What should I ask about a collision shop’s reliance on one paint supplier?

Start with the purchasing records. Group paint, primer, clearcoat and consumables by supplier and see how concentrated they are. Ask the seller why this supplier: price, quality, delivery speed, colour tools or a long relationship. Find out whether there is a written supply agreement, and whether any rebates, credit or equipment loans depend on the owner’s history or on buying volumes. Next, look at what comes with the product. Does the supplier mix colours on site, provide training, support insurer approvals or lend equipment such as a mixing system? Those extras make switching harder. Ask whether the supplier has changed terms lately, and what the shop would do if deliveries were delayed.

Check the stock on the shelves too. How much paint is on hand, how old is it and who owns it if the supply is on consignment? Ask the supplier, with the seller’s consent, whether they expect the arrangement to continue with a new owner. Have your lawyer review any agreement for transfer rights. Compare at least one alternative supplier’s ordering and delivery arrangements so you know what a switch would really involve. Note every answer.

Key takeaways

• Group purchases by supplier to see how concentrated the paint spend really is.
• Ask what the supplier provides beyond product that would be lost in a switch.
• Confirm in writing whether pricing, rebates and credit continue under new ownership.