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POWERlines

A Hatton-Brown Publication www.poweret.com

JESSICA JOHNSON

Summer Slump

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his was by far the most challenging issue to put together so far this year, and I almost don’t know why. See, I can’t exactly put my finger on it. I can’t really figure out, is it me? Or is it the changing landscape of the industry? Or is it the south’s oppressive heat? One of the three power equipment dealerships in the area that PET’s home offices are in closed a few weeks ago. The PET staff has speculated as to why it might have folded, but we didn’t reach out to him. We’ve just chalked it up to the ever-changing economy. Then, as I was calling around to dealerships asking questions about diversification tactics and products that help boost their sales, I had a very hard time actually getting guys on the phone. Sure, it’s the middle of the summer, and the rush is on, but it seemed that for every six I called, two were either out of business or considering dropping their utility vehicle lines. Obviously, those numbers are affected by all kinds of things, but it just did nothing but further darken my mood. Maybe it is the heat. As I type this we are under a heat advisory with the high predicted to be 97°. Maybe it is the fact that my eight-month-old baby is up most nights screaming from teething pain and I am getting no sleep. Or maybe it is both—but lately I’ve felt a lot like hydrangeas in full sun, wilted. I used to love summer: staying up late, sleeping in, spending days at the pool, eating more popsicles than my sister, no math homework, summer reading. I guess you could say I was a weird kid, because I actually enjoyed summer reading. So this summer, I’m pleased to present a little summer reading assignment of my own, from one of the foremost authorities on the ever changing ethanol blend requirements, ongoing ethanol legislation and the Renewable Fuel Standard drama, Dan Shell. He touches on the importance of education, and gives an easy to understand breakdown of the current ethanol news cycle. Cliff notes version: Consumers still have no clue, apparently, what kind of gas they are getting at the pump, and the EPA finally broke down and released the target blend requirements for 2014, 2015 and 2016—only one of which is actually a target, since 2014 has already happened and 2015, by and large, is over. To date, Shell has consistently presented thoroughly researched and comprehendable information, and his latest report is not to be missed. I promise next month to be back to my normal, overly chipper self; it’s the lawnmower PET annual issue, and I have some new ideas percolating.

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 n Rich Donnell Managing Editor n Jessica Johnson Editorial Adviser n Dan Shell Senior Assoc. Editor n David Abbott Associate Editor n Jay Donnell Contributing Writers Dale Stotts, Greg German Production Manager n Cindy Segrest Ad Prod. Coordinator n Patti Campbell Circulation Director n Rhonda Thomas Advertising Sales Southern U.S. Randy Reagor Tel: (904) 393-7968 Fax: (334) 834-4525 E-mail: randy@hattonbrown.com Midwest U.S., Eastern Canada John Simmons Tel: (905) 666-0258 Fax: (905) 666-0778 E-mail: jsimmons@idirect.com Western U.S. & Canada Bill Albrant Tel: (951) 696-1473 Fax: (702) 442-2920 Email: billa@wgholdsworth.com Europe & Scandinavia Murray Brett Tel: +34 96 640 4165 Fax: +34 96 640 4022 Email: murray.brett@abasol.net Distributor Library Kathy Sternenberg Tel: (251) 928-4962 ksternenberg@bellsouth.net Classified Advertising Bridget DeVane Tel: (334) 699-7837 (800) 669-5613 bdevane7@hotmail.com

Contact Jessica Johnson, ph: 334-834-1170; fax 334-834-4525; e-mail: jessica@hattonbrown.com

Reprint Sales Patti Campbell Tel: (800) 669-5613 patti@hattonbrown.com

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Volume 64 n Number 5 n JULY/AUGUST 2015 Our 708th Consecutive Issue n Founded in 1952

Renew or subscribe on the web: www.poweret.com

FEATUREstories

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OUT OF THE BOX

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ETHANOL NEWS

Diverse Product Mix Sells

MACON OUTDOOR POWER One Line Georgia Dealer

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New Proposals In Effect

VALUEadded Power Suppliers __________________________ 6 Power Sports Preview ____________________ 13 Business Management ___________________ 24 Showroom ______________________________ 27 Distributor Library ________________________ 32 Product Literature Review _________________ 36 PETcetera/Ad Index ______________________ 37 Dealer To Dealer _________________________ 38

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COVERphoto Now is the time to start thinking about diversifying your showroom. A preview of power sports products begins on Page 13. (Cover design by Shelley Smith; photo courtesy of Kymco USA.)

Member Verified Audit Circulation Power Equipment Trade (ISSN 1063-0414) is published 8 times annually (January/February, March, April/May, June, July/August, September, October and November/December) 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 888-6114525. Go to www.poweret.com and click on the subscribe button to subscribe/renew via the web. All advertisements for Power Equipment Trade magazine are accepted and published by Hatton-Brown Publishers, Inc. with the understanding that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Hatton-Brown Publishers, Inc. harmless from and against any loss, expenses, or other liability resulting from any claims or lawsuits for libel violations or right of privacy or publicity, plagiarism, copyright or trademark infringement and any other claims or lawsuits that may arise out of publication of such advertisement. Hatton-Brown Publishers, Inc. neither endorses nor makes any representation or guarantee as to the quality of goods and services advertised in Power Equipment Trade. Hatton-Brown Publishers, Inc. reserves the right to reject any advertisement which it deems inappropriate. Copyright ® 2015. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Periodicals postage paid at Montgomery, Ala. and additional mailing offices. Printed in USA. Postmaster: Please send address changes to Power Equipment Trade, P.O. Box 2419, Montgomery, Alabama 36102-2419. Other Hatton-Brown Publications: Timber Harvesting n Southern Loggin’ Times n Timber Processing n Panel World n Wood Bioenergy

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POWERsuppliers Briggs Purchases Billy Goat Industries Briggs & Stratton Corp. has acquired U.S.-based Billy Goat Industries, Inc. Incorporated in 1969 and based in Lee’s Summit, Mo., Billy Goat is a manufacturer of specialty turf equipment, which includes aerators, sod cutters, overseeders, power rakes, brush cutters, walk behind blowers, lawn vacuums and debris loaders. Billy Goat has annual net sales of approximately $30 million. Briggs & Stratton has acquired all of the outstanding shares of Billy Goat for approximately $26 million in cash, subject to customary post-closing working capital adjustments. The transaction was effective in late May. “We are delighted to be joining Briggs & Stratton’s 107 year legacy of success,” Will Coates, President and CEO of Billy Goat Industries, comments. “It was clear to my brother, Drew, and me that partnering with Briggs & Stratton gives us the best opportunity to continue with the Billy Goat brand that we care for so deeply and to focus on what this company does well. We truly believe that Billy Goat’s colleagues, customers, and employees will benefit from wider access to Briggs & Stratton’s global resources inclusive of leading engine innovation; research and development; international operations; and adjacent products that serve to accelerate the growth of the brand worldwide.” Todd Teske, Chairman, President and CEO of Briggs & Stratton Corp., comments, “Billy Goat Industries, Inc. helps us to further our strategic initiative of focusing on higher margin commercial products. We welcome the management team and the employees of Billy Goat to our team, and look forward to building upon the strong foundation that has made them a strong and successful company.”

Gravely, Stihl Sponsor Keynote

Returning for the second year, the keynote lunch will return to Dealer Day at GIE+EXPO. On Oct. 21, 1-2:30 p.m. an opening lunch featuring New York Times bestselling author Steve McClatchy will kick off the 2015 show. Following the keynote, dealers, retailers, distributors and the media will have an exclusive preview of the show. 6

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McClatchy, the author of Decide: Work Smarter, Reduce Your Stress & Lead by Example and president of Alleer Training & Consulting, has spoken before thousands of audiences on the topics of leadership, performance, personal growth, and work/life engagement. His client list includes the NFL, Google, Pfizer, Microsoft, Disney, Comcast, Accenture, HP, Discovery Channel, DHL Europe, Tiffany’s, Wells Fargo and Campbell’s Soup. McClatchy is best known for his passion, sense of humor and energetic personality. In his thought provoking and inspirational presentation, Lead Your Team, Don’t Just Manage the Process: Align Systems & Drive Measurable Results, McClatchy will discuss the differences between management and leadership. Dealers will learn when to identify when their team needs management from and when their team needs leadership. After this session participants will be equipped to create a compelling team purpose, list of values and team goals; correct misalignments and remove obstacles in the way of the team’s success, and keep the team motivated and focused on producing measurable results. Gravely and Stihl sponsor the keynote lunch, and pre-registration is required. The cost to attend the Keynote is $25 (includes a box lunch) and the cost to register for the tradeshow is $15 through Sept. 10; $30 Sept. 11-Oct. 18; or $60 onsite. For information and online registration for GIE+EXPO and the Dealer Day keynote lunch, visit: www.gie-expo. com.

