, but that's not what we are talking about. All the while the manufacturer is waiting on the order and the cash from the vendor to start production. Likely the manufacturer is waiting so they don't have to put their cash into materials and at a minimum have a solid commitment from the vendor. That is because current models tell manufacturers/vendors it ain't cool to tie up your money in stock for your vendors/customers when you can do all these other wonderful things with it. Looks as if it is truly a **** rolls down hill process. This wait and hold game eliminates the risk of spending precious capital for all involved, except the end user (us) who is footing the bill from the get go. It's like a parasite, and whether it is the consumer, vendor or the manufacturer to blame, it eventually kills the host(us) and thus the business goes away. What most likely got this started is the old drop ship from the manufacturer. Once upon a time some guy had the notion of contacting the parent company just to see if they would sell direct. This thought has most certainly passed through the visual cortex onto the dentate gyrus in the hippocampus in all of us. So from the manufacturing standpoint, units sold equals market share, and in this day and age, market share wins. Doesn't really matter if you cannibalize your supply chain or your end users resources to get there.
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I've been mulling this thread around in my head for a couple days. Here's my Bob Sugar to your Jerry McGwire, Jon.
The line that sticks out is the call for buyers to take responsibility. It's absurd. If you are taking an adversarial stance to the manner consumers buy your products or shop your company, then you either need to do a better job taking the buyer's temperature or close your business. If the guy's wasting your time, identify if his purchase is a reality and invest your time accordingly. Great sales people can sum up a customer in 30 seconds and pull out the necessary tools to adapt. I teach this to my teams constantly. It's insane to ask a potential group of buyers to all behave a certain manner and take in to account the personal lives of those selling a product. You know where my responsibility ends as a buyer? It's when I fork over an obscene amount of money for a set of wheels, subframe, lug nuts, sandwich, lap dance, etc etc. Everyone struggles. Everyone has things that go to hell during the day. Why are the personal issues of a company the concern of the buyer? You should take into account the sweat it took for the buyer to generate the cash to buy those wheels or subframe. Then take into account the frustration when that buyer is told time after time product will be ready, yet doesn't materialize. Take the time to reflect on these things within your own company and you'll find the key to customer service. It is a vicious marketplace out there, but you're focused on the behavior of a customer base rather than reinventing your behavior as a seller. SERVICE WILL ALWAYS BUILD A FASTER BASE THAN PRICE. Having said that, and turning to a personal note. Know that I like you Jon. I think people like you are an asset to the movement we all love and enjoy. I think your knowledge is your biggest asset and you have the talent to make NewGen thrive. I however, won't be continuing our business relationship. My expectation as a buyer from NewGen didn't meet the customer service standard that you provided and you turned me off. Call me a nightmare customer, but I don't feel I was asking for much during the process. Dont take it personally, it's just business. People have been saying "......pick two". Think about which two you gave the customer in my transaction. I have finally recieved my wheels from you and they FAR exceeded my expectations with regards to quality and finish. They are no doubt on par with a Forgeline or HRE wheel. I love them, but more importantly my customer- my wife- loves them. I wouldn't hesitate to tell someone where I got them should they inquire. They will be the crown jewels of my build but the process took what is normally a ceremonial night of box opening into a long sigh of relief. People who read this and have waited for wheels know exactly what I mean. It may be hard not to, but don't take my post as a flame NewGen thing. It's simply my response to your OP and it couldn't have been more timely. I know that you'd agree for sure. Take it as an oppoutunity to develop and reflect. I take my team's CSI scores more seriously than their sales. It's our bloodline. I want to see you succeed as well as all of the other guys accross the country who are scratching and fighting to make their spot in this tiny market. I wish you the best of luck and wouldn't hesitate to buy you a beer at Del Mar. Dave |
When my partner and I ran a large wholesale business his favorite saying was...
"we'd have a really nice business if it wasn't for all these damn customers!" |
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Bottom line..... take a business class explaining how basic economics work along with principles of market, and market share, and you will understand this above comment. It is extremely true. Sorry, but Im comming forward, and people are going to get mad, but in my opinion.... you shot yourself in the foot by starting a thread crying about how a market works. Build a better mouse trap or find another market to build your buisiness in. Brett |
Some very good points that I agree with. You can't change people to fit into your ideal window. You can change their PERCEPTION of you through action and track record. Your reputation or referral makes them want to work with you. It could be considered a warm contact. The trust is already partially there and that means more profit and less headaches in most instances.
