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POWERlines
A Hatton-Brown Publication www.poweret.com
A Deserved Pat On The Back JESSICA JOHNSON
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very two years the editorial staff of Power Equipment Trade does something pretty awesome, if I do say so myself, with the biennial PET Dealer Survey. Between compiling the questions around late December to starting to spread the word that the survey has actually “gone live on the website” in February, to the first round of reporting results in the May issue, the Dealer Survey is a team effort that spans many weeks—most of which would not be possible without Dan Shell. Thank you Dan for putting together another successful survey, over 445 dealers shared their thoughts! You can read his full report starting on page 10.
Dealer Survey Review As the industry’s longest running pulse check, the survey over the years has covered everything that matters to dealers. This year we brought some previously dormant questions back, like what sort of technology is most prevalent for dealers, which hadn’t been on the survey since 2010. We also added a lot more options to product line, service and future estimating questions, specifically focusing on battery powered and alterative fuels. Some numbers stayed relatively similar to their counterparts in the 2005 and 2012 editions of the survey, others changed. For example, there is still a small contingent of dealers who want to close their doors. However, a rising number of dealers in the last two years either expanded at their current location or moved to a new location in order to accommodate a growing business, with guys like Derek Flint, owner of Flint Motorsports in West Topsham, Vt., commenting, “There will be a big growth in business in the 2014 season. I can’t wait.” But, unfortunately, for every Derek Flint there is a naysayer, like one respondent who said, “More dealers will throw in the towel as OEMs are cutting margins and demanding more from dealers.” Curious to see what other dealers had to say in our open-ended final question? Turn to Dealer Voices on page 16, where a few more comments can be found.
Reader Responses Are you bored of surveys yet? No? Good. Because I’ve got one more you might want to take. Currently, PET is conducting a reader survey to gauge how we’re doing. Share your opinion and you will be entered to win $100. Not a bad deal. This survey is nowhere near as long, I promise, but it is just as helpful to the editors with, you guessed it, an open-ended final question, which allows for comments. As the industry changes, dealers change. What you want to see in the pages of PET changes. Like one response we recently received, asking us to bring back Dealer Tips: a page of tips from dealers, technicians, salesmen and others “in the trenches” that works for them. And I’ve decided that Michael Mills of Mills Small Engine Repair’s suggestion of “Specialty tools that may be new or largely unknown to mechanics in the trade. Tips and or inventions that other mechanics have discovered to make the job easier/faster,” is exactly what PET needs. So, I need some help—send me your tips! I know every person has that one thing they discovered that works perfectly to help them do XYZ job easier. Simply drop me an e-mail with the tip that you think other dealers should know about and you might see it in an upcoming issue of the magazine. To make an already sweet deal even sweeter, the first person to send me a tip will receive a PET prize as a thank you! PET Contact Jessica Johnson, ph: 334-834-1170; fax 334-834-4525; e-mail: jessica@hattonbrown.com
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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 Reprint Sales Patti Campbell Tel: (800) 669-5613
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Volume 63 ■ Number 6 ■ JULY/AUGUST 2014 Our 699th Consecutive Issue ■ Founded in 1952
Renew or subscribe on the web: www.poweret.com
FEATUREstories
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POWER SUPPLIERS
GIE+EXPO Dealer Day Events
2014 DEALER SURVEY RESULTS
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Over 20 Years Of Dealer Data
MID-SUMMER LANDSCAPING New Products, Technology
VALUEadded Dealer Voices ____________________________16 Product Literature Review _________________23 Distributor Library ________________________24 PETcetera/AD Index ______________________29 Dealer To Dealer _________________________30
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COVERphoto The 2014 PET Dealer survey results are in! This month we cover it all: revenue, employment, outlook for the future and much more, beginning on Page 10. (Cover design by Christy Sparks; 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 GIE+EXPO Announces 2014 Dealer Day Schedule Officials with GIE+EXPO recently announced the schedule for the 2014 Dealer Day events at this year’s show. Dealer Day, Wednesday, Oct. 22, is an exclusive preview day for dealers, retailers, distributors and media. The Dealer Resource Pavilion will be open 9 a.m.-7 p.m. and indoor exhibits will be open 3-7 p.m. During a welcome reception on the show floor, 5-7 p.m., many of the exhibitors will host games, food, festivities and prizes in their booths. On Thursday and Friday the show and the adjacent outdoor demonstration area will be open to all in the industry. Inside the Dealer Resource Pavilion will be free seminars for owners and managers, led by consultant Bob Clements. The pavilion features a showroom, along with a parts and service department where Bob and his team share their latest ideas and tips on how to turn slow seasons into profitable seasons, improve your bottom line in the parts and service departments and more.
Free Management Classes by Bob Clements Dealer seminars led by Bob Clements offer real, business-improving information free of charge. ● Wednesday, October 22, 11 a.m.-12:30 p.m.: Dare to Be Different ● Thursday, October 23, 11 a.m.-Noon: Add Dollars to Your Bottom Line by Improving Your Service and Parts Departments’ KPIs ● 2-3 p.m.: Get Out of Your Financial Rut and Generate Instant Income ● Friday, October 24, 11 a.m.-Noon: Radically Transform Your Dealership by Improving Your Absorption Rate ● 2-3 p.m.: Turn Your Slow Season into a Profitable Part of Your Year
Tech Training, Certification Tech training will be in the exposition center’s East Hall on Wednesday and are offered through the Equipment & Engine Training Council (EETC). ● 7:30-9:30 a.m.: Basic Tech Classes: Fuel Service Training, Carburetor Systems/Diagnostics 101, Electrical Basics 101, Propane Fuel Systems 101. Choose one at $30 each. ● 8-11 a.m.: Advanced Tech Classes: Two-Stroke Engine Failure Analysis, Four-Stroke Engine Failure Analysis, Compact Diesel Engine Failure Analysis, Drivetrain Systems. Choose one at $45 each. ● 10 a.m.-Noon: Basic Tech Classes: Fuel Service Training, Carburetor Systems/Diagnostics 101, Electrical Basics 101, Propane Fuel Systems 101. Choose one at $30 each. ● Noon-3 p.m.: Advanced Tech Classes: Two-Stroke Engine Failure Analysis, Four-Stroke Engine Failure Analysis, Compact Diesel Engine Failure Analysis, Drivetrain Systems. Choose one at $45 each. ● 1-3 p.m.: Basic Tech Classes: Fuel Service Training, Carburetor Systems/Diagnostics 101, Electrical Basics 101, Propane Fuel Systems 101. Choose one at $30 each.
