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February 2012 Supplement
February 2012 Supplement




Has Purchasing a Bus Gotten Any Easier?
By: Terry Butler

Ministries that are seeking bus transportation are seeing a different landscape than just a few years ago. There is a lot more information available and, with it, some increased confusion. Can you trust this information, does it have authority, and is integrity its foundation? Where can you go to find out the fair market value of a bus or van?

Bus dealers are experiencing more competitive activity than ever before. Dealers now scrutinize competitor's Web sites and implement the best marketing/advertising/service and after-the-sale practices as well. Dealers are attending conferences and shows in greater numbers on a regular basis. Dealers are joining professional organizations to better serve specific market segments.

Where we had seen a dramatic move by states and insurance companies to limit the use of 15-passenger vans, the limiting has been slowed or tabled. In the case of the religious market, we have seen churches and related organizations overlooked or ignored by changes to laws. Be sure to check very closely when legal information is casually mentioned.

One of the hot issues today is seat belts and what exactly users have to do to comply with the law. Seat retrofitting is costly and difficult if you can find a dealer that will do it. Some laws are not fully specific as to whether all seats or only a percentage of seats need to be equipped with booster and/or infant seats. Are there more flexible solutions that meet the safety requirements? In some cases, these laws have also been slowed or diluted or tabled. Where do you go to get answers and solutions?

Today's bus customer can come to market with more information than ever before. If a customer has a willingness to shop for price/value, there are some good deals to be had. Customers can create competition between dealers if both carry the same manufacturer's vehicles.

In many cases, if a dealer quote is not the lowest initial price, they are dropped from customer consideration regardless of other value-added factors. This is a two-edged sword. Customers may accept a 5% lower price but give up a 15% to 20% value in after-the-sale service and customer assistance.

Some dealers have chosen a long-term strategy to take market share at the expense of profit in order to gain on future sales, eliminate competition, and earn increased volume discounts from manufacturers. Something to remember when seeking the lowest price solution is to be as sure as possible that you are getting an "apples-to-apples" comparison.

How do we compare vehicles? There are a variety of ways, from something as simple as flooring and seat fabric to engines and air conditioning units. There are significant differences possible in every area, and it takes knowing what to look for and how to get a genuine answer. Something else to consider is that manufacturers and dealers have a business model. Their business model can be especially beneficial for the manufacturer/dealer, the customer, or both.

You should understand that dealers genuinely offer their product as the equivalent of others. This is true based on what they have to offer. Dealers offering multiple vehicle lines are best able to give the apples-to-apples comparisons.

Decide what you need from your transportation. Explain your needs to the dealer representative. Get insights on how the law, insurance coverage/rates, and operating costs are expected to change in coming years. Learn how to question dealer representatives effectively, and decide whether your interest and theirs are aligned.

Bus dealers are suffering from the "Internet prospect syndrome." Because so many prospects shop via the Internet, the quantity of leads is increasing dramatically, but the quality (sales vs. leads) of the leads is declining. I recommend that you contact the dealer representative by telephone and take other steps to contact the service manager, parts manager, and warranty manager. These are the people who will play an important role in your after-the-sale relationship.

Buying a bus today is more complicated than ever. More resources are available than ever, but it all takes time. At the heart of it all, we all want to be good stewards of God's resources, and stewardship extends well beyond the purchase. Do your homework, seek wise counsel, investigate thoroughly, and make decisions on more than just price.

Terry Butler is national partner program director for Carpenter Bus Sales, www.carpenterbus.com.



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