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POWERlines
A Hatton-Brown Publication www.poweret.com
In Service Departments Quality Is Key JESSICA JOHNSON
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n 2012, Dan Shell opened this column with the sentence, “There’s no understating the importance of service, and this issue takes a close look at power equipment dealership service departments and how dealers manage them, the challenges dealers face in delivering top quality service and more.” I literally can’t think of a better way to introduce the 2014 installment of PET’s Dealer Survey: Service Report, especially given this year’s results. More than 440 dealers took the on-line survey, and while some numbers were surprising, like the most experienced techs are, on average, making about $17/hr.; others, like more than 80% of dealers are seeing ethanol related fuel issues clogging up service departments, aren’t. We all know that ethanol is the redheaded stepchild of this industry and as one popular country song says, “Rain makes corn. Corn makes whiskey…” dealers know that corn does not in fact make good gas for power equipment. Maybe for some these numbers aren’t surprising, but when I consider that 26% of dealers report that 41-60% of their dealership’s total sales volume is in the service department, I find the idea of technicians making $17/hr. on average surprising. Especially considering that two years ago, the average was exactly the same: experienced techs were making $17/hr., but most dealers reported a shortage of techs. Not the case this year. In fact, according to the U.S. Bureau of Labor Statistics (BLS), in May 2010 there were 25,010 people employed in the outdoor power equipment and “other” small engine mechanic category (which does not include motorcycle and motorboat/marine technicians and mechanics) with a median hourly wage of $14.22. Flash forward to May 2013 and the BLS reports 28,250 people are employed in the category with the median hourly wage being $14.68—a change of only a few dimes, but more folks in the industry. A sign of the future? Ray Butler, Parts Manager at Ahearn Equipment, Inc., in Spencer, Mass., seems to think so. He comments, “Better days are coming.” There really is no understating the importance of quality service (and a quality service department) and this issue looks inside service departments around the country at labor rates, posted shop rates, OEM versus aftermarket parts use, ethanol problems and much more. Curious about all the results? Turn to page 10, and dive right on in. Wondering what dealers around the country had to say about business management, whole goods sales, future outlook, revenues and the like? Don’t worry—we’ve got you covered in the July/August issue, hang tight. In keeping with the theme of quality service being key to a dealership’s success, regular PET contributor, consultant John Walker, discusses the ways to fight the end of the month blues in your service department, beginning on page 18. Walker points out that efficiency is key, but it’s not enough just to have the plans in place—staff must be taught to follow the plan. What good does procedure do if no one really pays it any mind? “Nothing,” common sense would tell us, but Walker says dealers would be surprised if they actually looked at how long it takes to close out work orders. Work orders seem to be a constant struggle for some, Walker says, and with a few key changes to procedure, they don’t have to be. This issue has a lot of information, but I’m always curious to hear what dealers have to say, out in the trenches so to speak. As always, if you have a comment on something you see in the pages of this magazine, please PET don’t hesitate to call or email me.
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 Sparks Ad Prod. Coordinator ■ Patti Campbell Circulation Director ■ Rhonda Thomas Advertising Sales Southern U.S. Randy Reagor Tel: (904) 393-7968 Fax: (904) 393-7860 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 Midwest/Northeast U.S. Utility & ATV (exclusively) Paul Holdsworth Tel: (847) 934-0084 Fax: (847) 934-0556 Email: phpeh@hotmail.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
Contact Jessica Johnson, ph: 334-834-1170; fax 334-834-4525; e-mail: jessica@hattonbrown.com
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Reprint Sales Patti Campbell Tel: (800) 669-5613
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Volume 63 ■ Number 4 ■ MAY 2014 Our 697th Consecutive Issue ■ Founded in 1952
Renew or subscribe on the web: www.poweret.com
FEATUREstories
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SURVEY RESULTS All About Service
OREGON’S ZOLL
Small But Mighty Dealer
BUSINESS MANAGEMENT Run A Better Service Department
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VALUEadded Power Suppliers ___________________________6 Showroom ______________________________20 Distributor Library ________________________24 PETcetera/AD Index_______________________29 Dealer To Dealer _________________________30
COVERphoto PET’s dealer survey results are in! This month the report focuses on the all important service department, beginning on Page 10. (Cover design by Shelley Smith, PET staff photo)
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Member Verified Audit Circulation Power Equipment Trade (ISSN 1063-0414) is published 10 times annually (January/February and July/August 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 ® 2014. 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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POWERsuppliers Emak Announces New Division Manager Emak USA appointed Paul Scholl as the Div. Manager. He will create and implement a strategic plan for the growth of Emak in North America. Scholl’s 30+ year career in the power equipment industry includes director of Sales at Echo, Inc. and president of Red Max, a division of the Husqvarna Group. “I’m very familiar with the high quality products manufactured by Emak Italy and am excited to work with the Emak team in expanding our market share and sales in the consumer, professional landscape and agricultural arena,” Scholl says.
