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Northeast

DECEMBER 2019 • Vol. 21, No. 248

DEALER

The Newsletter of NORTHEAST EQUIPMENT DEALERS ASSOCIATION, INC.

A Time to Count our Blessings By RALPH GAISS, CEO, NEDA

During the Holiday Season, more than ever. My thoughts turn gratefully to all our Dealer Members, our Industry supporters and supplier that provide valuable services and products to our dealers profitability and success on NEDA’s behalf…who have made our progress possible…and in this spirit I say simply and sincerely…

Thank You

and

Best Wishes

for the

Christmas Season and Happy 2020 New Year! and thank you for your continued Loyalty, Support and Friendship. We hope the time you spend with friends and loved ones is filled with joy and fond memories from RALPH GAISS, BOARD OF DIRECTORS and ASSOCIATION STAFF

We hope to see all of you at one of our Regional Meetings January 27, 29, or 31, 2020 (see page 4 for additional information). Our program with our featured speaker John Chapin will be outstanding! He will share with us “How to Navigate and Adapt In An Ever Changing and Current Equipment Industry Changes to Thrive Now… and for Decades to Come and Well Into The Future.” Everyone involved in the Equipment Industry…dealers, manufacturers, suppliers and others know that mid-winter is our meeting season and holding variety of meetings and events across North America. Having the chance to catch up with Long-Time Associates is an important part of maintaining a healthy professional outlook, as is cultivating new relationships that can lead to exciting future opportunities. That is another good reason to try to stay ‘fresh’ by attending NEDA’s Regional Meetings in January, 2020.

www ne-equip.com

NEDA Salutes our Supporting Advertisers. It is our pleasure to list the names of those advertisers who support NE Dealer each month. We trust their advertisement will be remembered when goods and services are required by you, our dealer members. It is good to do business with companies who are interested in doing business with you and your industry association.


NEDA Workers’ Compensation Safety Group

Over 24.25% Average Dividend For The Last 10 Years! Exclusively for New York Members of the Northeast Equipment Dealers Association

DIVIDEND HISTORY

ELIGIBILITY

     

ADVANTAGES    

Policy Year 2017-2018 2016-2017 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009

Dividend 40.0% 35.0% 30.0% 20.0% 15.0% 15.0% 5.0% 20.0% 25.0% 37.5%

®

Members of NEDA Inc. Construction/Industrial Equipment Dealers Material Handling & Lift Truck Dealers Farm Equipment Dealers Outdoor Power Equipment Dealers Rental Equipment Dealers with Repair Facilities Aggressive Advance Discount (up to 25%) Excellent Dividend Potential Claims Management & Loss Control Services Monthly Installments for Qualifying Dealers

Eligible NEDA Dealers Purchasing Workers’Comp From Safety Group #548

10

90

Eligible NEDA Dealers Purchasing Workers’ Comp From ALL OTHER SOURCES

To see if you qualify, call Pat Burns at Haylor, Freyer & Coon 315-703-9148 / 800-289-1501 or fax a current declaration page to 315-703-8159 or Call Ralph Gaiss (Executive Director of NEDA) at 315-457-0314 for more information. You may also visit us at www.haylor.com/NEDA


NEDA Board of Directors

Observations

from the

FIELD

First off, I want to wish everyone a happy and joyous Holiday Season! Sharing time with friends and family is always a special bonus this time of year. I want to encourage everyone to make a special effort to ensure those moments do not become one of those “blessings” so easily forgotten in the midst of the “holiday rush”. Set time aside and enjoy the spirit of the season, it only comes once a year and will be over far too quickly! Tim Wentz It is looking like 2020 will be an exciting and Field Director / demanding year for the association and our memLegislative Committee bers. We will continue to expand our Agricultural Chairman Technician Apprentice and pre-apprenticeship pro717.576.6794 grams. We are also continuing our work to amend state dealer laws and manage manufacturer relations and are also lobbying against “Right-to-Repair” legislation (NY, NH, VT, MA and NJ). We are identifying new partners and educational opportunities and helping to roll out the new OPE Flat-rate guide. Finally, we are working in cooperation with EDA and AED on Federal legislation, work-force development and other issues unique to the equipment industry. Most dealers I have visited with agreed that 2019 was a decent year, but quickly added that the Large Ag equipment sales have been and are likely to continue to be a challenge. Under 40 HP tractors, parts and service sales have been bright spots for most, though some of the “luster” has been tarnished because of manufacturer warranty audits and overly burdensome claim submission processes and policies. Historically, dealers who have truly invested in the planning, budgeting and monitoring processes/programs outperform their peers. I think it’s because they understand that in order to truly be successful, they must focus on distinguishing their dealership(s) as a place where customers can find value added to every transaction/interaction and have committed themselves and their staffs to a culture of excellence. Taking a dealership to “the next level” is not easy; it requires a dealer to establish a culture of excellence and does not happen without a continuous focus and commitment to staff education, personal development and professionalism. Experience has repeatedly proven that investments in staff education and development continue to pay dividends well beyond their expected return. Attend one of NEDA’s regional meetings, listed below, and ensure that your dealership leverages the full value and benefit of your NEDA membership investment! • Monday, January 27, 2020 | Holiday Inn - Grantville. PA • Wednesday, January 29, 2020 | Holiday Inn - Liverpool, NY • Friday, January 31, 2020 | Holiday Inn - Concord, NH John Chapin will be our featured speaker. His program will be focused on helping dealers discover new customers and opportunities while managing the development of your current customers. Please take advantage of this valuable Member benefit! Participation pays! The general information provided in this publication is not intended to be nor should it be treated as tax, legal, investment, accounting, or other professional advice. Before making any decision or taking any action, you should consult a qualified professional advisor who has been provided with all pertinent facts relevant to your situation. This publication is designed to provide accurate and authoritative information in regard to the subject matter co­v­­ered. It is furnished with the understanding that the Northeast Equipment Dealers Association, Inc., the publisher, is not engaged in rendering legal, accounting or other professional service. Changes in the law duly render the information in this publication invalid. Legal or other expert advice should be obtained from a competent professional. Some of the editorial material is copyrighted and JUNE be reproduced only when permission is obtained from the publisher and the association.