Dealer Summit Back by popular demand, the Dealer Summit has been expanded to three sessions this year. Thursday and Friday mornings begin with panel discussions that include a breakfast sandwiches and coffee. Both mornings are sponsored by the NAEDA. ● Thursday, October 23, 8-9:30 a.m.: Dealer Summit Breakfast: The Crystal Ball Manufacturers’ Panel. $25 ● 10-10:55 a.m.: Dealer Summit Special Report: Contractor Buying and Attitude Trends. $15 ● Friday, October 24, 8-9:30 a.m.: Dealer Summit Breakfast: Dealer “Best Practices” Panel. $25 For information and online registration for GIE+EXPO and the dealer education program: call 800-558-8767/812-949-9200; visit www.gie-expo.com. 6
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Ideal, Ariens Unveil New Capabilities Ideal Computer Systems, a provider of business management software for dealers, has announced automated Ariens/Gravely product registration in its newest release of software Ideal v8.5. The new integration enables dealers to register all of their Ariens and Gravely products through Ideal, which allows for quick and easy warranty claims submissions. With the interface, dealers will save time and money that’s normally lost through incomplete warranty claim submissions, lost claims and missed submission deadlines. Dealers can simply register their Ariens and Gravely products from Ideal’s wholegood properties screen. Once set up, the product registration button will display for a wholegood that has the Ariens or Gravely supplier ID, a sales date and a customer ID assigned. After answering a couple quick questions, the register check box will be marked and the product is considered registered.
OPEI Campaign Gets New Supporter
The National Marine Manufacturers Assn. (NMMA), the leading association for the North American recreational boating industry, will distribute Look Before You Pump messaging and materials to its membership and other stakeholders. Created by the Outdoor Power Equipment Institute (OPEI), the Look Before You Pump campaign helps consumers protect their boat, other nonroad vehicles and outdoor power and small engine equipment. Known by its emblematic prominent red warning hand symbol indicating “OK” for E10 and “No” for mid-level ethanol blends (E15, E30, E85), the campaign is spreading nationwide as ethanol blended fuels containing more than 10% ethanol are made available in the marketplace for flex-fuel automobiles. The campaign was launched at GIE+EXPO in October 2013. Additionally, Scripps Networks Interactive’s DIY Network is supporting the program through social media promotion, custom research and in-show messaging. “The level of support for Look Before You Pump has been growing steadily,” Kris Kiser, President and CEO of OPEI says. “Retailers, dealers,
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POWERsuppliers manufacturers—and now major industry organizations such as the NMMA— have stepped up to help caution American consumers and business owners to be more mindful of the changing fuels marketplace and selecting the right fuel for the right product.” A summer 2013 OPEI/Harris Interactive study shows the vast majority of Americans (71%) are “not at all sure” if it is illegal or legal to put high level ethanol gas (anything greater than 10% ethanol) into engines such as those in boats, mowers, chain saws, snow mobiles, generators and other small engine products. OPEI and NMMA urge consumers to read their equipment operating manual before filling engines with gasoline to ensure they use the right fuel. For more information, visit www.LookBeforeYouPump.com and search for #LookB4U Pump on Twitter and Facebook.
Jacobsen Names New Dixie Chopper GM
Long-time zero-turn mower manufacturer Dixie Chopper, which was ac-
quired by Jacobsen late last year, recently announced Chris Vernon as new Vice President and General Manager, plus additional key employees in sales and marketing divisions. Vernon, previously Vice President of Strategy and Product Management for Jacobsen, notes that with solid support from parent companies Jacobsen and Textron, Dixie Chopper is making “significant investments in our parts fulfillment, products and our people.” Other key Dixie Chopper personnel recently announced include: David Hunt, product sales demonstrator; Jason Sentell, territory sales manager; Dena Jenkins, marketing and events coordinator; and Sierra Kennedy public relations and communications specialist.
Kohler Power Adds 300 Jobs
Officials with Kohler Power Systems, a division of Kohler Co., announced plans this week to add 300 workers at plants in Mosel, Wis. and Saukville, Wis. over the next few years following the completion of a 105,000-square-foot
addition to the Mosel generator production plant in Sheboygan County, Wis. David Kohler, President and Chief Operations Officer, said the company’s growing power generation business drove the expansion. The addition provides storage space for product parts and increases capacity, including 140 tons of crane capacity for loading large generators.
Hisun Motos Corp. Seeks Dealers
For the first time since its establishment in 1988, Hisun Motors Corp. is seeking dealers to be supplied directly from its Texas based U.S. headquarters. Over the years Hisun Motors has provided products for some of the biggest names in UTV and ATV markets. In fact, it consistently ranks among the largest providers of UTVs in North America year after year. Beginning August 2014, Hisun will launch a new line of UTVs and ATVs. The flagships of this new line will be the new Strike 1000 and Strike 1000 Crew Sports utility vehicles. These two
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POWERsuppliers UTVs feature 1000cc EFI engines, electronic power steering, fully independent 4-wheel suspension, 4-wheel
drive and CVTech Trailboc IBC clutching systems. The UTVs and ATVs are designed by
a U.S. based engineering team and built from the ground up with direct feedback from its customers. Final assembly of the products is completed at Hisun USA’s Dallas facility. The facility also houses parts and customer service representatives, along with multiple assembly areas.