Service Tip From StarTron
One of the most common customer service complaints is gas-powered equipment that becomes difficult to start or runs rough within a few months after purchase. Dealers realize that the problem is the fuel, not the engine, but this can be a tough message to convey to irritated customers. Many dealers have discovered a quick, easy solution that improves customer satisfaction while also increasing profits. All fuel needs to be stabilized if it is not used within a few months. This is especially critical when using ethanol-blended fuel that begins to form gum within 30 days of blending, resulting in clogged carburetors and engines that run rough or are difficult to start. When any gas-powered machine comes in for any service, a tech doses the fuel with StarTron and then attaches the bottle to the machine. The price of the bottle is added to the repair invoice, so as an offset, when the customer picks up the machine, they are given a coupon for a mail-in rebate. StarBrite provides the coupons and handles all fulfillments. The machine runs great, the dealership now has a satisfied customer and the customer receives a rebate check directly from StarBrite on their initial purchase of StarTron. In addition to increased customer satisfaction and decreased equipment returns, most customers who have experienced StarTron’s results firsthand will purchase it for all their gas-fueled engines, improving profits for the dealership. With a qualifying StarTron purchase, 6
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Kioti Tractor Thinks Pink Kioti Tractor, a division of DaedongUSA, Inc., kicked off its fourth annual breast cancer awareness campaign recently with a special raffle during industry tradeshows. The winners, Jenny Black of Vonore, Tenn. and Charles Greer of Chugiak, Alas., each won a Limited Edition Pink Mechron 2200 utility vehicle during the National Farm Machinery Show and the World Ag Expo in February. Greer, customer of S and W Feed & Supply, Inc., in Carson City, Nev., said, “We are happy to have had the opportunity to participate in this very worthwhile and charitable effort supporting breast cancer research. My youngest sister is a recent breast cancer survivor, so winning the unique pink UTV to use in our farming operation is a special bonus.” The raffle at the two tradeshows raised more than $25,000 combined. All of the proceeds will be given to the UNC Lineberger Comprehensive Cancer Center, a leading national cancer center located in Chapel Hill, N.C. The donations are a continuation of a long-term relationship between the national tractor brand and the UNC Lineberger Center. The raffles at the February tradeshows mark the start of Kioti’s yearlong breast cancer awareness campaign. Starting in May, Kioti will travel throughout Canada with a third Limited Edition Pink Mechron 2200 utility vehicle. With stops at dealerships and tradeshows, the tour will conclude on Oct. 5 during the 2014 CIBC Run for the Cure. Kioti also will use the tour to recruit members for Team Kioti, a fundraising team for the Run for the Cure. A random participant from the Team Kioti fundraiser will win the third Limited Edition Pink Mechron 2200 utility vehicle. For more details on Kioti Tractor and its efforts to support breast cancer research and awareness, visit www.kioti.com. dealers are included in the “Keep It Sold” program, featuring consumer rebate materials providing the end user with a 100% rebate on an initial purchase of StarTron (with qualifying gas-powered equipment purchase) or an up to $5 rebate on an initial purchase of StarTron. The program also provides a full marketing materials support kit, including a banner, a countertop “Ethanol 101” information brochure, training DVD and more. Participating dealers are listed on StarTron’s website as part of the Star Link consumer referral program. For more information, contact Dennis Torok, 800-327-8583; email: dtorok@ starbrite.com
Walbro Receives Honda Award
Recently, Walbro Co. Ltd. received Honda’s coveted Supplier Development Award. Honda presents the award annually to suppliers for significant improvements in terms of price, quality and development. Walbro received the award for this year in the category of pricing.
Walbro was one of only 20 companies out of 800 Honda suppliers to receive the award this year. Walbro provided cost reductions due to an improved process for its gas system for Honda butane-powered generators, utilizing its innovative PBG and PCG gas mixer and regulator.
NAEDA Announces 2014 Award Recipients
North American Equipment Dealers Assn. (NAEDA) announced the recipients of its 2014 Gold Level and Most Improved awards. The NAEDA Gold Level status and most improved recipients are determined from results of dealer evaluation data collected from the association’s annual dealer manufacturer relations survey. The survey asks dealers to evaluate how the companies whose products they sell in key areas correlated to a dealer’s operational model. The companies achieving 2014 Gold Level status are: Kioti Tractor, Landpride, H & S Manufacturing, Woods,
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POWERsuppliers Grasshopper, Stihl, Echo, Ariens and Shindaiwa. The Gold Level award recognizes those manufacturers who have achieved exceptionally high dealer rating levels as part of NAEDA’s manufacturer recognition program. The recipient of the 2014 Most Improved award is McCormick Tractor. McCormick Tractor attained the greatest percentage of improvement in overall ratings from 2013. NAEDA congratulates these recipients and compliments all manufacturers in recognizing the importance of the dealer-manufacturer relationship from the dealers’ perspective.
Briggs Wins Shorty Award
Briggs & Stratton Corp.’s Mower Mouth social media contest received a prestigious Shorty Industry Award for Best Facebook Contest, sharing the honor with ESPN’s SportsCenter and beating out third finalist, ABC Family, in the category. The Shorty Industry Awards honor the talented agencies, brands, and indus-
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try leaders behind the best social media channels, campaigns, websites, games and applications. This year, Shorty Industry Awards doubled in size with entrants from around the world. The Mower Mouth Facebook contest featured Briggs & Stratton fans entering videos of them impersonating lawn mower sounds. The creative entries included household pets, props and even a parody of the “What Would the Fox Say?” music video. The contest showed that many people find their lawn mowers to be too noisy and was an introduction to Briggs & Stratton’s new QPT engine, which cuts mower noise by 65% compared to like models.
Kohler Donates Engines to Schools
In an effort to ignite students’ interest in future careers as engineers and service technicians, Kohler recently donated 570 engines to more than 34 educational institutions and organizations throughout the Midwest. The gas and diesel engines will be
used for student coursework at high schools, technical schools and universities, as well as other community groups in agricultural or mechanical fields. The donations are valued at more than $40,000. Kohler’s donations included both gas and diesel engines ranging from 6.5 to 23.4 HP. They are being used to give students critical, hands-on experience while enhancing their knowledge of small engines, including assembly and disassembly, components, torque values, engineering processes and the general functioning of combustion engines.
Charter Integrates AGCO Parts
AGCO dealers using Charter Software’s popular ASPEN dealership management system continue to gain access to new AGCO electronic transactions using the ASPEN AGCO communications interface. The latest enhancement to the program includes Phase I of AGCO Parts Integration (API) a new, voluntary AGCO dealer program.
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POWERsuppliers Currently, the API integration provides participating dealers with an automated process for submitting parts data from ASPEN to AGCO’s D2D Exchange, a program that makes parts inventory visible between AGCO dealers to assist them with selling parts. The second phase of the API integration with ASPEN will allow dealers to submit data to AGCO for analysis to receive stocking recommendations to improve their parts inventory. Charter Software will complete Phase II of this integration for ASPEN next quarter.
families during hospitalization. The Scag First Responder Program is not a national program and is only offered to customers purchasing Scag whole goods from dealers within Power Tool Co.’s distribution territory. This territory includes dealerships located in Alabama, Georgia, Tennessee, South Carolina, North Carolina and Power Tool Co. territories in Virginia and West Virginia.
Excel Industries Production Record
Excel Industries has seen an increase in production volume for its current fiscal year. In Excel’s 8th month of fiscal year 2014, production volume on a unit basis reached a level that was equal to the entire previous fiscal year. Excel’s workforce also continues to grow with an employee count of 550, including temporary employees, compared to 450 in March 2013. Founded in 1960 and based in Hesston, Kan., Excel Industries manufactures commercial and residential lawn care equipment under the Hustler Turf Equipment and Big Dog Mower Company brands. Excel introduced the world’s first zero-turn mower in 1964 and the world’s first all-electric zeroturn mower in 2008.
