December 3

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Garage Franchises Must Step Up Their Game

With the current home service business boom due to COVID-19, relationships with suppliers are being strained. If you can't get products that could be the final straw in an already strained relationship.

I'll cover:

  • What makes a good product
  • 10+ reasons to leave your franchise or dealership?
  • 10+ reasons to stay with your franchise or dealership?
  • If you go, how to succeed anyways
  • Options if you stay, how to supplement leads

What makes a good product

Before I dive into why or why not you should leave those suppliers and franchises, let me talk about what actually makes a good supplier and product relationship.

  • Fair market price (compared to competition)
  • Quick turnarounds on orders (stocking close by enough)
  • Low MLQ’s
  • Customer service
  • Products features/benefits (compared to competition)
  • Willing to take feedback (always innovating and improving based on the installers and customers feedback)
  • No undercutting me (always room for margin. High average order value with 40% or more margin)

You could also put the shoe on the other foot and think about what would make you a better dealer. My favorites are orders ahead of time and is loyal to good product lines by advertising them.

When to leave your franchise or dealership?

The best word to describe any bad relationship is "Scarcity". If you feel the relationship does not bring win, win abundance and growth then it might be toxic or controlling 1-sided and unhealthy to continue. 

  • They no longer help you build your business (Maybe more in the beginning but now not returning your calls)
  • No longer win win, scarcity mentality
  • Exclusively selling their products only benefits the manufacturer (what do you get back?) regardless of all else.
  • 1 way communication (orders)
  • Threatening you to up quotas
  • Your just another dealer under another brand in their portfolio
  • Controlling
  • Opaque (opposite of transparency)

There are subjective ways to tell if you are in a bad relationship with a supplier:

  • Look at the reviews of corporate office employees
  • If there is no all dealer locations map with contact information
  • They will not allow you to own your own website / assets
  • Pushing hard for big initial cost to become a dealer/franchisee
  • Doesn't share videos and photos or other great marketing materials

Consider this another way, knowing what you know now, would you have gone with them?

Are you still comfortable having your name next to theirs?

If the answer is no to any of these, they have to go.

I love this quote form this article, The pandemic is straining the franchisee-corporate relationship.

“I get that franchising isn’t a democracy… But at the same time, it’s not a dictatorship.”

When to stay with your franchise or dealership?

The best way to describe a good relationship is the word abundance. You feel like your interactions create win, wins and good growth.

  • Marketing & sales help (leads in you market)
  • National branding / marketing (EX on property brothers, in articles which yields leads in your market.)
  • Sharing systematized high yield efficient systems & software (McDonalds)
  • Transparency (issues, new products)
  • Openness, 2 way communication
  • Awards, insight into how others are winning
  • Conferences with other dealers presenting
  • Open social dealer group / sharing their info
  • Subsidizing good behaviors (co-marketing, vehicle wrapping…)
  • Sharing assets (Photos, videos… You can place on your own social channel)
  • Always a way for a win win, long term relationship view
  • Measuring and improving (your average order value, lower cost per lead, higher reviews…)
  • Caring EX: check on you before and after a storm in your area

If you leave, how to succeed anyways

When Doug Madsen left his manufacturer / dealer relationship it turned out to be the best thing for his business. The first 2 years were hard but he didn’t have a franchise offboarding expert in his corner. He lost 40% of his business overnight. Today he is making more than ever with control over his business and an abundance mentality.

I can tell you I have a soft spot for those who go independent. Contact me directly to subsidies your existing leads or to go independent. I'll walk you through expected returns and and timelines. 

I have so many ways that fill calendars and profitably grow your business. On of many is to add more products that generate more leads so you can upsell. Checkout Tote Slide and why you should work with them.

Feel free to call 208-243-0982 to talk turkey with me. I promise you will be glad you did since my ongoing marketing management fee starts at $200/m.

Options if you stay, how to supplement leads

A lack of creativity or expertise is the only reason your franchise isn't delivering enough leads. Simply put, here are 4 ways I can help you supplement your leads without leaving your relationships behind.

Options:

1. Run your own Facebook Ads / work with a provider that gets it. Corporate is usually happy to let you run you own social accounts and ads.

2. Start an accelerated referral program (My secrete sauce I don't publish online).

3. Get up to 60% of you garage storage or flooring customers to leave a review using GarageRev.com for free or for as little at $50/m.

4. Run you own Google ads to a great landing page or full website. You can do this under your brand name, a different brand name, use different product lines, advertise only high margin products, advertise in just the best parts of town. 

I have so many more ways that fill calendars and profitably grow your business. One of my recent favorites is to add Tote Slide to your product line. Checkout why Tote Slide is a good fit for garage solutions dealers.

Feel free to call 208-243-0982 to talk turkey with me. I promise you will be glad you did since my ongoing marketing management fee starts at $200/m.


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