I'm sure that most US forklift dealers know that there has been a trend in the last few years for forklift wholesalers to sell to end users nationwide. They actually are more retail oriented than wholesale, because they start and with a retail price and discount it maybe 10% if they sell it to a dealer.
This is a dangerous threat in our industry because used truck sales are one of the last bastions of profit in out industry.
As we all also now, retail customers can't relate to what a wholesale truck actually is. I spoke to a customer today who asked me why my price was $20,000 when he found a truck from a wholesaler on the internet for $12,000. When we added up what he wasn't getting from the wholesaler, such as minor items like a triple mast and a side shifter, their $12,000 price ballooned to $22,000 and obviously the "wholesale" truck had no warranty. The real problem is that most customers won't let you know what they are comparing your offer to.
I want to see dealers mobilize and expose the "Retail Wholesalers" and commit not to buy from them as long as they sell to end users. It works on the new side of the business. No reputable manufacturers will sell to and end user.
I have a couple of names that I could share but I'll wait to see what kind of responses come back.
"Unless you're in our industry, you know nothing about our industry". It has never been more true.
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Moonlighting by a technician is the equivalent of a wholesaler trying to back door a dealer by selling directly to the customer that the dealer is quoting. That is absolutely unethical and I would boycott any wholesaler that used this type of business practice. I had it happen to me so I know where you are coming from. However, I do deal with wholesalers who sell directly to customers but will protect me. By protect me I mean that I would give the wholesaler my customers name and they would not quote that particular customer or they would quote them the same price that I am selling at reserving the profit for me. These wholesalers are far and few between but they are out there. Start your own website with a list of wholesalers that are ethical and those that are not.
My guess is that the majority of subscibers to this website are not either dealer principals or sales managers. As far as wholesalers needing to make money too, I would think that there are not too many dealerships that condone moonlighting by their technicians even if it isn't for one of the dealer's customers.
And yes, I know that manufacturers have National Accounts, but typically there is something in it for the dealer, like a ship in commission and parts and service business. That is assuming that the manufacturer is ethical and actually lets the dealer know that they have shipped trucks into their territory.
Forklift manufacturers sell directly to end users every day through their National Accounts Group.
I think the reason you see more and more retail wholesalers is: ONE, the internet. It is very easy today to reach a huge market for your equipment with the internet. TWO, the wholesale market is filled with gypsy's who just want to make a buck. They don't care who they sell to or what equipment they are selling. That being said, I'm not sure that I would be behind a boycott of all wholesalers who sell to end users. They are in business to make money just as you and I are. Their business is as competitive as ours and you need to squeeze every bit of profit out of each piece of equipment. I would boycott wholesaler's who back door a dealer and try to sell the wholesale piece to the customer that you are quoting it to. You can look at it this way, if your customer buys a wholesale/internet truck and saves $5k, they will no doubt be giving it back to you in maintenance and parts which are good profit makers. So the saying is true: "Pay me now, or pay me later."
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