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Servicing the sale

Factory service centers can make a big difference for your bottom line

By Randy Valenta -- Industrial Distribution, 3/1/2002

Educating end users about the importance of factory service centers can add dollars to your profit column while helping you build the type of relationship you want with your customers. Whether local, regional or national, factory service centers function as a resource for distributors to use in servicing the product long after the sale. Heightened service, in turn, leads to customer loyalty, increased sales and an improved bottom line. Despite these advantages, distributors and end users often overlook the role a factory service center plays in the selling strategy and buying process.

Factory service centers represent three significant elements for distributors and end users: assurance that manufacturers will back product claims, confidence in the availability of expert service or parts, and a guarantee there always will be someone to call if a question arises.

The name of the game is selling customers on manufacturers' claims that meet and/or exceed their needs. For a distributor, standing behind the products sold is the highest level of integrity that can be conveyed to customers. And in order to be successful, manufacturers need to stand behind the same products, as well.

Service centers are proof of a manufacturer's presence. Strategically located service centers offer distributors the assurance of support and know-how to sell their products, which translates into a better overall product and buying experience.

Of course, service centers seem only to offer product servicing, repair, replacement parts, and a resource for end user inquiries. Though these are their main functions, service centers can have a much deeper impact by influencing buyer behavior; research shows that customers who have a positive experience with a specific factory service center are more likely to switch and become loyal to that particular brand. Therefore, recommending a brand with a strong service and satisfaction record can be beneficial in developing future sales.

A Boston-area industrial distributor offers proof that service centers influence brand preference over time. The distributor says that when he speaks with a customer who is competitively shopping, he is always asked about price and about the service performance of the manufacturer. Customers want to know how they are going to be taken care of, and distributors benefit when customers can be confident they will have access to the expert services of a factory service center, even years after their purchase.

Though slow in acceptance, it has become apparent that service centers no longer need to be in everyone's backyard. End users easily find service center locations on manufacturers' Web sites. If an end user is not located near a service center, current logistical technologies have made it simple to package up the tool, ship it to a regional location and have it returned within a few days. Finally, everyone can appreciate the fact that increased efficiencies have driven down cost, making the services offered affordable for all.

The bottom line is, factory service centers are an ace in the pocket. If taken advantage of, factory service centers can mean more sales, customer satisfaction and loyalty, and return business.


Author Information
Randy Valenta is director of product service for S-B Power Tool Co.

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