Tire Kicking: How Misalignment and Indecisiveness in Site Selection will Work Against You
If you haven’t heard the term, a tire kicker is someone who is indecisive about buying a product or service, often never satisfied that they haven’t been shown the “right” product or service yet. Car salespeople coined the term for people who would come to dealerships just to look at a few cars, ask a few questions, and leave without any intent of buying a car.
Unsurprisingly, people and companies can have a tire kicking mentality in any decision making environment. Sayings such as paralysis by analysis, perfect is the enemy of good, and indecision is the enemy of progress all relate to the downside of not being able to make a decision.
Companies who are indecisive about leasing or purchasing an industrial property are often still in the exploratory phase of site selection. They have not obtained internal alignment on the project and are not ready to actively pursue available options. Therefore, their tire kicking is often a symptom that the company has not completed a prior required step in the site selection process, not that they are pre-disposed to being indecisive or unaccepting of anything less than perfection.
In many North American markets indecisiveness can prove costly when pursuing the lease or purchase of industrial real estate. Whenever there is a lack of available properties, strong demand from other companies looking for space, and limited new construction, indecisiveness often means losing the ability to lease or purchase the best available options, impacts to the company’s supply chain, frustrating partners, and wasting resources.
In most instances, companies should confirm they are internally aligned and ready to begin the negotiation phase of site selection before submitting a letter of intent to lease or purchase. This will reduce or eliminate internal indecisiveness and allow them to fully commit to the completion of the site selection process.
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