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Volume 64 ■ Number 1 ■ JANUARY/FEBRUARY 2015 Our 704th Consecutive Issue ■ Founded in 1952
Renew or subscribe on the web: www.poweret.com
FEATUREstories
8 10 14
SNOW PRODUCTS
Latest Machines, Accessories
BARTON SUCCEEDS
Sales, Service Pay Off Nicely
DEALER TECHNOLOGY Winter Upgrades, New Systems
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VALUEadded Power Suppliers ___________________________6 Product Literature Review _________________13 Distributor Library ________________________16 PowerWorks _____________________________20 Events/Ad Index _________________________21 Dealer To Dealer _________________________22
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COVERphoto Winter this season started fast and furious, with blizzards in November. Read about “Snow-vember,” new products, winter upgrades and more beginning on Page 8. (Cover design by Shelley Smith) Member Verified Audit Circulation Power Equipment Trade (ISSN 1063-0414) is published 8 times annually (January/February, April/May, July/August and November/December issues are combined) by Hatton-Brown Publishers, Inc., 225 Hanrick St., Montgomery, AL 36104. Subscription Information—PET is sent free to qualifying industry professionals in the U.S. All non-qualified U.S. subscriptions are $55 annually; $65 in Canada; $95 (Airmail) in all other countries (U.S. funds). Single copies, $5 each; special issues, $20 (U.S. funds). Subscription Inquiries—TOLL-FREE 800-669-5613; Fax 888-611-4525. Go to www.poweret.com and click on the subscribe button to subscribe/renew via the web. All advertisements for Power Equipment Trade magazine are accepted and published by Hatton-Brown Publishers, Inc. with the understanding that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Hatton-Brown Publishers, Inc. harmless from and against any loss, expenses, or other liability resulting from any claims or lawsuits for libel violations or right of privacy or publicity, plagiarism, copyright or trademark infringement and any other claims or lawsuits that may arise out of publication of such advertisement. Hatton-Brown Publishers, Inc. neither endorses nor makes any representation or guarantee as to the quality of goods and services advertised in Power Equipment Trade. Hatton-Brown Publishers, Inc. reserves the right to reject any advertisement which it deems inappropriate. Copyright ® 2015. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Periodicals postage paid at Montgomery, Ala. and additional mailing offices. Printed in USA. Postmaster: Please send address changes to Power Equipment Trade, P.O. Box 2419, Montgomery, Alabama 36102-2419. Other Hatton-Brown Publications: Timber Harvesting ■ Southern Loggin' Times ■ Timber Processing ■ Panel World
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POWERlines
A Hatton-Brown Publication www.poweret.com
Winter Work: Snow And More DAN SHELL
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inter season is in full swing for those power equipment dealers who operate in the snowy regions of the U.S., and this year started off with a bang as “Snow-vember” made headlines soon after GIE+EXPO finished in late October: A blast of truly Arctic air hit the U.S. the first week of November, sending temperatures to 20-30-40 degrees below normal in some regions, with snowfall totals along the Great Lakes states measured in feet, not inches. A news report from November 12 showed Carsten’s Ace Hardware in Kaukauna, Wis. was already three weeks behind in snowblower service. Service techs were working 12-hour shifts in the shop to try and keep up. Customer service manager Ann Lamers noted at the time that last year’s tough winter and the early arrival of more than 10 inches of snow in November 2014 had driven sales for customers who didn’t want to get schedules winter store improvements when possible. caught short like winter 2013-14. Sosler's (Sally Sosler Photography) In mid December, Brian Birch, Chief Operating Officer for the Snow & Ice Management Assn. (SIMA) called the 2014-15 season “an interesting year so far. A lot of the Northeast has been pounded, like Buffalo and upstate New York, but the Midwest, for the most part, has been rather mild outside of the early snowstorm.” Though the final chapter on the snow season won’t be written until late February and early March when most snowfall has subsided, Birch says that last year was very big for SIMA’s member contractors. Last year also led to lots of pre-season activity this year among a variety of suppliers, from snow machines to salt and de-icing products. Suppliers built up inventory after last year and have moved lots of it, including parts, and things are in a holding pattern right now until the next big storm, Birch says. A mid December holding pattern is about right, says Melissa Donahue, General Manager at 4 Seasons Power Equipment in Whitman, Mass. “It hasn’t really snowed much here yet,” she says, but notes that snow machine sales have done well so far. The dealership carries Toro snow equipment. Typically in her area, Donahue says, “If you don’t sell a machine by the end of December it will sit unless you get a big storm in January or February.” In lieu of snow work, the dealership is staying busy with its popular winter tune-up program with free pickup and delivery that will handle between 300-400 mowers between now and spring, she says. She’s also reporting a decent amount of Christmas-related sales, including a recent surprise machine delivery, and more than a few sales in a box for wrapping that will be brought back to the dealership for equipment setup. In New Hampton, NY, Ray Sosler Jr. at Sosler’s Garden & Farm Equipment says his dealership has had an active winter season for snow equipment, especially the pre-season—and last year’s weather was a driving force early on. “We had some snake-bit customers and people not wanting to get caught (without a snow machine) like least year,” Sosler says. “And then when we had that early season ➤ 21 Contact Dan Shell, ph: 334-834-1170; fax 334-834-4525; e-mail: dan@hattonbrown.com
