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Beware of Exclusivity Agreements

Apart from a number of significant lift companies going into administration over the past year, the next most significant issue for customers is lift suppliers entering into exclusivity arrangements with manufacturers.

If a lift company supplies equipment that is manufactured by them, or, their exclusive overseas manufacturer, it is possible that a customer will not be able to have their lift maintained or repaired by any other company for the entire working life of the lift. The life expectancy of a lift can 20 to 30 years! Imagine being in a relationship you can’t get out of for 30 years? Unlike the car industry, where manufacturers were forced to share diagnostic equipment and supply parts promptly and at a fair price to third parties, the lift industry has no such regulations. The governing body on corporate behaviour the ACCC has been silent on the lift industry.

If a lift owner finds themselves using an unethical lift company with an exclusive arrangement with a lift manufacturer, they will be at the mercy of the lift company for maintenance pricing and the price of repairs. It is not unusual for maintenance costs to be 30% more expensive than they should be and repairs to be 100% to 300% more expensive! One of the most common complaints I have heard is that their lift company simply doesn’t care. Lift companies take days to respond to urgent matters or not at all. Customer service simply doesn’t matter as their customers are locked in!

The consequences of having no options and being locked in to just one supplier are obvious, so the logical question is: How do I avoid unethical companies? Fortunately, the answer is fairly simple. Before deciding on a lift supplier, a purchaser should contact a range of lift maintenance companies that only maintain lifts and do not supply lifts to new builds. Most third-party maintenance companies will give honest recommendations as brands to use and those to avoid, based on the availability of technical support and spare parts etc….

The exploitation of customers by some lift companies will continue until the ACCC becomes involved and sorts it out, just as they did with the car industry. I wish lift purchasers all the best and urge them to make sure they establish the ongoing support of their lift before they buy!

Published: January 15, 2026

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