Power Tool Co. Introduces Scag
Power Tool Co., Southeastern distributor of Scag Power Equipment is proud to announce the First Responder Program. This program will provide cash discounts to active, retired and volunteer First Responders, which include police, fire, EMT and all branches of the U.S. military. These discounts range from $50 to $500 on a single unit. Equipment sold between March 1st and June 30th is eligible. While the program is in the beginning stages, the results thus far have been astounding and the program is proving to be a huge success. A donation of $25 is made to the customers’ choice of the following charities: National Fallen Firefighters Association, Concerns of Police Survivors-COPS, National Association of EMT’s, Fisher House—Comfort Homes for Veterans POWER EQUIPMENT TRADE
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Service Report: Dealer Survey Results Results are in from PET’s 2014 Dealer Survey! This focuses on what dealers had to say in terms of labor rate, technicians and parts. BY JAY DONNELL
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ere in the first half of 2014, dealers are still fighting their way out of the recession that plagued so many, for so many years. Dealers have increased technician pay and they continue to raise labor rates in order to compete with other dealers. There’s no place else in the dealership that dealers have more control over profitability than the service department. Dealers get to manufacture and price their own product; in this case skilled time and smart parts inventory management deliver customer satisfaction. More than 440 dealer responded to the on-line survey this year, and results show that service truly plays a huge role in dealer revenue and profit: For 25% of servicing dealers, service and parts account for at least 60% of overall sales. Another quarter of the dealer base (26%) says service/parts revenue accounts for 40%-60% of their annual sales, while roughly a third of dealers (32%) report service/parts sales make up 20%-40% of revenues. From finding, training and compensating technicians, setting shop labor rates and maintaining efficient parts inventories, dealers control more factors in the service department than any other. Here’s what they had to say regarding service products, rates, parts and more.
Products, Rates Compared to 47% of survey respondents two years ago, only 41% of dealers currently service "brands we sell plus others."
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Dealers are trending away from dealership specialization. Directly related to service, PET asked dealers if they ser-
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viced all brands, just the brands they sell or the brands they sell plus select others. Since the last PET Dealer Survey in 2012, the number of dealers who service all brands of equipment increased from 44% two years ago to 52% now. Meanwhile, the number of dealers who only service the brands they sell has decreased by a small percentage, going from 10% in 2012 to 7% now. Today, 41% of dealers service “brands we sell plus select others”; two years ago 47% did so. Dealers have slowly but surely stepped up and increased technician pay over the years in an effort to attract the best technicians available. In PET’s 1998 Dealer Survey, 50% of dealers were paying their most experienced technicians $10/hr. or less. Today, 45% of dealers are paying their
Ethanol’s Impact Ethanol-blended fuels are widely available throughout the U.S,, and dealers are seeing more service work as a result. Asked about the impact ethanol-blended gas has on their service departments, 82% of dealers say they have seen equipment repairs that were related to ethanol-blended fuel. This number is actually down from 2012, where 93% of dealers reported seeing equipment repair issues related to ethanol in fuel. 85% of dealers reported that they sell fuel treatments for ethanol-blended gasoline. To deal with the issue, 67% of dealers say they sell non-ethanol premixed fuel. Just over half of dealers (52%) say they direct customers to ethanol-free gasoline sources. To help educate, 39% of dealers say they offer fuel testing for customers. Another 23% of dealers say they are using industry's "Look Before You Pump" educational materials and signage. Many dealers reported trying to cut off ethanol problems before they start, educating customers on maintaining stored fuel and its importance in regards to proper equipment operation. Though, on the flip side, for one dealer in Minnesota, fuel related issues aren’t necessarily a problem, per se. He comments, “Fuel problems are going to continue grow. But the ethanol has been good for business. Keeping us really busy!”
most experienced techs $17/hr. or more and 20% of dealers are paying their techs $21/hr. or more. Dealers have continued to aggressively raise labor rates over the past two years despite tough economic conditions. PET asked dealers about the last time they raised their labor rate and 36% said in 2013 while only 14% said five or more years ago. When asked this question in 2012, 31% of dealers said they raised their labor rate in 2010. PET also asked dealers about their posted shop labor rates, and 62% reported labor rates of $60/hr. or above. While 15% of dealers reported labor
rates at $50 or under. On the upper end of the scale, just under 10% of dealers surveyed (9.7%) have posted shop labor rates of $80 or more per hour.In PET’s 1998 Dealer Survey, only 1% of dealers reported paying over $50/hr. In terms of using flat rate pricing for service work, 55% responded they did offer such pricing for customers. A slight uptick from 2012, where only 51% of dealers reported using flat rate charges.
Parts This year’s survey, as with past years, also covered dealers’ parts business and inventory, annual investment
What Dealers Are Saying… “Slow, steady growth with strong priority on SERVICE.”— Tom Shay, Owner, Graves Creek Service, Eureka, Mont. “We have continued to grow our business for the last 10 years at least 10%. If you offer good service and fair prices, the word travels fast. I foresee a continued growth pattern of customers migrating from the box stores into our specialized stores.”— Zach Cooper, President, Mower Zone, Inc., Danville, Ind. “I feel like the OPE industry is a growing, expanding business. It is a tough business, so service is key.”— Gina Tipton, Co-Owner, C and C Custom Trailers, Chuckey, Tenn. “I think there will be a considerable shortage of qualified techs in the future, due to the fact of very few training opportunities at a young age.”—Rick Wagner, Owner, Rick’s Outdoor Power, Angleton, Tex. “Service is the growth area of our business, it is and will remain, the cornerstone of our stores’ success. Sell more service equals sell more parts. Smaller and less expensive equipment sales will decline due to on-line purchasing options. Ride on equipment sales will remain flat. Over the counter parts sales will decline due to on-line parts sales.”— Patricia Williams, Mark Williams Outdoor Equipment, Murphysboro, Ill.
Almost three quarters of dealers report using a mixture of both aftermarket and OEM parts on equipment repairs. POWER EQUIPMENT TRADE
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Nearly half of dealers say experienced techs are paid $17/hr. or more.
