The following article was written by our own Eric Wade and was published in ADS Nozzle Chatter 2022 Issue 3
In February 2005, the traditional way of making purchases in the United States started a significant change. We just didn’t know it at the time. This was when Amazon launched their Prime subscription service, offering free two-day delivery to subscribers. This gave that group access to millions of products within two days. Amazon was no longer the go to for college students in need of cheap text books. It had taken its first steps to becoming a global powerhouse, that would eventually topple Walmart as the center of consumer purchasing in the United States. By January 2019, Prime had 100,000,000 US subscribers, with only 328,000,000 citizens this is a truly astounding feat.
Right now, in Bolingbrook where Seidel Diesel Group Headquarters and my home are located, we have two one million plus square foot Amazon distribution centers within five miles. I can login and have the majority of items I order delivered by tomorrow and at times same day. Amazon has disrupted almost all markets, including vehicle parts. I can order common rail diesel fuel injectors and components to rebuild my own injectors, Turbochargers components or units, and virtually anything that one could want. Although the quality of many items found through this channel can be inferior products, it remains a disruption in our Industry.
Delivery Time
On Delivery Time: This is not an argument for ADS Members attempting to compete with Amazon. This is an argument that the expectations of all of our customers have changed significantly. The change is even more pronounced in new diesel owners, and millennials. In most shops a two day turn around is possible, if all of the parts needed for the reman are in stock, and if the technicians have no other customer work in front of the new incoming job. I can certainly say that in 2022, with the parts and labor shortages, both of these assets are in short supply. So how do we respond?
What has worked very well for us is honestly and clearly communicating the expectations with the customer. Today, still dealing with the fallout of the global supply chain shortages sometimes getting parts in two days is a small miracle. Considering that this is likely the customer’s expectation, we first ask what actions the customer would like us to take. Based on the customers requests we let the customer know an estimated turn around time, and an estimated cost. At times this can be up to two weeks for pumps that we know to be difficult to find parts. If the Fuel Pump, Fuel Injector, or Turbocharger has to be shipped to one of our locations that specializes in that product line, and based on the work load of our technicians.
We want to know our customers expectations because if we have two customers who need a pump remanufactured have very different expectations, we can make every effort to satisfy both customers. Meaning if one customer is rebuilding an engine and has four weeks, but our other customer is engine down without his livelihood until the pump is returned, we can prioritize based on the products. This is why the communication between all of our Customer Service Representatives (CSRs), our Production Scheduler, and the Branch Manager is paramount. This is the first line of communication with the customer. That team then coordinates with our Technicians, Purchasing Team, and Warehouse team to ensure that the customer’s expectations are met, or communicated to prior to any delays to update any customer and let them make the best decisions for their situation.
Once the pump is in our shop it is immediately disassembled, cleaned, and estimated. The purchasing team works directly with the customer service team and the production scheduler to make sure all of the necessary parts are available and the associated lead times. The customer is then contacted to verify or discuss deviations to the estimates and a formal quote is provided. If lead time on sub-components is longer than initially expected, this happens more than we would all like right now, the customer is offered the option to pay for expedited shipping to if that is an option. If components are not immediately available the discussion becomes reaching out to all of our ADS partners, and considering alternate cores or other non-traditional methods to take care of every Customer opportunity. The most important factor is to keep in constant communication with the customer. We have found that the extra few minutes that we spend with customers consistently brings them back. The level of service and expertise we offer as members of ADS cannot be matched online, in a national chain parts store, or anywhere outside our ADS Network.
If a promise is made to the customer for delivery on Friday, it is vital that any potential delay is communicated to customer prior to that day arriving. If you communicated a potential delay and are able to still meet the original estimated delivery date, the customer is even more satisfied. You can help manage the customer expectations, which gives them the choice; HONESTY always wins in the long run. The worst thing we can do is say nothing to that customer until he arrives Friday for his pump and it is not ready. That customer will be extremely disappointed. So as soon as we know we are not going to hit a deadline we reach out to the customer to explain why and give a new ETA. “Bad news isn’t wine. It doesn’t improve with age.” ~Colin Powell. We then do everything in our power to achieve that deadline, and communicate with our customer throughout the process. Including letting our customer know if the product ends up being early.
