2008 DEALER SUMMIT Wednesday PERKINS CFO Scranton Mfg
- Slides: 51
2008 DEALER SUMMIT Wednesday
PERKINS
CFO - Scranton Mfg. TOM VOGL
Phil Allen MUNICIPAL SALES
Municipal Sales If you are not presently working this market You Need To Be!!!
Private vs Municipal Private Contractor Sales Municipal Sales • Easier to sell • One person with influence • Fewer people in the purchasing loop • Decisions are made quicker • More work • Group of decision makers • Identify Key People that influence decision process • Patience and Determination • Demonstrations • Higher Margins
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Key People Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities • The Driver – Make them look good at operating New Way Trucks • Maintenance Supervisor – KEY individual – Have the respect from other co-workers – Keep them in the loop
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. • Operations Manager – The person in the hot seat – Demonstration involvement – Keep them involved Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Key People Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities • Purchasing Agent – Larger Communities – Rules/Regulations
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Key People Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities • Council Members – Smaller Communities • Other Key People – Judges – County Sherriff’s – State Bid’s
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities Patience & Determination • Doesn’t happen overnight • Make regular calls • Know the customer’s budget cycle – Definite Steps
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities Budget Cycle Steps 1. Know the Fiscal Year 2. Plan Your Sales Year – Customer wants – Get in the budget – Final Budget Date 3. Approved for Purchase! 4. Setup Demonstrations
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. 1. Key to Success 2. 3. Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities Get people involved ALWAYS Have… – – – Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Demonstrations 4. 5. Product Literature Suggested Bid Specifications User’s List Walk Around Point Out Features – – New Way Exclusive Features Operation of Body
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities What does this effort get you? • • Stronger Relationships Bid Specifications Recommendation Higher Margins
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities Bid Lettings • Attend the Actual Bid Letting – – – • Ask Questions Fault in Competitor’s Bid Answer Questions Show Your Commitment
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities What is the competition doing? • The Lost Art of Selling a Rear Loader • • • Mc. Neilus E-Z Pack Heil Loadmaster Leach
Municipal Sales Process 1. Key People that influence decision process • The Driver • Maintenance Supervisor • Operations Manager • Purchasing Agent • Council Members • Others 2. Patience and Determination • The Budget Cycle 3. 4. 5. 6. 7. Other Municipal Opportunities Demonstrations What does this effort get you? Bid Lettings What is the competition is doing? Other Municipal Opportunities • College & Universities • • • Park Departments State Highway & Turnpike Authorities Counties State Agencies Military Bases
This is important Business! If you are not selling to Municipal’s YOU NEED TOO!
Phil Allen DEALER AGREEMENTS
Dealer Sales Agreement • Still Uncomfortable • Protect the investments • Contents of the Dealer Agreement
Major Points and Conditions Grant of Distribution Rights Scranton Manufacturing Inc. , grants the right to distribute the products to purchasers located in the territory for supply to end users. All referrals from potential customers within the territory will be forwarded to the distributor follow up. All referrals MUST be presented with a sales presentation on New Way products only.
Major Points and Conditions Price Payment Prices published by the company are list prices and subject to distributor discount which is established by the company and will be published from time to time. Terms are Net 30 days with a 2% cash discount for payment within 10 days of shipping subject to prior credit approval. Any amt. due but unpaid shall be subject to an interest charge of one and one half per month.
Major Points and Conditions Dealer’s Obligations Both the company and the distributor desire to increase the sale of products and company’s market share. Distributor, therefore, shall use its best effort to promote and market the products throughout their assigned territory.
Major Points and Conditions Dealer’s Obligations – Adequate number of qualified personnel – Maintain an inventory of parts – Be equipped or have access to facilities to service, install and train. – Perform and Comply with Terms of Warranty with each unit and service ALL units in his assigned territory.
Major Points and Conditions Dealer’s Obligations – Familiarize themselves with customers in assigned territories, conduct mailings, engage in advertising programs and demonstrate packer bodies. – Actively participate in professional organizations in the waste collection industry. Subscribe to related trade publications. WASTEC and SWAMA
Major Points and Conditions Dealer’s Obligations – Distributor warrants that he will not represent, distribute, sell competitive products or otherwise promote the interests of companies deemed to be direct competitors of the company. VIOLATION of this can result in immediate termination of this contract if Scranton Mfg. Co. , Inc. deems this a violation.
Major Points and Conditions Dealer’s Obligations – Scranton Mfg. reserves the right to bid its product directly in areas where a New Way Distributor is bidding a competitor’s product to the detriment of Scranton Mfg. – Dealer agrees NOT to bid a competitive product against a New Way distributor who is promoting a New Way in his /her assigned territory. This action may result in loss of distributor rights or dealer discount penalties.