OFFICERS JOHN E. KOMARISKY, President

Main & Pinckney Equipment Inc. / Auburn, NY 315-253-6269 - FAX 315-253-5110 New Holland, Simplicity, Brillion, Bush Hog john@mainandpinckney.com

NATE SHATTUCK, 1st Vice President / Treasurer Devon Lane Farm Supply, Inc. / Belchertown, MA 413-323-6336 • Fax: 413-323-5080 Yanmar, Landini, Monosem, Ferris, Simplicity, Stihl, Husqvarna nates@devonlane.com

CRAIG HOUSEKNECHT, 2nd Vice President EDA & UEDA/NEDA OPE Council Member

Moffett Turf Equipment (MTE) / West Henrietta, NY 585-334-0100 • Fax: 585-334-6332 chouseknecht@mte.us.com

Jacobsen, Mahindra, Ventrac, Smithco, Turfco, Redexim, Golf Lift, Lely, Ryan, RedMax

“EV” LLOYD LAMB Lamb & Webster Inc., Springville, NY 14141 716-592-4924 • Fax: 716-592-4927

Case/IH, New Holland, Kubota, Kuhn/Knight, Kioti, Cub Cadet, Landoll/Brillion, Honda

evl@lwemail.com

RALPH GAISS, CEO and Executive Vice Pres. 800-932-0607, Ext. 222 • Fax: 315-451-3548 rgaiss@ne-equip.com

DIRECTORS PAUL BUCCHI Snow-White Outdoor Power Equipment,Southington, CT 06489 860-747-2020 Paul@sno-whiteope.com

TORO, Echo, Hustler, Husqvarna, Shindaiwa

SCOTT BAIR

Mountain View Equipment, Inc. / Plattsburgh, NY 518-561-3682 • Fax: 518-561-3724 John Deere AG/CCE, Claas, Kuhn Knight, Kverneland, Stihl, Husqvarna, Frontier, Servis, Rhino scott@mtnviewequip.com

BRIAN CARPENTER, Past President 2009

Champlain Valley Equipment / Middlebury, VT 802-388-4967 • Fax: 802-388-9656 New Holland, Case IH, Kubota, Gehl brian@champlainvalleyequipment.com

BRAD HERSHEY

Hoober, Inc. / Mifflintown, PA 717-436-6100 • Fax: 717-463-2312 Case IH, JCB, Kubota braddh@hoober.com

ED HINES, Past President 2014, 2001

Hines Equipment / Cresson, PA 814-886-4183 • Fax: 814-886-8872 Case IH, Gehl, New Idea, Cub Cadet ejh@hinesequipment.com

BRYAN MESSICK

Messick’s Farm Equip./ Elizabethtown, Pa. 717-361-4836 • Fax: 717-367-1319 New Holland, Kubota, Krone bryanm@messicks.com

SCOT L. STANTON, Past President - 2003

Stanton Equipment Inc. / East Windsor, CT 860-623-8296 • Fax: 860-627-9832 John Deere Ag., Knight, Athens, Hardi scot@stantoneq.com

WENDELL WALLDROFF, Past President - 2002 Walldroff Farm Equip., Inc. / Watertown, NY 315-788-1115 • Fax: 315-782-4852 New Holland, Hesston, Woods, White-New Idea, AGCO, Allis wendell@walldroffequip.com

Northeast Dealer | 3 December 2019


ASSOCIATION NEWS Alone we can do so little ... together we can accomplish great things! www.ne-equip.com

SAVE THESE DATES!!! MONDAY JANUARY 27, 2020

Holiday Inn Harrisburg – Hershey 604 Station Road, Grantville, PA 17028

WEDNESDAY JANUARY 29, 2020

Holiday Inn     441 Electronics Parkway, Liverpool, NY 13088

FRIDAY JANUARY 31, 2020

Holiday Inn 172 North Main Street, Concord, NH 03301

FEATURED SPEAKER

Secure Dealership Success Today:

How to Navigate Current Equipment Industry Changes to Thrive Now and for Decades to Come This will be an interactive, round-table presentation/discussion in which we examine the most effective ways to both navigate and take advantage of the current landscape in order to build a dealership that will thrive now and well into the future.

CLICK HERE FOR FULL AGENDA

CLICK HERE TO REGISTER ON-LINE

NEDA Members Encouraged to Update Member Profiles

4 |

Northeast Dealer NOVEMBER 2019

Please take a moment to review it and make any necessary updates or changes on your company profile on the associations’ website. Current contact information is vital to keeping our members apprised of current events, hot-topics and NEDA events. Please log into the Members Only page of the NEDA website and view or update your profile information directly at any time. (If you have any questions about access to the Members Only page, please contact Dave Close at: davec@ne-equip.com) As a member, you will receive updates and important information via email. Meeting and event attendance is always encouraged, but we wouldn’t want someone to be behind on information just because they didn’t attend a meeting. NEDA appreciates the support of our members and looks forward to another year of service to our members of Northeast Equipment Dealers Association, the Association that works only for the equipment dealers here in the northeast.


