The flood gates are open and new vehicles are hitting the roads faster than ever before according to the latest VFACTS sales figures from the FCAI. But factories need new orders to keep the sausage machine ticking over and manufacturers are planning to target Fleet Managers.
Some manufacturers will be welcome with open arms because they have nurtured fleet relationships over the last four years. The new entrants will need to prove themselves while others will need to adapt their sales model to accomodate well established fleet purchasing processes.
In discussions with many Fleet Managers, some manufacturers will need to rebuild their reputations after ignoring fleets completely during the COVID years. These manufacturers forgot that favours keep you in the good books even if you can’t supply cars.
Another challenge for vehicle manufacturers is the B2B sales cycle. Fleet buyers behave differently to retail buyers. There can be many hurdles to overcome when buying for a fleet compared to a household where there’s one main decision maker.
Fleet buyers plan six to 12 months in advance. An enquiry for an electric van might be the start of an 18 month purchasing cycle that will follow well trodden B2B sales path which if successful, opens the door to years of ongoing orders.
There’s an acknowledgment by all salespeople that customers purchase goods or services from people they like. This is the only common ground between retail and fleet buyers. The difference is the time between purchases.
Retail buyers will visit the dealership every four to seven years so each time they are meeting someone new and building a ‘light touch’ relationship in order to complete the purchase.
Fleet Managers are in constant contact with their preferred manufacturer to build strong relationships across many areas of the business including the dealer network. This takes years to develop, and longer to repair if damaged; or disrupted by a global pandemic and short sighted decision making.
Decision makers you have been warned! If you’re expecting to quickly move slow selling or over stocked models through a broken relationship with fleet buyers, the fleet sales team might need some time to repair the relationship before asking for some favours.