Arctic Cat CEO Steps Down
Arctic Cat Inc. recently announced that Claude Jordan has stepped down as Chairman and CEO. Chris Twomey, who served as Arctic Cat’s CEO for 24 years, and also is a former Chairman and a current member of the Board of Directors, has been named Interim Chairman and CEO. The board is beginning a search for a permanent CEO. Twomey comments, “On behalf of the board, I want to thank Claude for nearly six years of service to Arctic Cat, first as President and Chief Operating Officer, and then as CEO for the last three years. During his tenure, Arctic Cat has grown from $465 million to over $700 million in annual sales. Tim Delmore, CFO, has agreed to postpone his previously announced retirement during this transition period. We anticipate appointing a new CEO and CFO in the coming months.” Twomey served as Arctic Cat’s CEO from 1986 to 2010. He was named a director of the company in 1987 and was Chairman of the Board from 2003 to 2012. During that time, Twomey led Arctic Cat through an initial public offering in 1990, grew revenues from $7.5 million to a peak of $780 million in 2007, entered the all-terrain vehicle business and expanded the company’s capabilities to include engine manufacturing at a new facility in St. Cloud, Minn. An executive search firm is being retained to assist in filling the CEO position.
Walbro Releases New Service Video
Walbro’s Aftermarket Division has released an all-new diaphragm carburetor service video. The 21-minute video demonstrates the proper techniques for servicing Walbro butterfly valve and rotary valve diaphragm carburetors. Service procedures are illustrated with hands-on close-ups, including ini8
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POWERsuppliers tial inspection, carburetor disassembly, inspection, testing and reassembly of butterfly and rotary carburetors. Of special interest are detailed demonstrations of pressure testing, metering lever adjustment, Welch plug removal and installation, use of special tools and proper cleaning methods. In addition to service techniques, the video includes an animated explanation of how a diaphragm carburetor functions. The video also includes discussions by Walbro personnel on important topics such as ethanol fuel and tamperresistant carburetors. The video, part number 500-525, is available on a USB flash drive through authorized Walbro distributors. Due to EPA and CARB regulations, and because of the wide range of carburetor applications and calibrations in the field, this video does not cover the adjustment of diaphragm carburetors. Authorized dealers can obtain adjustment information from the appropriate engine manufacturer.
John Deere, NHLA GreenFleet Discounts
Exclusive equipment discounts, parts savings and other special promotions are now available to National Hispanic Landscape Alliance (NHLA) members through the John Deere GreenFleet Loyalty Rewards program. “NHLA is the leading trade association for Hispanics in the landscaping in-
dustry, and its members are becoming a growing force in the industry,” said Steve Wilhelmi, John Deere tactical marketing manager. “As a company, we feel it’s important to support this growing demographic with industry-leading equipment and solutions.” Existing and new members of NHLA were enrolled in GreenFleet Loyalty Rewards beginning on June 16. With GreenFleet, NHLA members will be eligible for discounts on a variety of John Deere equipment, including commercial mowers, utility vehicles, compact tractors and skid steers. Members will also receive substantial parts savings, discounts on workshop products, and other member-only benefits.
NEADA Awards EDF Scholarships
The NAEDA Equipment Dealers Foundation (EDF) has awarded $20,000 in scholarship funds to NAEDA affiliates for the 2014-15 academic year. This year, regional equipment associations submitted 121 applications. All applications have to be originated and submitted through one of NAEDA’s affiliate associations. These scholarship funds, coupled with matching grants provided by the sponsoring dealer and affiliate associations, are designed to help students who are interested in employment in the equipment industry attend schools and receive training so they can work for a
dealership after graduation. EDF scholarship funds are available to all employees or potential employees of NAEDA member dealerships. The large increase of over 50% in applications this year raises a significant need for additional funds to match the growth in applications submitted for current and future employees. NEADA asks that dealers help make the EDF scholarships possible by making a contribution online at www.naeda.com/SupportEDF/ EDFFoundationOnlinePayment.aspx or by check payable to: Equipment Dealers Foundation, 1195 Smizer Mill Road, Fenton, MO 63026. For more information about EDF call (636) 3495000; visit www.naeda.com.
Polaris Purchases Vacant Building
Polaris Industries Inc. has bought a vacant office building in Plymouth, Minn. for $10.9 million that it intends to use for additional office space. A local newspaper reports that because of the building’s age, Polaris will likely spend a few million dollars on renovations. While the use of the building is unclear, the local paper estimates the company has some workers at a nearly corporate center who might move. Polaris is also fully staffed at its headquarters and could move some workers to this new office space.
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PET Dealer Survey: Dealer Base Profile Business operations, employment, markets, technology and more as dealers give details on the health of their businesses. BY DAN SHELL
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very two years, Power Equipment Trade takes a close look at the health of industry’s dealer base in its Dealer Survey, which has been continuously taking the pulse of lawn and garden power equipment dealers since 1992. This year, 447 dealers or their employees participated in the survey, Two out of three dealers say that their percentage of sales to professional users is 20% or less. and we greatly appreciate all who took the time to fill out all 40 questions. say margins are “good” (30%) or “very rate “service.” The other two “most The average age of power equipment good” (3%), while one in five (20%) says profitable” products chosen by a signifidealers continues to trend upward, as that margins are “poor.” Another 2% say cant number of dealers were chain saws 75% of dealers are now age 50 or over. margins are “very poor.” (16%) and trimmers (13%). Concerning Most alarmingly, more than a third (37%) Looking at the “most profitable” dealers’ “best-selling” equipment, ridof dealers are older than age 60, while products dealers sell, the top category, ing mowers were chosen by 39% of 38% are age 50-59. Another 16% of dealriding mowers, was picked by 45% of dealers, followed by trimmers (32%) ers are age 40-49, while 9% of dealers are dealers as most profitable. The “other” and chain saws (25%). under age 40. In contrast, almost 10 years category came in second on a list of With battery technology continuing to ago in the 2005 PET Dealer Survey, only profitable products, and more than a improve, PET asked dealers about de58% of dealers were older than age 50, few dealers wrote in the always-accumand for battery- or electric-powered with 29% above the age of 60. equipment, and 33% respondAlmost two out of three ed they were seeing more de(61%) power equipment dealmand for such products—a erships remain decidedly significant increase since small businesses, with 61% of 2012, when 28% said they dealers reporting one to five were seeing more demand for employees in their business. battery-powered products. Another 15% reported having Professional contractors payrolls of six to 10 employand commercial equipment ees, while 8% reported 11 or users are also key power more employees. equipment markets, but for Looking at dealer thoughts most dealers it’s not a huge on overall lawn and garden part of their business: two out equipment profit margins, of three dealers (66%) say close to half (45%) say their their percentage of sales to profit margins are “fair.” professional users is 20% or Meanwhile, a third of dealers Close to half (45%) of dealers say their profit margins are “fair.” less. For more than a quarter 10
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of dealers (28%) the pro market is much more significant, ranging from 20%-60% of equipment sales.