Indoors and NEW YORK Outstanding FARM SHOW 2019 ®

New York State Fairgrounds Syracuse, New York February 27, 28 & 29 2020 Thursday, Friday & Saturday 8:30am to 4pm Daily Tickets Available From Your Local Northeast Equipment Dealer


IN MEMORIAM WILLIAM JAMES BEBOUT 1931 – 2019

ASSOCIATION NEWS Alone we can do so little ... together we can accomplish great things! www.ne-equip.com

William James Bebout, age 88, died on Wednesday, October 17, 2019 at Ellis Hospital, with his loving family by his side. Bill was born in Washington, Pennsylvania on January 8, 1931. After high school, he enlisted in the United States Army. While enlisted, Bill served with the U.S. 64th Infantry Division as a Platoon Sergeant and later in Japan with the 1st Cavalry Division as an NCO Academy Instructor. He founded his own company, Bebout Ford Tractor Inc. in 1970. It was here that Bill’s businessman side flourished and he served as the President and General Manager until 1997 when he retired. In his retirement. Bill is survived by his beloved wife of 64 years, Helen L. Bebout; his children, Jeanne (Steven) Theiss, Lori Bebout, Mary (Barry) Spaulding, Carol (William) Hennessy and Sandy (Gary) Blond. In lieu of flowers, memorial contributions may be made to the March of Dimes Donations, 595 New Loudon Rd., PO Box 264, Latham, NY 12110 or the Regional Food Bank of Northeastern New York, 965 Albany Shaker Rd., Latham, NY 12110.

Dealer Changeover of Lines After 65 years as St. Lawrence County’s John Deere dealer, LeBerge & Curtis, Inc. has decided to exit the Agricultural and Consumer Products business at their 5984 County Route 27, Canton, New York location. They will continue to service customers at our 6334 US Rt. 11 location with our rental items and a full-service Bobcat Dealership line. The business at County Route 27 was transitioned to Cazenovia Equipment Company on Nov. 5, 2019. Their new contact information will be LeBerge & Curtis, Inc., 6334 US Rt. 11, Canton, New York, 13617 – 315-386-2494. ~Contributed by Jim Curtis

NEDA Theft Alert - New York John Deere Gator Northeast Equipment Dealers Association (NEDA) reports to NER that on October 25th, 2019, the below described John Deere Gator was stolen from an equipment yard in Niagara Falls, New York. The machine is new. Please forward this alert to anyone who may encounter the machine, and investigators working on similar crimes.  Reported to: Niagara County Sheriff’s Office EQUIPMENT DETAILS: 2019 John Deere TS-4X2 Gator Type: 2-Seat Utility Vehicle Product Identification Number: 1M04X2SJPKM140480 The machine PIN decal is just below the front edge of the operator’s seat.

Report suspicious activity involving equipment.

6 |

Northeast Dealer NOVEMBER 2019

If something doesn’t add up, Dial 911.

THEFT ALERT


Wi shi ng you a n d you rs th e b est t his h oli d ay s ea s on . Fro m yo u r fri en d s a t Ag D i rec t ÂŽ .

AgDirect is an equipment financing program offered by participating Farm Credit System Institutions.


America loves veterans and there is no better way for citizens to show their support than by purchasing the fruit of their labor.

8 ||Northeast NortheastDealer Dealer DECEMBER 2019 NOVEMBER 2019

Homegrown by Heroes Program By TIM WENTZ, Field Director, NEDA - www.ne-equip.com Homegrown by Heroes is a program for PA Preferred farmers and nationally, who are veterans. It supports these farmers by making sure their products are labeled in a way that consumers know their produce is coming from a veteran. Officials say this gives Pennsylvania residents a tangible way to show continued support for veterans. Please read: https://papreferred.com/home-grown-heroes. A program of the Farmer Veteran Coalition, Homegrown by Heroes was founded by the Kentucky Department of Agriculture in January 2013. The label has been administered nationally by the Farmer Veteran Coalition since Veterans Day of that same year. Since then, the program has expanded and is now in all 50 states plus Puerto Rico. Pennsylvania introduced the Homegrown by Heroes logo in 2015. If you’re a veteran and a farmer, the benefits to participating are clear: The Homegrown by Heroes label differentiates veteran-produced products in competitive markets. It provides consumers a tangible way to support veterans. America loves veterans and there is no better way for citizens to show their support than by purchasing the fruit of their labor. Displaying the logo on products gives veterans the point-of-sale visibility needed to be successful in the marketplace. Displaying the logo on a farmers’ market stand-or anywhere you do business-invites consumers to ask about the logo, providing an opportunity for the veteran to share their story and build a lasting connection with their customers. Homegrown by Heroes brand awareness is growing rapidly. Your products will be associated with a unique and honorable brand, giving you a competitive advantage.


Serving Farm, Industrial & Outdoor Power Equipment Dealers Since 1901

December 2019 Special 36-WATT HIGH POWER CLASS I LED BEACON

STR-36LED Regular Price Special Price Retail Price

$57.46 $51.71 $80.00

SAE Class I Beacon 36 Watts (Twelve 3-Watt LEDs) Permanent Mount 2 Rotating Patterns & 4 Flashing Patterns 12-36V Operation 6.5″ base diameter, 4/75″ lens diameter, 4″ high Polycarbonate Lens IP66 Waterproof Rating 20 pieces per case

Order Form

Item #

Dealership Name: ___________________________________ Shipping Address: _________________________ City, State, and Zip: _________________________________

Terms: NET 30 DAYS TO APPROVED MEMBERS Freight: PREPAID WITH CASE QUANTITY

Qty.

