Issue link: https://www.e-digitaleditions.com/i/92325
The Check's continued just have a tickler that reminds you it's time to do it. And before you know it, a month has passed and it just snow- balls. " Worst Case Scenario for a Service Tech: Being forced to work from behind during the hot summer months. So Mission makes it a point to service all of its equipment at least twice a year. However, there are areas where machines are serviced as many as four times a year, depending on the water quality or type of business. For example, says Lewis, "a bakery with a lot of yeast needs to be cleaned more than a restaurant. PM is just one of those areas you have to stay on top of. If you don't, the machines get dirty and they will perform at a reduced rate, which is not a problem in the winter. But when you get into the summer months, that's when you find out which machines are limping along and it can get pretty ugly if you're behind on routine mainte- nance. That's when the leasing business is really no fun, so we've made a commitment not to let that happen. There's a big preventative maintenance effort that goes on here 365 days out of the year. " After every preventative maintenance check, cus- tomers are asked to fill out a brief survey. One of the questions asks them to indicate their level of satisfac- tion with the service. Another requests their critique of Mission as a whole. The feedback goes directly to Lewis, which underscores another key to success in leasing—retention. Thirty days prior to the end of a leasing agreement, when DSR's call on customers to see if they would like to renew their lease, 95 per- cent agrees to an extension. Twenty-four years into a maturing business that's good news for Mission. "Leasing is like a drippy faucet, " says Lewis. "You don't get a whole lot of new leases in any one month. We try to grow our portfolio four to 10 machines a month per store location, and usually that growth is tilted toward the hotter months. That's when more people are thinking about ice. " u N The Other Alternative to Leasing: Four Points to Consider When Using Traditional Third-Party Financing because of its capital-intensive nature, points out Jack Lewis, Mission's owner and CEO. If you fall into this cat- egory, and prefer traditional financing, check out the Q&A below with Douglas Andring, the business develop- ment manager for Marlin National Accounts Finance Group. Q: What are the characteristics of a good/effective financing program? • A solid finance partner (someone that has been around and knows the foodservice industry) • A good relationship between the distributor/dealer and finance company • A finance partner that has the right people to establish relationships with the distributor/dealer • A finance partner that has the right technology to deliver a quality program (i.e., online quoting, online credit application, electronic leasing documents) Q: In your experience, what are common missteps from dealers in terms of screening? • Not checking out the finance partner in enough detail to confirm they are a good fit • Not verifying if the finance partner is a broker or a direct lender ot every dealer is a fan of an internal leasing pro- gram, and quite a few try to avoid it altogether 62 FEDA News & Views Q: Are there some current trends in financing that deal- ers should be aware of? • A current trend in the foodservice industry is the sup- port of subsidy programs, where the manufacturer or dis- tributor is partnering with the finance company to offer reduced financing to the end user, such as zero percent financing. • The involvement of a finance partner/program with a franchise, chain or company-owned stores, offering them the ability to use their capital in other areas besides equipment. • Not asking for references or asking if the finance com- pany has experience in the foodservice industry Q: Let's focus on a distributor that has a successful financing program. In your mind, what makes it a stand- out? • Generally a standout program is a result of establish- ing a good relationship over time • High energy and commitment from the distributor and the finance company • A finance company that understands the needs of the distributor/dealer and delivering on those needs: • special funding requirements • special steps involving the delivery and acceptance process • providing customer-facing communication when requested • providing a variety of training sessions to sales and operations if needed For more information on financing options, call Marlin's Douglas Andring at 817-421-8208 (phone) or 817-475- 2722 (mobile). The Pros & Cons of Leasing Leasing a lot of machines can create a miserable cash flow because the capital expenditures are so intense. But as time passes and more machines are paid for, and eventually all the machines are paid for, cash flow is terrific. It really helps stabilize a well-rounded business when you have a lease port- folio that comes in good times and bad times. —Mission CEO Jack Lewis