Co-Publisher/Adv. Sales Manager David H. Ramsey Co-Publisher/Executive Editor David (DK) Knight Chief Operating Officer Dianne C. Sullivan Publishing Office Street Address: 225 Hanrick Street Montgomery, AL 36104-3317 Mailing Address P.O. Box 2268 Montgomery, AL 36102-2268 Tel: (334) 834-1170 Fax: (334) 834-4525 Editor-in-Chief ■ Rich Donnell Managing Editor ■ Dan Shell Senior Assoc. Editor ■ David Abbott Associate Editor ■ Jessica Johnson Associate Editor ■ Jay Donnell Contributing Writers Dale Stotts, Greg German Production Manager ■ Cindy Segrest Ad Prod. Coordinator ■ Patti Campbell Circulation Director ■ Rhonda Thomas Advertising Sales Southern U.S. Randy Reagor Tel: (904) 393-7968 Fax: (334) 834-4525 E-mail: randy@hattonbrown.com Midwest U.S., Eastern Canada John Simmons Tel: (905) 666-0258 Fax: (905) 666-0778 E-mail: jsimmons@idirect.com Western U.S. & Canada Bill Albrant Tel: (951) 696-1473 Fax: (702) 442-2920 Email: billa@wgholdsworth.com Europe & Scandinavia Murray Brett Tel: +34 96 640 4165 Fax: +34 96 640 4022 Email: murray.brett@abasol.net Distributor Library Kathy Sternenberg Tel: (251) 928-4962 Classified Advertising Bridget DeVane Tel: 334-699-7837 (800) 669-5613 Reprint Sales Patti Campbell Tel: (800) 669-5613
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POWERsuppliers Altoz Debuts New Financing Program
Kubota Opening New Distribution Center
Officials with high performance commercial mower manufacturer Altoz recently announced a partnership with Sheffield Financial to provide specialized financing programs for commercial operations. To kick off the new program, Altoz and Sheffield are offering a special promotional program for commercial cutters that features no interest until June 1, 2015 and no payments until July 1, 2015. Thereafter, interest is only 1.99% for 48 months. Noting that Sheffield has consistently provided excellent financing programs and service to dealer customers, Jack Snow, Sheffield Financial President, adds that in addition to the no interest until June and no payment until July terms, customers can pay the full balance before June 1 with no interest or penalties as well. Through the strategic partnership with Sheffield, both residential and commercial users will have the opportunity to take advantage of financing options only available to Altoz purchasers.
Officials with Kubota Tractor Corp. recently announced plans to open a 450,000 sq. ft. parts distribution center in Edgerton, Kan. According to Masato Yoshikawa, President and CEO of Kubota Tractor Corp., “As Kubota’s business continues to grow and we enter new markets, we are committed to being equipped to meet our dealers’ and customers’ needs. This new parts distribution center is going to further streamline our operations and improve our parts delivery support, making sure that our dealers and customers have the support they need when they need it.” The Kansas site for the facility was a strategic decision by Kubota management, given its central location within the U.S. that provides an expanded geographical area where Kubota can deliver parts within 24 hours, says Earl Johnson, Parts Director for Kubota. Kubota’s current divisional parts operations located in Suwanee, Ga., Fort Worth, Tex., Columbus, Oh.,
Nelson Family, Rotary Corp. Support Ga. Southern Stadium
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he family of the late Bill W. Nelson and Rotary Corp., the company he built into an internationally recognized leader in the outdoor power equipment industry, have made a major gift to the Georgia Southern University Athletic Foundation. Rotary Corp. and the Nelson family are big supporters of The generosity of the new and ongoing Georgia Southern athletic traditions for Nelson Family will fund current fans and future students. the Hall of Fame in the new Ted Smith Family Football Center, which is located inside Paulson Stadium. It will be named the Bill W. Nelson Hall of Fame and will serve as a permanent recognition of inductees with highlights including the rich history of Eagle football. In addition, Rotary Corp. has funded the “Field of Dreams” between the stadium’s east end zone and the football center. The field, which provides a game day experience for children 12 and under, was the brainchild of Georgia Southern Athletics Director Thomas Kleinlein and Frank Hook, Director of Donor Relations for Georgia Southern’s Athletic Foundation. The field measures 48’ wide by 144’ long and features artificial turf. Since Paulson Stadium opened in 1984, kids have enjoyed sliding down the hills and playing football in the end zone. With stadium expansion and upgrades earlier this year, athletic department officials were determined to maintain certain traditions like this for future Eagles. 6
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and Lodi, Calif., will continue to provide regional support to local Kubota dealers. Kubota plans to have the Kansas facility operational during the third quarter of 2015. When initial operations begin, the new parts distribution center will primarily service the Midwestern U.S. and employ approximately 75 workers.
Grasshopper Receives Engineering Honor
The Grasshopper Co. was chosen as “2014 Company of the Year” by the Society of Manufacturing Engineers’ (SME), Chapter 52 and received recognition from the organization at a Dec. 9 ceremony in Wichita, Kan. Grasshopper Co. President Stan Guyer accepted the award at The Petroleum Club during the Society’s annual installation of officers. Grasshopper was recognized due, in part, for manufacturing processes observed during a tour of the company’s headquarters and factory located in Moundridge, Kan., in May, 2014, in comparison to other manufacturing facilities toured during the year. The company’s products, consisting of commercial-grade zero-turn mowers and grounds maintenance systems, were also factored into the award.
PERC Incentives Extended Through 2015 Due to overwhelming interest, the Propane Education & Research Council (PERC) is extending the timeframe for landscape contractors to receive double the incentive dollars awarded through PERC’s Propane Mower Incentive Program. Initially set to expire at the end of the year, program participants will now be able to earn $2,000 toward the purchase of a new propane-powered mower and $1,000 toward a qualified conversion kit as the program extends through March 31, 2015. In October alone, PERC received applications from 76 contractors for more than 200 pieces of equipment after the double incentive promotion was announced. That marked the most applicants the program received in a single month, dating back to its inception in 2012. In 2014, almost 600 contractors have received incentive dollars in exchange for data about their usage and mower performance. Contractors can apply for the Mower Incentive Program at propane.com.
