Good or bad elevator dealer – how to tell the difference?

Setting up a dealership is easy and low-cost, which is why a new elevator dealer seems to pop up every other day. But this also sets the stage for what we term ‘disasters’. That’s when a dealer disappears and leaves the client with an elevator that no one can service or repair. Or worse yet, disappears before the elevator has even arrived. This leaves the client with less money and nothing to show for it.

So how do you tell whether you have a good dealer or a bad dealer? While there is no guarantee, there are a few red and green flags to look out for!

How Long Has the Dealer Been Active in the Market?

A dealer that has been around for a minimum of 7 years tends to be of the more reliable sort. It is estimated that 90% of startups go bankrupt within 7 years of being founded. Past the 7 year mark, your chances of having a bad dealer fall dramatically.

Meanwhile, dealers that have only been around for a year or two are the most vulnerable. Often, they even sell lifts at a loss to generate cashflow, thereby increasing market share. If they manage to sell enough and eventually raise prices, they can pull through. However, most of the time they just end up going bust.

How Long Has this Good Elevator Dealer Carried Your Brand?

So you’ve found a dealer that has been there for over 10 years – great! Unfortunately, he’s only sold your brand for a year. Worse yet, it seems that he changes brands every 1-2 years!

This is a gigantic red flag and shows a dealer that will be ultra-focused on his margins. The changes are due to negotiations with manufacturers, and the dealer choosing whichever elevator brand charges him the least amount of money.

Not only is this bad for you on the long-term (he will change brands again and no longer be able to service / repair / order spare parts for your lift) but it is also bad on the short term as well! Why? Because this kind of dealer will order the cheapest configuration of lift. Often, they will removing any aesthetic options like platform covers or painted rivets, just to maximize their margins.

How Many Brands Does this Good Elevator Dealer Carry?

If your dealer is carrying only 1, maximum 2 brands, chances are higher that it is a stronger dealer.

Lifts are extremely complex pieces of machinery, requiring both mechanical and electrical expertise to install correctly. Worse yet, the Operating System for all is vastly differen. Experience means the difference between a 10 day installation and a 25 day installation with constant service calls over the following months.

It’s easy to believe the line “we have all these brands so we always know the perfect solution for you!”. However the reality is that these dealers tend to be dealers of all brands but masters of none. As soon as a problem arises, they don’t have the experience or the expertise to solve it. They then rely on feedback from the manufacturer which can take ages.

Meanwhile, a dealer that only sells 1 brand for a long period of time will tend to be well-versed in those products, sometimes operating almost as efficiently as a factory-direct firm.

So Many Risks – Isn’t There a Better Alternative to Dealers?

Of course there is: factory-direct.

Much like buying from the Apple Store seems a lot safer than buying from an Authorised Apple Reseller, buying from factory-direct subsidiaries is a much safer proposition.

This is especially true with larger manufacturers, like Cibes, with factories across multiple continents, and the capital to keep all subsidiaries funded during their expansion and in case of emergencies.

Simply put – a factory-direct subsidiary is there for the long term, only deals in one product, and gets priority support.