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5 Questions to Consider Before Contracting with a New Technology Vendor

Article Highlights:

  • Take the first step in finding your new technology vendor.
  • “It’s unwise to pay too much, but it’s worse to pay too little."

Taking the first step in looking for a new technology provider is difficult. Even more difficult, making sure you ask the right questions and take the correct steps to ensure your choice is the right one.

Here are five questions to ask yourself before you get started:

1. Why am I looking to make a change in the first place?

It’s possible your situation has changed (business is growing, trying to deal with millennials, etc.). Maybe your current provider isn’t up to par. Don’t just make a change. Have a purpose.

Obviously something happened that triggered your mind to start looking at different vendors. Take a step back. You need to think about what is and is not working with your current processes. What triggered action in your mind?

2. What are my must-haves?

There are things you can go without, and then some you’ve got to have. Make a list of those items and stick to it! Making sure you have all of the tools you need in order to be successful will only make your dealership and employees more productive. Think outside of the box. That’s the way we’ve always done it are the seven most expensive words in business.

3. What am I willing to spend?

To avoid buyer’s remorse, understand what you are willing to spend. Doing so will allow you to choose viable vendor options in your price range.

But, remember, “It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.” – John Ruskin.

You get what you pay for.

4. How much do I know about the vendors I’m considering?

How much research have you done on each vendor? Is the research you have compiled hearsay or concrete facts about the business? Take a few moments out of your day and research the vendors you feel would be good options. It is vital to form your own opinion about the different vendors because your business is unique to you. You need to run it as such.

5. What are my options?

After asking the four previous questions, ask yourself “What are my options?” Knowing what you are looking for, what you need, how much you are willing to spend, and facts about the business, will easily weed out the vendors who cannot meet those needs.

Conclusion

These questions are only the start. For more help, use a buyer’s guide to help you map out the steps you need to take and questions you should be asking. In the end, you’ll find the right vendor for your business.

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Keith Hill is vice president of Sales for Reynolds and Reynolds, leading the U.S. Systems Sales organization. During a 16-year career at Reynolds, Hill has gained a breadth of industry and dealership experience, having served in service, training, and sales leadership roles for Reynolds.