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POWERsuppliers Ventrac Blows Pumpkins Away
Charter Software Hosts Conference
Looking to promote the company’s snowblower attachment system but faced with a lack of snow, Ventrac personnel found an innovative way to show off their snowblower’s rugged durability and power—by plowing over and through a line of 100 blemished discard pumpkins at a farm near the company’s Orrville, Oh. headquarters. The video is available on both Ventrac’s YouTube channel and the PETBlog at poweret.com. According to Ventrac Marketing Manager Isaac Roth, “In our area of Ohio deep snowfalls don’t occur often, and we wanted to show people that our blowers could handle a large volume of material quickly and easily. With the lack of snow and the abundance of pumpkins, we set up this video shoot and had a blast doing it.” He adds the group was pleasantly surprised with how easily the pumpkins went through the blower, with pieces being thrown more than 40 ft. The pumpkins used in the video aren’t salable due to blemishes, and are plowed back into the soil.
More than 30 equipment dealerships from agricultural, construction/industrial, outdoor power, powersports and golf car sectors attended Charter Software’s annual Aspen User Conference. The conference is an opportunity for dealers using the Aspen dealership management system to exchange best practices, learn new skills, and make their industry’s business needs known to Aspen’s developers. While Charter does provide free webinar trainings to review the latest features and updates in each software release, many users find the in-person training experience offered at the conference to be a valuable supplement to their overall use of the software. In addition to learning about new software features, the conference solidifies proper use of the system by exposing its users to beneficial ways to use the software that they either may not be aware of, or are not currently using. The conference is also a unique opportunity for customers to meet and talk with Charter Software President Anne Salemo, who teaches several classes and is accessible throughout the entire conference. Salemo facilitates most of the interactive dealer forums and roundtable sessions where Charter development staff are on hand to answer questions. Also in attendance were representatives from Charter Software’s credit card payment processing partner, ChargeItPro, and business communications systems partner, Continuous Touch, who both integrate their software and systems with Aspen.
Kioti Tractor Announces Biggest Fan Kioti Tractor, a division of Daedong-USA, Inc., has announced the top three winners of their Biggest Tractor Fan Giveaway. Winning contestants Kelly Langdon, Jim Cobb and Brendon Burton will each receive free Kioti parts and services for their testimonials. Kioti’s Biggest Fan Giveaway contest ran on Facebook during National Customer Service Week. Contestants submitted testimonials describing why their Kioti dealer is the best, and the top three stories were selected for a monetary prize in free Kioti parts and services. “We found a local dealer, The Tractor Place, in Knightdale, North Carolina. When we drove into the little parking area, the owner walked up to us and acted just like we were part of his long-lost family,” says first place winner Kelly Langdon. “Thank you to The Tractor Place and thank you to Kioti for helping us continue our pursuit of the small farmer’s American dream.” “I was very pleased to learn that one of our customers appreciated the way we do business every day. We start with personal introduction,” explains Gary Mize of The Tractor Place. “One of my college professors told me that you should not sell anything to a customer. You should help them buy what they need. That is the way I have always sold tractors.” The Kioti executive management team reviewed the entries to choose a winner. The winning testimonials all demonstrated contestants’ gratitude for their Kioti tractor dealers and shared personal stories of their positive experiences. For sharing their stories, first place winner Langdon will receive $500, second place will receive $250 and third will receive $100 in parts and services from Kioti. The three dealers highlighted in the winning posts receive recognition, including a plaque, from Kioti. POWER EQUIPMENT TRADE
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WINTERproducts CASE SR250 and SV300 Skid Steer The 90 HP SR250, radial lift, offers a rated operating capacity of 2,500 lbs. and breakout force of 7,480 lbs. The 90 HP SV300, vertical lift, offers a rated operating capacity of 3,000 lbs. and a breakout force of 7,570 lbs. The new snow removal package includes high-flow auxiliary hydraulics that provide up to 37.6 GPM for use with snow blowers and brushes. The package also comes with hydraulic self-leveling, ride control, a block heater to assist in cold starts, a 4-corner LED strobe kit and heavy-duty lighting package/side lamp kit. The package also comes with larger tires (14x17.5) for more speed and power while working on paved surfaces. The SR250 and SV300 feature 9 preset speed and control settings. New handles with additional “feel points” improve controllability and feathering. The SR250 and SV300 also offer a width of nearly 3 ft. The cab is fully sealed and pressurized against noise, dust and fumes. Call 866-542-2736; visit casece.com.
Hiniker 775 Spreader Hiniker’s new model 775 dual-motor electric auger spreader allows users to tailor material ice control application rates accurately and conveniently. An efficient, 5.75" diameter auger delivery system provides positive delivery control with no material carry-back into the truck bed. An in-cab console provides individual variable speed control for both the conveyor and the spinner, along with blast and reversing functions. Dual 12V motors offer quiet, low-maintenance operation. Standard hopper capacity is 2.00 cu. yd. A tip-up spinner assembly makes unloading unused material simple and provides easy trailer hitch access. The Hiniker 775 spreader is optimally sized for use in either a 6.5' or 8' pickup bed. The Hiniker line includes the patented convertible C-plow, as well as conventional plows, scoop plows, v-plows and stainless steel spreaders. Visit hiniker.com
Doosan Snow Pusher Attachments Doosan has released two new bucket-mounted snow pusher attachments for its 13- to 20-metricton weight class wheel loaders and tool carriers. The snow pushers— which mount to all Doosan general purpose and light-material buckets, are available in two widths: a 12' wide attachment weighs 2,200 lbs., while the 14' wide versions weighs 2,400 lbs. Both snow pushers are approved for use on the DL200-3, DL200TC-3, DL220-3, DL250-3, DL250TC-3, DL300-3 wheel loader mod8
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els. Featuring a 47" high moldboard and a 1.5" rubber cutting edge, the snow pushers are designed for handling high-capacity snow removal. The Doosan snow pusher design also features high-grade steel shoes and a 12" push beam for durability. Three support tubes measuring 3" x 1.5" x 3⁄16" lend support to the overall strength of the snow pushers. Visit doosanequipment.com.
SnowEx Liquid Solutions SnowEx Liquid Solutions is a comprehensive program designed to help customers successfully implement liquid prewetting, anti-icing and de-icing strategies through a series of equipment, materials and training solutions. SnowEx is expanding its industry-leading product line of purpose-built brine application and handling equipment. SnowEx offers resources to help customers evaluate options and select materials that will optimize equipment performance and help achieve level of service goals most efficiently. Visit snowexsolutions.com.
