Wednesday, November 30, 2011

Controlling Service Costs Before You Buy


One of the ongoing challenges that every laundry owner faces is the service factor of laundry equipment.  After all, the coin laundry business is really the rental of laundry equipment.  Since that equipment is the key element of your business, keeping it up-and-running is one of the most important concerns.

Today, I’m offering some advice on how to control (or at the very least anticipate) these service costs which can be done even before you purchase your laundry equipment.  The overall objective here is to attempt to get some information on what support is available in two basic areas, warranty programs and service training.  Your commercial laundry equipment distributor is the key since the distributor typically provides both of these services.

Warranty
There are generally two types of warranty which are provided for commercial laundry equipment, labor warranty and parts warranty.  It is important to understand the difference between the two types.  The labor warranty is typically a shorter period of time which is designed to “work out the kinks” of any new equipment and take care of any initial issues with the equipment.  The labor warranty covers the cost of the technician and is typically offered by the distributor, not the manufacturer.  As the purchaser of the equipment, it is beneficial to understand exactly what this labor warranty covers.  Does it cover the travel costs to your location?  Are there exceptions which are not covered?

The second type of warranty is the parts warranty.  This warranty covers a much longer period and is offered by the manufacturer of the equipment.  Admittedly, parts warranties can be confusing but it is important they are understood.  First and foremost, get a copy of the parts warranty and read it carefully, including the fine print.  Some companies don't warrant the wearable components, while other companies offer more comprehensive warranties.  Many warranties have several time periods built in for different parts of the machine.  In fact, sometimes the longest warranty periods will be advertised but these warranties are only valid for certain parts of the machine.  An extra long parts warranty on the cabinet is generally never fulfilled since the cabinet very rarely fails, even after 10 – 15 years.  A good parts warranty covers all parts in the machine, with very few exclusions (like vandalism and gross negligence).  It can take just one part not covered by warranty to more than account for a price difference in a proposal.  It is important to understand what is going to be covered so that you can factor this into the total equipment cost (and not just the price tag).

There are plenty of questions to ask relating to parts warranty.  Do the parts need to be returned?  In a tiered parts warranty, exactly what is covered under each time period?  Is there any paperwork to fill out or will your distributor handle that?  When the warranty parts are replaced by a distributor’s technician, is there any handling or other extra charges?  Also, make sure the lowest priced supplier has a comparable warranty.  Ask the questions before you buy so that you are not surprised later!

Service Training
Although there are surely instances where a trained service technician must be called in to do a repair, many of the common service issues can be solved with a little know how and a screwdriver.  The second area which you should research is the service training opportunities offered by the distributor.  When you purchase the equipment, good distributors offer ongoing service school training opportunities for their customers.  Many of these training sessions are wrapped up as a full day event of food, prizes, presentations and industry networking.  See what your distributor offers in terms of an Open House or Service Seminar for continual support of their customers.  Even if you can’t get to an Open House or Service Seminar before your purchase, a well-developed website might have video of their events available for viewing.

The best training sessions are taught directly by the manufacturer’s representative, so find out who teaches the classes.  How often are these schools held during the year?  The service technicians may also be a very good resource, since they are out there every day dealing with these service issues. Are the service technicians available on these days for one-on-one questions?  Is there any cost to attend the service school?  Attending these classes prior to buying equipment is a good way to experience the amount of distributor support that you’ll have moving forward.

In each of these areas, the most important thing is that you ask questions so that you are not surprised later.  Get to know your distributor well as they are going to be providing these services to you, either directly or as the agent between you and the manufacturer.  The more information that you can gather and understand before you purchase can alleviate frustration and confusion when you actually need the parts or service. Also visiting a bricks and mortar distributor headquarters will provide an idea of how well-established the business is and that there is a physical place you can go if you have an issue with your purchase.  Setting your expectations and understanding of the process early in the ownership process will allow you to concentrate on your day-to-day goals of making your business a success!

No comments:

Post a Comment