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and aftermarket parts. PET asked dealers how much they spend annually for repair and replacement parts (including repair and counter sales). 54% of dealers are spending $50,000 or more annually for repair and replacement parts; 11% of dealers report spending over $300,000 annually. Looking at percentage of aftermarket parts use, 36% of dealers say aftermarket parts make up 20% or less of the total parts they buy, use and resell. On the upper end of aftermarket parts usage, 15% of dealers say aftermarket parts make up 60% or more of the parts they buy, use or resell. On the subject of aftermarket vs. original parts suppliers, 74% of dealers report using both aftermarket and OEM parts. 14% of dealers use OEM parts only, and 12% of dealers say they “use non-OEM parts when practical.” Dealers were asked if they have better profit margins on aftermarket or OEM parts, and 80% of dealers said aftermarket parts. PET also asked dealers why they use nonOEM replacement, repair parts for service or counter sales, and 39% of dealers said “better value” while 33% of dealers said “equal or better quality.” Twenty-two percent of dealers believe they get quicker service PET through aftermarket parts suppliers.
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Service Focus Provides Success Southern Oregon dealer has small shop but big service following of loyal customers. BY DAN SHELL MEDFORD, Ore ongtime dealer Gary Zoll of Zoll’s Lawn and Garden Equipment Sales and Service in south Medford says the business has traditionally emphasized service, and for good reason: Operating out of a 40 ft. wide lot doesn’t leave much showroom room, and adding on to the back of the building over the years added to service capacity. The business dates to 1975, when Zoll and his father, Ed, started it in a 600 sq. ft. building on, yes, a 40 ft. wide lot. After several expansions, there’s about 4,000 sq. ft. now, including a 1,200 sq. ft. showroom. “We’ve always emphasized Zoll’s carries a full line of wheeled and handheld equipment. service, because we just don’t have that much room for retail,” says Zoll, a Briggs & Stratton Master Service Technician. and sales,” Gary says. equipment initially when going into Zoll’s Lawn and Garden Equipment Unlike many dealerships in Oregon whole good sales, starting with Jacobwas sort of a “retirement business” for where handheld products—and lots of sen in the late ’70s and replacing it with Zoll’s father, with Gary effectively takchain saw sales—were a primary focus Snapper in 1984. The dealership picked ing over the business in 1979, and his 30 years ago, Zoll’s went with wheeled up Echo, its first handheld line, in 1994. father stayed involved until “We originally didn’t even his death in 1983. Zoll’s son work on handheld equipAndy joined the dealership ment,” Zoll remembers. “We full time in 2013. Gary’s wife, started with lawn and garden, Kathy, is the bookkeeper and and picked up chain saws works part-time in the dealereventually, but we never realship on the counter, looking ly emphasized handheld.” up parts and closing out inToday, the company offers voices and work orders. a full line of wheeled and Now that he has joined the handheld equipment from business full time after workSnapper, Walker, Echo, ing part-time for years, plans Shindaiwa, RedMax, Dolmar are for Andy to eventually take and Mantis/Little Wonder, over the business. “He needs to with Briggs & Stratton, know every aspect of the busi- Gary, left, and Andy Zoll are the second and third generation of Zolls to Kohler, Kawasaki, Tecumseh ness, equipment repairs, demos work in the dealership. and Robin/Subaru engine
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sales and service expertise. Zoll’s advertises parts and service capability for Husqvarna, Craftsman, Troy-Bilt, MTD and Murray products as well. Most recently, Zoll added the Ariens, Gravely and Walker Mower lines. He cites a long and good relationship with distributor Gold Eagle, which handles the Echo, Shindaiwa and LittleWonder/Mantis lines that the dealership carries. He also reports a longtime relationship with Power Equipment Systems in Salem, Ore., which supplies Zoll with RedMax, Kohler, EHP, Zama and Walbro parts. When Power Equipment Trade visit-
Zoll’s services a wide range of product lines, including a few not sold in the showroom.
ed Zoll in August 2013, the business was coming off a solid sales year, with Zoll looking for another technician (like most dealers). He never found one, and reports he and Andy are doing well handling the service load going into the 2014 sales and service season. Right now service orders are almost four weeks out through mid April as the dealership’s busy season kicks into high gear—a schedule that is as far out as he wants to ever be, but not abnormal for this time of year, Zoll says. “We’ve been busy since early February, and we’re not doing too bad with it ourselves,” Zoll says, noting that both he and Andy work on all types of wheeled and handheld units. The two work on all types, but definitely not everything that comes in the door, Zoll says. In fact, that’s one of the biggest changes he’s made this year, turning down repair jobs that just aren’t
feasible or require more work than they are worth. “We pretty much just work on everything we sell. But we’ve stopped working on stuff that’s just not worth it, like a 2-stroke department store brand trimmer, where the replacement cost may even be less than the service to fix it.” Zoll admits in the past he may have been a soft touch, letting customers leave equipment for him to “take a look at,” and then he never hears from them again. But no more: “I’m not letting them talk me into it,” he says now. If it’s a piece of equipment that’s worth repairing, the key is being able to readily get the parts needed. “We don’t go looking for parts,” Zoll adds. Zoll uses primarily OEM parts for his service work, but uses Rotary and Oregon for aftermarket parts sources when
needed. “We use the Internet for most of our parts lookup,” Zoll says, adding that he also has “thousands of part numbers committed to memory.” The dealership’s computerized business management system is an early version of Ideal Systems, he adds. The dealership’s labor rate was $66/hr. when PET visited last year, a rate in place since early 2012. As of this year, the dealership raised its labor rate to $72 an hour. “That still leaves us on the low end in this market,” Zoll says. Service equipment includes both Li’l and Big Heftee Lifts in the shop, plus a DSA ultra-sonic parts cleaner bought from Rotary. Zoll has built some of his own grinding equipment. Zoll says he works to keep the operation manageable and keep overhead low. “The only advertising we do now
Good relationship with Echo distributor Gold Eagle attributes to the dealership’s success, Zoll reports. POWER EQUIPMENT TRADE
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is in the Yellow Pages,” he says, adding that he scaled things back in the late ’90s after he realized he was spending more than $20,000 a year on print advertising while getting questionable results.