Land Pride Snow Blowers Land Pride’s new SBL25 is a front-mount snow blower designed to fit skid steers and tractors with quick-attach plates. It is a fully hydraulic unit: auger, impeller, chute and deflector. The blower also features a 24" impeller and 16" auger. The auger features four paddles to direct snow into the 4-blade impeller to direct the snow into the chute. Skid shoes are adjustable and replaceable. The SBL25 is available in 66", 74", and 84" widths and features 3⁄16" side plate material, and 10 gauge main housing material. Call (785) 823-3276; visit landpride.com.
Husqvarna Snow Throwers The brand new Husqvarna 100-, 200- and 300-series snow throwers consist of nine models. The new Husqvarna snow throwers replace all previous models. Each model includes a high-performing Husqvarnabrand engine, designed specifically for cold weather use. The engine offers a quiet muffler system, manual idle-down throttle, oversized recoil handle to fit winter gloves and other features to optimize performance and operator comfort. Along with quality and performance comes peace of mind—these snow throwers also feature an extensive “5&5” protection. The snow throwers come standard with a five-year engine warranty and five-year start guarantee. Call 704-921-6844; visit husqvarna.com.
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WINTERproducts ANBO Snow Blade A new generation of spring-trip snow blades designed specifically for smaller, lighter machines has been announced by ANBO Manufacturing. The WorkPro series of blades are lightweight (245-350 lbs.) and can be offered in a broad range of widths from 3' to 8'. WorkPro blades come standard with a 25" high mold board and a 5-position manual adjustment for angles up to 30° left and right. The blade is available with hydraulic angle as well. A high-carbon steel replaceable cutting edge comes standard, but the blade can also be fitted with a rubber cutting edge for softer surfaces, driveways and parking lots. The blade comes standard with two springs for typical snow plow use, abrasion resistant skid shoes and can optionally be fitted with box ends and marker flags. The WorkPro series has a wide range of standard mounts. ANBO will customize mounts to fit any tractor, loader or skid steer. Call 866-684-3330; visit anbomanufacturing.com.
Honda HS720 Snow Blower Honda Power Equipment introduced its new HS720 series of premium residential snow blowers. Powered by a lightweight OHC Honda GC190 engine, the HS720 series delivers excellent fuel economy with optimal power output. The new HS720AS model adds an easy to use electric start with a 120V AC electric starter. The HS720 can clear up to 55 tons of snow per hour, discharging that snow up to 33' away. The HS720 clears a 20" width easily at heights of 12'. It comes equipped with the standard semi self-propelled auger assist feature making quick work of snow removal by aiding in propulsion when needed. The 220° quick chute feature also allows the user to quickly change the direction of thrown snow with the slide of a lever. It feature a two-year residential warranty and a one-year commercial warranty, and meets all current EPA and CARB emission standards. Call 770-487-6400;visit hondapowerequipment.com.
Ariens Platinum SHO Sno-Thro Designed and built for the most challenging conditions, the Ariens Platinum SHO Sno-Thro offers various capabilities for residential customers. Available in two models, the super-high output machine can handle snowfalls of 16" or more and is ideal for quickly clearing a 2- to 3-car garage driveway.
Powered by the quiet and efficient Ariens AX engine, the Platinum SHO is supported by a three-year Cold Start Promise and a three-year limited consumer warranty. The super-high output 14" 3-blade impeller and newly improved belts and sheave transmit higher speeds that increase machine capacity and provide throwing distances up to 55'. The Sno-Thro comes equipped with a two-position throttle system and rugged all-steel construction. The rugged top-load commercial-duty cast iron gear case is backed by a five-year warranty. Ergonomic features include a user-friendly dash panel and easy-to-use controls, a powerful in-dash headlight and dash-controlled handwarmers. Call 920-756-2141; visit ariensco.com.
Rotary Snow Blower Accessories Paddles, scraper bars, “V” belts, shave plates, skids and fasteners are among more than 125 popular snow blower parts and accessories in Rotary’s new 2015 catalog. Other items include auger and axle bushings, bearings, shafts, drive discs, air vanes and ignition keys, plus SnoStik for removing slush and snow from the discharge chute. Rotary also offers over 30 different tire chains and traction belts in a variety of sizes to fit most tires. The belts include an innovative traction aid that prevents steel from touching the driving surface. Multi-ply rubber slats surrounding the tire tread provide a secure fit and improved traction. Over 9,000 different outdoor power equipment parts including 500 new items are featured in Rotary’s 2015 master catalog. It includes over 1,600 pages with photos, descriptions and cross-referencing numbers for the most popular brands along with many hard-tofind and discontinued parts. Call 800-841-3989; visit rotarycorp.com.
Jungle Jim ZTF Utility Vehicle The ZTF from Jungle Jim’s Accessory Products is a utility vehicle that can be used year round. During the summer months, it can be equipped with a backpack blower, a trimmer/edger, a sprayer and a spreader. During the winter months, the spreader can do double duty as a salt spreader. An optional snowplow attachment will clear driveways and sidewalks with ease and cut time by 35%. The “hands-free” feature of this vehicle dramatically increases productivity and efficiency by allowing the operator to drive with their feet. This allows simultaneous operation of multiple attachments, enabling the operator to perform tasks at a greater speed, thus reducing job time by 25-35%. Call 888-844-5467; visit www.junglejimsap.com.