I like what somebody said earlier in this thread. Eighty percent of your income comes from your best clients. Concentrate on them and the additional business they create. Chances are, if you like your client, you'll like their friends and your personalities will mesh. |
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Lenie,
If any of the vendors you're waiting on are vendors from this site I'd be glad to try to help out. You can send me a pm. |
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Thanks again though. |
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cost/selling price is the actual profit %. So if you pay $100 for something and sell it for $120, 20%is NOT you profit margin. $100/$120=.84 or 16%. |
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Many people just don't know the difference between MARKUP and MARGIN. |
Lenny you present yourself w class and style everytime you post. I mean that. :thumbsup:
OTHO, I'm the exact oppostie so PM the name of the header company so I can start a smear campaign and get you your headers. :cool: You can thank me by posting a start up vid of your killer machine. Deal? :D |
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Lenie, let us know when you want to let the dogs out. :D We'll make them pay with some little things called REPUTATION and LIVELYHOOD.:yes:
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Well said.. thanks for the perspective.... In on the Boycott.... i thought it was too good to be true..... will spend my 10-20K elsewhere..
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Mr. Weld, I had a very wise Regional Sales Manager that I worked for that once told me "Not all distributors go to heaven." Those are some serious words of wisdom.
It's not at all easy to put the genie back in the bottle once a pricing/terms/conditions precedent has been set and FOLLOWED BY OTHERS. That's the nature of capitalism. Oh, and Greg, isn't that what a stocking distributor is supposed to do, stock product? They don't like that one little bit when the inventory carry cost eats into an average mid-20's GP% for the local warehouse (industrial distribution.) Hence, the overnight delivery to a local from a master DC on pricey parts. As Brett mentioned, a manufacturer cannot dictate what a distributor sells a product for. That's price fixing, and I don't believe that spending quality time with Bubba in the Fed Pen is worth it. If the distributor wants to lose money on the sale, that is their choice. The only way that the manufacturer can have any sort of control/price fixing is to cancel any distributor that sells below the retail price level . That's why there are some products that cannot be found below a certain price level. That can be a mixed bag for both parties. There are plenty of vendors out there that have splendid reputations. Some have been mentioned here. For me, one of the best has been Kore3. I'll deal with Tobin again because he let me bounce some ideas/problems that I continue to deal with. That is something that he paid for with his sweat figuring out, so if buying some parts from him helps pay the bills, I'm good with it. The stench of poor customer service lasts a lot longer than the satisfaction of knowing you received your money's worth from paying a higher price for outstanding service. .....off soapbox. |
What a strange thread:(
A vendor who couldn't compete, starts by whining about a competitor, and giving a, why can't we vendors be OPEC and agree to all raise our prices argument. Then it turns into a pile on session rehashing old issues. I hadn't been around in a while, so I checked out the other threads about vendors. More piling on, with no real facts. Then when a vendor decides to defend himself, a MODERATOR jumps into the fray with a "he screwed me" story. Vendor falls on his sword, admits a couple of mistakes have been made out of thousands of transactions, but all are remedied now. Vendor then refutes the moderators story with email proof from the wheel supplier in question, then the MODERATOR deletes posts and locks the thread. What the hell really happened? What a load of BS That is why these issues don't get resolved on forums, there is always two sides to a story, and with custom work, many conflicts. I for one support him, no ifs, ands, or buts. Always on time for me, loads of help when needed, and great prices. I can tell you why he is able to offer the prices he has, because despite the appearance, he is basically a one man show. He runs the parts business, answers the phone, directs the paint and body shop and just about everything else. His overhead before he moved into the new shop was laughable. His shop consisted of a nice paint booth, with an attached shop that was ridiculously small. His teardown guy often worked OUTSIDE, hows that for low cost? I don't doubt he cleaned the toilets also.;) Betcha didn't know he was the tech advisor for the US Camaro club and often wrote articles for the magazine 20+ years ago. All this pissing and moaning has driven one of the best resources for 1st gen camaro tech almost out of easy reach. He has forgotten more about 1st gen camaros than the other vendor ever knew. If it is so easy to be perfect, and make money in this business, why don't some of you internet expert complainers hang out your shingle? O, I forgot, now you can be criticized for paying your bills and mortgage :rolleyes: People reading this in the future would be well advised to take everything with a grain of salt. I have been there, seen the operation, spent plenty of money, had a car painted, and I will go back. No doubts whatsoever. |
^^^^^^^^^ First cousin??:rofl: :rofl:
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I would encourage you to support the vendors and dealers that support you. If they take care of you, give good advice and service, and pricing that fits the budget that's what matters. |
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Complaining about "needy" customers on a reputable forum like Lateral-g is tacky IMO. If you don't want potential customers to ask you tech questions or rely on you to guarantee wheel fitment, don't promote it on your website! Have a customer dispute? Why not try and work with the customer to resolve the issue? A little goes a long way... I have no personal "beef" with any vendor on this website, but I would also like to thank Scott and Dave at Forgeline for going above and beyond. We were burned by a private label wheel designer last year for $4,600. After the final 50% payment was made, the vendor went out of business. Forgeline manufactured the wheels for this company, so they were in the loop and probably got burned on the deal as well. Long story short, we ended up losing a ton of money but Scott and Dave definitely stepped up to the plate. Exceptional customer service! |
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I’ve been in customer service for most of my life and I can understand the frustration involved. Even though customers are the life blood of a business, not all of them are beneficial to a company. I have experienced more than my share of ignorance, abuse, theft, and on and on. (My (favorite) first lesson was when I was a 14yr old paper boy.) Customers are people like anywhere else. I’ve learned over the years that most people that say that the customer is king simply don’t personally deal with a large volume over many years. It is emotionally and mentally draining sometimes and it is something most people either burn out on, or move on to another position. I will say that those that don’t personally do it, don’t preach to those that do. I’ve also helped a lot of people with no nonsense and money saving advice. That’s where I’ve been able to retain most of my customers (now friends) over the years, and it’s great when they come to me when they need help. It’s not an ego thing, it simply tells me that I’m doing good at my job. When you help someone in a meaningful way they will want to return the favor just the same if someone does the same for me. Sometimes I actually make it a point to go out of my way to return the favor. I have some ideas and suggestions if it will help, if not, then no big deal. When I’ve held a position that had proprietary knowledge there was a lot of pressure from a lot of people that needed correct information and advice at the time of contact. It was so bad that it didn’t leave me time to perform the job I was hired to do. My response was to create a document that was appropriate for the people that needed the information. No frills, nothing fancy, just the info, how to use it -and I refined it over time to keep it up to date. The document was well received and had a lot of value for everyone involved, and if you can create something similar it will have value for you as well. In this situation, I would suggest that you either refer customers to a site like this for basic advice, or create a public forum and/or post emails (with permission) answering common and useful questions. Then when you get a customer on the line with a million questions you can refer them to where they can get the correct information at the time they need it. Then they can get back to you if they have any additional things to ask. Emails are great in that you can get back to someone when you have the time to provide a decent reply, and if it’s something common, you can get away with cut and pasting important things without forgetting something and then having to recontact or retract something. It also provides a way of looking back on conversations as well (specific parts/combos etc.). If you don’t already have a Bluetooth head set -get one. When I’m repairing something or they hear me typing/working or what have you, they can hear how busy I am. I’m also able to get two things done at the same time. It’s kind of like they’re next you while you keep doing what you need to get done. Another thing you can do while you're talking is finding out what their needs and wants are in order to help you come up with new things that they are looking for. IMO, it would be a waste not to take advantage of the opportunity. Another thing that you might have to face is that many people just want cheap parts. That’s why most companies have separated their product into two lines. I personally hate it since when I buy a brand, I like to count on the quality being the same. Unfortunately, the market won’t support that and you may have to strongly consider a cheaper product line in order to compete. Doesn’t have to be crappy, it can still be quality, just no frills. When I was younger I used to buy my parts at a particular store because of the quality. One day they quoted me what I thought was a cheap price, but when I got the part home it wasn’t what I was used to. I went back and said that this wasn’t acceptable. The guy there replied that they couldn’t sell the better quality parts, however they still carry the high quality line, but I would have to specifically ask for it. The store still exists today and I still buy parts there. Keep your product unique, help make sure your customers receive the info they need while still being able to manage your time, offer a cheaper yet less desirable alternative (because that is what the market is dictating to you), and keep looking for ways to maintain a competitive advantage that the bigger places can’t infiltrate. -Sorry about the length I get to typing and end up with a novel sometimes. lol |
Maybe I'm naive but I don't understand why this is such a big issue.
