How do I check a wrap shop’s fleet customers are likely to keep ordering?
Look at when each fleet customer last ordered, how often, and who at the customer places the order. Then ask whether the work is under a written agreement, how those customers feel about a change of owner, and whether you may speak with a few of them.
Fleet work is attractive because it repeats, but repeat is something you should prove. Ask for sales by customer across several years, then list fleet accounts by how recently and how often they ordered. A customer who ordered a full fleet once and never returned is not a fleet account, whatever the seller calls it. Look for steady small reorders as well, such as new trucks, replacements after collisions and logo updates.
Next, find out who holds the relationship. Does the fleet manager call the owner’s cell phone, or the shop’s front desk? If the owner personally handles every account, those accounts may leave when the owner does. Ask whether any customers use a supply agreement, a preferred-vendor listing or just informal habit. Ask your lawyer what a purchase agreement can say about customer introductions.
Finally, ask to meet two or three of the biggest fleet buyers once the seller agrees. Ask them what they value, whether they get quotes elsewhere, and what would make them switch. Ask also how the shop handles rush orders and warranty fixes for these customers, because fleet managers often stay loyal to the shop that answers quickly when a truck is off the road.
Key takeaways
- Chart each fleet customer’s order dates to see whether the repeat work is real.
- Find out whether the relationship sits with the shop or only with the owner.
- Speak with major fleet buyers, with the seller’s consent, before closing.
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?
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