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Father, Son Duo Sells Work And Play After selling their John Deere business, the Bartons find success in the fun side of a dealership. BY JESSICA JOHNSON WEST MEMPHIS, Ark. rank Barton knows a little bit about selling tractors. His family owned a very popular John Deere dealership, which had two locations. In 2009, he decided to sell that business, but not before making sure to spin off the Polaris portion of his noncompete contract. Just two days after the John Deere business was sold he started Barton Powersports. “I took two days off and went duck hunting,” Barton says with a
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big smile. “For thirty two years we sold work, then we started selling fun. Now, we’re back to selling work.” Barton Powersports and Barton Equipment Co. are essentially the same company: they have the same ownership, but the Bartons try to brand each as a different business: “The business model and how you go about selling tractors and this type of stuff is a little bit different than selling powersports. I learned that pretty quick,” Barton explains. Barton Powersports opened in Feburary 2013 and has two locations: West Memphis, Ark., where Barton Equipment Co. is co-located, and about one hour north in Jonesboro, Ark. Franklin Barton explains it very simply, “When the noncompete expired and we could get back into the equipment business, we did.” Franklin functions as the Outdoor Power Equipment Manag-
er. But don’t let his title fool you: Franklin spent five or six years only in service and three or four years only in parts. Barton made sure his son started from the ground up. As for Barton, on a daily basis he functions as the General Manager and owner. If needed, he can act as the service manager. “The service department is my first love. I’m a little bit different in that. Most general managers don’t like the service department or think it’s kind of...it’s traditionally been treated as the stepchild. I’ve always embraced it. It’s the backbone of any of these businesses,” he explains.
Showroom The building that Barton Powersports and Barton Equipment Co. currently occupy was originally built as a car dealership. The Equipment side’s showroom
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is about 1,000 sq. ft., Barton estimates. Including Franklin, the power equipment side has two salesmen; one parts person is also trained for handheld product sales. In terms of major lines, Barton carries Stihl, Kubota, Hustler, Exmark and Honda Power Equipment, including Honda generators. The family had experience with Stihl already, having sold it when they owned the John Deere business for about six or eight months before selling it, so it was only natural to move Stihl into the new dealership when looking for a handheld line. Hustler was already at the powersports dealership in Jonesboro, so it too made sense to carry the mowers in the West Memphis location. Franklin notes that he is a little weary about some of the recent developments with Hustler, “At first we added Exmark and Hustler, primarily because they did not use any mass merchant retailers. Now Hustler went into Tractor Supply and that failed, so we will see what Barton’s large customer base falls into the prosumer category. happens with them going into Home Depot and Lowe’s.” or there that is sold from just their locaFranklin is right in his caution. He tion alone. “For the handheld products, remembers being in high school workwe do see people come over the bridge. ing for the dealership part time and We’re the closest dealer, until you get spending more time at Lowe’s and to midtown Memphis.” Home Depot setting up John Deere Dollar wise, Barton reports that his lawnmowers than actually at his famicustomer base is mainly consumer drivly’s business working. en. However, in his area there are not a “Hustler’s justification, has so far, lot of commercial cutters. “Not a whole been the same as John Deere’s: it leads lot of guys that are here, but we’ve got to more sales, bigger pieces that aren’t 90% of what is here, and obviously they available at Lowe’s or Home Depot. But that never happens, the people who would buy a $2,900 lawnmower aren’t going to buy anything bigger than that,” he believes. Barton echoes his son’s sentiments when discussing the customer base. “I’ve never believed someone is going to drive more than thirty minutes to buy a lawnmower. So in that case, our draw is mainly our county, though being located on the interstate has an advantage. For every one we sell in the county, we sell two or three outside of the county when it’s mower season,” he says. The dealership is located on a busy interstate (I-40) and is just 30 minutes across the bridge from Memphis, Tenn. Barton says while it’s not a whole lot compared to the rest, it’s still a unit here Franklin and Frank Barton POWER EQUIPMENT TRADE
spend more than the consumers do. We sell a lot of the cheaper mowers, which is good for profit.”
Service Department Technicians are factory trained, with a shop foreman. He is the oldest technican on staff, and is a carry over from the John Deere dealership, who has been with Bartons for nearly 30 years. Franklin laughs, saying, “If he can’t fix it, it is not broken, that’s what we’ve always said.” The two buildings are a mirror images of each other, and at the time PET’s of visit, the service departments shared techs and a shop. Barton projects that the businesses will grow and at some point either powersports will kick equipment out or equipment will grow so much that it moves on its own. The posted labor rate is $70 an hour. The shop prices work based off a multiplier from warranty flat rates. Barton says that tends to keep everyone happy for the most part, plus, with two locations, it helps to keep pricing the same to avoid confusion. Service technicians see a lot of carburetor work—mainly ethanol issues that affect carburetors. In an effort to combat this problem, Barton is a StarTron dealer. “In the powersports building we have a carburetor sitting in a clear box with a sign that says, “Look what ethanol does to your carburetor.” It’s a $450 carburetor somebody had to buy just because of the effects of ethanol,” Barton explains. He adds that the salespeople are
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coached to tell customers to use an ethanol neutralizer, like StarTron, or to purchase ethanol free gas. “StarTron is the most effective thing people can use. Do people listen to us? No,” he says with frustration. Barton advertises that they only service what they sell, however, he says they will not turn down warranty work on Stihl or Kubota pieces. Franklin says that often Cub Cadet or Husqvarna products from a mass merchant will come in and they have to turn them away, citing the difficult nature of locating parts for those machines. He says it’s not worth it to the customer and it’s not worth it to the dealership to repair those machines. The shop only uses factory parts. Franklin says, “You can have so many price books loaded into your system, you can have so many under the counter and at some point, you’re wasting time trying to save five or ten cents. With factory, it’s already in your computer, you punch it in, and go on to the next person. At some point, five seconds is more important than five cents.” The service department tries to have each unit triaged within the first two
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hours of arrival. In order to keep commercial cutters still running, Barton offers loaners and usually turns pieces around within a few days, if the work is something major. “Servicing the customer is the most important part of this business,” Barton believes.