Major Points and Conditions Dealer’s Obligations – Distributors will be required to meet company set quotas for their territory. Failure to meet quotas could result in contract termination. – Distributor agrees not to make any commitments or obligations on behalf of the company or to bind the company except when duly and properly authorized by the company.
O’HALLERON
08 WASTE EXPO DETAILS
Waste Expo 2008 in Chicago • May 5 -8 th in Chicago • Booth #3842 – IH with a 20 cu yd Cobra for Waste Pro – Autocar with a 25 yd King Cobra for IESI • Sterling Booth #1249 – Sterling Bullet with a Diamondback – Sterling 360 with a Mamba
Waste Expo 2008 in Chicago • Isuzu Booth – Chevrolet with a Diamondback – Chevrolet with a Mamba • Freightliner Booth #2005 (Elliot Equipment Demo) – Freightliner M 2 Tandem with a Cobra Magnum
Waste Expo 2008 in Chicago • Ford Booth #1460 (Nu-Life Environmental Demo) – Ford F-650 with a Viper • We have free Expo passes available. Go to www. wasteexpo. com Enter the Code: VP
JOHN CUROTTO
HGAC
Who is H-GAC? • The Houston-Galveston Area Council is a Council of Governments • H-GAC was started by an Interlocal Agreement between 13 Gulf Coast Counties primarily to supply planning services to their region • The agency operates under the direction of a Board of Directors made up of 36 elected officials • Thirty three years ago, the Board of Directors decided purchasing services were needed to help the region to keep pace with the regional growth surge that was outpacing the local governments’ capabilities
Texas Interlocal Cooperation Act Government Code, Chapter 791 “Increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state. ”
Cooperative Purchasing Program Update • Over 1, 700 End Users • Over 300 Contractors • 40 Major Product Categories • $216 million in Products & Services 2005 • Activity in Texas & 26 other States
The Bid Process • • • Products/services researched Draft specification issued Solicitation advertised Pre-bid conference held Final specification issued Bids publicly opened Bids evaluated, award recommendations made H-GAC Board of Directors makes awards Contracts issued
The Procurement Process • Discuss product/service with contractor • Contractor issues detailed price quote • Make purchase order out to contractor • Send copy of PO H-GAC • Contractor delivers and invoices • Pay contractor (including administrative fee)
The Procurement Flexibility • Most contracts are bid with base line items and correlating options • The options submitted with the bid are evaluated and considered “published options” • For additional flexibility, options may be added to an order that were not included in the bid – “unpublished options” • Change Order rules are applied to unpublished options – limiting their use to 25% of an order
The Administrative Fees • The program is “pay as you go” • Cost of operation is covered by an administrative fee issued on each other • Administration fees are either a flat amount per unit, or a percentage of the overall order
www. HGACBuy. org • Web site contains pricing & contact information • Future functionality may include: – Online quotes – Product comparisons – Order status – Contract information
Medium and Heavy Duty Trucks, and Specialized Bodies • • Medium Duty Chassis Heavy Duty Chassis Refuse Collection Bodies Sewer Cleaners Van Bodies Dump Bodies, Aerial Lifts, Cement Mixers, Wreckers, & Water Trucks
www. uscommunities. org
Why would you, as a dealer, promote HGAC Buy over your own efforts with Municipal Customers? • You have customers who want to buy your products, but are afraid that their governing authority will make then take the low bidder. • You have customers that don’t want to go through the ordeal of writing formal, detailed bid specifications and under go the scrutiny of their supervisor or purchasing agent on whether they were “Fair and Open” with their bid specifications.
Why Promote HGAC Buy? • Your efforts calling on, educating, and demonstrating your customer has earned you the right to make higher profit margins! • While our bid has not been submitted yet, I anticipate the bid will hold approximately 15% margin for the dealer on the base body bid and will be list price on the available options. • I’ve been there in the trenches like you guys and 15% margin on a municipal bid is pretty respectable.
Why would you NOT want to promote HGAC/Buy? • If you take a so/so customer to HGAC they will also have access to any of our competitors that have provided bids. Not Smart On Our Part!!! • You want to introduce someone who wants to buy from you but avoid the bid process. • HGAB/Buy is not for everyone, but it can be a valuable weapon in your arsenal!
Is there a cost to the customer for HGAC/Buy services? There is a commission fee of 1. 5% that is included in the body bid we provide them. When will you be able to start promoting HGAC/Buy? The buying year for HGAC begins August 1.
BREAK
DEALER COMMENTS
CLOSING COMMENTS
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