R.O.I. or B.S. (Part 1)

I have decided to add some additional content to my blog which I call “ROI or BS” (and you know what BS stands for). The blog entries will consist of analyzing Return-On-Investment (ROI) and performance claims from various vendors that I receive from time to time. Some of the claims I analyzed were compiled to out-rightly deceive, while others conjured-up preconceived assumptions of my operational profile and costs. I will not mention the specific names of the companies or products that I evaluate, but provided you with a generic title of the product in question.

Now…we have all received our fair share of vendors touting the benefits of purchasing their products. Many of them come prepared for the grand sales pitch with so-called “documented proof” that their product will save us money, and as our economy continues to decline, their claims have become even more grandiose. But when you add up the numbers, something just doesn’t seem right.

I have researched many different claims over the years and will list them in future blog posts. But for now, let’s begin this post with some friendly advice on how you can perform you own analysis.

Here are some ways to check if the company and/or product claims are legit:

1.  Get the names and phone numbers of their customers providing the testimonials. Do some research and find out who you are talking to. Determine if they are even qualified to make such claims. How did they conduct their research and how did they develop the parameters and measurements. Do their clients have degrees in engineering or chemical manufacturing? Since most fleet managers have neither a chemical or engineering degree, it would be difficult (if not impossible) for them to authenticate the manufacturer’s claims.  A red-alarm should go off in your head for any company refusing to provide you with the contact information.
2.  Go to their website (if they have one) and look at the content. Do they provide a valid business address and contact information. Does their website look professional (not necessarily proof of legitimacy) but a poorly designed website that has not been updated should be of concern.
3.  Look at their email address. A generic email address containing an AOL, Hotmail, or Gmail etc. domain might be cause for apprehension but should not be considered a disqualifier. Established businesses usually provide their sales force with a company email address.
4.  Does the sales literature have a professional appearance? Are there several misspelled words or generic pictures that don’t accurately reflect the product. Does their business card have that “printed on the home computer look”?
5.  Consult the Better Business Bureau online and look for complaints.
6.  Do they have a valid business license and insurance for the products that they sell?
7.  Do you own math! Do not take their assumptions as proof of savings. Determine what parameters they used in their calculations and evaluate the similarities within your fleet operation.
8.  Stay away from products that have no testing history behind it. Some manufacturers claim that they are just starting-out and are trying to use you as a test bed to vet their product.
9.  Contact a reliable and professional source of information. If you receive a claim of higher gas mileage for a specific additive, contact the National Petroleum Institute.
10.  If they cite an approved and registered patent, go the U.S. Patent Office Website and read the document. However, you must remember that the existence of a patent does not provide proof as to the claims of its author. The U.S. Patent Office is not a testing agency and only approves patents for those products that are unique and substantially different from previous registered patents currently on file. Patents merely protect the inventor from others who may wish to copy their product. The U.S. Patent Office will not make any statements as to the validity of the patent applicant’s claims.
11.  If they cite a specific testing laboratory that proved their product worked, determine the parameters in which the vendor wanted the product or device tested for. Remember, the labs will only test the areas in which the manufacturer requests. For example: An oil supplement may be tested for reduced NOX emissions, but not an increase in engine MPG or performance.
12.  Google the name of the company and look for the following:
a. Lawsuits from the use of their product/device.
b. Is the owner’s/developer’s name associated with other products or businesses selling the same or similar products? If the same   product has several names, there’s a good chance it’s BS!
c. Has the inventor(s) been named in other civil lawsuits involving similar products.
d. Blogs listing the products as a scam.
13.  Lastly, use your common sense! If it sounds too good to be true it probably isn’t. Why haven’t you heard of the new oil additive that will save you 20% on your fuel mileage? With gas prices as high as they are today, one would assume it would make national news.

My next post will be on how to properly analyze an ROI.