Kubota Expands U.S. Manufacturing

Kubota Tractor Corp. (KTC) and Kubota Manufacturing of America Corp. (KMA) announced plans to increase production capacity for Kubota equipment in the U.S. by building a new manufacturing plant and expanding its existing operations in Gainesville, Ga. The company’s expansion plans come on the heels of KTC’s recent announcement that it will relocate its U.S. headquarters to Grapevine, Tex., in an effort to get closer to its major markets and customers. The new Georgia plant will be located on 180 acres at Gateway Industrial Centre, in Gainesville-Hall County, three miles from KMA’s existing facili-

ties. The new building will be an estimated 502,000 sq. ft. The existing KMA facility, which has been in operation since 1988 and employs approximately 1,300 people, will also undergo enhancements to increase its production capacity to support Kubota’s growing turf business. Construction of the new facility in Gainesville is expected to begin in September 2015 with a goal to begin mass production in spring of 2017. The new plant will manufacture Kubota’s RTV series utility vehicles, with the capacity to produce 50,000 units annually.

Efco Announces Regional Manager

Comet USA and Efco are pleased to announce the appointment of Robert Parsons as their Western Regional Sales Manager for the U.S. and Canada. Parsons has over 20 years of experience and success in the outdoor power equipment industry, with his recent experience being Distribution Sales Manager for Tanaka and Territory Manager for Pace, Inc. He has extensive experience working with distributors on sales growth and marketing endeavors. When he’s not working, Parsons invests time and energy as a firefighter for the Clarendon Hills Fire Department in Clarendon Hills, Ill.

Grasshopper Wins NAEDA Dealer’s Choice

The Grasshopper Co. was awarded the 2015 Dealer’s Choice Award by the North American Equipment Dealers Association (NAEDA) last month. “Our continuous improvement in manufacturing processes and parts deliverability has resulted in a level of product and support unmatched in the industry,” Stan Guyer, President, says. “The dealers who we trust to represent our products have rewarded us through these high ratings and in turn our commitment to the independent dealer is unwavering.” As the only recipient of the top award among outdoor power equipment manufacturers, Grasshopper ratings exceeded industry averages in all 12 areas surveyed. In addition to the top ratings in quality and parts availability, Grasshopper ranked high in product availability, technical support, marketing and advertising support, and warranty procedures and payments. Grasshopper ranked

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POWERsuppliers well above average in response to dealer needs and overall satisfaction. “This year’s survey experienced a significant increase in dealer input as we received more than 6,000 manufacturer ratings,” notes Blaine Bingham, NAEDA Chair. According to Guyer, Grasshopper chooses to invest in the independent dealer network through principles such as fresh inventory and providing product support through a team of knowledgeable territory managers. He adds that the company’s flexibility in being family-owned allows them to put their dealers, customers and creating quality products first.

Stihl Competes In Air Races, Wins Award

OPEI Survey Shows Consumers Not Ready

Consumers are ill-equipped to make smart decisions about new gasoline choices entering the marketplace, such as fuel blends greater than 10% ethanol, show two recent national polls conducted online by Harris Poll on behalf of the Outdoor Power Equipment Institute (OPEI). According to poll results, Americans continue to choose gasoline on price, and do not pay much attention to pump warning labels. Fuels containing greater than 10% ethanol can damage or destroy outdoor power equipment according to most engine manufacturers. Yet, the polls, conducted in April and May, show 63% of Americans will use the least expensive grade of gasoline whenever possible. In addition, nearly three quarters (74%) of Americans say they are not at all sure if it’s legal or illegal to put high-level ethanol gas (anything higher than 10% ethanol) into small engine products.

Altoz Launches ‘Power Up’ Promotion

Altoz has announced a unique opportunity for customers to receive a free engine upgrade through the Altoz “Power Up” sales promotion. For a limited time, and only through authorized Altoz dealers, customers will receive a 26 HP Briggs & Stratton Commercial Turf engine as a free upgrade from the standard 24 HP Commercial Turf engine on both the XE 480 or XE 540 zero-turn models. Customers can learn more about the “Power Up” sales promotion and experience the additional power first-hand,

“Flying this plane and racing in Reno have been my lifelong dream, and we are grateful for the support of Stihl in making our passion for air racing possible,” Andrew Findlay, One Moment pilot and Stihl Inc. test cell supervisor, says.

Just when you thought Stihl was all about lawn and garden equipment, they surprise you! Team Stihl, composed of multiple Stihl, Inc. employees, competes each year at at the National Championship Air Races in Reno, Nev. with One Moment Air Racing. The team’s racing plane is called One Moment and bears the distinctive Stihl logo on the fuselage. Ahead of the big event in Reno, Team Stihl attended the Mojave Experimental Fly-in in April. During this event, Andre Prager, emission engineer at Stihl, Inc., was awarded the 2015 Best Test and Best Build awards by a panel of judges for the work on the Beluga belly modification to the One Moment Lancair Legacy. The Best Build title is given to the best craftsmanship modification of the year, corresponding to the build quality (aesthetics, schedule, build difficulty). The Best Test titles relates to testing of the modification to the plane including documentation, scope of work and difficulty. This modification was done with a wide range of tools, including 3D printing, with an overall goal to improve airflow direction on the fuselage aft of the wing. “Andre embodies the true nature of an experimenter. He has made many components for the race plane but the belly mod highlights his great skill sets in many areas,” said Andrew Findlay, One Moment pilot. This plane is an engineering accomplishment, since the team was able to tweak the engine’s power to over 600 HP. The team’s goal is to break 400 MPH in 2015. In addition to title sponsor Stihl Inc., the team is sponsored by Turbonetics, McCauley Propellers, Vertical Power, Redline Avionics, Beringer, Dynon Avionics, Thermodynamic Sciences, Air Capital Insurance and Valley of Speed. by visiting local Altoz dealers. A complete listing of authorized dealers can be found using the dealer locator feature on the newly re-designed Altoz.com.

OPEI, NALP Announce Press Conference

The Outdoor Power Equipment Institute (OPEI) and the National Association of Landscape Professionals

(NALP) will hold a joint press conference at GIE+EXPO on Thursday, October 22, 2015 at 9:30 a.m. in Room C105 at the Kentucky Exposition Center in Louisville, Ky. Attendees are invited to attend and learn about issues, developments and trends impacting outdoor power equipment markets and landscape professionals. Press conference participants will include Kris Kiser, President and CEO of OPEI, and Sabeena Hick-

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POWERsuppliers man, President and CEO of NALP. The press conference will provide an update on the latest ethanol developments and “Look Before You Pump”, OPEI’s ethanol education and consumer protection campaign, and new developments on regulations and harmonization of outdoor power equipment standards on the global front. Kiser will also present the latest information on TurfMutt, an outdoor power equipment industry-supported,

K-5 education and environmental stewardship program led by OPEI with Scholastic, Inc. Additionally, the press conference will cover the re-branding of NALP over the last year, the association’s heightened profile in advocating for the landscape industry and the re-branding of the Green Industry Conference as LANDSCAPES. The newest programs at NALP and research on professional careers in the landscape industry will also be presented.

Stihl Timbersports Sets New World Record In mid-May, eight of the world’s toughest and fastest timbersport althetes gathered in Florence, Italy, to take part in an international wood chopping race, to see which person could chop four tree trunks in half, using a combination of axe and saw techniques, in the quickest time. Nearly 2,500 spectators gathered at the Piazzale Michelangelo to watch Australia’s Brad Delosa defeat the U.S.’s Arden Cogar, Jr. to lift the 2015 Stihl Timbersports Champions Trophy, setting a new world record by chopping four trunks in just 58 seconds in four disciplines: hot saw (a customized chainsaw), single buck saw, standing block chop and underhand chop, which involves competitors chopping a 12inch log while standing on it. “It feels unbelievable,” Delosa told the media afterwards. “I had a little bit of trouble at the world championships last year and disqualified in the hot saw which dropped me down the placings a bit. So I was a bit disappointed with that and it really makes up for it to come out and win the Champions Trophy twice in a row.”