Operations Looking at dealer sales the past two years, 52% of dealers say their sales have increased: 20% say 10% or less; 18% say 10% to 20%; and 14% of dealers have seen sales increases of more than 20% the past two years. Meanwhile, 30% of dealers says their sales have remained “about the same,” while 18% have seen sales decrease the past two years. The sales figures reflect a slow and uneven but improving economy: In 2012, only 44% of dealers said they had seen sales increases the previous two years, while a quarter of dealers (25%) said they had seen sales decreases. When asked about expanding or downsizing their businesses during the past two years, 36% of dealers said they had expanded while 51% said they’ve stayed the same size. Another 13% said they had downsized during that time. These numbers were essentially the same on the 2012 PET Dealer Survey, with a no more than 1.5% difference in any response category to the same question in 2012. But dealers haven’t been sitting still: With consolidation and “streamlining” product offerings a growing trend among dealers, two out of three (66%) said they were carrying fewer handheld or wheeled equipment lines than two years ago. (Although a solid third— 34%—of dealers say they’ve added product lines the past two years.) Likewise, as dealers streamline their product lines and suppliers continue to consolidate, 56% of dealers say they’re doing business with fewer distributors now than two years ago. In seeking profitability and dealing with conditions in their respective trading markets, many dealers are pursuing costcutting strategies. Looking at a menu of seven cost-cutting actions, 63% of dealers say they have reduced inventory to cut costs. The next most-chosen cost-cutting move? 43% of dealers have taken an “owner’s pay cut” during the past two years. Another third of dealers (32%) have dropped product lines to cut costs, and 20% have imposed a hiring freeze. Since good employees are so hard to come by in this industry, dealers are loyal to their personnel. The least chosen costcutting move? Employee layoffs—a move that’s been taken by only 14% of dealers the past two years. As mentioned above, 36% of dealers POWER EQUIPMENT TRADE
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have expanded in some fashion the past two years. Looking at a menu of business expansion activities, 41% of dealers say they added new product lines; 36% added on or remodeled to create more room; and 35% increased inventory. Another 31% of dealers hired new employees, while 27% hired additional technicians. Nine percent of dealers say they moved to a larger building during the past two years.
Technology Power equipment dealers have taken huge steps forward in recent years when looking at digital technology utilization for business operations and marketing. Heck, 20 years ago less than half (42%) of lawn and garden equipment dealers used a computer to do anything. Today, two out of three dealerships have their own web sites (66%), while 98.5% of dealers use a computer in their business. With people and businesses continually adding, replacing and upgrading electronic devices, dealers were asked what kinds of computerized equipment they use in their businesses: 91% say they use desktop computers; 55% use laptops; 42% use smart phones; and 17% report using tablets. As for using computers for business operations, 46% of dealers say their dealership operates a lawn and garden industry computerized business management system, while 52% say their dealerships operate basic business and record-keeping software. Of the dealers with web sites, 50% agree that their site is “mostly informational: sales, special offers, directions, etc.” Meanwhile 13% of dealers say they actively sell parts and whole goods on-line, while 10% say they sell only parts on-line. Interestingly, almost two-thirds of dealers (63%) say they’ve used OEM or distributor on-line training programs. On a related question, 39% of dealers say they’d like to do more on-line training. As of early 2014, 33% of dealers say their business has a Facebook page that’s updated frequently. Only 4% say they have a regular e-newsletter that’s emailed to customers and another 4% say they have a Twitter account that’s used frequently. Related to marketing, 55% of dealers say the “type of advertising/marketing used most often” is print advertising, followed by direct mail (17%) and then radio (14.2%). Another 18% chose the “other” category, of which “word of mouth” was the most prominent write-in.
Future Looking ahead, 39% of dealers say they are interested in diversifying their businesses with products outside traditional lawn and garden products. Major areas of interest for diversification are: recreational equipment (ATVs, UTVs, karts, watercraft, etc.), 39% trailers, 26%; hand tools, 23%; larger landscaping equipment (skid steers, mini excavators, etc.), 16%; and landscaping supplies such as seed, fertilizer, etc., 14%. Of course it’s impossible to cover every potential option with the question, and 26% of dealers responding picked the “Other” category, where standby generator systems and clothing were mentioned most. Dealers are constantly investing in their businesses and 62% say they are planning to purchase shop tools and service equipment in 2014. Another 35% of dealers say they are planning on buying computer hardware/software this year. One in four dealers (25%) say they are planning on buying in-store displays and shelving. As far as expansion and business moves during the next two years, 58% of dealers say they have no expansion plans, while 12
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25% say they plan to expand at their current location. Another 6% say they plan to expand by relocating, and 11% say they plan on downsizing their dealership the next two years. As for their thoughts on the future and their business, dealers were asked to agree with one of four statements: ● 53% of dealers say “I plan to remain a lawn and garden dealer and believe my business will grow.” ● 24% say “I plan to remain a lawn and garden dealer but don’t see much growth.” ● 17% say “I plan to remain a lawn and garden dealer but only because I can’t afford to quit.” ● 5% of dealers say they “plan to get out of the lawn and garden business as soon as possible.”
