Youve got to be kidding me! When buying technology, never sign a long-term agreement!

Why would any vendor selling the best technology ask you to sign a long-term agreement? Have long-term agreements ever benefited you, the dealer?

In todays marketplace, where new technology is introduced every day, there are still vendors out there asking for three, four, and five-year agreements! Why? Technology is becoming more affordable-over time you should be paying less and less, right?

What happens when a vendor sells you something for $4,000 per month, for 36 months? Most vendors factor the agreement with a bank- the vendor gets all their money up front and you have the agreement with the bank, not the vendor! The vendor looks much bigger than they are because you, the dealer, fed their cash flow! Make sure your vendor can provide, and that you are paying for expertise and results. After all, you are in this business to make money, and if a vendor is not making you quantifiable revenue, why should you be forced to continue the relationship? If you base your investment on continual results, then you have the right to find another vendor if youre not getting results!

The only time a dealer should sign a long-term agreement is once an ongoing relationship with the vendor has proven itself to be profitable, and that youre satisfied they can, and will continue to perform. If the vendor offers you a better price for a long-term commitment, go monthly and pay more, until you are certain you want the relationship.

Top quality, reputable vendors are willing to stand behind their results on a monthly basis. If not, be careful! Has any long-term vendor contract youve signed in the past ever really benefited you?

John M. Miller is the CEO of @utoRevenue&trade-, a nationally recognized permission based email marketing (PBEM) company in the automotive industry. For more information please call 413-528-8000 x102, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or visit www.autorevenue.com.