Ethics question- Referrals from Manufacturers

[Littlefield 65]

So, what do you all think?

A stain manufacturer is handing out your card with (possibly) several others, recommending you as a preferred contractor in the area, but nothing on paper, IE certification.

You know when you arrive that the house is a candidate for their water based stain, but the deck is shot. Dry, cracked, lots of sun exposure, etc. You feel that a heavy dose of non-drying oil is the ticket to get the wood conditioned, followed by a compatible drying oil, or not, depending on which camp you're it. ;)

Manufacturer rep insists that referral jobs stay strictly theirs.

Do you A: say thanks for the referral, I gotta feed the family, use all their products?

B: Tell them to take a hike, and get all your own work from then on.

C: Explain to customer and manufacturer reason for alternate product and just take the chance on losing referrals in the future from territorial manufacturer?

Yes, it's happened, I'll let you know what happened at the end of the thread.

[RPetry 564]

Rich,

Interesting conundrum. I'll take a stab, actually three, depending on the contractor.

Contractor #1 - Relatively new in the business and just getting established. Or been around for awhile but just can't seem to make the mortgage payments. For both, the choice is A.

New guy smells a strategic partnership with stain manu. to boost his credibility and gross sales. Probably does not know a lot about staining wood in general, and has no idea of future maintenance etc.

More tested contractor needs the work. Maybe realizes his business marketing or sales skills are not up to par, therefore the lack of jobs. Figures maybe the stain manu. will eliminate these faults by proxy and keep him in the trade.

Contractor #2 - Is an established, profitable business with repeat business and a book of customers. Believes in water-based stain for vertical siding/logs or would have not given his business cards to the manu. rep. Has built up a good local reputation for craftsmanship work using the best products available. But also knows that water-based stains do not perform well on horiz. wood such as decks.

Unless he is late on the mortgage this month, his choice is C. Will not compromise his expertise and reputation just to make a buck on a lousy deck and knows he can outmarket and outsell a stain rep to consumers if it comes to that.

Now we get to Contractor #3. This guy is focused, relentless, stubborn, and hates water-based stains. He wonders where the frick the manu. rep ever got his phone number and freaks out that anyone would associate his business with water-based stain X. He calls said stain rep and yells bloody blue murder, and berates said rep that he is selling crappy snake oil to contractors and consumers alike. He then contacts the customer and pleasantly requests an opportunity to submit a competing bid. This guy is a capital B with *alls.

[Doug Dahlke 114]

If you truly believe in this reps products but just don't think they are right for this particular job then C is your choice. If the reps products aren't for you I would thank him for trying to help you out but explain to him that you would not use his products.

[Littlefield 65]

Rick, I like your second choice. Even with the mortgage late, the choice is C for me. I'll still get this job, just not some in the future.

I guess my side point to this for newbies is this, if you are charging enough, and are good enough at sales, you wil lbe in a position to always give the customer the very best job, no matter what that is. Mess around trying to price cut your way into work, and you'll end up being someone who makes money first, and does the best for the customer second.

In the end, it's YOUR reputation that will take the hit, not the stain. Either you' will end up fixing it, or the manufacturer will run you into the gorund to the customer when they call to complain, blaming 100% of the failure on you.

Any other ideas on how to handle this?

[Beth n Rod 1,279]

Rick, I like your second choice. Even with the mortgage late, the choice is C for me. I'll still get this job, just not some in the future.

I guess my side point to this for newbies is this, if you are charging enough, and are good enough at sales, you wil lbe in a position to always give the customer the very best job, no matter what that is. Mess around trying to price cut your way into work, and you'll end up being someone who makes money first, and does the best for the customer second.

In the end, it's YOUR reputation that will take the hit, not the stain. Either you' will end up fixing it, or the manufacturer will run you into the ground to the customer when they call to complain, blaming 100% of the failure on you.

Any other ideas on how to handle this?

Well put Rich!

Beth

[RPetry 564]

Rich,

You asked:

Any other ideas on how to handle this?

Yes. If you have the nature for it, be a B. Cojones and all.

[One Tough Pressure 580]

Why not explain to manufacturer that you need options to use solely their product and why don't they develop a oil based line.

I choose C

[Proclean 14]

Hi Rich,

I’ll give you my .02.

Do you use their products now? Do the products work and you are satisfied with the performance of the product line? Does the manufacturer fit in with your business model? Why are you not getting the referrals vs them? I understand marketing but ???

To me these are the key points. I think there are bigger questions to be answered.

If a manufacturer is going to give you work – Great. Remember, your name is on the bottom line. Your selling your services based upon what you can deliver to the customer. People call you based upon your professional work.

I always test new stains. If the next best product comes a long after testing, I’m willing to give it a try. Testing on a deck is a no-no in my book.

After all I said, getting to eat everyday is also very important. Give me a call anytime.

Hope this helps.

[Littlefield 65]

All, good thoughts. Paul, some of their products work, and some don't. I know where to use the ones that do. Thing is, they feel like we should use all their products only on a referral project, and I think we should do what is best for the customer first, as well as us, then finally the supplier.

By the way, just to make it clear, I'm not confused as to what I should do, I just thought it would make an interesting thread.

Rick, first time, I'm going with open and up front with both customer and manufacturer. Second time, if there even is a second time, I'm telling the manufacturer to shove off, I'll get my own leads. After all, I don't need yet another person telling me how to run my business, the customers are tough enough...;)

[PLD 14]

I'm going to thank the rep for the lead and let him know that by working with me he WILL sell more product. I'm also going to let him know that while I will *try* and use his product where possible, I will not do so when it will compromise my quality/service. Hence, the requirement that "referral jobs stay strictly theirs" is not acceptable.

This leaves me in control and places the ball squarely in his court. Either we can work together and move more of your product, or you can be greedy and we will move none of your product. Please advise how you wish to proceed.

[Deck Guy 14]

I'm more-or-less with Phillip.

For example...I do get referrals from the local Sherwin Williams store here, since I was their #1 customer last year for stain. I explained to them last year though, that I was moving toward another product, but would use them when the job called for a semi-transparent stain (I am so done with solids). I also stopped by in the winter a few times to shoot the sh*t there, and bought them lunch (pizzas) once. It's on my way to my full-time job.

I ordered 7 gallons of Deckscapes for a fence just this past Saturday to match a deck I did last fall, and brought a sample board of RS so they could see it. They thought it compared to their toner in appearance (it does), but when I explained about ease of application and maintenence, they got it. I'm betting that they appreciate my professionalism in showing them the RS, and not beating around the bush about why they may see less sales from me. I'm also betting they will still refer anyone who asks about a wooodie, to me. Then I'll decide what I use for a given project, based on my assesment, and the customers needs/wishes.

[Littlefield 65]

Phillip, nice response. That's an angle I hadn't really verbalized yet to myself. You know, if they refer to someone else that's less professional, they may get to replace their stain for free as it's incorrectly applied; they may not "get" the job either, as that person may actually give them a bad name, too.

Larry, ggod point about handling the SW referrals.