DISTRIBUTOR MEMO # 03-28

TO: ALL DISTRIBUTORS

FROM: DAVID Q. BOWMAN

RE: CONSTRUCTION BULLETIN SERVICES

DATE: June 6, 2003

Dear Ladies and Gentlemen:

Sales Bulletin – You can lead or you can follow, it is your choice. Either write the specs or be very skilled at competing with what you sell!

Mohawk has just completed two comprehensive distributor visits to the Amsterdam factory by Midway Equipment of Northern California and most recently Nichol Marketing of St. Louis MO. Rather than anyone from Mohawk trying to expound on the value gained by three days of product immersion I would suggest you contact Bob Nichol or Ken Johnson directly. From our standpoint it was a tremendous opportunity to exchange information and review our product and promotional plans in detail.

Both distributors spent their time here with our complete product line, especially the Parallelogram and the Mobile Columns. We took a “deep dive” approach to reviewing every detail of the products and how we faired with the competition. It became obvious that some of our sales people have overlooked an enormous amount of important detail regarding the design and quality of both products. They have been satisfied with picking only the “low hanging fruit” and allowing ARI Hetra, Stertil Koni and Advantage to win the majority of face offs.

This became vividly clear the night that we walked into a local truck repair shop that embarrassingly had purchased Koni mobile columns in Mohawk’s back yard. What we saw with relatively new Koni units, reinforced the fact that a) Some sales people really do not fully understand our competitor’s products b) Our competitors have done an excellent job diverting people away from their numerous and obvious weaknesses and c) Off the trade show floor versus in the real world, the competitors products were quick to show distinct weaknesses that are not inherent with Mohawk.

With the high purchase value of Mobile Columns and Parallelogram products, we have entered into the new selling arena of the sales “specialist”. The competitive sales force is a focused and highly specialized group that religiously makes the fleet and government calls to establish relationships with the key people that write the specifications. These highly trained sales groups know their product and yours inside out. They turn your strengths into weaknesses and their weaknesses into strengths. The bar has been raised on the skill level of the lift sales person.

How can less, be more, when purchasing any product? This theory flies in the face of everything that has made Mohawk successful. Let me give you some of the more obvious examples:

  • Mohawk product warranty of 3 years on the MP-s and 2 years on the PL-s far exceeds most competitors. With Sefac and Ari Hetra, only the vulnerable screw and nut assembly (parts only if properly maintained and lubricated) are warranted five years.
  • Mohawk uses a premium pallet jack style lifting system with two steel wheels with a phynolic rubber surface. Check out the other brands with either one wheel or plastic wheels. Try for example moving the competitive brands over an expansion seam in the floor.
  • Mohawk mobile columns lift faster than virtually every other brand. Is speed important?
  • Mohawk provides adjustable forks standard for rims 13” to 24” up to a 48” tire. Virtually everyone else sells the wheel reducer sleeves separately. Who else offers the tandem axle column design?
  • The leading competitor, with an electric hydraulic design, has a column that is 10% lighter and uses a light fishing wire and potentiometer versus the MP chain and magnetic induction switch.
  • Mohawk has more Mobile column lifting capacities to choose from- not less.
  • Mohawk MP’s require less operator maintenance over the long- term versus electrical mechanical components. With our exclusive limited lifetime cylinder and slider bearing warranty we clearly have a stronger selling feature.
  • The leading parallelogram competitor has to date affectively sold the theory that “no base plate, less steel” makes a better product. This is similar to saying that an SPO-15 two-post is a heavier and stronger product than a TP-15. The fact remains that the “Perpetual Track” base plate and heavy reinforced runways of the PL- series Mohawk exert far less stress on the floor (less than 50psi when fully loaded) and have far less deck deflection when using a jacking beam.
  • PL lifts use a PLC (Programmable Logic Control) that displays fault codes and diagnostic messages rather than just warning lights.
  • The PL series uses a premium diamond plate steel runway surface with a higher co-efficient of friction for better traction.
  • The PL series uses space aged “composite material” self- lubricating bushings and polished chrome plated hinge pins for longer life and less maintenance. This became a major problem with premature failure with competitor “A” at a large North East installation.
  • The PL series has incorporated the cylinders, electrical switch panels, air locks and the Optic Encoders safely under the deck for longer life and lower maintenance.
  • PL series lifts are coated with a premium “Rustoleum Brand” rust inhibiting paint finish.
  • Competitive Mobile Columns have as little as 9” column to fork clearance (MP lifts have a 14” clearance) and clearly specify that the floor must not be sloped more than + or - 2 degrees
  • The first two-post surface mounted passenger car lifts to enter the USA back in the 1970’s were electrical/mechanical screw designs. Where is this design today? They sell Hoffmann, Stenhoj, Maha, Wether lifts still in Europe: why not here? Answer: they were a maintenance nightmare when they began to get well used!

I believe that when you speak with either Ken Johnson or Bob Nichol they will say that they are now better focused, better informed, more self confident, and back to using the basic sales philosophy that has made Mohawk the leading premium brand lift manufacturer in North America. We have all of the sales tools, competitive information and detailed product analysis to make anyone a more effective sales person. (see Ken Johnson’s attached letter)

Another important point to always remember is that export trade depends heavily on currency value. When Stertil Koni (Holland/Italy), Sefac (France), Rotary (German Made Mobiles), Wheeltronic (Finland/Italy), and Maha (Germany) established their current pricing structure the Euro was at .85 to the US dollar. As I write this letter the Euro is at 1.183. As examples, where are the brands Hywema, Lifton, ARI’s Parallelogram, and Sumers from the UK?

Ask yourself how long anyone can absorb negative cost variances this large and continue to be competitive. Ask your customer if they are concerned about the potential of one day being orphaned by an “off shore” manufacturer that has closed their US operation? Currency changes either mean higher prices or the company in question can be charges with “dumping” into the USA.

The more I learn the more I would rather be selling Mohawk. How about you, is it time to re-focus your selling skills and re-load your product knowledge? When have you planned your visit to Amsterdam?

Good Luck and Good Selling

David Q. Bowman

Sales Manager HD Lifts