Outlook For the Bartons, their business has a lot to do with door swings and foot traffic, “When we were in the John Deere business we sold to very large farms. We saw those thirty or forty people every other day. Half the people that come through these doors have never been here before. We would have killed to have had that type of new customer opportunity in the John Deere business, just because of the nature of that business. The person who comes in here looking for a $180 chainsaw at some point is going to be a potential customer for an ATV or a $12,000 side-by-side. There’s some synergy there. We get asked a lot if it’s all ‘ours.’ You can’t come on the lot and not see everything.” Franklin says it’s fun to help people
get some work done and that being available and open has helped their success tremendously. The dealership is open six days a week, normal hours, 8-6 on Monday through Friday and 8-5 on Saturdays. He adds, “We can only grow, the way I look at it. We’ve almost run out of room. The mower sales were the bread and butter last year. Our goal is to continue to increase our store’s and our lines’ market share.” Barton echoes his son saying that both unit sales and dollar sales have increased each year and that the business is still acquiring customers. “It’s a cliché but it’s true: There is nothing better than a satisfied customer.” In an effort to keep the existing customers and potential customers happy, the Bartons purposely do not do any sort of e-commerce. Franklin explains, “There are so many people out there already doing it that I think it would be difficult to make that profitable. Looks like a lot of work without a whole lot of dollars.” Barton agrees saying, “Why stretch yourself too thin? I’d rather concentrate on the people who walk in here.” PET
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DEALERtechnology
Managing Winter Work: Making Digital Upgrades
W
inter is the time of year a lot of dealerships evaluate the previous year, and seek improvements to make the new one even better. Don't forget to improve your dealership technology: Upgrades to BMS Software—The livelihood of your business is stored within your business management software. Looking back at your busy season, did your system provide the important data and processes needed to run your business efficiently? Are there certain limitations within your current software that you have outgrown? Now is the time many dealers make the decision to upgrade so they can implement and get the new system up and running before the busy season. Most software companies issue at least a couple updates per year and are always coming out with new tools and features. Now is the time to work with your software company to make sure you’re running the most recent version. It’s also a great time to add any new user licenses, modules or new products to your business. Mobile Apps—Mobile technology is becoming a larger part of our everyday lives in the lawn and garden industry. Business management software companies are working to tie this technology into their software to help dealers with inventory, service, sales and more. Now is a great time to check with your software provider to see what kind of mobile features they can provide for you, and if it’s a good fit for your business. Hardware Upgrades—Now is also the time dealers should evaluate computers, cash drawers, scanners and printers to see if upgrades are needed before the spring season. Business management software can be upgraded repeatedly, but the performance of these upgrades relies heavily on the condition of your computers. On average, dealers should consider replacing their computers every three or four years ensure the computers are running the software at a 14
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high level and functioning well in a shop environment prone to more dust, dirt and grime than most businesses. Credit card processors are another area to monitor: With changes to compliancy and the introduction of EMV (also referred to as chip-and-PIN or chip-and-signature technology), merchant service companies are asking for vendors to implement new readers equipped with EMV technology to avoid future issues. Mario Britz, Director of Product Development, Ideal Computer Systems
5 Off-Season Must-Dos The digital marketing team at ARI could share dozens of ideas to get the most out of your online presence before selling season starts, but life is short and we know you’re busy, so below you’ll find five easy ways to get ready for the spring rush: Become Friends with Google+— Google uses business pages to help customers research, locate and post/share reviews about local businesses. Create a Google + page, making sure your information is accurate. If you already have a page, be sure to post news, updates or photos at least twice a month so it feels active. Another best practice to keep in mind is to go through the steps of having your page “verified” and have duplicate accounts removed.
Clean Up Your Reviews—Start by focusing on Facebook, Google+ and other popular review sites in your community (Yelp, Angie’s List, YP). If the reviews are not great, respond with a warm and pleasant tone promising to follow-up, and actually follow-up. Even if the reviews have aged, let readers know about changes to management, facilities or policies. If the reviews are good, thank the customer for their feedback, and send a wish that they’ll visit again soon. Tidy Up Email Lists—If you’ve been collecting customer emails or made e-newsletters a part of your marketing mix, take the time to review which emails are beginning to age on your lists. “Bounced” emails are going to be worth cleaning out, as this means the email address is either incorrect or is no longer valid. Taking these off your list reduces wasted messages and delivers better analytics. Do Some Back-End Work—For some, working in the “back end” of their website might feel like working in a dingy basement. You know you have to go down there but only if you absolutely have to. Prepping for the selling season is definitely one of those times. Start by finding out what the top ranking pages are on your site. If there are important pages that aren’t garnering traffic, update the Meta descriptions, keywords and content to be more engaging. ● Website Facelift—Take the time to review the aesthetics of your website as well. View the pages as if you were a prospective customer, exploring the site and clicking links along the way. All links should work! If they don’t, make a note and clean them up in the back end. You can also update photos, inventory and employee pages to freshen up your site. Be sure to keep your branding updated and consistent through your site as well. Take a look at the suggestions above and prioritize what you feel will serve you best. Keep in mind that best practices for search engine optimization and digital marketing change quickly. Try to stay current with the latest trends and most importantly, make updating your digital marketing channels a year-round priority. If that proves more than you’re able to take on, reach out to a digital marketing team to help with the workload. PET Jessica Lee, Account Manager, Digital Marketing Services, ARI Network Services
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DEALERtechnology
Technology Changing Dealership Management
T