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The dealer just started up his company’s web site in 2012, primarily a basic information, brochure-type web site about product lines, Zoll’s history, commitment to service, etc. But the site
also has a lot of customer educational information, especially about fuel handling and ethanol. Zoll also includes interesting anecdotes on the site, like this one: “I recently had a customer complain about his mini tiller giving him problems when it was only about six months old. The labels and stickers were faded from sun exposure and the fuel had that foul smell that old, stale fuel has. When I suggested that he was leaving his machine outside in the sun, he protested and explained that he had never done that and that he kept it in his greenhouse. The sun and heat of the greenhouse had degraded his fuel and the pressure from the expansion of the heated fuel had actually popped the primer bulb on his carburetor. Surprisingly he had difficulty relating my recommendations of not storing his machine in the sun to his storing it in the greenhouse.” “We do our best to educate customers,” says Zoll, adding that the dealership offers a Tecumseh Power and Fresh Start fuel additive and notes the state of Oregon has a law allowing the sale of non-ethanol fuels above 91 octane “As long as they keep putting ethanol in fuel and people keep buying it, we’re going to keep dealing with it.” PET
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Efficiency Is Key To Fight The Blues Combat the end of the month blues by closing out work orders quickly. BY JOHN WALKER
D
o you get the end of the month blues working in your dealership? Do you get frustrated with the amount of time it takes to close out shop
orders? Do you pay a lot of overtime or do you just have your employees stay late to close out the month? Do you ever think about your profits going down the drain because of not practicing the basics? We recognize some of you will be saying: “But our industry is different and we can’t change the way our customers do business. We can’t change the habits of our technicians; they have always done it this way.” Well, if that is the case, you need to admit that your dealership is being held hostage by your tech-
nicians and your customers and costing some of you a great deal of money.
Recognize The Problem Let’s start off with an example of a rather large dealer who had a very serious problem closing work orders. Work orders in this dealership were taking an estimated average of 23 days to close. The dealer hired someone from outside the industry as Director of Operations— who stepped in, set up a flow chart and
Establish a process for closing out work orders and train technicians on it. Hold them accountable when it’s not done correctly.
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assigned accountability and responsibility to personnel to get the job done. Employees were told the #1 priority was to cut down the amount of time spent closing a work order. It took a bit of time to drop the number to an average of two days. It required the better part of the year to achieve his ultimate goal, which was point of purchase invoicing. This is similar to what the automobile industry began accomplishing years ago. It all starts with discipline and in everybody believing it can be done! How many times have we sent memos to our service department to mandate that all technicians have their work orders closed out at the end of the job or at the close of the working day? How many times has this slightly improved the situation, but in 30 days or less the department is right back to where they were before those memos? For example, one operations manager firmly believes it is as important to write memos to tell employees why changes need to be made as it is to tell them that these same changes must be made. Issues, at times, overwhelm us, because basic jobs have not been done. For example, billing a work order should be a very basic chore. All information on the work order should be correct, so when it gets to billing, the person responsible can simply bill the customer instead of hunt for information. However, for some dealerships, this basic task causes major issues. This happens because dealers allow it to happen; the manager is not managing. Establish a process, train people to do it and hold them accountable when it is not done.
2] Are there jobs that have been inactive over five days? a) If yes, what is causing the hold-up? b) What can be done to expedite the job? 3] Are there jobs that have backordered parts for over three days? a) When are the parts expected? b) What is being done to expedite the order? c) Are we sure the order has been placed with our supplier? Have we followed up? Many complaints from the field technicians concerning the delay in closing out work orders can be covered by improved communication techniques. The important thing is to establish a firm policy and
problems can be eliminated at the time of the sale if the customer understands completely that job standards will be set and that the customer will be contacted if additional work is required. Under no circumstances, will a job be opened up before a purchase order and a signature are received. The dealership always stands to lose a tremendous amount of money when these two criteria are not met. After the job is completed, but not before clocking-out, it is imperative for the service technician to immediately clean the work area, return shop tools, return unused parts, tag and store warranty parts,
Firm policy and procedure will help make the end of the month a little smoother.
Rectify It Go to your accountant and check the length of time your accounts receivable are outstanding. Reported average is 36 to 39 days. Now add to that number the number of days you are taking to close a work order. Scary, isn’t it? If your dealership has cash flow problems, why would you want to extend an extra two to three weeks for the customers to pay their bills? The following is a brief guideline of things to look at on a weekly, basis along with questions to ask about service work in process: 1] Are there completed jobs where the work order is still open? a) If yes, why are they not closed? b) When will they be closed? c) What is the hold-up? You expect to be paid on time; therefore you must bill your jobs on time.
procedure, and see that everyone follows it. It is imperative that everyone follows the established paper flow procedure. Many constantly complain that customers hold up on issuing purchase orders until they have a confirmed price. This of course could be a stalling tactic on the part of the customer and possibly someone needs to communicate this fact to the customer. Since customers are using your equipment to perform a function it only makes sense that they want their equipment operational as quickly as possible. Therefore, when it is explained to the customer that the job cannot be opened without a signature and a purchase order number, the customer may think twice about delaying the billing process. We strongly believe that 90% of these
complete paperwork, check charged parts, add labor, miscellaneous and environmental charges, write–up cause, correction and comments and then immediately turn paper work into administration. If these steps are taken and work orders are done in a timely fashion, then the last week of the month at the dealership no longer has to be viewed as a PET week in hell! John Walker is President of Aftermarket Services Consulting Co., Inc., a Fort Mill, SC-based international training and consulting company working with manufacturers, dealers and associations in parts and service marketing, managing and merchandising techiques. For more information contact AMS, 817 Stockbridge Drive, #399, Fort Mill, SC 29708; email amsconco@aol.com; visit amsconco.com.