Down The Road... Upcoming Editorial Highlights September: Lawn Mower Annual October: Complete GIE+EXPO Preview November/December: Trimmer Annual with PowerGuide Still Can’t Get Enough? Visit poweret.com 8

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Thinking Outside Of The Traditional Dealers around the country find ways to boost profit by taking on unexpected product lines.

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hen the average consumer walks into a lawn and garden dealership, they expect to see exactly what they see: chain saws, pole pruners, oil products and lawnmowers,

lots of lawnmowers. However, step inside many lawn and garden dealerships and you will find the typical lineup, plus a few racks of work clothes, or a few wood stoves with stacks of pellets and possibly a few all-terrain vehicles. Or maybe even kayaks and stand up paddleboards. Diversification is not a new concept by any means. In fact, in 1995, Power Equipment Trade covered “cutting edge” ideas for diversification that can lead to a boost in profits, no matter the season. Some of those specialty items

have been helping to fill niche sales for dealers for decades—and are still in place at many shops today. According to the 2014 PET Dealer Survey, nearly 40% of responding dealers that self-identified as diversified dealerships said they sell recreational equipment (ATVs, watercrafts, karts, scooters, etc.) Nearly 27% of respondents said the majority of their non-traditional products sales were “other,” and gave examples of animal feed and seed, lawn furniture, flowers and shrubbery, wood stoves and clothing.

Many dealers, like Oregon’s Jerry’s Outdoor & Outerwear, are able to boost profits by offering work clothes and safety gear.

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While power equipment whole good sales, and service, will always be the bread and butter of dealerships, in order to compete in the current marketplace, sometimes that just isn’t enough. As the economy continues to consistently, constantly change, dealers too must change. Many dealers are closing their doors as the fight against the Big Box Retailers continues to rage on. But what keeps others’ doors open isn’t always a Pandora’s box or a magic wand. It’s a few well placed lines of utility vehicles or the more popular, “toys for big boys.” Though for dealer Jim Brazil of Seville Power Equipment in Pensacola, Fla., he aggressively avoids power sports products—the seemingly natural diversification product for a lawn and garden dealer. “We avoid them because I don’t want the liability,” he says. Instead, Seville Power Equipment sells and services home standby generators and RV generators. Brazil says that the large generators provide a nice boost to the service department’s bottom line: For lawn and garden work, Seville charges $70/hr., while the technician dedicated to the larger generators is able to command $98/hr. RV generator work

is billed at $125/hr. He says that he didn’t mean to get into the big generator business, but it just happened after bringing on the Honda line of smaller generators and a competitor in the area closing their doors. Now he estimates that 25% of his business year-round is in the larger and RV generators, and the money is in the servicing, as it is a continuing stream of revenue. For most diversified dealers, a continuing stream of revenue and the ability to sell multiple items to the same customer drives the desire to carry more than just traditional power equipment. Chris Murray, Manager for

Route 96 Power and Paddle in upstate New York, might be in one of the most diverse power equipment dealerships we’ve come across. Drive up their path and you’ll encounter three stores in one location: a power equipment dealership, a shoe store and a boathouse. “Unique is the best way to describe us,” he says with a laugh. “We’re not just a kayak shop or a power equipment dealer.” He says that since they are not in a big city, instead out in the country, it’s important to be diversified. “Our customer base is limited. Every customer that we sell one thing to, we can sell to

Offering service to power sports users brings revenue into a dealer’s service shop while also creating the opportunity to sell traditional lawn and garden power equipment.

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Utility vehicles are a natural diversification product for lawn and garden dealers.

for 30 years, since we have lots of stuff to sell.” Employees are cross-trained for the most part, but there are certain people dedicated to certain areas, like service technicians. Murray estimates that each segment

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of the business is about an even third of the bottom line, though some seasons have a higher demand for certain products. “It all has its moments where one outsells the other; obviously kayaks are popular in the summer. On a

busy Saturday we can sell 12 kayaks. For us, power equipment is a yearround business.” he adds. Not every dealer shies away from the big boy toys. For John Waldoch of Waldoch Sports in Columbus, Minn., mowers and motorcycles go hand in hand. A dealership in business for 35 years, Waldoch actually diversified into lawn and garden from power sports, not the other way around, when the local John Deere dealer was retiring in the 1980s. “It’s worked out pretty good,” he says, and over the years the dealership has grown and evolved. Based on the sheer number of products, he estimates that while the business is about 50/50 lawn and garden/power sports, 75% of revenue is from power equipment. There was a time when the business was 80% power sports, Waldoch says, but now the business is really a lawn and garden business that sells power sports. Waldoch, and others like him, have figured out that in business, you have to evolve to meet the needs of the market. Bottom line? Smart power equipment retailers will at least take the time to analyze whether specialty products can boost their end of the PET year profits.

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POWERSPORTSpreview Exmark 500S, 700S UTV

Exmark has expanded its 2015 product line to include two side-by-side UTV models. The new models deliver the productivity professionals demand with switch-on-the-fly 2 or 4WD, and a customizable 2-in-1 tilting cargo box that transforms from box to flatbed in minutes. Ideal for a wide variety of work, Exmark 500S and 700S UTVs feature a dual-range automatic transmission. The continuously variable transmission (CVT) design responds to inputs including vehicle speed, load and engine RPM in real time to deliver optimal acceleration and fuel efficiency. The 700S adds an electric locking front differential for maximum traction and pulling power. The 700S has a total payload capacity of 1,500 lbs. (1,100 lbs. for the 500S). The transformable design of the tilting rear cargo box can be converted to a flatbed in minutes for enhanced versatility. Integrated front and rear 2" receivers give users the ability to hook up trailers or attachments at either end of the machine. Both Exmark UTVs feature powerful liquid-cooled, 1-cylinder engines with EFI. With the ability to optimize the fuel/air mixture for the conditions, in real time, EFI increases fuel efficiency and delivers excellent throttle response combined with reduced emissions. The 700S utilizes a robust 695cc single overhead cam (SOHC) engine, while the 500S relies on a powerful 443cc SOHC powerplant. The machines feature 4 wheel hydraulic disc brakes and dual A-arm front and rear suspension with 10" of travel and 10" of ground clearance. The 700S also features upgraded alloy wheels. Call 402-223-6300; visit exmark.com.

JCB Workmax 800D JCB recently announced the Workmax 800D, available as a diesel-powered model. Workmax’s Tier 4 784cc Yanmar diesel engine is coupled with a 2-speed continuously variable transmission (CVT) with Kevlar belt. In order to achieve an optimum 50–50 weight distribution front to rear when fully loaded, both the engine and CVT are positioned further forward. The Workmax also features an independent suspension with progressive rate springs and both electronically selectable 4x4 drive and differential lock. The Workmax has automobile style seating, so there are no bulky levers between the operator and passenger. The cab has a flat diamond-plate floor for uninterrupted access from either side and the steel-construction tip-

ping cargo deck will carry up to 880 lbs. Underneath the body of the machine, there’s a steel plate guard to protect major transmission components when engaged in unpredictable offroad environments. Likewise, to protect the engine during river wading, the air intake is mounted as high as possible. With an 8.5 gal. fuel tank—the largest in its class—JCB Workmax works an entire day before needing to refuel. The Workmax can be accessorized to fit owner needs offering a choice of front hood colors and also offers a sealed cab with hard doors or a choice of half doors and soft doors with an unsealed cab. Call 912-447-2000; visit jcb.com.