Dealerspeak No doubt the PET editorial staff’s favorite part of the Dealer Survey is the open-ended “Predictions for the industry’s future or other thoughts and comments” question at the end, where dealers are encouraged to give their own insights. This year, 168 dealers took us up on our offer, from the guy who commented, “I have no comments” to those who contributed several paragraphs. Here are some of the comments we liked: ● “More mergers and acquisitions need to occur. The middle class homeowner group will continue to decline as the baby boomers die off. Homeowner powered equipment will continue a downward trend, and commercial products will stay about the same. We will have to tread carefully each year as we watch the markets in our own areas. The up and coming generations do not look at home ownership as an asset. They want the freedom to move where the betterpaying jobs are. Having the right highend product lines and service for the high-end few will be very important if
you are going to be in this business 20 years from now.”—Melanie Leckler, CEO of Leckler’s Inc., LaSalle, Mich. ● “If you don’t use on-line sales tools like ebay, Paypal, Craigslist, websites and social media, etc., you are not going to grow. On-line sales is where it’s at.”—David Micco Sr., owner/manager, Jim Micco & Sons, New Castle, Pa. ● “Once the government figures out how-to tax the revenue they are losing on Internet sales and taxes it will be better for all brick and mortar stores.”— Carl Witte, President, Maxim Outdoor Equipment, Wichita, Kan. ● “With two key players in the marketplace closing their doors in the last year and a half we expect to see continued growth. Our service department just had its second biggest month ever. And it was in January in an area with no snow! We expect ‘showrooming’ to be our biggest issue in the years to come but will continue to hold our prices and sell on great service with great benefits like free extended warranty, free breakin service, free new unit delivery and set up.”—Carl Levien, Service Manager, Carl’s Mower & Saw, Ferndale, Wash.
● “Margins on whole goods are terrible. I wish manufacturers would raise retail prices and give dealers better margins like they did 20 years ago.”—Sally Miller, President, Dobosh Center, Pittsburgh, Pa. ● “The future should be good providing the ethanol issue is held to 10%. We believe battery power will increase somewhat, more so with the older population.”—Larry Bell, Kingston Mower, Kingston, Oh. ● “Bring on more fuel injection for the small engines. I can’t understand why our industry is reliving the automotive world’s 1980’s style of sticking with carburetion and avoiding fuel injection. Just put injection on things—we have the technology and hardware to do it. It will save fuel and operating costs over the life of a unit. Clean air isn’t free. A little extra up front will save a lot in the long term.”—Tim Weiden, Service Manager, The Power Shop, Fremont, Mich. ● “I think the small guys with a vested interest will do better business than the multi location stores with lots of ‘employees.’”—Alex Botten, Northwest LogPET ging Supply, McMinnville, Ore.
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DEALERvoices
Dealers Sound Off PET Dealer Survey Over the years, dealers still enjoy sounding off.
O
ne of the best parts of the PET Dealer Survey is the wide-open comments section, and over the last 20 years we’ve seen them all. From the downright odd to three paragraph diatribes to the short and sweet “Business is fine,” the comments section is popular among both the readers and the editorial staff. In fact, after looking at a few “key” words, it seems like some dealers had crystal balls to look into the future. Other comments show that not a lot of things have changed, unfortunately. Here’s a look at some of our favorites from the past as well as this year.
Government Concerns “Our biggest challenge is government taxes, demands and paperwork. Does the government really want business to survive? I think the biggest problem is that the state and federal legislatures are made up of mostly lawyers that have not a clue on how to run a business. In our area, huge box store retail pays $1.78 per sq. ft. taxes and a small businessperson in the same town pays $4.00 per sq. ft., go figure.”—Jonette Pierce, Pierce Sales & Service, Inc., Plainview, Minn., 2014 Dealer Survey “Government regulations, taxes and license fees, are our largest problem in remaining in business.”—Mike Baker, Baker Hardware, Inc., Okeana, Oh., 2010 Dealer Survey
Manufacturers, Margins “Profit margins will remain inadequate compared to other industries. Margins will continue to decrease due to increase of technology and competi16
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tion, especially for the residential/consumer market; continuation of OEM consolidations and buy-outs; continuation of OEM’s selling out to big box companies. Outdoor power equipment dealers will continue to survive, although at the lower end of the ladder through all of the buy-outs and downfall of the OEMs because the dealers are ‘real’ and in-touch with the people. Dealers know the customer and can retrieve the money, so that the CEOs of the OEMs can retire wealthy when they sellout. Most dealers will continue to undercut each other’s prices, so that they can get rid of large booking orders to keep from paying interest. Dealers will continue servicing units that they did not sell enabling their competitors to prosper while they cannot find enough qualified techs and do not have time to service their own customers.” —Anonymous, 2007 Dealer Survey “This is a very tough business where the OEMs don’t seem to care much about dealers. The number of dealers will continue to decrease as the return on a dollar is less than 2-3% at best.”—Bill Johnson, JFS Power Equip., Sims, NC., 2010 Dealer Survey “I think the box store competition will continue to be a real threat. OEM pressure to leverage production and profits will force them to expand with more SKUs. Box stores pose a huge sales threat to small and medium sized dealers. Competing will continue to be a stress point. Servicing dealers are not paid for what they do for the industry or the customer. OEMs leave the hardest and lowest return to this group. Higher margins on equipment sales are the only way to keep these dealers healthy. Blended margin makes the conversation one sided. OEMs have an obligation to stay informed of the dealers issues.”— David Wood, Smitty’s Lawn & Garden Equipment, Olathe, Kan., 2014 Dealer Survey
Service Departments “Mechanics are harder to find and expected to be more sophisticated, yet the OEMs do not allow, either through warranty or profit margins, help in paying higher wages. Asking mechanics to take more tests also does not develop mechanics.”—Lynn Hirtz, Dan’s Lawnmower Center, Rialto, Calif., 2007 Dealer Survey “I believe the demand for dealer services is growing and the demand for dealer sold wholegoods is not. We are transitioning into a parts and service center with a minimal wholegoods offering. We are actively pursuing service agreements with every manufacturer we can.”—Rick Oliver, Affordable Small Engine Repair, Jackson, Oh., 2014 Dealer Survey “Unless we find a training center to develop good, young mechanics, we will reach a point of not being able to service what we sell.”—Anonymous, 2014 Dealer Survey
Fuel Related Issues “There needs to be an increase in dealership training on the fuels of the future: diesel, propane and electric/cordless for the industry to more forward.”—FranzEric Kopf, Eldred Power Equipment & Auto Parts, Eldred, NY., 2010 Dealer Survey “Future should be good providing the ethanol issue is held to 10%. We believe battery power will increase somewhat, more so with the older population.”—Larry Bell, Kingston Mower, Kingston, Oh., 2014 Dealer Survey “We are planning to expand our selling and repair of propane equipment.”— Robert Sheetz, Standard Hill Farm Small Engine Repair, Upper MarlPET boro, Md., 2014 Dealer Survey
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MID-SUMMERlandscaping Toro 8000 Series Mowers
desired direction: downward to dislodge heavy, wet leaves, horizontal for wider coverage and forward to clean areas close to walls and curbs. Powered by a professional 170cc Subaru engine and a large 16" fan, the C5 produces more air and covers more ground than backpack blowers, without the back strain. A thickly padded and height adjustable handle provides operators of any height a comfortable grip. When the work is done, the handle folds entirely forward for compact storage until next time. The new Little Wonder C5 walk-behind blower is backed by a 2-year residential/90 day commercial/rental limited warranty. The engine is warranted separately by the manufacturer for a term of 3 years. 4727 Call 1-877-596-6337; visit littlewonder.com.