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SHOWroom John Deere 4R Series Tractors
Earth & Turf 60SP Topdresser
John Deere introduces the 4R Series of compact utility tractors for homeowners and landscape contractors who are looking to do more than mow grass. Three models 4044R, 4052R, 4066R make up the family. The 4R models feature powerful, final Tier 4 engines ranging from 43 to 66 HP to power through tough tasks. The 4R tractors boast hitch assist, which enables fast and easy implement attachment. This function eliminates the need to go back and forth from the seat to the hitch. The operator can simply control the tractor and hitch while standing behind the machine. A deluxe seat on the 4R models can swivel 15° to either side and provides greater comfort and less fatigue when operating rear implements. The swivel feature also allows the operator to easily get in and out of the seat. The additions of premium work lights allow for longer work hours and are easily installed on the ROPS. Call 309-765-8000; visit deere.com. 495
Earth & Turf Products’ 60SP self-propelled topdresser is economical and maneuverable. It is ideal for spreading dry or wet compost and sand, plus a variety of other materials. It features easy loading into its 6.7 cu. ft. hopper. The maximum load weight is 650 lbs. (296 kg). Optional loading chutes will increase capacity for lighter materials such as compost. A wide-spread beater produces an even spread pattern up to 42" wide. The 60SP is powered by a 190cc Briggs & Stratton, 875 series, 6.5 HP engine. The drive is by CV belt, forward and reverse. Call 717-355-2276; visit earthandturf.com. 486
Generac OneWash Pressure Washer
Earthwise 40V Lithium-Ion Mowers The Earthwise family of mowers is growing with two new walk-behind mowers that promise to perform long and strong. Fueled by a rechargeable lithium-ion battery and a brushless motor, Great State’s new lithium-powered options have more torque, power and run longer than previous generation mowers. The 17" 40 volt lithium cordless mower features a 17" cutting width, a 40 volt lithium-ion battery, a brushless motor, a 2-in-1 mulch rear bag, single lever height adjustment from 1.5" to 4" and a poly deck. The 19" 40 volt lithium cordless mower features a 19" cutting width, 40 volt lithium-ion battery, brushless motor, 3-in-1 mulch rear bag, side discharge, single lever height adjustment from 1.5" to 4" and a power coated all steel deck. 628 Visit americanlawnmower.com. 20
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The OneWash from Generac Power Systems features the exclusive PowerDial that allows users to select what they want to clean, and then it automatically adjusts the power washer’s output pressure to meet the task. The PowerDial has four pressure settings that allow the user to clean virtually any surface, from cars
and other vehicles to brick and cement. The OneWash also features an innovative system to protect the pump from damage. Because operating a pressure washer without water flow can irrevocably damage the pump in only a few seconds, the OneWash power washer will not start unless water is flowing through the pump. It will also shut down automatically if the water supply is interrupted. In either event, an LED on the control panel will alert users that they need to check the water supply and the oil level (the unit comes standard with low oil shutdown, as well). All of the OneWash’s controls, system alerts, and operational instructions are centralized into the unit’s control panel, which was designed around the PowerDial, eliminating the
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SHOWroom guesswork around starting and operating the power washer. The OneWash’s on-board detergent tank was engineered for improved usability. It offers a drain valve that lets users easily remove the contents of the tank. This makes it easier for consumers to use different cleaners for different jobs and easily prep the unit for storage. Call 888-436-3722; visit generac.com. 7609
to bag, mulch and side discharge. The HU725AWD/BBC features SingleStart, which adds a blade brake clutch (BBC) feature to the HU725AWD model, allowing the user to stop the blade to pick up debris or empty the bag. A simple lever engagement turns the blade back on without needing to restart the mower. 851 Call 704-921-6844; visit husqvarna.com.
Husqvarna AWD Walkers
Hook-Mounted Strap Hoists
Husqvarna has three additions to its AWD lineup, offering dealers and users high-quality options at a variety of price points. The HU675AWD, powered by a 675 Kohler engine, features a heavy-duty steel 2-in-1 cutting deck, a straight over mold bail system, an auto-choke and a mulch and rear bagging system. The HU725AWD, powered by a variable speed 725ex with Ready Start auto-choke Briggs & Stratton engine, features a heavy-duty steel 3-in-1 cutting system allowing it
Allied Power Products’ Columbia line of hook-mounted hoists now feature a strap option. Each of the four hoist models, with capacities up to 750 lbs., is rated for vertical lifting and features automatic, load suspending brakes and a secondary ratchet and pawl brake. Equipped with a 2" wide nylon strap, these units provide a unique solution for applications where spooling or cleanliness issues preclude the use of wire rope or chain units. Rated at 230, 450, 600, and 750 lbs. with first layer line speeds up to 74 FPM, these hoists feature hardened steel gears and oil bath lubrication for all moving parts. Standard features include upper and lower limit stops, a
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SHOWroom latching swivel hook, a push-button pendant control with a 32' lead, and depending on the model, a choice of 115 or 230 VAC 10 power. Call 503-626-0654; visit alliedpower.com. 9080
Rotary Filters
Rotary’s 2014 parts catalog features a complete line of commercial strength air, fuel and oil filters for mowers, trimmers, chain saws, ATVs and golf carts. Rotary premium quality filters are professionally designed to protect engines under tough conditions while ensuring maximum efficiency and peak performance. Air filters, fuel filters, oil filters, transmission filters and pre filters guarantee quality that
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meets or exceeds all OEM specifications. All of the foam air filters are made in the U.S. Call 800-841-3989; visit rotarycorp.com. 4226
CORE Outdoor Power Elite
CORE Outdoor Power’s Elite line is the latest addition to their suite of GasLess equipment. It currently features a higher performance string trimmer and a handheld blower, with more products being introduced in the future, including a lawnmower and a hedge trimmer. Weighing only 11 lbs. with power cell, the new E 400 trimmer features up to a 16" swath, .095" diameter trimmer line and torque equivalent to a 45cc gas engine. The 10 lb. E
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SHOWroom 420 handheld blower produces wind speeds of up to 130 MPH with airflow of up to 500 CFM. Both products feature soft grip molding, offering increased durability and comfort for tackling even the most labor-intensive jobs with the same quiet operation. The new line utilizes CORE’s state-of-the-art motor that works by embedding copper-etched conductors into a multi-layered circuit board stator. When coupled with permanent magnets, it produces high torque at extremely high efficiencies with zero negative impact on the environment. Call 406-883-2673; visit coreoutdoorpower.com. 6160
DuraTech 15" Tree Chipper
CAT C4.4 or 139 HP (103.7 kw) CAT C4.4 diesel engine and PT-Tech clutch, the powerful TC-15 can grind logs up to 15" in diameter. The TC-15 features a spring-loaded feed wheel with adjustable down pressure, an optional height sensor that automatically adjusts the feed roller to material size and an optional hydraulic gathering winch. A hydraulic two feed roller system feeds the four 4.5" knives designed to chip wood waste. This high-powered unit discharges debris 360° from the hydraulic rotating adjustable chip spout, allowing the user to alter chip disposal. The TC-15 has multiple safety features like the innovative hopper safety light bars with easy and instant shut down. There are also two e-stop switches, a disc hood closed proximity switch and a breakaway brake switch to ensure the safety of the operator. The new tree chipper is available with a pintle or ball hitch and can easily be towed to a job site. This unit is compact, measuring 79" x 208". 3648 Visit duratechindustries.net. HOW TO SUBMIT PRODUCTS
DuraTech Industries is excited to announce the arrival of the TC-15 tree chipper. The TC-15 is the larger option in the DuraTech tree chipper line. With option of a 122 HP (91 kw)
Electronic images and copy (please be brief) are required. Images should be scanned as 300 dpi and saved as either tiff or eps files. E-mail to jessica@hattonbrown.com. Ship disks to Jessica Johnson, P.O. Box 2268, Montgomery, AL 36102-2268 or to 225 Hanrick St., Montgomery, AL 36104-3317. Ph. 334-834-1170.