Gravely Atlas JSV

Gravely introduces the Atlas JSV utility vehicle designed for heavy jobsite work, with a 1,900 lb. payload and 2,000 lb. towing capacity. Supported by an on-demand, true all-wheel drive system and De Dion rear suspension, this Jobsite Vehicle (JSV) provides the heavy-duty traction and suspension required to maintain full ground clearance and a smooth ride even when carrying maximum loads. Electric cargo bed lift is standard on all Atlas models. The Altas JSV-3000 fits 3 adults comfortably across 1 bench seat, and the Atlas JSV-6000 crew model fits 6 adults across 2 bench seats. Both models are available with a 1-cylinder, 570cc Polaris DOHC gas engine or 3-cylinder, 1028cc Kohler diesel engine. All engines provide a 10-gal. fuel capacity and ground speed of 35 MPH. Call 920-756-4688; visit gravely.com. POWER EQUIPMENT TRADE

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POWERSPORTSpreview Toro 500 EFI, 700 EFI UTV

Polaris Industries Inc. has strengthened its Brutus side-byside utility vehicle line with the introduction of two new Brutus HDPTO configurations. The Brutus HDPTO and HDPTO Deluxe models include a new Tier 4 compliant, 24 HP Kohler diesel engine. The 3-cylinder overhead cam design and indirect injection delivers smooth power, reduced combustion and minimal noise and vibration. Biodiesel fuels of up to B20 are approved for use with the engine. Other 2015 Brutus enhancements include: the HDPTO allows users to configure the frame based on needs, while the HDPTO Deluxe offers maximum comfort with a fully-enclosed cab, complete with a noise sealoff kit, windshield wiper assembly, heat, defrost and air conditioning; a more powerful, 110 AMP alternator provides power to fit all types of electrical needs and a strengthened cargo box frame is designed to work seamlessly with the new utility spreader attachment. Visit Polaris.com.

Cushman Hauler 4x4 UTV The Toro Co. is launching a new line of side-by-side utility vehicles designed to tackle tough jobs and demanding terrain. This includes two versatile, gas-powered EFI models— the 500 EFI and 700 EFI. These powerful, 4WD vehicles offer hauling and towing capabilities, as well as seating for 3. The new Toro UTVs are powered by 4-stroke engines with EFI technology for improved fuel efficiency, and come with Duramatic automatic transmissions, dynamic engine braking, and electronic 2WD/4WD selection as standard. Additional features include a digital display that provides instant access to critical operating information such as fuel level, temperature, oil pressure and speedometer/tachometer. The transformable design of the tilting rear cargo box allows conversion to a flatbed in minutes to enhance hauling versatility. The 700 EFI has a total payload capacity of 1,500 lbs. (1,100 lbs. for the 500 EFI), and both models are equipped with a standard front brush guard and adjustable CAM-style shocks for 10" of ground clearance. Integrated front and rear 2" receivers give users the ability to hook up trailers or attachments at either end of the machine. Call 866-336-5205; visit toro.com.

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Cushman introduces the Hauler 4x4 UTV, Cushman’s first EFI gasoline and 4x4 option in the Hauler UTV lineup. The new 4x4 has the power and capacity to tackle the toughest jobs on the worksite, while also delivering excellent fuel economy thanks to electronic fuel injection technology. Driven by a 720cc, 28 HP Subaru EFI gasoline engine, the two-passenger Hauler 4x4 offers power and performance while also maximizing fuel efficiency. It also features an industry-leading 800 lbs. cargo capacity and provides up to 1,200 lbs. of total vehicle payload. The Hauler 4x4 handles the heaviest jobs with user-selectable 4WD, allowing the operator to adjust the power when extra maneuverability is needed. Fully independent suspension ensures a smooth ride even loaded down over rough terrain. Additionally, the 4x4 has a 25 MPH max speed and a range of more than 100 mi. Safety features include 3-point seat belts, a rollover protection system (ROPS) and full-load braking, standard on the Hauler 4x4. Additional options and accessories include mud tires, a brushed or black aluminum cargo bed, LED headlights, windshield options, work light kits, hard or soft cabs and side mirrors. Call 706-798-4311; visit Cushman.com.

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POWERSPORTSpreview Kymco UXV 500i G

The ultimate mobile power station with a fully enclosed OSHA & NEC 2011 compliant 5kW generator, combined with an integrated safety system, a Kymco exclusive, including a GFCI safety circuit breaker, brings all the power you’ll ever need—right to where you need it. The panel has four 110V receptacles and one 220V receptacle that can be switched between voltage output 110 or 220. Fire up your power tools, se-

curity lighting or service equipment on the job site during the week or any electrical appliance to make the most rustic campsite or hunting spot a civilized weekend retreat. Full digital monitoring and industry leading automatic electrical load compensation gives you smooth power delivery under the most demanding conditions. The UXV 500i G’s reliable, powerful DOHC 499cc liquid-cooled EFI engine fires to life at the push of a button in any climate or altitude, promising consistent, efficient power. Check your vehicles status at a glance with the backlit multi-function digital display. Kymco’s automatic CVT transmission with low, high, neutral and reverse gears is easy to operate and puts instant power and torque to the maintenance free sealed shaft final drive. Featuring on demand 2WD/4WD with open selectable front differential lock as well as selectable rear differential lock in 4WD only with low pressure, less aggressive turf tires deliver lighter turns and controlled stops on any surface and won’t tear up the grass! With class leading independent front and rear suspension and a wider more stable stance, the UXV 500i G can take you anywhere you’ll need to go with comfort and confidence. The ultimate solution when you need a multi-passenger, multi-purpose vehicle on the job site or riding the weekend trails, this UXV 500i G is packed with all the features you demand. Visit kymcousa.com.

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Keeping Up Appearances Stan Eversole continues to improve his business year after year. BY JAY DONNELL MACON, Ga. hen Stan Eversole purchased a small engine repair shop called Knapp Equipment Co. in 1988, he hoped to one day grow the business into a mainstay in the Macon community. Eversole, a 1977 graduate of the University of Georgia, decided to

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Stan Eversole has 27 years of experience in the industry, starting with a repair shop.

change the name of the company to Macon Outdoor Power after several years and then, in 1994, he packed up and moved to the store’s current location. Eversole is not only the owner, but handles all the administrative duties including bookkeeping. Eversole owned a prominent lawn maintenance company for many years, but in 2000 he decided to sell it in order to focus on Macon Outdoor Power. In the beginning, the store carried numerous lines of equipment, but when Husqvarna became aggressive in expanding its product lines Eversole began to take notice. “Around the time I was able to devote my time to the company was

The new expanded showroom displays the full line of Husqvarna ride-on and walk-behind mowers.

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Macon Outdoor Power offers the largest selection of Husqvarna chain saws, blowers and trimmers in middle Georgia, Eversole says.

about the time Husqvarna was really becoming aggressive with their product lines and their dealer programs,” Eversole says. The business has grown since 2000 as the company continues to increase its customer base and improve their facility. At one time they thought about moving locations, but then decided against it. Recently, they’ve expanded the show room, purchased additional land next door and put a new façade on the building. Purchasing the land next door allowed the addition of much needed parking for customers and employees, more space for lawn mower storage and an additional workshop. The new façade updated the building’s appearance greatly and has brought in new customers as well. “We’ve been on a capital improvement binge for the last five years,” Eversole says. “At one point we were considering looking for a new location, but we’re centrally located here and we like that.” Eversole’s 8,000 sq. ft. shop is staffed by six employees including two service technicians. Service techs train at Husqvarna school and are routinely recertified. The posted labor rate is $65 and has not changed in five years. Eversole acknowledges that the rate will have to be raised in the future to keep up with rising costs.

Promotions Macon Outdoor Power uses television ads to promote the business. Eversole believes these ads have helped him pull customers from small towns near Macon that normally wouldn’t know about the business. “Husqvarna has a generous advertising co-op program and through aggressive use of these funds we’ve been able to expand our customer base and territory,” Eversole explains.

“We chose a strong local television channel and have been very happy with their service and the results.” They also have a website, maconoutdoorpower.com, and a Facebook page. While the website and Facebook page are helpful, maintaining them can be quite challenging. “Maintaining them is very challenging, but for a dealer to be successful in the future they must follow online advertising trends as they develop and change,” Eversole says.

Trained service technicians will work on any brand of equipment. POWER EQUIPMENT TRADE

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Since becoming a full line dealer the store now only carries Husqvarna products. The new expanded show room displays the full line of Husqvarna ride-on and walk behind mowers. They offer the largest selection of Husqvarna chain saws, blowers and trimmers in middle Georgia. “Husqvarna has a really strong and diverse produce line and it makes our job easy,” Eversole explains. Being a Husqvarna full line dealer has many benefits such as aggressive financing programs. There are various financing programs with the zero interest programs being the most popular and there are many levels of financing available for customers with all types of credit scores. These programs have helped increase sales tremendously.