Water Cannon Pressure Washer
The Toro Co. has expanded its zero-turn mower lineup with 8000 Series Direct Collect Z mowers. Toro’s 8000 Series mowers feature a high-capacity hopper with a powerful blower to capture clippings efficiently, so operators can spend less time emptying and more time mowing. The 8000 Series Direct Collect Z is equipped with a large-diameter blower that generates more airflow for better vacuuming and clippings collection. Patented adjustable flow control baffles help fill the 9.5bushel (76 gal.) hopper evenly from back to front for maximum efficiency. In addition, the two-blade cutting system has a higher blade tip speed to cut grass into finer particles for a high-quality cut. The height-of-cut can be adjusted from 1.0" to 4.0" in .25" increments. Models are equipped with either a 20.5 HP Kohler Command Pro or 23 HP Kohler Command Pro EFI engine. The 8000 Series offers a number of optional accessories, including a light kit, powered dump, snow blade or snow blower, mulch kit, dump tubs, suspension seat and more. Call 866-336-5205; visit toro.com. 169
Little Wonder C5 Blower Little Wonder’s C5, a wheeled blower designed for the DIY user that brings power and performance to the residential leaf blower market, weighs in at a mere 102 lbs. It’s light, compact, nimble and powerful. With more than 1,100 cfm of air movement the C5 makes cleaning up yards, flower beds, driveways and patio areas quick and easy. The Little Wonder C5 blower features the patent-pending Aim Rite nozzle that can be easily adjusted to blow air in any 18
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Water Cannon’s Hot Water Diesel pressure washer is powered by a Kohler KD 420ES electric start 10 HP power plant with a 12V self contained electrical system. The portable four wheel push bar frame boasts 13" no-flat foam filled tires. The Beckett 12V D.C. oil fired burner creates a 118° temperature rise. With a top brand EZ Series general triplex ceramic plunger pump that delivers 4.0GPM and 3200PSI, you can buy with confidence, being protected by a 2+5+5 year manufacturer’s warranty (coil is prorated). All of the needed attachments and options are included, such as a 50' commercial grade hose, trigger gun, wand, down stream chemical injector and Quick Connect nozzles. Water Cannon products are assembled in the USA. 9764 Call 1-800-333-9274; visit watercannon.com.
WeedShark Trimmer Head Weedshark is a universal multi-purpose trimmer head designed to meet the demand needs of today’s homeowners and landscape maintenance professionals. WeedShark is a 4-in-1 heavy-duty adapter head with replaceable cutting teeth and trimmer line for use on traditional gas powered weed trimmers. WeedShark increases user efficiency with ease of use and patent pending Tail Whip dual cutting action, which wraps around stock and pulls it towards
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MID-SUMMERlandscaping the SharkTeeth, shearing everything in its path. I t is ideal for weed trimming, wet cutting, brush clearing, root extracting, light tilling and cultivation. W eedShark can cut and mulch material up to 3⁄4" with very low sling. The trimmer head can also edge, clean out dirt covered curbing and cultivate around trees and flower beds. The full product line includes: W eedShark trimmer heads Pro and MightyMax models, SharkTeeth replacement blades in stainless steel and poly and SharkLine pre cut 14" replacement string. Call 1-800-761-2618; visit weedsharks.com. 2776
Classen Overseeder
This new unit features a floating seed box that follows the contours of the terrain to precisely drop seed over 26 heattreated blades that produce an industry leaing 13 rows of planted seed in a 20" swath. The Classen Hydro O verseeder features a 40 pound capacity seed box that can either float for consistent seeding over bumpy and undulating terrain or lock in place at any of 10 depth settings for flat area, hill and slope seeding. This full-on commercial overseeder couples the power of a Honda G X 270 engine with the power flow of a HydroG ear T2 transmission to produce an operating speed of up to 3 MPH forward and 1.5 MPH in reverse. Heavy-duty 13" flotation turf tread tires provide surefooted traction while dispersing unit weight evenly to eliminate turf tearing and rutting. B lade engagement and single lever forward/ reverse controls are located on the handles within easy reach. A seed dial with ten settings provides precise seed flow while a helpful seed drop flag lets you know when seed is dropping and when it has stopped. Call 1-877-596-6337; visit classen2170 turfcare.com.