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AR, LA, MS, OK, TX
4408
MN, ND, SD, IA, WI, TX
Nationwide
AR, KS, LA, MS, NM, OK, TN, TX
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OH, IN, MI, KY, PA, W. VA, MD, FL, NJ, NY, ME, VT, NH, MA, CT, RI, DE, MD
WI, MN, ND, SD, TX, OK, AR, OR, WA, AK, MT, ID, WY, UP of MI 8690
DISTRIBUTORS: For information about placing your ad in PET’s Distributor Library Section
Call Kathy Sternenberg
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Western U.S.
TN,GA,AL,NC,SC,S.VA,SE WV
1709 Lamons Lane Johnson City, TN 37604 Website: www.powertoolco.com Email: sales@powertoolco.com Pro/Consumer Lines: Scag, Giant-Vac, Brown Products, Velke, Grass Gobbler Voice: 800-752-1780 Fax: 423-926-1679
MN, WI, IA, ND, SD
DE, MD, NJ, NY, PA, VA, W.VA
Nationwide
ler ELECTRIC w o F 800-843-1424 Bloomington, MN
Catalogs Available Distributors for Outdoor Power Equipment Parts, Small Gas Engines, and Snowmobile & ATV Parts Comet, NGK, Rotary, Prime Line, Gates, Martin Wheel, Tilltoson, Walbro, Zama & More 5417 Nationwide
DISTRIBUTORS:
3376
For information about placing your ad in PET’s Distributor Library Section Call Kathy Sternenberg
PA,NJ,DE,MD,WV,N.Va.,NY,CT,VT,MA,RI,NH,ME
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Southeastern U.S.
4331
DISTRIBUTORS: For information about placing your ad in PET’s Distributor Library Section Call Kathy Sternenberg
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Obsolete McCulloch & Obsolete Green Machine
9009
POWERworks Bob’s Lawnmower Service 7632 State Hwy. 7 Maryland, NY 12116-3201
607-638-9297 phone or fax
McCULLOCH PARTS NEW - USED - CURRENT - OBSOLETE Fayetteville Equipment 113 Washington St. • Fayetteville, NY 13066 Phone: 315-637-8165 • Fax: 315-637-9286 www.fayettevilleequipment.com 1069
Shelby County Implement • Shelbina, MO 63468 Ph: 573-588-4731 • 573-588-2020 Fax: 573-588-4264 • Email: sci63468@hotmail.com M/C, Visa and Discover Accepted 3524
CLOSEOUT
BUSY LAWNMOWER, TRIMMER, SNOW BLOWER, CHAINSAW SALES, SERVICE AND REPAIR SHOP!!!
WISCONSIN ENGINE PARTS – THOUSANDS OF PARTS – Obsolete – New – Closeout Prices HARD TO FIND Zenith AND Marvel Schebler Carburetor Parts
H & M Industrial Supply 2236
(800) 346-4331 –Custom Rebuilding –Current & Obsolete Inventory Enginemasters Inc. We want your New Old Stock! P: 815-485-4545 Fax: 815-485-4559 parts@enginemastersinc.com 3020
POULAN WEED EATER PARTS BUY & SELL NEW, USED & OBSOLETE
8100
ONAN ENGINE PARTS
Stihl * Homelite * Lawnboy * Briggs & Stratton New * Obsolete * Used Parts THOUSANDS OF PARTS!
Ask For Ray 502-228-1462 • Fax: 502-228-7737 Also Have HOMELITE Parts
Busy lawnmower, trimmer, snow blower and chainsaw sales, service and repair shop in business since 1965 includes all inventory, parts, equipment and a list of over 1700 current customers. Lots of traffic and tons of room for expansion and growth into new products. The business is on a 10 acre parcel and operates out of 10,000 square feet of interior space comprised of 3 buildings - a 42x90 clear span steel building for storage and work space, a 20 x 40 storage building. And a third building with a 32 x 60 showroom, office, additional storage area and a 24 x 80 service shop. 5454 Route 32, Catskill, New York. Come take a look .....................................................................$450,000
Call Steve at Steve Hubbard Real Estate 3821 Services. 845 246-2022
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PETcetera Finish Your Work Faster
Bike Bug Brother Of The Year
As the evenings continue to get warmer and longer, the last way you want to spend them is hunched over your desk, working on your never-ending to-do list. Author Andy Core shares seven tactics to help you change the way you approach your day, so that you can get out of the office earlier. “If you consistently find yourself replying to emails and finishing up reports an hour…or two…or three after you meant to go home, your tyrannical to-do list may not be totally to blame,” says Core. “Bad habits may be sabotaging your best efforts.” 1. Get big things done before 9:00 a.m. Ever notice how your morning sets the tone for your whole day? Core notes, “The truth is this: what you do first matters. And since the sun will keep rising earlier and earlier for the next few months, this is the perfect time to kick off a new morning routine.” 2. Own up to your junk hours. “Junk hours” are a little like junk food: they provide short-term pleasure, they contribute to long-term imbalance and exhaustion. Core instructs, “You need to identify when you’re going through the motions of work, versus when real work is being done. Don’t be ashamed that your junk hours exist, because everybody needs to take breaks and shift gears. Your task now is to exchange your low-value ‘junk’ activities for ones that build greater health and value into your workday.” 3. Instead of adding to your to-do list, build a new pattern. “To build a productive new pattern into your life, you usually won’t have to add new tasks to your day,” Core confirms. “You’ll simply do what you are already doing, or want to do, in a way that becomes habitual. If you want to wake up an hour earlier so that you can jump-start the day, you simply have to change the time your alarm rings and the time you go to bed.” 4. Make a big-box checklist. It’s a given that you have a to-do list. It’s highly likely that your list isn’t as useful as it could be. Core’s solution: Make an actual, on-paper checklist each afternoon for the following day or each morning. Put a box by each task—the more important that task is for you to complete that day, the bigger its box should be. 5. Think about it so you don’t have to think about it. We all have “those” tasks and obligations that eat up a lot of our time, that we find difficult and frustrating, or both. He urges, “By putting in some thought about ‘problem areas’ now, you’ll save yourself from having to think about them later. Eventually, this method changes once-tedious tasks into automatic, ‘I don’t have to think about it’ behaviors that save you a lot of time.” 6. Fill up your energy bank account so you can make withdrawals when you need them. “What I mean is, know your needs and capacities and try not to exceed them on a regular basis,” he says. “Get enough sleep. Eat nutritiously. Exercise when time permits. That way, when you do find yourself needing to push the limits, you’ll have a healthy margin of energy, motivation, or whatever to draw on.” 7. Forgive yesterday so you can work on today. “Treat yourself with the same compassion and generosity you’d extend to another person who’d messed up or fallen short of a goal,” urges Core. “Remember, nobody is perfect,” he adds. “This summer, make it your goal to not let regrets haunt your otherwise-perfect evenings.”
