You want to get a sense of how tough the competition is and how much of
your business's resources it may take to compete.- Are the product lines featured frequently by chain stores, franchises or
buying groups in your market? - What specialty products or related products do not appear well represented
in the market? - What after-sale services are related to the product lines?
How many competitors offer these product-related services?
Who are these competitors and where are they in relation to your business
location? - Are there other questions that you should ask?
Apply these questions to each supplier or kinds of suppliers.
- Dealer program policy
Some manufacturers or distributors have structured dealer programs. These
programs can require certain minimum standards to qualify as a dealer and be
eligible for dealer pricing and the various items in their dealer support program.
Some businesses may find after they have taken on a product line that they
cannot afford to adhere to all of the requirements of the dealer program.Consequently, it is very important to do your homework and be sure that you
can sustain the dealer program once you have started. Otherwise, it can result in
a very costly mistake.