If someone calls you and starts asking you about backspace/wheel fitment why can't you, before you start giving out info, politely ask the person which wheel he/she is interested in and what size. From there I would ask them if they are ready to buy. If they aren't and they say they are just shopping then I would tell them that when they are ready to buy you would be more than happy to provide them with all the necessary information needed for wheel fitment. If they don't call back then they were never really interested in buying from you anyways. John |
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Primarily, when canadian dealers of speed parts are marking them up 200% or more and give you some bull**** song and dance while in the meantime they themselves broker the same parts from the USA getting them at US prices that I can get, then I call bull****. Having said that, I support local businesses when they are the better price or are extremely competitive with US prices making not worth my time to run to the border. If a car hobbyist from Canada that's building a car is going to buy parts from the US, there's a right way and a wrong way to do it. Buying parts in large sections(ex. Frames, drivetrain, wheels, etc, things that are thousands of dollars) all at once and pick it up in one or two trips then its not bad. Running to the border for a $2 doo-hickey is stupid. My guideline for Cross-shopping is as follows: If the Cdn. dealer is 10% higher than US price or less, then money stays with Cdn dealer. If Cdn is 25 - 30% higher than US price then I will think about buying it in the US. If Cdn is 50% higher than US price or more then its a no-brainer. There are exceptions to the rules above but for the most part and for most ppl, going on weekends is certainly not a dealer-breaker. I will state that I am not a customer of 64pontiac's but when dealers start mouthing off acting arrogant and/or start crying about how they can't compete with US prices, it really gets old and annoying especially when the CDN dollar is worth more than the US Dollar. I have NEVER been charged a US BORDER $10.75 USER FEE for pick-ups, EVER!! Only applicable duties and PST/GST and the $5/pkg at the depot |
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Building cars in CDA has ALWAYS been alot more expensive, in years past I used to take the US dollar and just double it to get my cost. It also depends also how the dealer is bringing the parts in, if they are using UPS/FedEx then it is a total rip off and is stupid expensive to ship across the boarder. (this is where Tyler and i differ as he is not regularly going to the US and is further from the boarder than us and we do go on a regular basis so for him it probably makes more sence to have the parts delivered direct to him) If the dealer is sending their delivery truck and parts person over the boarder to pick up the parts and broaker them then there should be a small cost passed on for that don't you think??? they just saved you a bunch of money on the shipping and the dealer just used his truck, gas, insurance, driver, ect to go get your parts, probably others peoples parts as well. oh and they had to pay the 5.00 per package handling fee as well (same as you would have) You are not paying the 10.75 boarder fee because you are not a registered business. If you are going to the US and importing parts that are not for personal use then you need to have a valid importer # for CDA as well as a valid SCAC code for the US side and you need to go through Commercial customs on your way into the US and pay the 10.75, that is how it works. if your not doing it that way then your doing it illegially. Hell when I take my car into the US for a show or event I have to go through commercial customs pay the 10.75 and get a temporary B2 work visa, because my vehicle is registered. It has been a while since the CDN dollar was worth MORE than the US dollar and even when it was it didn't last long. Currently it will cost you about 1.3% if your getting a good deal. On Friday the exchange was at less than 1% if your buying cash so very close if your using your VISA card then it will be closer to 4-5% plus now some banks are charging a international tranaction fee on top of the exchange rate I remember in 2006 when it was almost 30% differance that hurts, buy a part in the US for 100.00 pay 130.00 CDN, then add shipping in US dollars add the exchange to that as well. and 200% differance in US and CDN price comes pretty fast. but today not the same situation. |
One saying that I have always hated....