Carey Johnson of Rotary Corp. has been honored as Bike Bug Brother of The Year for 2014. Carey has been an integral part of the ability to restore Classic Bike Bugs for over 10 years. Bike Bug first contacted Rotary 15 years ago trying to obtain a dealership for its products—but kept getting turned down because there were so many lawn equipment dealers in Houston, Tex., where Bike Bug is headquartered. Finally, staying on the telephone and letting Rotary know the company isn’t in the lawn equipment business, but instead just interested in parts, Bike Bug was transferred to Johnson. Over the years of rebuilding and helping other Bike Bug brothers and sisters locate parts, Johnson has been the go-to. With his help, Bike Bug has been able to find all sorts of things, from throttle cables made in Argentina to atom kits made in Australia. Johnson’s knowledge has helped many that have lost their driver’s licenses due to health reasons still be active in life rather than having to rely on others solely for transportation. Johnson’s Bike Bug engine also incorporates several Rotary parts, leading to several improvements over the original Bike Bug engine. Some of the improvements over the classic Bike Bug are: lighter, higher HP, protective, noise damping cover, electronic ignition, direct drive, simpler installation and removal. The 26cc 2 cycle Bike Bug engine will propel a bicycle at speeds of 5 to 28 MPH and obtain close to 200 miles per gallon. It does not require a license, tags, insurance or inspection in most states. The rear mount engine is elected for good balance when installed or removed from a bicycle rack. The front mount is best for tricycles. Both engines perform similarly. More information on Bike Bug can be found at www.bikebug.net, or by calling 713/962-2681.
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Source: Andy Core, Change Your Day, Not Your Life: A Realistic Guide to Sustained Motivation, More Productivity, and the Art of Working Well (Wiley, 2014, ISBN: 978-1-118-81598-4, $23.00, www.andycore.com)
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This issue of Power Equipment Trade is brought to you in part by the following companies, which will gladly supply additional information about their products. ADVERTISER
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After Market Services 17 Altoz 13 B3C Fuel Solutions 8 Cannon Bar Works 7 CORE Outdoor Power 12 Eureka Chemical 16 Green Industry & Equipment Expo 9 Husqvarna Forest & Garden 5 Jungle Jims 21 Masport 16 Oregon Cutting Systems 1,2 Rapco Industries 22 Rotary 21,32 Star Brite 31 TD Retail Card Services 17 Ybravo 22
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DEALERtodealer
Sales Success Requires Commitment, Follow-Up GREG GERMAN
The key for dealership sales reps is to keep the sales process moving forward.
R
ecently the automotive salesperson from whom my wife and I have purchased our last four vehicles retired. We aren’t people who trade very often, so this relationship had been in place for at least 15 years. Our first encounter with him was because my wife had locked her keys in her car at our home, and this particular salesperson brought a set of keys out to us on his way home from work that same night. He won us over with good customer service through that event. But the relationship was also firmed up over time as he would call me every six months or so and inquire about our business, family and current vehicle needs. He would share any special sales that the dealership might be having and would always engage my wife when she would bring the vehicle in for the scheduled oil changes. He would occasionally give her a vehicle to take home for the evening to simply “try out.” That alone got her convinced we needed a new vehicle. His sales method seemed to be very tried and true and was based on a very good first impression and consistent follow up. Sounds pretty easy, so why don’t more sales people follow this same method? Research shows that most sales people stop following up with prospects after the second or third sales call. The same research shows that most people don’t make major purchase decisions until the seventh sales call. If the majority of prospects are not being contacted enough times by at least 80% of the sales people working for us today, that means 20% of the sales people are having a “field day” on cleaning up on a number of easy sales to “abandoned” 30
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prospects. In the world of on-line shopping, one of the key indicators about how effective a given company’s online sales experience is the percentage of “abandoned shopping carts.” Simply put, people started thru the sales process on-line and changed their minds before completing the task. If we were to be able to accurately count the number of prospects who actually contact our dealerships via phone, email or make an in-person visit, we would probably be made sick by the high rate of customers who didn’t come away with the warm and fuzzy feeling about our organizations.
If you want to change your current reality of poor customer conversion from prospects to sales, then you need to review what your employees are doing in this key area. First impressions are just that—FIRST. If a customer calls on the phone and your sales person presents himself with a hohum “Hello, sales,” then you can probably expect the person on the other end of the line will be less than impressed. How about trying a bit more pleasant and inviting approach such as “Good morning, this is Bob Jones. How may I help you today?” You greeted them, introduced yourself and asked the first necessary question. From there, you simply ask more questions and make sure that you are beginning to understand the customer’s basic needs and reasons why he or she is inquiring with your company. The same approach holds true for any walk-in customer. Greet them within 10 seconds of entering into your dealership. If you are tied up with someone else, take the time to say hello and let them know that you, or someone else, will be with them shortly. Recognize
them so that they don’t feel like the proverbial “lost soul” at the big box store. Nothing turns off people faster than not being recognized. If your sales rep doesn’t close the sale on the first visit or phone call, make sure there is a plan for step two. Remember, this is the part of the sales process that 80% of the sales people never do. Your sales person should attempt to get some type of a commitment from the customer as what the customer is going to do, or what you are going to provide them in order to move along towards completion. That may include a review of their property so that you can give them your professional opinion as to what equipment they need, a professional appraisal of their trade-in unit, a demonstration on their property or more facts that they have requested to better make their decision. The key is to get a commitment as to what is going to happen next and the time frame that you are going to do it. If your salesperson doesn’t get this completed, you have less than a 20% chance of closing that sale at a future date. If you want to change your current reality of poor customer conversion from prospects to sales, then you need to review what your employees are doing in this key area. You may find it helpful to do some role-playing to help them understand how they affect the sales process and how they can improve to be the salesperson that they have always wanted to be and you have always needed. Hope you have great selling success this year and remember, you only get one chance at making a PET GREAT first impression. 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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