The "tripartite confrontation" model is the success philosophy of mechanical equipment dealers in Europe and America

Sales: Growth Engine

The sales department created an initial revenue stream and brought customers to both new and second-hand equipment. However, if dealers only focus on sales and do not consider long-term after-sales service and parts support, it will plant the hidden dangers of instability.

A strong sales team must collaborate with the parts and service teams to ensure that customers obtain the full life cycle value of the equipment. Without such collaboration, even the most outstanding sales efforts may only lead to one-off deals rather than lasting customer relationships.

Parts: Core contributors to profits

The parts department is crucial to the overall profitability of dealers. It operates in coordination with the service department to drive gross profit and absorption rate (referring to the ability of after-sales business to cover fixed costs).

Customers rely on high-quality and timely supplied parts to keep the equipment running. If the parts are not managed properly, even the best service team will find it difficult to meet the customers' demands. But strong sales alone are not enough - if the parts department is not operating well, customers may have difficulty maintaining the equipment, leading to frustration and business loss.

A strong parts department can enhance operational efficiency, support the service team, and increase customer loyalty by continuously providing critical support after sales are completed.

Service: The backbone of customer retention

The service department is also crucial for enhancing the gross profit of dealers and the overall absorption rate. When the equipment malfunctions, customers will seek service support, which makes this department a major driver of revenue.

Dealers with efficient service teams can maintain customer relationships for a long time after sales are completed, promote repurchase and drive the sales of parts. If the "service leg" is weak, it may lead to customer churn, which highlights the necessity of cultivating a well-trained, well-equipped and responsive service team.

The way to win through synergy

Balancing the dealers of the three departments can create a powerful synergy effect. The following are the methods to ensure efficient collaboration:

Cross-departmental collaboration - The sales team should introduce the parts and service departments at the early stage of the customer relationship, emphasizing the all-round service capabilities of the dealers.

2. Integrate customer support - The parts and service department needs to cooperate with sales to provide maintenance plans, extended warranties and value-added services to enhance long-term customer loyalty.

3. Technology Empowerment - By leveraging dealer management systems, remote monitoring, and predictive maintenance tools, ensure real-time synchronization of sales, parts, and services, enhancing efficiency and customer satisfaction.

4. Leadership and Responsibility - The management of dealers needs to cultivate a culture of "sharing success", making each department clear about its role in the customer journey.