Cost Ea. Total

STR-36LED__________

$51.71__________

SUB TOTAL ______________ (If not for resale)

TAX SHIPPING _________ TOTAL __________

Payment Method (Prepayment is required) Check Enclosed (Payable to NEDA) __________ Credit Card (VISA or MC) Acct # ________________________________________Exp. Date: ___________ (Circle One) Cardholder Name: ___________________________________ Signature: _______________________________

128 Metropolitan Park Drive, Liverpool, New York 13088 • PO Box 3470, Syracuse, New York 13220 800-932-0607 / 315-457-0314 Fax: 315-451-3548 Website: www.ne-equip.com

OFFER EXPIRES December 31, 2019

Northeast Dealer | 9 December 2019


WEBINAR: New FLSA Regulations Go Into Effect 1.1.20

Good communication between farmers and first responders could prevent similar tragedies from occurring.

In September 2019, the U.S. Department of Labor (DOL) released a finalized rule to make 1.3 million American workers newly eligible for overtime pay. The rule updates earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/ commissions towards meeting the salary level.  These new changes go into effect on January 1, 2020. The Equipment Dealers Association (EDA) has scheduled a free webinar to cover the implications of the new rule and how it will affect equipment dealers in the United States.  The webinar will be led by Natalie Higgins, EDA’s VP of Government Relations and General Counsel. (See page 14 for additional information.)

Without farmers, nobody eats. Without first responders, people die. In many places, like where I live, some farmers are the first responders. But what if the first responder doesn’t know farming, and there are animals trapped inside a burning barn? Should the first responder allow the farmer to get the animals out? It’s a nightmare scenario that unfortunately played out on a warm, late-summer evening near my home in Richland, Pa., in September: A dairy farm burned to the ground, tempers got short in the heat of the moment, and the dairy farmer was arrested. Tim Getz, 35, who was trying to get as many cattle as he could out of his family’s two-story bank barn that caught fire, is now facing three criminal charges for allegedly hitting a state police trooper, as the trooper attempted to get him out of the burning barn. Tim was arrested during the fire.

Natalie’s webinar will: • Explain the changes made by the Department of Labor • Review several FLSA exemptions commonly used in the equipment dealership and whether or not they will be impacted by this new rule • Provide dealers with the information they need to begin an internal audit to ensure FLSA compliance. There will be time for Q&A with Natalie following her presentation.

Thursday, December 5 12:00 p.m. (noon-CST) Click here to register!

10 | Northeast Dealer 10 | Northeast 2019 Dealer DECEMBER MAY 2019

Flames and Tempers Flare, and a Farmer Faces Charges

Arrest controversial The incident has sparked outrage in my hometown. Nearly 40,000 people have signed a petition on change.org asking for the charges to be dropped against Tim Getz. Fundraisers have been held to raise money to get the bank barn rebuilt. The fire killed 24 animals, including 14 cows, eight yearling heifers and two calves. The second story of the bank barn, where bales of hay were stored, is a burned-out shell, with debris from the fire still strewn over the ground. The family is slowly cleaning up what the fire damaged, getting ready to rebuild “soon.” (Please click here to read the entire article at:) ~ Article courtesy of Farm Progress Company

NEDA OFFICES WILL BE CLOSED December 25, 26 and 27 and January 1, 2, 3! NOVEMBER

. 21, No.

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If you would like your dealership featured in the ‘Northeast Dealer monthly newsletter for viewing by over 500 dealers in the northeast, please email arts@pa.net with your press materials”, include pictures with names of individuals showing for publication. This would include open houses, special programs and any local award, etc., your dealership earned.

“Pic e between ing said, differenc er with hav he saw a the pow is credited nt, and how is appropriate for Steve Jobs l!” t Jobs mea two ts stea about wha bination of the you read great artis e is debate com to require While ther “stealing,” some firsthand not going is see to ness nce ” and to your busi g whatever dista the opportunity to “copying trade. beneficial elin ng ent be taki trav , ipm will requires equ s that and then l. However I travel, any trip Finding idea ile article in OPE ited the editoria en Wh . ler prof have mer your time retailing, ing a dea doing to stment of student of dealer is wise inve r being a tion that tells you what that always a ler as you dealer is r dealers. h any dea may be an observa n that what you visit any approac to visit othe atio . It some time ity is that when you for your business simply be confirm ng may conThe real n somethi ervation er to this sure to lear not do. Your obs ness. the answ ide you are t s to prov or wha your busi lers help what to do, the best way for other dea g is on, visiting are doin other reas If for no ” r service? t custome versation: give grea r stores?” “Do you e to othe do.” ISSUE: “Yes, we compared your stor IN THIS from the Field his or her t?” ations dealer in ice is grea 3 Observ “Have you another Memoriam omer serv visit. t to visit tion News, In w your cust l 4, 6 Associa “No.” s not wan be receptive to our work for ever y do you kno dealer who doe ing Working Capita Manag how ld not that can 8 Then nd the Revenue dealer wou shares an idea do understa how the other 10 Grow Service Brand Online writer We people this , ness nd Your erience the busi understa 12 Protect Rule on OT onal exp Who are many of us, who area. We Massachusets from pers 14 USDA / in the Field d to nesspeople. about And yet, Sidewall Tires other busi As compare kweeks? What 18 More Low es . munity at what they do? business business our wor ut your com ul at 60-plus-h t about the S: Look abo be very successf ISER putting in over? And wha ERT not to ADV are ear be turn that app Freyer & Coon ething to people that e frequent staff 2 Haylor, e is som business could not hav uce, ther are the Farm Show d that you your ice? es that do r or prod 5 New York have foun business omer serv Credit System they offe k to the We cust Farm ice bac t / ct te.” serv grea nsla or 7 AgDire could take that do giveess of the product used the word “tra ly Specials ething you We 9 NEDA Month g find som rove Regardl e people. Farmin e and imp erve, and from thes 11 Lancaster ness, obs to calculat wife in attenned busi tants how lear of ht Consul & t any type s that taug a husband and had 13 HBK CPAs visit mos ncial clas store she was Media Group . nded a fina r business. There ing his wife in the 15 Fastline business e, we atte you 4 was help 19 OPOC.US For exampl stment (ROI) of on page store and continued on inve a chain 20 PGP Energy the return had retired from h. r each montto 21 IronSolutions ent Insurance Services dance. He years earlier. ort NE Deale good Equipm lty five who supp r members. It is s Specia ned rtiser 21 ope adve deale / Fastline s of those you, our Agency 24 i3 Digital Software 24 Charter Insurance 25 Federated

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stronger together

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Do you have a go-to assessment checklist of assets, people and data to take the guesswork out of planning for the coming year?

