Jerry Gray
Sloan Electromechanical Service & Sales
Being an EASA member can be so much more than putting the Association’s logo on your company web site and making the occasional “help!” phone call to one of EASA’s talented technical support specialists. Of course there are so many other benefits. One of them is having the opportunity to build a “trusted” alliance network with other EASA members; doing this can truly help your customer, and thus help your business. When I use the term “trusted” alliance partner throughout this article, my intent is to point out the value of trust between other EASA members.
What is meant by “trusted”?
“Trusted” alliance means first and foremost that each EASA member respects the service or product being procured from the other member. As part of forming the trust, this requires that the owner or principals of the two EASA firms meet each other and agree that it is beneficial to do business with each other.
As the ethical and legal basis of a business transaction ultimately rests with the credibility and honesty of each principal in both firms, a genuine respectful relationship between the two EASA members will result from the first successful business transaction.
A second successful transaction result will yield TRUST, as trust is given after RESPECT is earned. Each of these EASA members has now formed or expanded their trusted alliance network.This actually makes working within our industry much more enjoyable!
What does a trusted alliance look like?
To your customer, it looks transparent. Their perceptions of your company will evolve as your company demonstrates it can meet their growing expectations.
To your sales people, they now have a larger shopping basket with more resources. They will have fewer opportunities in figuring out how to say politely say “no, we don’t do that or offer that.” Their sales will increase as will their attitudes!
From a detail perspective, here are some examples:
You are presented with a repair opportunity that is beyond your service center’s equipment handling capability. There are some things your service center can do, but from a liability perspective, you recognize that your trusted alliance partner is better served if he does those tasks. Because of your relationship with the trusted alliance partner, both of you can have an honest, open discussion of the best way to handle the opportunity and manage the liability.
Your organization chooses to:
- Manage the customer transaction
- Review the quality process and test reports from your alliance partner
- Perform the equipment commissioning with your customer
Your firm’s margin will be quite a bit less, but so is your liability. In fact, you have leveraged your company’s resources by sourcing this work while maintaining the existing service center production schedule. Therefore, using your trusted alliance partner is actually more profitable as your direct cost and overhead is minimal.
Another alliance example is sourcing equipment for your customer from a distributor who is an EASA member. By using the trusted alliance partner, meaning both principals have met, respect has been earned and trust given, the alliance partner is offering your organization the most favorable product price to enable the sale. While the normal product margin may not be possible, your company is meeting your customer’s needs, which may lead to more opportunities.
One other alliance example is subletting work to a trusted alliance partner to maintain a customer’s schedule. This can happen when the customer has a scheduled equipment shutdown and your service center load is already nearly full. By having a trusted alliance partner who is willing to do some component work (machining bearing fits, stator only rewinds, etc.), you are leveraging your service center and making the best use of everyone’s resources.
Not every transaction is going to be in the best interest of your customer in using the alliance network. Careful, judicious evaluation of your market, the value your organization adds, potential liability being incurred or shared and strengthening customer confidence are some of the important factors to consider.
Not every EASA member may become part of your trusted alliance network. But every EASA member has the potential of being in an alliance network.
How do you start an alliance?
Meet your EASA peers and discover their strengths! Having great conversations, discovering shared values and openly acknowledging one another’s strengths is the foundation for starting a new alliance relationship.
Make new business friends and potential trusted alliance network partners by attending chapter and regional meetings, joining a Roving Chief Executive (RCE) group, serving on one of EASA’s committees and attending the annual convention.
Many EASA members already are part of a trusted alliance network. They will readily agree that working in an alliance network has helped their customers and strengthened their business.
As I noted at the beginning, the benefits of being an EASA member can be much, much more than displaying the logo and an occasional phone call to St. Louis. By participating in the networking opportunities I mentioned earlier, you have a great opportunity to team up, talk to an EASA member, share an experience (good or bad) and discover what a larger, enjoyable EASA community there is through being part of a “trusted” alliance.
Related Reference and Training Materials
Print