Customer Service

unlike cities such as Alpharetta where large scale landscaping is common. Macon is a bit more urban than some of the other dealerships in the surrounding area. “There aren’t as many landscaping companies that are servicing high budget properties so everyone has to work hard for their dollar,” Eversole says. One of the biggest challenges for Macon Outdoor Power is working on inexpensive or poorly made power equipment where repairs would cost more than replacing the piece of equipment all together. “When working on these types of products you can hardly afford for a tech to work on them long enough to determine the repair cost would exceed the products’ value,” Eversole says. “Communicating this to customers and being receptive can be difficult.” Another major challenge is competing with big box stores and their discounted pricing, but the big box stores rarely offer repair service. Eversole has a dedicated group of employees. Darren Forbes, service manager, has been with the company for 30 years and provides an extensive knowledge of many different products. A recent addition to the front line is Efrian Garcia, who has helped tremendously and does a good job of communicating with the diverse customer base. Both Forbes and Garcia are cross-trained in all areas. Roger Smith and Charlie Knowles han-

dle repair services for the company. The climate in middle Georgia dictates a seasonal business with winter being a slow time and retaining quality employees can be difficult.

Looking Ahead Eversole believes it’s crucial for his business to adapt to the times and learn how to spend advertising dollars wisely through the internet and other options while continuing with the television advertising. Eversole understands that advertising will be much different if standard cable television ads become obsolete since he attributes much of the company’s success to their television ads. “A few years ago we would sell 20-30 riders a year and now we’re selling 150 riders a year,” Eversole explains. “We hope to continue to increase our yearly sales and improve our customer service skills, while satisfying the niche created for us.” For now, the Georgia graduate doesn’t see any need for expansion because of how much work they’ve put into the store over the past five years. “We’ve done just about everything we can think of short of expanding the entire building,” Eversole says. “We put a lot of focus on the appearance of the display room as well as the front of the building PET and we think it’s paying off.”

Eversole feels that Macon Outdoor Power found a niche in the market by being one of the few repair shops locally to work on all brands of power products, not just the products sold at his shop. Eversole’s knowledgeable staff can work on almost any type of product. “It’s challenging to stock parts and be knowledgeable about all those different products, but that seems to be our lucky niche,” Eversole says. The company’s motto has always been, “It’s the service after the sale that counts” and this has been proven with the excellent customer service the business has provided throughout the years. Their goal is to have the shortest turn-around time possible on repairs and that is helped by being open six days a week. Business hours are 8:00 a.m. to 5:30 p.m. Monday through Friday and 8:00 a.m. to 3:00 p.m. on Saturdays. The business has numerous checkout locations that enable multiple customers to be handled at the same time. “We think it’s important to pick up the phone on the first ring and we strive to avoid letting calls go to voicemail,” Eversole explains. Eversole describes his customer base as 80% residential and 20% commercial. Macon can The company recently put a new facade on the building and expanded its showroom. be a challenging market, 18

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Proposals Keep Ethanol In News Recent research shows consumers unaware of impacts from higher ethanol blends as blender pump program looms. BY DAN SHELL

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wo recent federal announcements kept ethanol in the news in June as the U.S. Environmental Protection Agency (EPA) released long-awaited ethanol blending requirements for 2014 and 2015, and the U.S. Dept. of Agriculture (USDA) announced a new program to provide up to $100 million for gas station owners to help reach a goal of doubling the number of blender

pumps installed across the country in order to supply higher ethanol blends to consumers and meet renewable fuel usage objectives as outlined in federal legislation passed in 2007. Meanwhile, as E15 availability continues to spread outward from its main concentration in the Midwest where most ethanol is produced, the impact on consumers from higher level ethanol fuel blends remains underestimated, lawn and garden industry officials say, and requires much more consumer education. The results from recent polls commissioned by the Outdoor Power Equipment Institute (OPEI) and conducted in April and May show that consumers are ill-equipped to make smart decisions about new gasoline choices entering the marketplace, such as fuel blends greater than 10% ethanol. According to poll results, Americans continue to choose gasoline on price, and do not pay much attention to pump warning labels. Poll findings show 63% of Americans will use the least expensive grade of gasoline whenever possible. In addition, nearly three quarters (74%) of Americans say they are not at all sure if it’s legal or illegal to put ethanol-gasoline blends higher than 10% into small engine products. (Under federal law, it is illegal to use those higher ethanol fuel blends in outdoor power equipment.)

Education Needed

Higher ethanol blends are spreading slowly to additional markets.

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“Unfortunately, decision-making at the fuel pump is getting more complicated as higher ethanol blended fuels are becoming available,” says Kris Kiser, CEO and President of OPEI. “The research shows that the American public is woefully unaware and uneducated about ethanol blended fuels, and how to use them.” According to Kiser, blended fuels create confusion among gasoline consumers. “It’s sad to see our government investing $100 million into infrastruc-

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ture to bring new fuels to communities across America, while allocating no funding to educating the public about them,” he adds. The surveys also asked about gasoline pump labeling, and consumers confessed they do not pay much attention to labels at the pump. Less than one-quarter (23%) said that they notice the ethanol content on the fuel pump. Less than half (47%) of Americans admit they check the fuel pump for any warning labels when fueling up their cars at gas stations. When testing awareness language, poll research found that consumers are not as likely to notice labeling with the word “attention” as they would labels with words like “warning” or “caution.” Six in ten (60%) Americans prefer “Warning: Use only in 2001 or newer passenger vehicles or in flex fuel vehicles,” while 13% prefer “caution” and 10% prefer “attention.” Over nine in 10 (91%) say they would be likely to pay closer attention to the fuel pump after seeing a label with this language. The current EPA-mandated label on fuel pumps reads “Attention: Use only in 2001 or newer passenger vehicles or in flex fuel vehicles.” Considering the recent announcements and poll results, consumer education is needed “now more than ever,” Kiser says. “We hope EPA will take steps to improve consumer awareness at gasoline filling stations. As an industry, we have supported consumer education through our ‘Look Before You Pump’ campaign. But the EPA could—and should—do more.” According to Brian O’Neil, Chief Business Development Officer for B3C Fuel Solutions, which offers a variety of ethanol-fighting fuel treatment products, “We believe consumers should always be educated about and aware of the type and impact of fuel they are putting in their engines, particularly when it relates to ethanol content and potential problems resulting from ethanol in the fuel.” O’Neil notes that all ethanol fuel blends higher than E10 are not approved for use in small engine powered products—a fact that most consumers aren’t aware of—and using higher ethanol blends in small engines could very well cause engine damage and void warranties. Such consumer confusion will inevitably lead to mis-fueling issues, which in turn will come back to dealers in many cases as a warranty issue with the inherent conflict of who’s responsible. The USDA’s blender pump program could run into resistance, however, as Congress made it clear back in 2011

when the agency announced a goal of 10,000 blender pumps installed nationwide. Congress passed legislation barring the USDA from using farm bill programs to fund the pump assistance effort when theUSDA sought to use the Rural Energy for America Program to fund the program. This time, USDA is planning to use the Commodity Credit Corp. that has traditionally been used to provide financial assistance to farmers, a move that’s likely to draw resistance. News reports say the USDA can expect a challenge in how the program may be funded. Also, some industry analysts say the cost of pump conversion remains too high for most fuel retailers even with the installation funding assistance considering they are selling a product—standard transportation fuel— that has razor-thin margins. According to the USDA, the blender pump program includes administering competitive grants to match funding for state-led efforts to test and evaluate new approaches to market higher blends of renewable fuel, such as E15 and E85.