Subaru Generators
Subaru’s industrial generators combine premium features and heavy-duty construction to offer a reliable power source to a variety of end-users. Two models are included in the line, the RG X 6500 and RG X 7500. F eaturing top-of-the-line components including powerful overhead cam EX Series engines, the RG X generators are designed to handle the needs of both large and small professional contractors, industrial users and rental centers. The I ndustrial RG X generators are backed by Subaru’s 5-year limited warranty covering both the generator and engine. The RG X 6500 is powered by Subaru’s 12HP EX 35 engine and delivers a maximum output of 6,500 watts, with a 5,000-watt standard output rating. F eaturing a 7.3 gal. capacity fuel tank, the unit offers 10.3 hours of continuous operation at the rated load. Powered by Subaru’s largest EX engine, the 14HP EX 40, the RG X 7500 delivers a maximum output of 7,500 watts, with a 6,000-watt standard output rating. The unit offers a 7.3 gal. capacity fuel tank and 7.4 hours of continuous run time at the rated load. Call 847-540-7300; visit www.sub460 arupower.com
Esco Millhog Hanger The Millhog ET-800 dual spring hanger features a top and bottom steel plate, two drawbar springs and a built-in safety chain that prevents the springs from bottoming out, wearing
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MID-SUMMERlandscaping excessively and breaking. Allowing operators to more easily position heavy or bulky tools, this hanger incorporates a tamper-proof safety chain that cannot be detached. Utilizing two drawbar springs, rated at 610 lbs. each, mounted onto 8" x 3⁄8" steel plates, the Millhog ET-800 dual spring hanger permits 3.5" of travel and is stopped by a 48" long safety chain. Rated at 4,500 lbs., the chain is shorter than the travel of the drawbar springs and the links are secured into milled slots on the plates and retained by welded covers. Call 800-343-6926; visit www.escotool.com 1870
1123 cubic centimeters, delivering more torque to manicure large areas with strength and efficiency. The new model boasts a 26HP liquid-cooled Kubota diesel engine and a heavy-duty twin hydrostatic transmission with a wet-type power-take-off clutch for reliable and smooth operation. Call 888-458-2682; visit www.kubota.com 4696
Honda HHT25SLTA Trimmer
Kubota Z300 Series ZD326H
Kubota Tractor Corp. introduces a new member to its Z300 Series zero-turn mower fleet with the ZD326H. Kubota’s 72" mower deck has been re-designed for the ZD326H, engineered specifically to increase power and efficiency. The welded deck is 6" deep and features an advanced baffle design for a precision cut, while maintaining sufficient airflow for even spread of clippings. The cutting height can be easily adjusted from 1" to 5", in .25" increments. The new ZD326H features a greater engine displacement of
The HHT25SLTA Honda string trimmer provides ample power and torque. Equipped with a standard loop handle, this lightweight trimmer is especially easy to use. Due to the Honda Quick Start system, the HHT25SLTA requires 40% less effort to start than previous models. This model can easily accommodate a variety of cutting blades with an optional barrier kit. The HHT25SLTA also comes equipped with solid trigger design for excellent durability. The Honda Mini-4stroke technology allows every Honda trimmer to be highly fuel-efficient and offers excellent torque for demanding jobs. Call 770-497-6400; visit www.hondapowerequipment.com. 4362
Is 10 Minutes Of Your Time Worth $100? Power Equipment Trade is conducting a 2014 Reader Survey and we need your help. Please take the time to visit www.poweret.com and click on the 2014 Reader Survey banner. Upon completing the survey and entering your contact information, you’ll automatically be entered to win a $100 Visa gift card!
HURRY! The deadline is Thursday, July 31st! Limit one entry per subscriber. No purchase necessary. Void where prohibited.
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MID-SUMMERlandscaping Rotary Pressure Washer Parts
Rotary offers pressure washer parts and accessories like: o ring kits, steel and brass male and female plugs, male and female brass sockets, quick couplers, chemical injector kit, stainless tips, trigger guns and assemblies, pressure regulators, nozzles, hoses and strainers, coupler and tip assortments. These washer parts and accessories assure quality that meets or exceeds OEM standard for operation. Rotary pressure washer parts and accessories keep equipment running longer! Call 1-800-841-3989; visit rotarycorp.com. 4226
Mo-Deck Anti-Stick Gallon Size MDI Products recently introduced a new 1 gal. container for its Mo-Deck anti-stick product after getting requests from contractors to supply Mo-Deck in a larger container that can be
put into a pump-up sprayer. For the landscaper with multiple mowers it makes sense to offer this size. A 1 gal. container allows spraying larger areas much quicker than using the 11 oz. spray can, saving time and money. Expanded uses include spraying shovels, trench diggers, tractor buckets, rock hounds and anything that wet grass or mud will stick to. Call 866-213-0772; visit 2938 www.mo-deck.com.
ABOUT SHOWROOM PRODUCTS All products presented here were submitted by manufacturers, who are responsible for any and all claims made. PET reserves the right to edit for style and space considerations.
HOW TO SUBMIT PRODUCTS Electronic images and copy (please be brief) are required. Images should be scanned as 300 dpi and saved as either tiff or eps files. Email 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
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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
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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
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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.
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DISTRIBUTORS: For information about placing your ad in PET’s Distributor Library Section Call Kathy Sternenberg
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POWERworks 9009
Obsolete McCulloch & Obsolete Green Machine Bob’s Lawnmower Service 7632 State Hwy. 7 Maryland, NY 12116-3201
607-638-9297 phone or fax ONAN ENGINE PARTS
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
ZENITH Marvel Schebler - Z.E.E.M.S. Carburetors - Rebuild Kits All Service Parts
POULAN WEED EATER PARTS
Stihl * Homelite * Lawnboy * Briggs & Stratton New * Obsolete * Used Parts THOUSANDS OF PARTS!
8100
–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
BUY & SELL NEW, USED & OBSOLETE
Ask For Ray 502-228-1462 • Fax: 502-228-7737 Also Have HOMELITE Parts
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BUSY LAWNMOWER, TRIMMER, SNOW BLOWER, CHAINSAW SALES, SERVICE AND REPAIR SHOP!!!
H&M Industrial Supply Wholesale Distributor (800) 346-4331 2236
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
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 Horticulture and landscape students who recently attended the 38th annual Professional Landscape Network (PLANET) Student Career Days learned more about environmentally friendly business practices from a workshop sponsored by The Toro Co. The environmental sustainability workshop presented by Toro’s chief agronomist, Dr. Van Cline, focused on the need for efficient use of resources and technology solutions that allow landscape professionals to promote environmental sustainability in their business practices. He advised the students that it’s critical to adopt a personal philosophy of sustainability in their professional and personal lives and be as absolutely efficient as possible in the use of resources in managing outdoor landscapes. In addition to the workshop, Toro was a major sponsor for the Student Career Days event and is a Platinum Ambassador for PLANET’s Academic Excellence Foundation, which awards an annual scholarship to a PLANET student. Eric Sabin of Colorado State University was this year’s scholarship recipient.
Getting The Wow Response
PETevents OCTOBER 22-24—GIE+EXPO, Kentucky Exposition Center, Louisville, Ky. Call 812-949-9200; visit gie-expo.com. NOVEMBER 5-7—Far West Equipment Dealers Assn. annual meeting, Hilton LaJolla Torrey Pines, San Diego, Calif. Call 707-678-8859; visit fweda.com. Listings are submitted months in advance. Always verify dates and locations with contacts prior to making plans to attend.