The customer is always right..... Sometimes the customer is dead wrong and just a complete a-hole.... But if you want to succeed in business sometimes you have to suck it up and swallow a little pride and live by the saying... |
I think this thread has done what I hoped it would, got people talking. I knew that some of what I originally posted would be taken too literally, or seen as whining and complaining. Of course it would, we are for that matter communicating via a message board, but the important thing was to get it all out in the open. I knew I'd be putting myself at risk of being ridiculed or bashed as well, but I can tell you, I think the long term benefits far outweigh the short term knee jerk reactions to the post. The long term benefits being, that customers will start thinking about loyalty to your vendors. Also, vendors will start thinking about their loyal customers and taking better care of them, and that its more about the relationships, then saving 20 bucks. And, that hopefully, the discount whores will stop it, and realize your not doing anybody any good.
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I'm not saying customer service isn't king either here guys. Of course it is, I most definitely agree with that. Perfect example is with Dave above, after his Fikse order went bad, I gave him my personal cell number so he could communicate with me via text and phone. I'm asking everyone to remember what good customer service is... and not expect that everyone works 24/7, and that most of what we do here, doesn't happen over night either. And that good customer service doesn't necessarily mean a free set of wheels just because you "don't like" what you got. My goal here was to try and bring everyone back down to reality, and try to point out some obvious things that for some reason just were not addressed previously. Also, a big thank you to each and every one of you that called to talk about this thread. I enjoyed our conversations, regardless if you posted in it or not. |
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Done and done. I'll buy first round then. You're buying rounds 2 and 3 though. lol
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As probably the last guy u sold wheels 2 before leaving Driversinc, just wanted to say (as u mentioned above) that after a few minutes talking U figured out I was serious and U could deliver--and I couldn't be happier with the "Schott's" ---As a buyer I try to convey quickly I'm "ready to buy" to a vendor--but with questions answered.......good luck Jon and enjoy that beer with Dave!!!! thanx again......jim :unibrow:
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[QUOTE=Flash68;397464]Winner! :lol:
CAN'T HELP IT, I TEACH ANATOMY. IT'S A REAL PROBLEM SOMETIMES.:D |
Its simple and a lot of customers are in the dark these days and continue to buy parts from companies that Frankly don't know WTF they are doing!
We have VERY good relationships with the manufactures we deal with and encourage our customers to call and checkup on us....we have nothing to hide and we aren't on anyones $hit list (its amazing how big that list has gotten and some of the worst are forum vendors as most of you can see!) We offer customer service with every order FREE We discount when we can but we make $$ as we should We order your parts with the manufacture right away We don't rob peter to pay paul...as you have witnessed, some vendors do, thats why you are still waiting for parts and will NOT get a refund! We answer the phone during business hours We have a staff that do their jobs and know what is expected of them We don't use credit or get loans We pay up front We have been in biz almost 11 years, we must know what we are doing! We have a good reputation....in general, not just on the forums Thats my .02 as I try to stay out of these types of threads unless they are directed at us! We sell millions in parts every year and have never even considered taking an order and not sending a PO so the parts will ship....anything less is fraud, BS, unethical, rude, stupid, ect.....the hole you dig doing biz that way will never be filled. You show your true colors in the way you do biz with a customer the first time and all the way through! I have heard sooooo many stories from members here on how they got screwed and I can't believe the BS they are fed.....we are adults....not a bunch of dumba$$es Every customer deserves respect, customer service and most important to get the parts they paid for....its a pretty simple business model, at least to me as I was taught by my late father who ran his own business for 30 years! God bless him, he had a reputation like MCB Its Friday....go have fun this weekend....you get one life PERIOD |
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Capitalism and commodisation (spelt the proper aussie way)
This has been going on for centuries and will for many more. In short the market place just continues to expand First it was you sold local in the 1 horse town you had the only blacksmith shop Then you could sell to the county and you competed Then the state with more competition Then it become national competition Then regional (ie north American) Then globally..... What's next Basically the market evolves. Buyers have more choice sellers have more competition As consumers we demand this |
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