Background Passed in December 2007 as an amendment to the Energy Policy Act of 2005, the Energy Independence and Security Act (EISA) of 2007 established the first renewable fuel volume mandate in the U.S. under the Renewable Fuel

Standard (RFS). The original mandates included in the 2007 legislation had the volume of renewable fuel required to be blended into transportation fuel growing from 9 billion gallons in 2008 to 36 billion gallons in 2022 (with 21 billion of the 36 billion gallons coming from non-corn sources). Yet the mandates in the legislation soon proved unworkable in the market due to biofuel production capacity and gasoline demand. According to a 2011 United States National Research Council report on the economic and environmental impacts of meeting the RFS requirements, while capacity to produce conventional biofuel (corn ethanol) was nearing the mandate, the capacity for advanced (non-corn) biofuels was nowhere near reaching the levels required to meet blending mandates. Within a year of the EISA’s passage in 2007 the U.S. entered its worst economic downturn since the Great Depression, which led in turn to reduced gasoline consumption and the realization that a “blend wall” made it impossible to meet renewable fuel blending mandates at current gasoline demand levels and approved ethanol blends for standard fuel. The ethanol industry in turn went through the arduous process to get a higher ethanol blend, E15, approved as a standard transportation fuel—a process closely chronicled in Power Equipment Trade. (One study from the Congressional Budget Office noted, however, that to break through the blend wall and meet the 2007 legislation blending mandate of 36 billion gallons by 2022, EPA would have to approve E25 as standard transportation fuel.) Yet in November 2013, looking ahead to increasingly unreachable blending requirements as the mandated numbers rose, the EPA sought to reduce blending requirements for 2014, leading to a firestorm of political posturing and lobbying from the ethanol industry and almost two years of EPA reassessment on the mandates. After a lawsuit earlier this year forced EPA to release its blending requirements for 2014, 2015 and 2016, the agency did so on May 29. The numbers required for blending were 13.2 billion gallons in 2014, 13.4 billion gallons in 2015 and 14 billion gallons in 2016. The 2014 and 2015 “mandates” reflect actual market usage, while 2016 represents a small increase—yet all are significantly lower than what was initially projected in the PET 2007 EISA legislation.

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Developing A Focus For Your Business Selling a piece of equipment should not be the only game in town for dealers and manufacturers. BY JOHN WALKER

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ver the years equipment dealers have experienced the erosion of margins on their complete goods sales. Too many equipment dealers fail to generate the amount of sales necessary for financial success, manufacturers continue to pressure their dealers for increased market share and in too many cases market share becomes the determining factor of dealer survival. That comes at a price to the dealer. An objective comparison of equipment dealers suggests that most industries have similar lines of products, a lift truck is a lift truck, a tractor is a tractor, a mower is a mower, etc., but some competitive products that perform in the same manner may have more “bells and whistles” than others. Typical equipment dealers promote and sell their products in the same manner, provide about the same services, offer comparable or the same prices and same delivery. The result becomes a disturbing level of sameness, ending up with price being the major issue for the sale. The equipment industry then becomes like the airline industry: As one airline lowers the price of a seat, everyone else follows suit and the only difference that remains is the paint and the decals on the plane. This perception of sameness will inevitably cause a long-term decline in customer loyalty. It is important to note that increasing customer loyalty through customer satisfaction will not only in24

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crease sales, but also will provide increased dealer profitability. We encourage dealers to focus upon these three words of “value added selling.” If the equipment dealer is to increase sales and profitability, the equipment dealer must give the customer a unique and non-typical reason to buy. The dealer must break away from the pack and eliminate that dreadful market sameness that has existed for too many years. Many successful equipment dealers have discovered that the best technique for value-added selling is thoroughly promoting the aftermarket services their dealership has to offer. In doing so they see both their sales and profitability increase dramatically. This, of course, should come as no surprise to anyone. For years manufacturers and associations have been conducting intense market surveys asking why customers buy from one supplier versus another.

sive surveys, many manufacturers and dealers pay little attention to the customers’ answers. How often does an equipment salesperson mention to the customer, “our dealership has more than one million in stocked parts available, with overnight delivery service from the manufacturer” or “our dealership has five factory-trained technicians with a combined total of 65 years experience servicing the equipment you are about to purchase.” How many times do you hear the salesperson thoroughly review the manufacturers’ warranty with the customer? For that matter, how many times does someone mention that the dealership wants the customer’s service business? Lack of doing this creates buyer’s remorse and a lack of customer loyalty to the dealership. As pointed out in these few examples, if the customer’s major concern is service after the sale, the dealer must

The customer is not just buying a piece of equipment, the customer is buying the entire dealership’s services, and the dealership should sell the entire dealership as the customer’s one-stop shopping alternative. These market surveys have been going on for more than 40 years and the answers always come up the same. The number one customer concern about the dealer/manufacturer is parts availability. Number two is service response time. A survey conducted years ago by a very large manufacturer listed 22 customer concerns in descending order of priority. Two-thirds of the concerns centered on the dealer/manufacturer’s ability to provide aftermarket services. The selling price of the equipment was actually eighth on the survey list. The unfortunate situation is that after conducting these extensive and expen-

emphasize the value-added factor of his ability to provide service after the sale. The customer is not just buying a piece of equipment, the customer is buying the entire dealership’s services and the dealership should sell the entire dealership as the customer’s one-stop shopping alternative. Over the years, we have met sales personnel (and dealers) who hesitate to mention the many strengths of the dealership’s product support. When asked why, many (still) will tell you that it is negative selling and indicates there may be problems with the equipment after the sale. Many dealers believe that the

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Research has shown customers are more interested in parts availability and overall service performance than bottom-line pricing.

sale of parts and service is guaranteed, and the customer must come back to the dealership for parts and service, which is unbelievable, but true! Customers most certainly recognize that hard-used equipment is going to require parts and service, and all surveys point out the customer’s major concern is and has been service after the sale. We strongly encourage training all dealership personnel to market the features, advantages and benefits of the dealership’s aftermarket performance. When this is done effectively, we have seen dealers improve their whole goods margins. Involve your dealership’s parts and service managers in the closing of sales. Create a team effort. Bring the prospective customer in to see your parts department and your shop. Introduce your prospective customer to all your managers. Allow these managers the opportunity to explain the unique and important

services they have to offer the customer after the sale. Have the managers thoroughly explain their parts and service programs that they offer. It helps eliminate buyer’s remorse and builds customer loyalty. Involve the rental manager in the sale as well. Customers are always interested in knowing that during peak times, your dealership has the capability of renting additional units to suit their short term need. Market your entire dealership! Help the customer understand that you are not just interested in selling a piece of equipment: You are interested in taking care of all their needs and requirements after the sale. You want to be the customer’s one-stop shopping center for all of their requirements. Will these techniques always work? No they will not, but most certainly not, if no one tries them. We encourage dealers to truly focus on that large per-

centage of customers who are concerned about what your dealership has to offer, after the sale. Focus upon these opportunities, and watch your margins and sales increase. Again this month we are offering our readers two manuals for the price of one. For $16.95 you will receive “Laying the Groundwork for Value-Added Selling” and “When your Price is Right, Sell it!” Simply email us at amsconco@ aol.com and request our two manual special. We will email you the two manuals along with an invoice, and you will have the manuals immediately. PET John Walker is President of Aftermarket Services Consulting Co., an international training and consulting company working with manufacturers, dealers and associations in parts and service marketing, managing and merchandising techniques. FContact AMS, P.O. Box 541, Fort Mill, SC, 29716; e-mail: amsconco@aol.com; visit amsconco.com.

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DEALERvoices

Customer Data And Privacy: What’s The BIG Deal? No longer just for large retail chains, privacy policies and information security programs are a necessary step for dealers. BY LANCE J. FORMWALT

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nless you’ve been lost at sea the last year, you have heard about the theft of credit card data from millions of customers of Target, Home Depot, K-Mart and Nieman Marcus, concerns about the collection of call data by the National Security Agency (NSA) and countless other stories about privacy. You understand how this impacts you as a customer, but do you know how you are impacted as a business owner? Privacy policies and information security programs are no longer just for big retail chains. The information-gathering technology that you are selling your customers put you squarely in the middle of the debate about privacy and use of customer information. Information generated by the equipment you sell has many benefits for you, your customers and your manufacturers. However, customers are becoming more sensitive about who has access to the data, how it is secured and how it will be used. This concern is leading to a growing debate among producers, manufacturers, seed companies and legislators. On a weekly basis, it seems like a different group has an announcement relating to this issue: from the Farm Bureau’s policy on data privacy, to the formation of a grower’s cooperative for the protection and licensing of producer data, to the establishment of cross industry projects to develop standardized formats for farm data to facilitate producer access to data generated by various data gathering tools. Dealers need to be paying attention, 26

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too. As a conduit between your customers and your manufacturers, you are in the position of advising customers on uses of the information available to them. In many cases, you also may have access to your customer’s data to help drive your marketing plan or other business decisions. Due to your access to customer data and growing manufacturer concern about negative brand implications if dealers don’t adopt best practices about data and privacy, you need to be thinking about steps to address customer questions and concerns. As part of that process, you should consider taking the following actions: Adopt a privacy policy. A privacy policy is simply your promise to customers about how you will collect, use and secure data at your dealership. When creating a privacy policy, there are two important things to remember. First, if you commit to a pol-

