Dealer to Dealer
Many OEMs Reduce Overhead At Dealer Network Expense by dale stotts
After almost 50 years in this industry I’m still amazed by this overused and mostly inaccurate statement from equipment manufacturers, and when you hear or read it, hold on to your wallet: “These changes will reduce the overhead of doing business.” Yet in actuality, these changes are usually for the benefit of the OEMs, reducing their overhead but creating new costs for dealers representing their products in the marketplace.
Here’s a prime example of the same old news with a new twist from another engine manufacturer, in a direct quote from its dealer information letter: “. . .a wide range of Technicial Support and Marketing Materials to assist dealers in Servicing, Selling, Promoting, Merchandising and Advertising…We provide these materials to dealers. . . at a fraction of the total cost to produce them.” Here’s the punch line: “Each year in the 1st quarter beginning in 2008, $75 will be charged to your ...open account.” Gee, what a bargain!
Feature
Consumer Education Reduces Fuel-Related Service Issues by J.D. FERNSTROM
One of the greatest challenges facing both dealers and manufacturers is educating customers regarding the importance of using fresh, quality fuel. Every salesperson should warn customers about the damage that can occur if old or poor quality fuel is used in their equipment. The instruction manual covers fuel recommendations in depth. However, it seems that every spring dealerships are inundated with customers with “no-start” complaints about their lawn and garden equipment. In many cases complaints are related to bad fuel problems, either from letting the unit sit all winter with fuel in it or using fuel from a storage container.
Fuel-related failures are possibly the number one reason for customer dissatisfaction with a small engine product. It is very frustrating to have to explain why a customer must spend $75 or more to repair a product that is still under warranty. The purpose of this article is to offer information that will assist dealers in helping customers understa
OEM Group Urges Caution On Adopting Ethanol Blends
A trade group representing powersports, marine and other manufacturers cautions that more work needs to be done to evaluate whether mid-level ethanol blends, such as E20, are compatible with conventional vehicles and products.
E20 is a proposed gasoline-ethanol fuel containing 20% ethanol. Today, 10% ethanol is the maximum allowed by EPA in conventional vehicles and products. The group, AllSAFE, includes the Outdoor Power Equipment Institute, Motorcycle Industry Council, the American Motorcyclist Assn., the Personal Watercraft Industry Assn. and the Specialty Vehicle Institute of America and other small engine interests.
Power Sports Marketplace
Powering rapid development of the UTV market, Club Car’s XRT Series continues to offer the broadest portfolio of utility vehicles on the market. With nine models to choose from, powerful engine options and the ability for extreme customization, there’s a rugged, stylish XRT for every agricultural, residential and recreational adventure.
For light-duty adventures or chores, the XRT series offers a 4x2 lineup of lightweight, compact models. The XRT1550 LE offers customers 3 special paint colors: Silver Metallic, Claret Red Metallic, and Rally Green Metallic. In addition, the UTV features 25" tires with high-polish aluminum wheels, an aluminum billet shifter with the look of chrome, and custom seats. Available only on the Limited Edition XRT1550, seats have “4x4” embroidered into the seat backs. Special features also include a chrome front bumper, fog lights, and a Limited Edition decal package.
Pro Technicians Mean More Profit by JOHN WALKER
Over the many years I have been writing articles for trade magazines I’ve used the word “professional” quite frequently. We have written about professional Parts Managers, Service Managers, Product Support Service Representatives and even professional Counter Personnel within equipment dealerships.
Several weeks ago while training a large group of technicians on the techniques of service up-selling, one of the technicians made this comment. “You have written about professionalism for everyone in an equipment dealership, but not for service technicians. Why not?”
Service Management Critical For Dealers by Dan Shell
Dealers responded to Power Equipment Trade’s “Service Sells” survey overwhelmingly, with almost 600 dealers completing the 33 questions about how they manage their service departments. Most of the responses were from dealership owners (78%), followed by managers (18%) and full-time technicians (4%).
The businesses responding to the survey included traditional whole goods, parts and service dealerships (78%), parts and service shops (19%) and service only (3%).
PET asked: “How much does service contribute to your overall revenues?” Breaking the answers down into five segments from 0-100% shows the largest number of dealers falls into the “service contributes 20%-40% of overall revenues” category, as 30% of dealers said their businesses do that much in service. The next highest category? 60%-80% of overall revenues, selected by 22% of those responding.
Off the Handle
Winter Tune-Up Mowers Cover Dealer’s Service Department
Then I dropped in on Corvallis Power Equipment on a rare, cloudless blue-sky Monday morning in western Oregon in mid February, co-owner David Zuidema said he was too busy to talk: The dealership was in the midst of its big mid-winter service special, and almost 300 customers had responded to the offer, creating a mountain of service work.
Instead, I slipped around and took photos, trying to stay out of the way of the constant stream of customers coming into the store and the large group of Honda mowers filling up the service area.
PETcetera
Bosses Beware! Management Style May Boost Turnover Rate
Head’s up, bosses! According to an annual job satisfaction survey by Yahoo! HotJobs, 72% of employees are open to a new career opportunity in 2008—and you might be the reason. More than four out of 10 employees (43%) blame either dislike of their boss’ management style or lack of mentorship at their company as the reason they would be willing to leave their current job.
While salary (36%) and growth potential (34%) are also major considerations in deciding whether to seek out a new career challenge, the majority of respondents (55%) agree that “people don’t leave companies, they leave managers.”
Power Lines
Service Challenges by DAN SHELL
Dealers responding to PET 2008 “Service Sells” Survey were asked their opinion of the biggest challenges they face in providing efficient profitable service. Here’s what they said, in their own words:
“Avoiding comebacks. Getting it right the first time, or catching and avoiding problems above and beyond what a unit came in for, is key to profitability. That keeps a customer happy and you proud of your organization.”
Power Suppliers
Supplier Sales, Distribution and Program News
April, Husqvarna is launching the largest outdoor and lawn and garden power equipment promotion campaign in its history, targeting the “pro-sumer” (landowners and high-end homeowners) and professional outdoor power customer. To introduce the program, Husqvarna President Dave Zerfoss, Vice President of Sales Tony Marchese and Vice President of Marketing Barbara Zerfoss traveled to 22 markets throughout March to meet “president to president” with the owners and executives of Total Source program Husqvarna dealers in those trade areas.
Grounded in considerable market research and extensive customer and dealer surveys, the Master Your Great Outdoors multi-media campaign is described as lifestyle marketing that zeroes in on the common thread linking all outdoor and lawn and garden power equipment users—a desire to be outdoors, whether for work or play.
Show Room
The Latest In New Products, New Technology
Green Earth Technologies is launching the first product in its line of environmentally friendly automotive performance and appearance products. It is a groundbreaking, API certified, bio-based, 2-stroke engine oil that doesn’t burn, and cuts toxic emissions by as much as 48%. Green Earth manufactures automotive performance and appearance products using base oils derived from American grown beef tallow, designed to provide consumers with all the performance of petrochemical based automotive products without the environmental hazards and reliance on foreign oil. Free samples are available to the first 1,000 visitors to the website. Call 610-642-8253