echnology is changing almost faster than you can learn about it. While you may not be able to keep up on everything, the following are a few key pieces of technology that every dealership should be taking advantage of to stay competitive and thrive in this industry. Access to up-to-the minute customer data using a CRM— More business decisions are being made based on the analysis of customer data. By tracking all business transactions and customer communications in your dealership management system, dealers can gain valuable insight that can be used to increase revenue in parts, service and whole goods, and improve customer satisfaction. Data such as customer purchase and repair history, logged communications and even personal details like birthdays can be used to improve customer satisfaction and increase sales. With this wealth of information at your employees’ fingertips, they can be more responsive to customer questions. But that’s not all—it can actually help generate sales. The more your staff knows about a customer’s purchase or service patterns, the more able they are to foresee items that customer may be interested in purchasing and anticipate their service needs. All of this data should be tracked and accessible through your business system or Customer Relationship Management (CRM) system. Dealership management systems that feature built-in CRM functionality not only eliminate the expense of a separate CRM system, but also provide the advantages of having data consolidated and integrated in one place. Real time information from the system dashboard—Some dealership management systems feature a system dashboard where managers can quickly view graphs and other “widgets” that represent data in the system. The dashboard should be configurable by each department to display the type of information important to that user. For example, a sales manager can get a quick
picture of where the sales team stands in sales confidence level, forecasted income from anticipated sales, status of quotes, etc. A service manager would use the system dashboard to stay apprised of open work orders, etc., and managers with access to financial information could have an immediate view of the amount of customers who are past due, the amount of cash on hand or in the bank, etc. Internal communication—Internal messaging and the ability to assign and monitor tasks are functions that can expedite your business processes as well as ultimately enhance the customer experience. From the Aspen system, for example, a user can send another user a message from the screen they are working on with a link to the record or report they are seeking feedback on, or add an attachment to the message. This provides the recipient direct access to the information. Tasks and workflow (an automated task and transaction-creating process) are other tools to look for in a dealership management system to help management and staff monitor processes from start to finish. In a workflow process, when a user completes the assigned task(s), they may continue the workflow by creating a follow-up task for themselves, another user, or team, or in some cases an automated workflow could be set, such as when a quote is converted to a sales contract. Mobile devices—Mobile devices for POWER EQUIPMENT TRADE
business use is on the rise as employers realize its impact on efficiency and customer service—and this is revolutionizing the way a dealership works. Mobile access to the dealership management system can eliminate the need for staff to be tethered to a computer terminal to clock on and off work orders, check parts availability, view rental rates, invoices, unit information and customer communications. Staff who travel can easily look up customer information and call or email or view an address map from the hyperlinks shown on their device screen, as well as log the details of their site visits. Dealerships with mobile service units particularly benefit from the ability for mobile technicians to use mobile devices to submit parts lists to the dealership while in the field, enabling parts procurement staff to have the needed parts ready to replenish the truck upon its arrival. PET Anne Salemo, President, Charter Software Inc.
Search Engine Marketing Pays Off Too often, small businesses say search engine marketing (SEM) is not cost-effective, or that expanding their marketing campaigns onto the web is a waste. Yet through targeting, managed ad placements and fixed cost, SEM is an effective way to reach potential customers. SEM platforms allow for business ads to only show in areas that a business operates in. Don’t be misled by those who say SEM is only for businesses trying to reach a national scale. If you are in the Yellow Pages, then you know you pay a fixed rate whether you receive calls or not. Using SEM, you are only charged when a well-targeted potential customer clicks on your business ad and is directed to your website. Once a potential customer reaches your website, you will be able to see where they have visited, if they called and, ultimately, translate these leads into revenue. At least 20% of all online searches are local; that number jumps to 40% for users searching from a mobile device. Experts only expect these numbers to grow. Source: http://propelmarketing.com/blog/2012/semand-small-businesses-are-you-using-it/ ■
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5 ➤ storm, anyone dragging their feet on buying a new machine—it forced them to do something.” Sosler has done well this year with Snapper snow throwers with Snow Shredder serrated auger feature that’s been marketed well, he says. “They’re a good product assembled in the U.S. and with good product support,” Sosler adds. “We saw a lot of pre-season tune-ups on snow machines as well,” Sosler says. “After last year, a lot of machines needed some work.” Ten days away from Christmas, Sosler was seeing a bit of a business slowdown. “But if we get a new snowfall that will invigorate everyone,” he says. “Weather plays such a big role. If you get rain you know the grass will grow, but snow’s not like that.” When not fully focused on snow season, Sosler says the dealership generally does winter cleaning and straightening, and tries to schedule store improvements then as well. In the past few years, the Soslers have upgraded the service department, showroom displays and even seal-coated the parking lot one year. In Minnesota, Bill Kurvers, Service Manager at Suburban Lawn Center in Ham Lake, Minn., says that even with just one major snowstorm through mid-December, “We’ve had a good winter so far.” The Ariens dealership enjoyed a good pre-season with snow machine sales and service, he says, and then the early season snowfall kicked everything into gear. A week before Christmas, Kurvers said he was hoping to get completely caught up on snow machine service work by Christmas day—though a snow event could change everything. Soon after Christmas, he says, the dealership begins mailing out winter tuneup specials to customers for mowers and other equipment, with free pickup and delivery offered through February. The 2014-15 snow season’s early and heavy snowfalls are “exciting” says Tom Pernice, Honda Power Equipment senior marketing strategist. He adds that he’s seeing trends for consumers leaning toward entry-level, 2-stage lower cost snow removal machines. However, Pernice says he’s finding consumers who research their purchases—and many secondtime purchasers—are finding Honda’s single-stage models will outperform lower-priced units at less cost. He adds that while inventory remains on most Honda snowblower models a week before Christmas, company officials anticipate all inventory to be sold by early 2015. Meanwhile, a week before Christmas, Ariens was still in production, working to fill snow machine orders that came in with the earlier storms. “It’s been a strong year for us, and it started fast and quick,” says Dan Ariens, President and CEO of Ariens Co. Following last year’s significant snow season, Ariens projected a 30% increase this year, he says. “The pre-season sales and activity is predicated in large part on the tail end of last year’s snow season,” Ariens says in noting the strong pre-season activity this year. “Then the Buffalo storm hit at the start of snow season, greatly boosting demand early.” “It can be hard to meet demand when it ramps up real quick like that, so we’re continuing to produce, with factory lines ready to go.” Ariens adds that one anecdote for the season so far is that at least one Ariens snow machine was sold into Georgia, which had a terrible winter last year in PET the northern third of the state.