Ten Actions to Prepare for a Healthy New Year Garry Bartecki, financial advisor to the equipment industry and founder of DealerRental Success LLC, shared with dealers his go-to assessment checklist of assets, people and data to take the guesswork out of planning for the coming year. By keeping regular track of all the items on the list using your Dealership Management System, running these reports will be a breeze. 1) Make sure you understand the previous year’s results and any non-recurring transactions that occurred this year that will not repeat in next year.  2) Spend time with department heads to get their thoughts on the coming year. You may also want to chat with some line folks to get their input as well. 3) Personally visit the customers that provide 80 percent of your revenue. That should work out to be the top 20 percent of the customer list. Run a report listing annual customer revenue to date and go from there. Even better -- run a three -year comparison of that report to see who has made the list and who fell off the list. 4) Review your credit and collection policies and update as necessary.

By Melissa Amen Sales Operations Manager at Charter Software

5) Review a receivable list line by line. Find out what all those strange numbers mean. There are probably some bucks available on the list you should get, or there may be customers on the list who should no longer be there. Believe me, an aggressive credit and collection policy pays for itself, saves a lot of time, and keeps cash in the bank account. 6) Pull  a parts  and new and used inventory list (including a work-inprocess list). How much cash is tied up in old parts and junk? While you’re at it, check your turnover for all inventory accounts and compare that to the CODB as well. 7) Ask your HR department for an active employee list and compare employees who generate income against those who don’t. Ask your peers to prepare a similar list so you can compare results. Calculate that percentage of income producers as a percentage of total staff and use that calculation to see if you are overstaffed because procedures are out of date or the system is not being utilized properly. . 8) If you are in the rental business, get a list of rental equipment along with time and dollar utilization figures for each rental unit. Use the list to see what goes, what stays, and what gets added to the fleet for next year. And remember, you must look at RTS and RTR categories separately. Rental is a risky business in terms of cash management, so make sure you know what you are doing in this area. 9) Ask your CFO for a cash flow statement like the one you find in your annual audit report. How are you doing? There are three sections in that report: operations, investing and financing. Are you making money from operations or just because you are selling off assets? 10) Go through your individual departments for the last three years and compare the results against the CODB numbers. There’s money in that data – yours for the taking. I would make this a quarterly function because if folks know you are looking things have a way of getting cleaned up before you see it. It’s magic. GARRY BARTECKI, founder of Dealer-Rental Success LLC, is a financial consultant to the equipment industry and is not affiliated with Charter Software Inc. This article was provided compliments of Charter Software Inc. If you are interested in receiving more content like this, including business best practices, change management techniques, financial management and departmental tips and tricks, please check out and subscribe to our blog.

12 | Northeast Dealer DECEMBER 2019


For Service / SPoNSoreD ProGrAMS, cAll Your ASSociAtioN 800-932-0607 • 315-457-0314 • Fax: 315-451-3548 • www.ne-equip.com ASSOCIATION STAFF Ralph Gaiss, Executive VP/CEO 800-932-0607 x 222 rgaiss@ne-equip.com Dave Close, Operations Manager 800-932-0607 x 235 davec@ne-equip.com Kelli Neider, Administrative Assistant 800-932-0607 x 200 kneider@ne-equip.com (Business Forms) Tim Wentz, Field Director / Legislative Committee Chairman C: 717-576-6794, H: 717-258-1450 wentzt@comcast.net Scott Grigor, NY Farm Show Manager 800-932-0607, Ext. 223 sgrigor@ne-equip.com Art Smith, Consultant/Editor, NE Dealer 717-258-8476, F: 717-258-8479 arts@pa.net ACCOUNTING SERVICES HBK, CPA's & Consultants Rex A. Collins, CPA (IN), CVA Principal Direct: (317) 886-1624 rcollins@hbkcpa.com • www.hbkcpa.com CERTIFIED BUSINESS VALUATIONS HBK, CPA’s & Consultants Rex A. Collins, CPA (IN), CVA Principal Direct: (317) 886-1624 rcollins@hbkcpa.coml • www.hbkcpa.com

CHARTER SOFTWARE BUSINESS SYSTEMS Melissa Amen 303-932-6875 - Ext. 219 melissa.amen@chartersoftware.com www.chartersoftware.com CREDIT CARD PROGRAM PREFERRED PAYMENTS Jason Carroll Senior Account Manager Direct: 805-557-8043 800-935-9309, Ext. 126 F. 888.538.0188 jason@preferredpayments.com FEDERATED INSURANCE COMPANY Property & Casualty Insurance (8 states except VT), Workers' Comp (All states except NY) Daniel Dowdy at C: 706-318-5051, 800-533-0472, F. 507-455-7840 jddowdy@fedins.com • www.federatedinsurance.com HAYLOR, FREYER & COON, INC. Benefit Consulting Jim McGarvey Supervisor Benefit Consulting 315-703-3239 • jmcgarvey@haylor.com Physical Damage Insurance (HF&C, Inc.), Rental / Leasing Equipment Patrick Burns at 800-289-1501, Ext. 2148 Pburns@haylor.com • www.haylor.com Workers' Comp (Return Dividend Program for NY Dealers only) Property & Casualty Insurance for VT Patrick Burns at 800-289-1501, Ext. 2148 Pburns@haylor.com • www.haylor.com