Coming Soon... September: Lawn Mower Annual October: GIE+EXPO Preview November: PowerGuide
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The truth is, these days, it is easier than ever to create the wow response with customers mostly because customer service, follow-up, and all related business protocol leave so much to be desired. Not only are most companies not delivering wow service, most are failing to meet even average expectations. Even though it is easier than ever to be noticed, there are some definite steps to making sure you step up, stand out, and deliver the wow. Step 1: Be completely committed Wowing the customer begins with a complete and total commitment to them and making sure they have a fantastic experience. Without a total commitment, you will not have the energy, excitement and creativity you need to make wow a reality. No prima donna “I’m doing the customer a favor” attitudes here. You must have a “customer is always right,” “goabove-and-beyond,” and “do whatever it takes” attitude. Step 2: Be responsive As with the e-mail in the opening example, you have to do the unexpected and a big part of that is being super responsive. Part of being super responsive is responding quickly and outside of normal business hours and normal business days. It is simple if you are in sales and customer service, your objective should be to deliver the best service possible and part of that is responding quickly. The more time that elapses between the moment someone contacts you and the moment you respond, the more bad things can happen. Step 3: Be proactive Keep open, active communication with the customer and stay out ahead of any issues. If there is a price reduction, rate decease, or anything else that can help them, pick up the phone and let them know. Once you’re responding to a call about a better price, better rate, or better anything elsewhere, you’re on defense and behind the eight ball—this makes your battle to keep business that much more difficult. All this is assuming they called you and did not simply switch to the competition without letting you know. Build strong, solid relationships that can withstand a mistake or two, or an all-out onslaught from the competition. It is simple: your friends will pick up the phone before leaving you
for something better. Additionally, you will miss a delivery, botch an order, or make another mistake, if you work with someone long enough. If you have proactively built an ironclad relationship ahead of time, you will be able to weather a storm or two. Step 4: Be original and creative You have to constantly ask yourself how you can deliver more service, better service, and be different in a good way. How can you stand out and show extraordinary commitment? What can you do to let the customer know you care, that they are important to you, and that you will do whatever you can to make their experience exceptional? As with most other things in life, the most important ingredient is attitude. If you have the right attitude and are determined to do whatever it takes to wow your customers, the wows will naturally and abundantly flow. Source: John Chapin, www.completeselling.com, johnchapin@completeselling.com.
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DEALERtodealer
Dealer Age Trends Lead To Tough Questions GREG GERMAN
Finding ways to grow business, continue business and develop succession plans are a big part of every dealer’s future. EDITOR’s NOTE: Detailed beginning on page 10, the 2014 PET Dealer Survey shows that more than three-fourths of dealer principals are older than age 50, and a third of dealers are older than 60. More than half of dealers, 53%, say they plan to remain in the lawn and garden industry and believe their business will grow. Yet developing a younger work force that will view the industry as one with a bright future has to be a big part of any plans to increase business growth in the coming decades.
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ho are the leaders of our industry for the next generation? This should be a concern for any of us who have invested much of our livelihood into our businesses. Having taken a sneak peak at the PET survey results, our trends for growing a future generation to be investors in our businesses is a bit disheartening. With the average age of lawn and garden dealership owners getting older, it leads me to wonder if we are simply enjoying our businesses that much and don’t want to get out of the way for new leadership/ownership to take over, or is the line of people waiting in the wings just not there? I think most of us know the answer. Many of our dealerships have an atmosphere that permeates with the expectation that “I work really hard, I put up with a lot of heartache from customers and employees, and frankly the return on investment is not very good.” The problem is this: The next generation of really bright, hard-working, energetic people that we need to lead our 30
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dealerships, are in very high demand one who often takes the phone call from from EVERY industry. Those industries the concerned customer and has to have are creating “on-ramps” that show the the “closed door” conversations with long-term opportunities for their future disheartened employees. Business just employees. They create internship proisn’t easy. The expectations from cusgrams and personal growth plans for their tomers, employees and manufacturers new potential recruits that allow these has NEVER been higher. This is probaover-stimulated future leaders to visualize bly the hardest thing to adjust and to their careers 5, 10, 15 make our employee years down the road. stake holders really By placing much more emDo we do that? I understand. think not. I am not raising phasis on managing the This summer, as the white flag, that high margin areas of our in many past sumis not in my DNA. mers, my sons work dealerships in the parts and But I am saying that in our dealership. I our industry does service departments, and have never, and will need to create a betnot ever put the exter atmosphere that creating faster turnover on pectation on them shows the next genthe lower margin area of that they need to eration there is wholegoods sales, we can come into the family HOPE in our busibusiness. Both are have the proper level of ROI nesses. By placing now in college and much more emphathat will attract new investpreparing for the fusis on managing the ture. I have told them high margin areas of ment of talent and treasure many times that I am our dealerships in and will help to reverse the running and planning the parts and service for the future of our departments, and current negative trends. company based on creating faster the fact that none of turnover on the my four sons will be coming into the lower margin area of wholegoods sales, business one day. By planning in this we can have the proper level of ROI fashion, it forces me to make the best dethat will attract new investment of talent cisions based on what I know in order to and treasure and will help to reverse the attract the best talent that I can, today. current negative trends. I would love to have them come into My question is this: What are you the dealership, but have made it very going to do today in your business to creclear that if they choose this path, they ate those avenues to make the necessary need to bring with them the skill sets that changes in order that your dealership and the dealership needs and most importantinvestment will continue to survive and PET ly, a passion that says “This is what I rethrive for many years to come? ally want to do.” Without it, our dealerGreg German is President of Germanship becomes the backup plan and that is Bliss Equipment Inc. in Princeville, Ill., never good for either one of us. which operates three power equipment dealWhat my sons have seen this sumerships that market products for the lawn mer, probably more than in the past, is and garden, industrial and agricultural secthat the owner of this business really tors. He can be contacted at P.O. Box 440, does have to work hard. He is quite Princeville, IL 61559; fax: 309-385-2540; ggerman@germanbliss.com. The views of often there before anyone else and Greg German do not necessarily represent leaves after everyone else. Many days those of Hatton-Brown Publishers. he eats his lunch at his desk. He is the
POWER EQUIPMENT TRADE
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