How do I check an auto glass company’s adhesive and urethane supplier terms?
Ask for the supplier agreements and recent invoices for adhesive, urethane and primers. Check pricing terms, credit arrangements and what happens if supply stops. Then see how the shop stores and rotates product, since expired adhesive can ruin a job and bring back a customer.
Start with the paperwork. Ask who supplies the urethane and primers, whether there is a written agreement, and how prices are set and changed. Look for any minimum purchase promise or rebate that depends on staying with one supplier. Note the payment terms as well, because a supplier who can tighten credit can squeeze a small shop’s cash.
Then look for a backup. If the main supplier had a shortage, could the shop switch to another product, and would the installers be trained to use it? Some adhesives suit certain windshields and conditions, so a swap is not always simple. Ask whether the shop has ever run short.
Finally, check the shelf. Ask how stock is dated, stored and rotated, and look at the storage area yourself. Expired or poorly kept product is a quality risk. Ask whether the supplier’s terms pass to a new owner. Your lawyer can read the agreement, and your accountant can review how the costs sit against sales. Ask also how the shop handles product that fails or is recalled, and who pays for redoing the work. Knowing how the supplier responds when something goes wrong tells you more than any price list can.
Key takeaways
- Read supplier agreements for minimums, rebates and credit terms.
- Ask whether a second adhesive supplier is ready to step in.
- Inspect storage and dating of the product on the shelf.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
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