DEALERtodealer
Getting Ready For The Season SAM STEARNS
How we handle our unique situations will define our success.
(which is generally the only kind of reasoning I do): For the past several months, virtually all of us are spending much more money than before just to buy life’s essentials. Incomes, on the whole, have not risen with the level of increased spending. Thus, there is less overall expendable income for most households than in the recent past. On top of that, power equipment is a lot more expensive than it was a couple of years ago. The residential zero-turns we were selling for under $5,000 in 2021 are around $6,000 today, and the commercial zero-turn that was $14,000 in 2021 is now nearly $18,000. And
the business that can make us obscene amounts of money. Are you flat rating? Are you assigning the right amount of billable time to jobs so that your best tech is billing out at least 125% of his time? Are you adjusting your flat rate BY SAM STEARNS times according to the condition of the equipment? How does your recovery he 2023 season is going to have rate look in your shops? Paying attenits challenges, as all years do. Our tion to these metrics will work wonders! job as business owners/managers Second to service is your parts deis to identify the challenges and get partment. Do you have a pricing system ahead of them. All of us have challenges in place for your parts such that your that are unique to each of our businessprofit margin is 48%-53%, yet you’re es. You may have challenges related to super competitive on price sensitive your particular location, your particular items? Do your parts people consistenthealth or motivation (hey, it ly cross sell? Do they offer an air happens!), or with the brands you filter and a quart of ethanol-free carry at your dealership. SomeNo one wants an empty showroom, fuel along with that carburetor? thing that seems to be pretty These are great opportunities to but I’m thinking a showroom full of increase your parts department widespread among dealerships the past few years is personnel profitability. product when people aren’t really challenges, but even something I’ve said it in this space before, widespread like that will have but diversification is another idea buying is even worse. unique expressions from business that comes to mind. In the Bible, to business. Ecclesiastes 11:6 says, “Sow your From what I’ve heard, it seems that depending on the brands you carry, seed in the morning, and at evening let parts availability is something that I’m sure some of you have even more your hands not be idle, for you do not will be a little better for dealers on drastic price increases than this. But the know which will succeed, whether this the whole than it was last year. That point here is that many people who were or that, or whether both will do equalprospect makes me smile! Also, it seems thinking about upgrading to a new zely well.” For me, selling mini-barns that whole goods availability is on the ro-turn a year or two ago now feel really has been a good way to diversify. And upswing as well, which bodes well for uneasy about it. So would many of us. lately, I’ve been starting to think about those of us who struggled with tumbleWith that being said, I think it’s adding a little bit of equipment rental weeds blowing through our showrooms reasonable to expect sales to be more to supplement my income. There aren’t last season. Having plenty of product to challenging this year, which is why I’m many places in my town that offer sell is a breath of fresh air! advising caution on stock orders. No equipment rental, and I’ve been told Concerning whole goods, though, it one wants an empty showroom, but I’m that the main rental place in town needs seems to me that some caution is in orthinking a showroom full of product more competition, so I think it’s worth der. After last season, I would think that when people aren’t really buying is exploring. at least a few of us dealers are tempted even worse. What opportunities do you have to place big orders, when we have the If sales are going to be down, or where you are? Give yourself a few opportunity to do so, if we haven’t done at the very least, we can’t count on hours every week to explore and pursue so already. I’ve spoken to just a handful them not to be, we need to make sure those opportunities, and your odds of of other dealers about this, and there the other parts of our dealerships are surviving and thriving in a difficult seems to be some uneasiness in the back profitable so that we can survive this economy will become more favorable. PET of our minds that the demand for whole turbulent economic atmosphere. Service goods, which was a dream come true is now as important as ever, both to our Sam Stearns owns and operates Mr. for much of the past two years, will be customers and to our bottom line. Most Mower Man, Scottsburg, IN 47170; e-mail much softer this year. of us have an understanding that the sermr.mowerman@hotmail.com. The views of I may be completely wrong about vice department is the backbone of our Sam Stearns do not necessarily represent this, but here’s my simple reasoning dealerships, the most important part of those of Hatton-Brown Publishers, Inc.
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POWER EQUIPMENT TRADE
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2/2/23 1:07 PM