When picking a partner, brokers should evaluate the company, its people and its finances
Lester Dominick, president and CEO, MortgageFlexSystems Inc.
As published in Scotsman Guide's Residential Edition, January 2009.
Seeing is believing. But too often, what you see turns out to be something different than what you thought you were buying. This kind of realization can be especially painful after you’ve spent time and money selecting a product or service intended to grow your company.
When it comes to selecting vendors to help you improve your mortgage business, remember to see through graphic-heavy sales presentations and to concentrate on three areas of greatest concern: product, people and finances. Think of these as the proverbial three legs on a stool. Take away any one of these legs, and the stool falls. Mortgage brokers should keep this in mind when selecting vendors of all types, from front-end lead-suppliers to back-end technology-providers and everything in between.
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Product
If a vendor’s product or service doesn’t fill your need, then everything else is beside the point. Ensure you understand it throroughly.
When evaluating the product or service, make sure to ask questions specific to your company and its requirements. If a product does one thing well but must be tweaked to serve your purposes, then it might not be the best fit. Dig deep and don’t be afraid to express your concerns.
Vendors may think they know what you want, but you’re the one who actually understands your business and your needs. Beyond asking the right questions, it’s also important to check the veracity of the answers. As President Reagan liked to say, “Trust, but verify.”
Seek concrete data that substantiate product claims. For example, if a technology product is supposed to improve efficiency by a certain percent, ask for proof. Most well-informed salespeople will be happy to back up what they say with tangible data.
Another good way to learn about a good or service is to visit a prospective vendor’s place of business. This could be anything from a typical office to a specialized data-storage facility to a warehouse.
People
In many ways, a company is only as good as its people. Often, the success or failure of a vendor’s business is determined by how well its employees are trained, coordinated and assigned.
Mortgage brokers should inquire about the specific people they’ll be working with in a vendor’s organization. Brokers also should be able to meet those people and learn about them before they agree to purchase a vendor’s product or service. More than a few failed implementations could have been avoided if customers knew ahead of time whether necessary and qualified staff existed.
Don’t stop your investigation at the implementation-team level. Investigate management stability, too. If a vendor is constantly experiencing management turnover, that’s a red flag.
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