HEALTHCARE INSURANCE PROVIDER Opoc.us Care Center – 866-676-2871 Carl Swanson – 937-765-0848 • cswanson@opoc.us i3 DIGITAL AGENCY (Div. of Fastline Media) Tony Fink, VP, 800-626-6409, Ext.839 Office 502-558-8669 Tony.Fink@i3DigitalAgency.com www. i3DigitalAgency.com LEGAL ASSISTANCE – FREE LIMITED Dave Shay at 816-421-4460 Fax: 816-474-3447 • dshay@seigfreidbingham.com NEDA ON-LINE EDUCATION Vanessa Clements at BCI 816-876-4700 800-480-0737 Vanessa@bobclements.com OSHA WORKPLACE SAFETY COMPLIANCE PROGRAM Dave Close at 1-800-932-0607 Ext. 235 davec@ne-equip.com DEKRA INSIGHT | CERTIFIED SPCC PLAN Dave Close at 800-932-0607 x 235 Robb Roesch at 800-888-9596 x 222 robb.roesch@dekra.com SPECIALTY EQUIPMENT WARRANTY PROGRAM - New and Used Equipment Erik Sanzotti at C. 312-758-9421 O. 312-728-9913 erik.sanzotti@amyntagroup.com www.specialtyequipment@amyntagroup.com

together HBK is a multidisciplinary financial services firm, offering a wide range of tax, accounting, audit, business advisory, valuation, financial planning, wealth management and support services to improve the performance and effectiveness of businesses and personal financial well-being.

Working together sets us apart.

rcollins@hbkcpa.com | 317-886-1624 | hbkcpa.com

Northeast Dealer | 13 DECEMBER 2019


U.S. Department of Labor (DoL) overtime exemption rules are scheduled to go into effect January 1, 2020. By Kurt Blackburn HBK CPAs & Consultants See page 14 for Webinar information.

New Overtime Rule and “White Collar” Dealership Employees  

The newest U.S. Department of Labor (DoL) overtime exemption rules are scheduled to go into effect January 1, 2020. Below, please find an explanation of the scheduled changes.

Overtime Rules for Dealerships These rules have specific implications for dealerships and there are a few noteworthy points to consider related to these rules. 1. The new rules do not alter, update, or amend the provisions for dealership vehicle salesmen, finance and insurance salesmen, or service advisors and parts counter salesmen. 2. Employees are not exempt from overtime solely because their salary meets the average weekly minimum threshold. 3. For dealerships, “white collar” employees eligible for overtime exemption typically include: • The dealer principal, under the Highly Compensated Employee (HCE) exemption • Departmental managers, under the Executive Exemption • Employees in the Human Resources, Marketing, and Accounting departments, under the Administrative Exemption Determining Exemption Qualifications A job duties test must be met to determine qualifications for these exemptions. For dealerships, the following criteria make the determination: • Executive Exemption  Must manage a department (sales, service, parts or body shop)  Must regularly direct the activities of two or more employees  Must have authority on hiring, firing, and promoting employees • Administrative Exemption  Must include office or non-manual work related to management of the dealership  Must have autonomy to exercise discretion and judgement relating to material matters of the business • HCE Exemption  Must regularly perform any one or more of the exempt duties related to the executive or administrative exemption activities  

14 | Northeast Dealer DECEMBER 2019


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Northeast Dealer | 15 DECEMBER 2019


Dairy Notes: Possible new trade deals and steady demand could drive prices even higher in 2020.

Dairy Recovery Set to Continue Into Next Year By Gary Latta

After several years of painfully low dairy prices and high feed costs, it’s clear that we are in the middle of a dairy price recovery. Both USDA and experts in academia believe milk prices will continue to rise into 2020. While no one is predicting runaway sky-high prices, most are predicting a slow and steady rise in 2020 dairy prices, barring no strange anomalies. The USDA’s latest forecast shows Class III prices rising to near $18 per cwt in the fourth quarter though some industry experts in academia believe we could see $19 per cwt.     The all-milk price for the fourth quarter is expected to be near $19.60. The all-milk price for the entire year is forecast at $18.40, a big improvement over last year’s $16.26.  Mixed production numbers The USDA Milk Production Report in September showed production in the top 24 states up 1.6% over the same month last year. Output per cow was up 33 pounds to 1,913 pounds. Milk cow numbers for the top 24 states

fell to 8.80 million head, 11,000 less than September of last year. In the Northeast, New York milk production was up 1.7% with more cows and an increase in per-cow production. Vermont was up 0.5% with fewer cows but an increase in output per cow. Pennsylvania production was down 3.8% with some growth in per-cow output, but it also showed a continued decline in cow numbers. The report showed California was near its average in milk production for September, up 1.6%. Wisconsin, though, was up only 0.6%. USDA increased total U.S. milk production based on expected gains in output. Dairy stocks appear to be adequate and domestic demand remains robust. USDA has raised its estimate of both cow numbers and output per cow for the fourth quarter. The agency expects 2019 milk production near 218.2 billion pounds. The 2020 milk production forecast is 221.6 billion pounds, an increase of about 1.6%. The 2020 annual all-milk price forecast is unchanged at $18.85 per cwt. Please click here for the balance of the article. Latta is a political and economic consultant for Northeast Dairy Foods Association Inc. ~ Article courtesy of Farm Progress Company

Questions to Self-Evaluate Your Service Department Your goal is to be able to say “yes” to 6 out of the 8 questions. If you are having trouble answering “yes” too many of these questions, you may need to invest time to get your service department processes in place. Read more.