Quality
We all build a quality product; we would not be members of ADS if we did not. One of the biggest issues we all run into is the influx of non-ADS products flooding into the market today. These mass-produced products are often off-shored, built with sub-standard products, and if they are tested, they are not tested to OEM specifications. In the words of the Founder of the Seidel Diesel Group, Geret Seidel “I am too frugal to buy cheap”. So, how do we communicate the differences to our customers?
A big part of our interactions with customers is comparing our products to online competitors. It is also important to talk about the difference between Rebuilt and Remanufactured. All member companies take a lot of pride in being part of the ADS network and we should all be confident and prepared in talking to customers about the quality of products that we offer. If a customer comes in asking about the differences, we take them on a tour of our facility and explain the process of remanufacturing.
There are many more options available today for the customer, and at every price point. It is up to us to provide the superior knowledge, quality products, and stand behind the products that have built our respective companies and reputations. The performance they can expect from our products is no different than the pump, injectors, or turbocharger they had when the vehicles were brand new. This is especially important to those customers who are either repair facilities making a living installing these products or customers paying those facilities, as it is quite literally their dollars that are on the line.
I am a proponent of the Nationwide ADS Warranty for the customers. This is another benefit that customers can rely on for service in nearly any area in the country. Will we reach everyone? Frankly no, but we should try. There are customers who are price sensitive, even more so in today’s inflationary environment, but the customers that do give us an opportunity to earn their business often become repeat customers for our expertise and quality.
One product example that seems exacerbated by offshore products, is turbochargers. SDg’s two Turbocharger Reman Plants see nearly daily instances of turbochargers that were purchased on-line new, no core from an unknown brand, and now it needs tested due to lack of performance or even worse, came apart. Now they have to purchase another replacement, the cost of more downtime, and potentially progressive damage if the inferior products were not caught in time. Our CSR’s are trained to help customers with education on the options, and OEM new or Reman. At any of our twelve locations, our team works with each customer on what potentially caused the turbocharger to fail in the first place, and to correct that issue prior to only replacing a turbo that may fail again for the same reason that caused the first failure.
Warranty
As much as I want to quote the movie Tommy Boy here, I will hold off, but you know what I am going to say. Sadly, the expectation has become that remanufactured products are more likely to fail. To the point where our customers often suffer confirmation bias and the pump/injector/turbocharger that they purchased from us failed, just like the original part and it was due to a defect in quality. Just see the last paragraph for how to deal with that objection.
Yes, your customer can go online, or to a big box retailer and get a product cheaper, with a “guaranteed warranty”. Meaning, bring their failed or suspected failed product in for a free replacement unit, no questions asked. Only to have a similar issue today, in a week, or a month down the road. As we just discussed this is besmirching the good name of all of us in the ADS, and remanufacturing at large. I am not saying this to be cynical, but to look at the harsh truth and how we address the elephant in the room.
This is why communication with the customer is so important. We need to differentiate ourselves on our quality yes, but back that up with our service. Not that we will just give the customer a free replacement, but we will help them get to the root of the problem with our knowledge. That customer came to us on the one of the worst days of their lives asking for help, not to treat the symptoms, but to cure the root of the problem. Replacing the customers part and sending them on their way does not fix the problem, using our years of experience and significant expertise helps change the rules of the game. Now we are explaining why the customer had an issue, how we can fix the problem, and how to prevent that issue in the future. At this point we are not just managing customers expectations we are shaping them in a way that the online and big box competitors can never match. “A customer is never out of warranty, even if his product is.” ~ Seth Godin.
Customers have become accustomed to immediate delivery, acceptable but not exceptional quality of disposable products in the last decade. The supply chain shortage and pandemic have not changed those opinions, only reenforced them. It is our duty to work to change that, but the way we do that is through communication. Competition is everywhere, even in our niche industry, but we hold the key to not only our own survival, but our own ability to thrive.
We can all provide knowledge, and through that service that no one outside ADS can provide. Discussing the customer’s expectations and making sure they are achievable keep your customer happy with delivery. Explaining what differentiates your products from the competitors will help you close the sale and shape the perception of your product before and after installation. If the customer ever has a warranty claim not only will this build trust, but analyzing the product and educating your customer will help shape the perception of remanufactured diesel fuel injection components for years to come.
I leave you with one last quote to remember where the auto industry was one hundred years ago, and remind you where we can never go again if we want to continue to compete with the online and big box retailers.
“If I had asked my customers what they wanted, they would have said a faster horse.” ~ Henry Ford
Eric Wade, Midwest Fuel Injection, eric@mwfi.com