By Bill Adams
Most fire apparatus manufacturers have Web sites enabling prospective purchasers to locate their closest authorized dealer.
In some instances, the manufacturer itself is listed as the primary sales contact. Little known and seldom advertised is the fact the majority of apparatus manufacturers sell rigs "factory direct" albeit for varied, valid, and understandable reasons. When a fire department inquires about whether it can purchase factory direct or demands to, a quandary can develop, putting apparatus manufacturers in an uncomfortable position and dealers in a precarious one. The topic can be as volatile as boiling gasoline in an open container on a campfire. The intent of this article is to address the subject in a manner understandable to purchasers yet fair and equitable for dealers and manufacturers.
Purchasers' perceptions of apparatus manufacturers and their distribution networks are based on a "right now" assessment and may not be entirely objective. Almost all manufacturers, including the larger ones and those in business for generations, all started out small. Access their histories. Most founders were blacksmiths, fabricators, or operated repair shops. Usually the owner/sole-proprietor started out fixing someone's broken fire truck, then built one for the local fire department, then one for a neighboring department. Have you ever heard of Don Smeal, Sam Saulsbury, Chris Ferrara, Elmer Abrahamson, Carlton Maxim, Harold Boer, or John Kovatch Jr.? When these people started in business, they did not inherit large, well-established distribution networks (dealers and dealerships). They started out selling factory direct. As their businesses expanded into statewide, regional, national, and international markets, so did their marketing and sales strategies. Along the way they established personal relationships with some of their first customers and some of their original dealers. Those relationships can be as strong now as when forged.
Today, most large and midsize apparatus manufacturers sell via dealers. Smaller and regional manufacturers don't always do so. Caution-it could be by choice. It's not fair to compare the distribution networks and sales policies of manufacturers building 30 rigs per year with those building 300 rigs per year. Purchasers should be cognizant of the fact that many regional and smaller builders are very comfortable with their size, their annual sales, and their methods of marketing. The number of employees, size of their facilities, and how they sell are not necessarily reflective of the quality of their finished product.
The particulars of the business relationships between manufacturers and their dealers are personal, usually contractually binding, and bluntly none of a fire department's business. Purchasers shouldn't ask. Apparatus dealerships are unlike automobile dealerships where there may be multiple dealers in one city. Apparatus manufacturers have one dealership per territory. A dealership's customer base remains constant-only those fire departments within its territory.
Direct Sales
My interpretation of a direct sale, sometimes called a house account, is a sale that is not handled by a local dealer. It can be by the manufacturer's owner himself, through in-house sales staff, a regional sales manager, or a factory store. Several manufacturers own and operate regional service centers, which may employ local sales staffs.
The primary reason for selling direct is not having a local dealer in a territory. The military, cooperative purchasing consortiums, the federal government, and export sales are usually administered from single locations. It makes sense for a direct factory relationship to manage those types of accounts. Occasionally, there are very technical, highly complex vehicles requiring such an inordinate amount of factory involvement that it's logical for t