46 states require dealers to monitor and respond to a breach of their information systems. In many states, an information security program is either required or provides significant benefits to dealers, such as more limited penalties if violations occur. Train employees on policies. Putting a plan or policy on paper doesn’t do you any good unless your employees understand how to apply it and the importance the dealership places on compliance. To adequately address the issues, it is critical to make someone accountable for training your employees on your policies and security programs. Taking steps now to keep up with the changing dynamics of information access and privacy will ensure you are informed, able to address manufacturer concerns, reduce your exposure to liability and comply with existing legal obligations. This area will continue to rapidly evolve over the next several

As a conduit between your customers and your manufacturers, you are in the position of advising customers on uses of the information available to them. icy, you need to make sure you are prepared to follow the policy. Second, a privacy policy doesn’t mean you have to lock up information and never use it. As part of this process, think carefully about how to balance the customer’s interest in privacy and your interest in using the information for valid business purposes. Establish an information security program. If you make promises to your customers about how you will use and protect information, it is a good idea to also adopt an internal plan that helps you live up to those promises. More importantly, federal law and the data security and breach notifications laws in place in

years but it is important to act now to meet customer expectations and put your organization in a better position to adapt to (and perhaps shape) changes and standards relating data privacy in PET the future. Lance J. Formwalt is a member of the Equipment Dealer Practice Group at Seigfreid Bingham, P.C. The firm also serves as legal counsel to the North American Equipment Dealers Association (NAEDA). Lance may be contacted at lancef@seigfreidbingham.com or 816-265-4106. This article is intended to provide general recommendations and is not intended to be legal advice. You should always consult your attorney for advice unique to you and your business.

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SHOWroom Worx Chain/Pole Saw

seconds without disassembly. The same SRM-225 over-molded right-hand grip provides a comfortable contoured feel. The 1-30 reduces pulling effort by 30%. The GT-225L is priced at $199.99 MSRP, with Echo’s standard 5-year consumer warranty and 2-year commercial warranty. Call 847-540-8400; Visit echo-usa.com.

Exmark EFI Propane Mower Worx has extended the reach of its popular line of electric chainsaws with the introduction of the new 10 in., 8A Electric Chain Saw/Pole Saw. This versatile, 2-in-1 yard tool includes key features found only on other Worx chainsaws, and easily detaches without tools from its extension pole for use as a regular chainsaw. When attached to the pole, the compact electric pole saw has a total reach of 10'. A powerful 8-amp motor drives the pole saw, which is equipped with a 10 in. low-kickback bar and chain. Tool-less installation of the extension pole is a breeze. Just slip the saw’s handle into the snug-fitting sleeve at the end of the pole, and secure the saw by hand-tightening a large knob. The saw weighs only 10 lbs. for ease of lifting and maneuverability. Overmolds on the front and rear handles provide operator comfort and control, especially during extended use. Call 866-354-9679; visit worx.com.

Echo GT-225L Trimmer

Echo’s new GT-225L takes the popular features of the straight shaft SRM-225 and the curved shaft GT-225 to offer the ultimate in curved shaft trimmers. For those preferring curved shaft trimmers, the GT-225L with a 55" shaft is 7" longer than the GT-225. It has the same GT left hand grip, which can easily adjust and rotate for operator comfort and edging. It uses the same shield with 16" cutting swath, and the same ball bearing supported trimmer head for heavy duty, long lasting durability. The GT-225L uses the same 21.2cc power head with vibration-reduction, but its 0.8 lbs. lighter than the SRM225. It uses the popular speed feed 400 head, which reloads in

Exmark has unveiled the latest addition to its EFI propane commercial mowers—the Vantage S-Series propane 52" stand-on rider. The Vantage S-Series propane machine features the groundbreaking Kohler Command Pro PCV740 EFI propane powerplant. The engine’s automotive-style closedloop EFI system delivers significantly increased fuel economy, reliability and improved performance, combined with easy, no-choke starting. The efficiency of the EFI system reduces fuel consumption by up to 40% compared to carbureted propane engines. The Vantage S-Series propane model is available with a 52" UltraCut Series 4 cutting deck. The deck features Exmark’s patented flow control baffles to provide an unmatched quality of cut, and the welded steel deck construction features 7-gal. high-strength steel reinforced spindle mounting rings for top-notch strength and durability. Blade spindle assemblies feature rugged cast aluminum housings and zero-maintenance sealed heavy-duty bearings to maximize service life. Call 402-223-6300; visit exmark.com.

John Deere Safety Eyeware Wiley X, Inc. has unveiled its Drill-X sunglasses, part of an all-new family of John Deere safety eyewear designed to protect the vision of American men and women while reflecting the quality, performance and durability of the iconic John Deere brand. Like every John Deere model, the Drill-X meets the latest ANSI Z87.1 High Velocity and High Mass Impact standards, providing OSHA-grade eye protection for every task and activity. Wiley X offers three versions of the Drill-X, each featuring the distinctive John Deere logo and providing wearers with a choice of looks and performance. Model LP53712 features a POWER EQUIPMENT TRADE

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SHOWroom

gloss black frame paired with polarized grey lenses. These versatile, glare-cutting lenses are ideal for driving, working near water or in any highly reflective surroundings. Model LP53713 matches a distinctive gunmetal frame with grey silver flash lenses, for a bold look that’s ready to take on any challenge. Model LP53714 features grey lenses fitted into a dark metallic frame with pink accents—for a bold, yet feminine look that’s sure to appeal to hard-working women coast to coast. Each pair comes with a custom cleaning cloth and hardshell zipper storage case. All John Deere safety eyewear models are backed by a one-year warranty against defects in material and workmanship. Visit wileyx.com.

Stihl HTA 65 The Stihl HTA 65 fixed length pole pruner is the newest addition to the family of Stihl lithium-ion battery KombiSystem products. Powered by advanced 36 V lithium-ion battery tech-

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nology, this cordless pole pruner is hassle-free, saving users time and money by eliminating the need for gasoline and 2-cycle oil. Users won’t have to worry about losing any power when cutting into limbs. Each battery runs at full power until it’s depleted. For the HTA 65, that means up to 40 mins., with the AP 180 battery. The HTA 65 is one of 14 tools in the Stihl Battery KombiSystem line. This system is designed so that a single Stihl lithium-ion battery can be used with multiple tools. This advanced technology reduces exhaust emissions and dependence on fossil fuels. In addition, all batteries are subjected to rigorous testing to ensure they meet Stihl quality and safety standards. Call 800-467-8445; visit stihlusa.com.

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SHOWroom John Deere TractorPlus App Committed to enhancing efficiency and productivity on the job, the John Deere TractorPlus application provides customers with easy access to information to help them learn more about their 3E, 3R, 4M, and 4R compact utility tractors. Intended to serve as a quick reference tool, the TractorPlus application offers a variety of features for convenience while working. The tractor setup provides a step-by-step guide for setting up features, including the hitch assist and Final Tier 4 engines. The icon glossary allows users to familiarize themselves with the instrument panel. Error code lookup offers a searchable database of diagnostic trouble codes and notebook is a place for operators to save notes on the ma-

chine’s performance for future reference. TractorPlus application is available for free download on iTunes, Google Play and the John Deere App Center. Visit deere.com.

Efco DS 2400 D Brushcutter

Efco introduces a new split-boom brushcutter, model DS 2400 D. Designed to be used by homeowners and professionals, both user groups can benefit from a multipurpose tool that

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SHOWroom can be quickly setup as a brushcutter, hedge trimmer, pruner or leaf blower. The split-boom powerhead is compact and lightweight with a no-tools coupling system for mounting the various attachments to use in all seasons. Each attachment is managed separately and can be purchased as the need arises. Users can also purchase an extension that increases the length of the drive tube. Using just one engine for all applications means simplified maintenance and refuel-

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ing of just one tank, while simultaneously reducing the space required for transport or winter storage. The 21.7cc 2-stroke engine delivers 1.2 HP, featuring generous torque output and with minimal fuel consumption. Compact dimensions of engine unit and balanced weight distribution of the tool assure a good level of maneuverability and control in all working conditions and applications. Call 800-800-4420; visit efcopower.com.

