Discussion:
Selling service portion of business

Hello All.
We have a small, very established (15 years) forklift repair company. I handle most technical repairs and usually employ a PM guy. We recondition forklifts occasionally, but the service side is usually all consuming. I would like to evolve into only used/ reconditioned forklifts but would like to sell the service side of the business. We have +- 100 customers ranging from 1-12 machines, so it should have a value. Problem is, and some of you know what I am talking about, basically I am the company. Any ideas how to market a small company in this position? A dealership mechanic that wants to start on his own? A competitive dealership that wants to begin operation in my area? Just looking for suggestions.
  • Posted 9 Sep 2012 14:19
  • Discussion started by Forkliftt
  • Louisiana, United States
Steve
steve at forkliftt dot com
Showing items 1 - 5 of 5 results.
BB, I am working towards Edwards approach. I have a young tech that has been on board almost a year. He is handling about 90% of the field service and also was managing the PM guy until we lost him recently. He takes great care of us and we are taking care of him. Very talented guy. As you guys know, someone this young and capable is always gonna want his own business one day- and as suggested-It could be best for all to work him into ours. I have never brought it up- but it could sure work out this way.
  • Posted 23 Nov 2013 13:12
  • Reply by Forkliftt
  • Louisiana, United States
Steve
steve at forkliftt dot com
Have you figured out an answer to your issue?
  • Posted 19 Nov 2013 23:59
  • Reply by bbforks
  • Pennsylvania, United States
bbforks (at) Hotmail (dot) com
Customers love technology- until they have to pay to fix it!
Definitely supporting Edward opinion, please let me add, that (according to my experience as a service company owner) your reconditioned trucks sales success is based upon the trust the customers have in you and your company. This trust is built upon your service quality.

You simply provide the feeling of safety to your customers while maintaining their trucks.

Good service is your strategic advantage.
If you get rid of it - it goes with this advantage.

We sold over 20 trucks this year (not being the sales company, having no salesmen, no marketing dedicated to trucks sales, no trucks stock, etc) only because the customers wanted us to care about their ownship.

In my opinion, the good service is the best marketing issue, and your company may easily multiply the refurbished trucks sales, basing upon your service quality.

Edward is right. Please, consider rather the development of your service, not the liquidation.

Regards
  • Posted 13 Sep 2012 01:35
  • Reply by Karait
  • Poland
I know your deepest secret fear...
J.M.
Edward, I hadn't thought of that. And that is a very good idea. As you pointed out, most of these customer relationships are years in developing. And I really want the best for them if I am no longer handling their work.
  • Posted 10 Sep 2012 01:17
  • Reply by Forkliftt
  • Louisiana, United States
Steve
steve at forkliftt dot com
since, to your customers, your skill is your primary product that you are selling, and means everything to your customer, I would be very careful about just selling it for a value related to monthly profit, to just anyone that comes along. It seems like you have built up a good customer base, and that was no quick and easy project. Have you considered taking on another mechanic, and if it works out as an employee, giving him a chance to earn a portion of the company each year, (maybe instead of a bonus 5% of the ownership the first year, and 10% of the remainder for any year that exceeds budget expectations). this would give you and your customers a bit of 'insured continuity' with your company.
  • Posted 9 Sep 2012 22:16
  • Reply by edward_t
  • South Carolina, United States
"it's not rocket surgery"

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