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Is Your Recommendation Based on Experience or a Referral Agreement?

In our industry there are so many companies vying for the dealership's attention and ultimately their business. It’s sometimes very difficult for the decision makers to cut through the mess and make a decision. It'is typically something they don’t deal with everyday so they look for advice from peers or possibly hire an industry consultant to help them vet vendors.

Reaching out to peers for advice is a good way to understand what type of company they are and how they are to do business with but what works at your peer’s dealership may not work at yours because no two dealerships are not created equal. That’s where hiring a consultant can fill in the gaps.

A consultant by definition is a person who gives professional advice or services to a company for a fee. You are hiring them to help you make decisions on products and services that are best suited for your individual needs. Shouldn’t that be unbiased and based on experience? Would you be shocked to know that many consultants in our industry make recommendations based on which vendor will pay them a recurring referral fee? Does that sound professional? Unbiased? It’s not.

I’m proud of Dealer Authority. We don’t accept referral fees from any vendor. We vet out and work with trusted vendors regularly, but not because we're going to get a referral fee when we tell our clients about them. We make recommendations on a daily basis to our dealership clients and there is no incentive there except for doing the right thing. That’s the way it should be.

The next time you receive a recommendation be sure you understand where that recommendation is coming from. It should be unbiased and not include financial benefit to the person recommending it to you.

Views: 194

Tags: Consultants, Recommendations, Vendors

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Influencer
Comment by Jeff Glackin on July 14, 2015 at 7:22am

Amen, thanks Tyson! Its great to be part of a company that focuses on Core Values.


Influencer
Comment by Tyson Madliger on July 14, 2015 at 7:09am

Jeff, I love this article and hits a topic I am also very passionate. Dealerships should expect consultants that they hire to recommend other vendors based on their merits and no the commission they will make on the referral.

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