JANUARY 27-28—Ohio Michigan Equip. Dealers Assn., Doubletree Hotel Worthington, Columbus, OH. Call 614-8891309; visit www.omeda.org. FEBRUARY 7-10—Outdoor Power Equip. Aftermarket Assn., Omni La Mansion de Rio, San Antonio, TX. Call 703-5497608; visit www.opeaa.com. FEBRUARY 9—Northeast Equip, Dealers Assn. Inc., Bird-InHand Restaurant, Bird-In-Hand, PA. Call 800-932-0607; visit www.ne-eqip.com. FEBRUARY 10—Mid America Equip. Retailers Assoc., Crowne Plaza Hotel, Louisville, KY. Call 614-889-0463; visit www.maera.org. FEBRUARY 20-22—Southwestern Assn., American Royal Complex, Kansas City, MO. Call 816-561-5323; visit www.swassn.com. FEBRUARY 21-24—South Eastern Equip. Dealers Assn., Hyatt Regency Pier Sixty-Six, Ft. Lauderdale, FL. Call 901756-1336. FEBRUARY 22-24—Midwest Equip. Dealers Assn., Hyatt Regency Pier Sixty-Six, Ft. Lauderdale, FL. Call 609-2404700; visit www.medaassn.com. FEBRUARY 22-25—Deep South Equip. Dealers Assn., Hyatt Regency Pier Sixty-Six, Ft. Lauderdale, FL. Call 225-3835064; visit www.dseda.org. MARCH 1-4—Outdoor Power Equip. & Engine Service Assn. Inc.,Vinoy Renaissance, St. Petersburg, FL. Call 860-7671770; visit www.opeesa.com. MARCH 4-5—North American Equip. Dealers Assn., Ritz Carlton, New Orleans, LA. Call 636-349-5000; visit www.naeda.com. Listings are submitted months in advance. Always verify dates and locations with contacts prior to making plans to attend.
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DEALERtodealer
In 2015, Measure Key Factors To Boost Dealership Success GREG GERMAN
D
ecades ago, I remember my father giving me some advice, saying, “Expect what you inspect.” Simply put, this means that if you measure it and ask questions about it, you are much more likely to get the desired results. Over the past couple of years, our business has been expecting and inspecting more than ever. All the while, we’re achieving many of the desired results that we were seeking. None of it came easy. It all started with planning, communicating, and then executing the plan. Meanwhile, our planning for the upcoming year has already begun. With the dreary days of winter now upon us, there is not a better time to make sure that you are well prepared for 2015 to be your best year ever. One of our key target areas for 2015 is to continue to grow our parts business. We have been blessed with some very good growth, but feel we are still leaving far too many dollars on the table because we are not maximizing every transaction as we manage our assets from cash to cash. We knew that in order to make sure that entire parts team was on the same page and was moving towards our corporate goals, we needed to have employee buy-in to the plan. After discussions with the team, it was pretty clear that monetary incentives were going to be a driving force to see our goals realized. I need to be honest with you: I was leery in how our team would react to monetary incentives. My experience has not been very positive in the past with trying to incentivize our parts personnel. We had tried a variety of different commission/incentive plans based on very similar factors that we are using for 2015. The difference is we have new employees who are excited about the opportunities. Here are the factors that we are measuring for 2015: ● Gross margin dollars generated increase month over month from the prior year: We are projecting a reasonable 22
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percentage increase in gross margin dollars vs. the same month in the prior year. As this is a departmental team goal, this commission is a flat dollar amount per employee in the department. ● Parts freight account reconciled to a break-even: Since we track all inbound parts freight to a separate sales/expense account in our parts department, our goal is to charge out as much freight to our customers on counter and service invoices to offset our inbound freight costs. In the past, we usually lost a large amount of money in this area as we had been poor in monitoring the sales that should have been generated. Over the past couple of years we have made a big dent in this
It all starts with planning, communicating, and then executing the plan. area and are seeking to break even in 2015 in our freight account. (FYI, if you are not tracking this, freight can equal 8-10% of your parts sales. If you are not collecting it, you are giving it away). This goal is paid on a monthly basis. If we break even during that particular month, each team member receives a flat dollar amount. ● Parts Inventory Turnover: Simple formula to figure your parts inventory is calculate your annual parts sales (at cost, COGS) divided by average monthly parts inventory—COGS/Avg. Monthly Parts inventory. Our goal is to have a 20% increase in parts inventory turnover. This is a stair-stepped goal that is looked at on a quarterly basis. We are looking for an improvement each quarter on a rolling 12-month basis. This goal is back-end loaded as the department probably won’t be able to hit the goal until the last quarter. We are
looking for an improvement of 3% in quarter 1, 4% in quarter 2, 6% in quarter 3 and 7% in quarter 4. Each team member is paid a flat dollar amount. ● Attendance: Each team member can have only one unexcused absence (no remaining sick days or vacation to utilize) per quarter. Since our goal is to maximize the amount of time that we have a full complement of parts personnel in our departments, we will pay a flat quarterly dollar amount per employee who meets the goal. ● Inventory Shrinkage: Missing inventory has always been a problem. This problem can be caused by poor data input in the department, items not being charged out on service invoices, customer/employee theft, etc. We are creating a more secure area in our parts department and limiting access by non-department employees to the area. In addition to an annual parts inventory, we are instituting a quarterly parts inventory on the top 20% of the part numbers that provide our greatest turnover. This is an annual departmental goal paid per employee as a flat dollar amount. If all monthly and quarterly goals are achieved, we have also included extra bonus incentives. If all goals are attained, the incentives would equal about 12% of their annual compensation. I will let you know how our results play out based on these incentives. I hope you use these next couple of months to plan for some major changes in your operation. Remember, you can PET only “expect what you inspect.” Greg German is President of GermanBliss Equipment Inc. in Princeville, Ill., which operates three power equipment dealerships that market products for the lawn and garden, industrial and agricultural sectors. He can be contacted at P.O. Box 440, Princeville, IL 61559; fax: 309-385-2540; ggerman@germanbliss.com. The views of Greg German do not necessarily represent those of Hatton-Brown Publishers.
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