16 |

Northeast Dealer NOVEMBER 2019


COST OF DOING BUSINESS STUDY The 2019 Cost of Doing Business Study presents the annual financial and operational profile of independent, retail equipment dealerships. This Study is made possible through the cooperation of participating dealers associations and their members who provided detailed financial and operational information for their individual companies. The Study assesses financial performance and presents composite income statements and balance sheets in addition to averages for key financial performance ratios. Use it to:  Compare your financial performance to that of all dealers (regardless of lines or manufacturers represented);  Use it to assist in the valuation process of your businesses for estate planning, buy/sell agreements, mergers/consolidation purposes;  Use the benchmarks to establish future goals and budgets. NEDA participated in this joint venture, with other Association affiliates in North America, because it is important for a trade association to generate this type of information for members to measure their own performance against industry averages. The data sets benchmarks you can use to establish financial plans to improve profitability.

Established 1901

Northeast Equipment Dealers Association

128 METROPOLITAN PARK DRIVE LIVERPOOL, NY 13088 p. 800-932-0607 | f. 315-451-3548 www.ne-equip.com

ORDER FORM

COST OF DOING BUSINESS STUDY COST OF DOING BUSINESS STUDY fees: • Members who submitted financials – FREE • Members who did not submit financials –$200 per survey • Non-Members – $450 per survey q Send a hard copy booklet q Email Study Results Firm Name _______________________________________________ Ordered By _______________________________ |Date __________ Address __________________________________________________ City | State | Zip __________________________________________ Phone___________________ | Fax ___________________________ Email ____________________________________________________ q Bill my company Charge the fee (plus sales tax and shipping) to my MC / VISA credit card (please print):

q MC q VISA Name on Card ______________________________ Card #_____________________ CVS Code_____ Exp. Date ________ Cardholder Signature _______________________________________ Please fax your completed order form to: 1-315-451-3548 or email davec@ne-equip.com


••• •• ••• •• ••• •• The Results Are In

The 2019 Northeast Equipment Dealers Association Cost of Doing Business Survey (CODB) has been compiled. The report continues to take on new significance in assisting dealers to: • Compare their financial performance to that of all dealers (regardless of lines or manufacturers represented); • Assist in the valuation process of their businesses for estate planning, buy/sell agreements; sales, mergers/consolidation purposes; • Utilize benchmarks in the survey so that dealership goals and budgets can be established for future years.   completed survey The results are priced as follows: • Members who submitted financial information – FREE  • Members who did not submit financial information - $200 per survey  • Non- members - $450 per survey

Go to page 17 for your order form to be completed and returned today!! 

If you have any questions or comments, please contact your Association offices at 800-9320607.

Established 1901

Northeast Equipment Dealers Association

18 || Northeast NortheastDealer Dealer DECEMBER 2019 NOVEMBER

Your Employees May Be Stealing from Your Dealership By CLINT WHITEHAIR

Internal theft is a persistent problem for dealers. It is estimated that dealership employees are stealing the equivalent of $9 per employee per day; that means a dealership with 100 employees is suffering a theft loss of $234,000 each year. With the impact to dealers so high, what can you do to prevent and protect yourself from fraud? Listed below are a few internal controls could help prevent theft. New Department • Perform frequent unannounced physical inventory counts • Establish strict inspection procedures • Allow no options or equipment to be removed without an internal repair order Used Department • Maintain an approved list of wholesalers and do business only with those approved • Verify dealer licenses and sales tax permits • Review all wholesale transactions that result in a loss and retail transactions with low grosses Parts Department • All parts and repair orders need to be computer generated with changes crossed off and initialed by the manager. Then the ticket should be properly voided with the corrected ticket referencing the original document. • Establish a clear policy for discounted purchases by customers and employees • Frequently check shipments of parts in company vehicles Service Department • Service work should be spot checked to ensure parts charged are being used in the repair order • During month end procedures, all WIP should be computed and inventoried and all repair orders should be listed • Ensure no unit leaves the shop without proper payment arrangements being made

Other Items • Department managers must sign off on payrolls approving the individual and amount • Bank statements should be delivered to the dealer unopened and should be reviewed for unusual items and cancelled checks. It should also be reconciled by an individual with no access to cash. • Further, special procedures should be developed to control electronic banking transactions. • Make sure all clearing accounts are current (payroll tax withholdings, vehicle payoffs) Fraud can have devastating effects on profits. If are not protecting yourself against


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Northeast Dealer | 19 nedaapprentice.com

DECEMBER 2019


A Reason Many Salespeople Fail and How to Avoid It By JOHN CHAPIN

In a recent article by friend and colleague John Brubaker (CoachBru.com), he stated that, “According to a U.S. Department of Commerce research study, in the first five years of a business the survival rate for independent small businesses is less than 20% but the survival rate for franchises is 95%.” During a discussion with me, he iterated that his own research found that salespeople and entrepreneurs that follow a sales system are 10 times as likely to be successful as those that don’t. The reason why this is true may not be what you expect. It’s also not the same exact reason for franchise success, though it’s similar. The primary reason why salespeople following a system are 10 times as successful as those that don’t, is that they care enough to have a system to begin with. Let me explain. The first step to success in sales is an iron-clad commitment that you’re going to be successful. Anyone committed to a goal lays out a plan and follows a system to achieve that end. The good news is: a sales system doesn’t have to be a painstakingly detailed, step-by-step system that’s required to run a franchise such as Subway or Starbucks. All that’s required is that it leads to enough of the right activities resulting in enough contacts with enough qualified prospects, to make enough sales to hit weekly, monthly, and annual sales goals.