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Obsolete McCulloch & Obsolete Green Machine

9009

POWERworks Bob’s Lawnmower Service 7632 State Hwy. 7 Maryland, NY 12116-3201

BUSY LAWNMOWER, TRIMMER, SNOW BLOWER, CHAINSAW SALES, SERVICE AND REPAIR SHOP!!!

PRICE REDUCED

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8100

HOMELITE PARTS Ask For Ray 502-228-1462 • Fax: 502-228-7737

POULAN WEED EATER 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 26 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 ............... NOW ONLY $385,000

Call Steve at Steve Hubbard Real Estate 3821 Services. 845 246-2022

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POWERworks AR, LA, MS, OK, TX

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MN, ND, SD, IA, WI, TX

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8690

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PETcetera Three Ways To Generate Online Reviews Word-of-mouth recommendations have been influencing purchase for decades, but technology, the internet and social media have had a tremendous impact on the continual change to the ratings and reviews landscape. When looking for products to purchase, the internet can be your best friend and your enemy. As a consumer, sorting and organizing a search for a new product can be overwhelming. So it’s no surprise that consumer reviews have become an arrow in the quiver. No one would argue with Quidsi’s Josh Himwich, the creator of Diapers.com and Soap.com, who said, “The importance of ratings and reviews is immense, and it’s a story that we’re only at the beginning of. When presented with the tyranny of choice, reviews are like a beacon of light that cuts through the options and clarifies what the customer should click on.” And this was in late 2010, nearly five years ago. Here are three ways you can ensure reviews and get that ever so important 5-star rating. Ask consumers to promote your core values. To help drive conversation, try focusing not just on spreading your value proposition, but highlighting your core values. In fact, forming an emotional connection on shared values is one of the key elements in driving customer loyalty. Align with causes important to your consumer. Fifty-four percent of millennial women have switched brands because they support a cause they care about. Aligning and promoting a cause the brand is associated with allows seemingly “dull” brands to instill some passion into their customer reviews and conversation. There are countless examples of brands, when separated from their causes, are really not that interesting. Think of Tom’s shoes—their cause is the very center of their marketing, and it shows in the conversation their customers start. Develop use cases. When it comes to judging reviews and recommendations, people respond most to personal stories. Asking consumers to share their use case helps surface that personal story. Chances are there is a customer story out there that you would have never imagined. Some brands can even challenge customers to produce the most interesting use case. Source: Susan French, Media Post, http://www.mediapost.com/publications/article/251974/3-ways-to-generate-online-reviews-for-boring-brand.html

Offer Business-Boosting Sales To ensure that your business does not take a hit when offering sales or providing customers with coupons, there are four essential strategies to consider in order to protect yourself. Some common mistakes that business owners encounter when having a sale or providing coupons are that they may only attract temporary customers or even losing money on the deal because it attracted more customers than expected. To guarantee a successful sale, or at least avoid any type of loss, here are four steps to keep in mind in the sale planning process. First, work the numbers in order to make sure you break even. For example, find the right leading item to discount in order to entice customers to purchase other products rather than just a bundle of the discounted item. The second step is to provide restrictions on coupons or sales to protect your business from extreme customers. Be-

ware of the double-dipping, or the excessive purchases— which can ultimately lead to your business losing money. Third, identify the type of customer you want to reach by providing this sale or coupon. The most effective sale will bring in the ideal customer, while rewarding loyal patrons. The types of customers to avoid, but will be inevitable, are the temporary customers who are only interested in sale items and not the rest of the inventory. The last step is to rationalize why you’re offering a sale or a coupon to begin with. Whether it is to build visibility or for some quick income, attract new customers or reward existing ones, any reason is valid. As long as these strategies are taken into consideration, your next big sale won’t end up being your last.

TCFIF Providing Ariens Financing TCF Inventory Finance and Ariens Co. recently announced an agreement to provide inventory financing to more than 1,500 Ariens and Gravely dealers across the U.S. and Canada. TCFIF will be the exclusive financing provider for its portfolio of lawn and garden equipment. “TCF has a proven track record in the outdoor power equipment industry, and we believe this new relationship will be mutually beneficial to Ariens, TCF and dealers,” said Mark Olsen, Ariens Co. CFO. “As our dealer network continues to grow sales of Ariens and Gravely products, we look for partners who can meet their changing needs and the needs of our customers.” According to a company statement, the multi-year strategic alliance with TCFIF will enable dealers to stock a wide selection of Ariens and Gravely products including snow blowers, riding mowers, walk-behind mowers and commercial lawn and garden power equipment.

ADlink Easy access to current advertisers! www.poweret.com/adindex.html Don’t forget to bookmark this link! 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 After Market Services Altoz B3C Fuel Solutions Cannon Bar Works Gold Eagle Green Industry & Equipment Expo Heftee Industries Kymco USA Masport Morbark Rapco Industries Rotary Tilton Equipment Walbro

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DEALERtodealer

Diversification Pays, But Choose Wisely GREG GERMAN

Dealer diversification is important, but making the right move is key.

A

s the old adage reads “Don’t put all your eggs in one basket.” Since the early years of our business, my grandfather always made it a point to make sure that he was developing multiple streams of revenue that were outside of the traditional ones of parts, service and sales of the basic agricultural products that he sold. Some of those attempts included the offering of welding and fabrication services, custom hay baling, warehousing services for some of our suppliers, and many more. Some attempts worked very well, some (including a handful of those by the current generation, me) crashed and burned. However, diversification is easy to get into as there are always new vendors who have a “better” idea of how, and why, you should carry their products; employees who are happy to invest your money in their idea of the week, and long-term manufacturers who believe they know what is best for your business. Looking back at 75 years of diversification attempts has led me to a few conclusions. They include the following: Never diversify into something that is outside of your current organization’s core competencies. An example of that would be what one of our key vendors attempted to do in the mid-1980s. With the advent of the personal computer, one of our agricultural suppliers thought it would be a great idea for their dealers to begin marketing a line of personal computers. Their basic thinking was that since farmers regularly came into farm equipment dealerships for their farming needs to be met, that they would naturally want to come to their local implement dealership to purchase this new tool called a personal computer. After attending the informational meet38

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ing that attempted to “sell us” on the idea, I ran away as fast as I could. I was only 20 at the time and I realized that this was a huge mistake and would end up in failure. I think the idea died quickly and probably the marketing manager found himself looking for a new job. It is really important that you honestly look at your team and decide if you have the people with the skill Try to find products that will complement your existing customer base. sets needed in place to be successful. Otherwise, you will fail. on the idea that I figured everyone Always make sure that when you would be as excited about the opportuadd a new product or service that it nity as me. Only problem was that I correlates to what you are already wasn’t the one who was responsible for providing to your customer base. selling the new items. Guess what? A dealership that normally carries They didn’t sell. Make sure your team quality brands of lawn and garden powis excited about the new product or serer equipment would find it difficult to vices and is committed to give it their begin carrying a brand of low-cost best efforts before you commit. handheld products that have a reputaTalk to other dealers and ask their tion of being a throw-away brand. Your opinion. current customer base won’t buy them, One of the most valuable things that I which means that you must attract a do a couple of times each year is to get much different type of customer who with a group of dealers in the Midwest has a completely different set of expecand share ideas about what works and tations of both the product and the dealwhat doesn’t. I know that my mistakes ership. That doesn’t mean you can’t have saved others thousands of dollars give it a try, but you would be much and vice versa. Since we are not direct better served by finding another highcompetitors, we have every reason to end related product that your customers help each other. No man is an island so might have interest in. I know some quit acting like one. Diversification ofdealers who have delved into the highfers great opportunities and, if done end grill business and have done very right, will help you get through the next PET well with it. Others might find that a economic downturn. Greg German is President of Gerline of power equipment like chipper/ man-Bliss Equipment, Inc. in Princeville, Ill., shredders or log splitters gives them a which operates three power equipment dealbroader appeal plus helps to feed their erships that market products for the lawn and service and parts business for the future. garden, industrial and agricultural sectors. Include your key employees in the He can be conducted at P.O. Box 440, decision. Princeville, IL 61559; fax: 309-385-2540; Most of the biggest mistakes that I ggerman@germanbliss.com. The views of have made in this arena were because I Greg German do not necessarily present didn’t ask their opinion. I was so sold those of Hatton-Brown Publishers.

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