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A New Alternative to Keep Cost Conscious Clients

10 Sep, 2003 By: J.J. Morrison imageSource

A New Alternative to Keep Cost Conscious Clients

of the equipment originally installed in the field over the last 25 years is now
obsolete and needs to be replaced. Manufacturers are no longer making most of
these models and have stopped issuing parts, supplies, and support for many of
these machines.

equipment ages, the increased downtime associated with trying to properly repair
older machines often leads customers to question a service department's
capabilities and training. The old equipment in the field has become so
troublesome that the cost to you, the dealer, to service these copy machines has
skyrocketed out of control.

as a dealer, your company can no longer effectively or profitably service these
outdated machines, it has become normal practice to explain the situation to an
account and demonstrate new machines to them in the hopes of upgrading the
customer to new equipment.

many dealerships think they are doing a good job monitoring lease expirations
and upgrading these accounts, the true test of your company's upgrade
effectiveness is to ask the service dispatcher or service manager what
percentage of your present account base is over 3.5 years old. Chances are,
you'll find that there is a lot of old junk out there.

manufacturers are pushing you to sell the latest and greatest models, what
happens to the accounts that need equipment but simply cannot afford to lay out
$15,000 to $25,000 for a new machine? If you don't offer them an alternative,
your competition will, and you will permanently lose the account. Do you realize
how many of your accounts are ready to fall prey to your competitors? Do you
have a plan to cement these customers back to your dealership?

Unique Approach To The Dilemma Of Old Equipment. Overhauling old equipment at
about ten to twenty percent of the cost of a new piece of equipment gives
clients a competitive alternative to new equipment that the competition is not
presently offering. Many customers in a tight economy see this as an excellent
option to purchasing a new $15,000 to $25,000 machine.

first step is to contact an existing account and explain the overhaul option.
Outdated equipment is brought in for evaluation and the customer is given a
quote on the work that would need to be done. The dealership can then decide
whether a major or minor overhaul is an option for them versus buying a new
machine. You will find that about 50 percent of accounts will choose the less
expensive overhaul method which saves the customer money and the dealership
valuable customers. Most competitive dealerships do not offer their customers
this service because their interest is only in selling new equipment. Whether
your dealership upgrades or overhauls old equipment, you are re-securing the
customer as an account.

to Sixty percent of the account base of every dealership in the United States
needs to be upgraded. Few companies, however, have considered the niche that
overhauls can fill and the profits that can be achieved.

small machines can be done in one day, with parts taken from old traded-in
equipment if parts are not otherwise available. Many trade-in machines are
junked, so any parts that can be used in the overhauling process are virtually
free. If a major overhaul is completed on a customer's machine, a new machine
warranty is given and the machine can be used for another three to four years.

are good profits to be made on these overhauls with some dealerships claiming as
high as 92 percent profit after reaching maximum efficiency. And, when that
customer finally has no choice other than to purchase a new machine, your
dealership will be first in line for their business.

of whether a customer chooses to overhaul or purchase a new machine, they will
appreciate having been offered the less expensive option. They will tell
everyone they know that your company offered them an alternative, rather than
just trying to force a sale. "Word of Mouth" is the world's best
advertising-advertising that money can't buy.

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