THE NECESSARY INGREDIENTS FOR A SUCCESSFUL SALES SYSTEM Ingredient #1: A Plan Your plan is the easy part of this process. It simply consists of your goals, your activity, and your plan to get the activity done. The first thing you need to determine is your annual sales goal. Once you have your annual goal, break that down to monthly and weekly goals. Next, calculate your daily activity. In order to do that, begin by dividing your annual goal by the size of your average sale. That will give you the number of sales you have to make for the year. Now, based upon your closing ratio, figure out how many proposals you need to present. Calculate the number of prospects you need to get that number of proposals. And finally how many calls does it take to get that number of prospects? Once you have the total number of sales, proposals, prospects, and calls, break those down to monthly, weekly, and daily numbers for each. Your last step is to plan your days and weeks based upon the number of calls you need to make while getting

20 | Northeast Dealer DECEMBER 2019

your other activities done. Whatever your numbers are, with 168 hours in a week, you should have more than enough time. Ingredient #2: The Tools Your tools will consist of: a playbook, a binder with all

continued on page 21

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How to Avoid It continued from page 20 scripts, a Concept Book, and a way to track and follow up with clients and prospects. Your playbook will include everything, but not limited to: company policies and procedures, how you start your day, how you find, contact, and follow-up with prospects, how to build long-term relationships, and how you end your day. It’s basically something that you can hand to a brand new person and they can be up and running once they have a general understanding of it. A binder with all scripts contains: all prospecting calls, presentations, answers to objections, and all other items you need to convey to prospects and clients. Your Concept Book will contain all your “evidence”: testimonials, user lists, reference letters, endorsements, articles, guarantees, examples of where your product or service was applied with successful results, and all documentation that supports any claims you make during your calls. Finally you need CRM (client relationship management) and PRM (prospect relationship management) systems in place. These don’t have to be super-complicated or even computerized, they just have to be effective.

in place. Do sales activities every day whether a plan is in place or not. If you’re looking for an additional resource to help you put together a system, one of John’s tools is: Business Growth Vault at CoachBru.com. John Chapin is a motivational sales speaker and trainer. For his free newsletter, go to: www.completeselling.com John has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. (Axiom Book Awards) - The largest sales book on the planet (678 pages). 508-243-7359 - 24/7 -johnchapin@completeselling.com -- www. completeselling.com

Ingredient #3: Follow the Plan and Make Adjustments Once you have your plan, get into action as soon as possible. Notice what is and isn’t working and make adjustments. Remember, imperfect action is better than no action. Take action every day, even while you are putting your system together. Do not stop everything you’re doing and decide you’re going to wait until you have the perfect plan

Order Your Compensation & Benefits Report Today!

EDA’s Compensation & Benefit Report, the most comprehensive industry report related to wages and benefits is now available! This report is completed every two years and is a perfect benchmarking tool for dealerships. Dealerships who contributed their data to the survey have already received their complimentary copy of the report. For those who did not participate, reports are available for purchase at both a member and non-member price. You can purchase online by following the link below or contact surveys@equipmentdealer.org for additional information. Click here: Buy Now

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Northeast Dealer | 21 DECEMBER 2019


“The real friend of his country is the person who believes in excellence, seeks for it, fights for it, defends it, and tries to produce it.” Morley Callaghan

22 |

Northeast Dealer NOVEMBER 2019

IT’S YOUR LIFE!

Could a “Last Survivor” Policy Fit Into Your Estate Plan?

With all the life insurance choices out there, one option you may not have considered is a “last survivor” policy. These policies insure two lives, with the death benefit paid after the death of the second insured person. Originally designed to provide funds to pay a married couple’s estate taxes at the death of the second spouse, changes in the Federal estate tax law have significantly reduced the number of taxpayers who are subject to these taxes. However, there are still a number of other ways this product can be used effectively to meet personal and business needs throughout your lifetime. Accumulation Phase - In the early years, many couples who are opening or developing a business are also starting families and buying their first homes. The primary goal at this life stage is often to provide for and protect the family. The death benefit can be used to help: • replace lost income for minor children if both parents die • fund a trust for a special needs child By purchasing coverage in this stage of their lives, younger couples may be able to take advantage of good health and lock in premiums for an overall lower cost. Growth Phase - This is about establishing your wealth and accumulating resources. Goals like funding children’s education, expanding and growing the business, and saving for retirement are priorities. • Policy cash value grows on a tax-deferred basis and can be accessed as a loan or a withdrawal if needed for business or personal needs • Can help provide funding for education • Can help replace lost value of assets that must be liquidated at your death Retirement Phase - Here, the focus is on transitioning the business to the next generation, beginning retirement, helping to protect the estate, and enhancing your legacy. Many people want to meet their needs for an enjoyable and comfortable retirement, while still leaving a legacy for their heirs. • Potential source of retirement income • Help supplement long-term care needs • Ability to spend all of your assets during retirement, but still leave a meaningful inheritance to family • Benefit a church or charity • Help create liquidity for federal and state estate and income taxes, and other expenses at the second death Additional Uses for Business Needs - For business owners, a last survivor policy can provide a unique coverage option for a number of business needs, including: • Key person coverage on two key employees • Fund a buy-sell agreement • Fund a real estate buy-sell agreement • Provide equalization among children when a closely held business is passed to the next generation A last survivor policy insuring two lives may be a more affordable option when compared to separate, individual policies, or can be combined with individual coverage for premium savings. It may even provide coverage when one individual is otherwise uninsurable. Just because you don’t need to worry about estate taxes right now, doesn’t mean a last survivor policy isn’t an option for you. Tax laws and individual circumstances frequently change. This type of policy is designed for flexibility and can used be for multiple needs to help you reach whatever goals you want to achieve throughout your lifetime.

~ Article courtesy of Federated Insurance Co.


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Phone 303.932.6875 Northeast Dealer | 23 DECEMBER 2019


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The Northeast Dealer - December 2019 Edition  

The Northeast Dealer - December 2019 Edition  

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