Stress Takes Toll On Dealers Struggling With Finances by Dale Stotts

It is now November in a year many of us are very willing to see end. Not only has the American public seen several changes and upsets, so has the entire world. Weather has been a factor in several areas from disasters such as earthquakes, hurricanes, severe tornadoes and ice storms to either the lack of rain or flooding setting new records. Currently the financial/stock market is in turmoil, and even if you don’t have money directly invested in the market it is still affecting you in some form or another. Along with all this upsetting news we see increases in unemployment figures and the complete closing of both large and small businesses. Visiting with several dealers and friends, these topics have been on our minds as we all try to determine what directions we want to steer our businesses in 2009.

Dealers Must Charge Rates That Cover Costs by John Walker

Equipment dealers all across North America are complaining about the effect increasing fuel costs are having upon the profitability of their dealerships. So what are the successful dealers doing about it? They are doing the same thing all successful retailers are doing: passing cost increases along to the consumer. Do you think for one minute that grocery stores chains are not adding on their increased freight costs to the price of food they sell?

For years too many equipment dealers have hesitated to add on “time and travel” for either scheduled or unscheduled service maintenance done in the field. Add to this the fact that most manufacturers still refuse to allow dealers to bill them (the manufacturer) “time and travel” for warranty. This is warranty that was caused by someone’s neglect or carelessness back at the factory where the product was produced. If the manufacturer is not going to pay this cost, then the customer unfortunately must bear the cost!

Ethanol ‘Blender’ Pumps Cause Consumer Confusion, Problems

The small engine group Alliance for a Safe Alternative Fuels Environment (AllSAFE) is supporting a recent U.S. Environmental Protection Agency (EPA) enforcement letter addressing self-directed blender pumps at retail outlets and the risks involved when using fuel blends containing more than 10% ethanol.

According to the EPA, “Gasoline containing more than 10% ethanol may cause damage to certain emissions control devices and systems and increased emissions from gasoline-only vehicles and engines. For this reason, the Clean Air Act prohibits retail gasoline stations from selling gasoline blended with more than 10% ethanol for use in gasoline-only vehicles and engines.” The letter also states that EPA will be taking steps to investigate the retail distribution of non-compliant fuel.

Data Driven

Welcome to PowerGuide 2009, Power Equipment Trade’s annual directory issue and industry’s most comprehensive source of contact information for lawn and garden equipment industry manufacturers, distributors and other suppliers, including trade associations and even old and obsolete parts sources—all in one nice 64-page package.

This is the 17th edition of PowerGuide, which dates back to November 1992. Looking for some historical perspective, I went back and looked at the original edition, which contains some interesting information: Dolmar’s contact info was in Shreveport, La.; Gravely and Simplicity were independent companies; and K.O. Dixon was still selling Dixon mowers direct to dealers. Interestingly, speaking of Dixon and zero-turn mowers, back in 1992 there were 71 mower manufacturers listed, and 24 of those offered zero-turning radius mowers. This year, 25 of 37 mower manufacturers listed offer zero-turn products.

Charter’s DealerWin Helps In Closing Open Work Orders

Do you wish that you could alleviate the big struggle that occurs when closing out the month? In his article “Month End Blues,” John Walker, President/CEO of Aftermarket Services Consulting Co., Inc. (www.amsconco.com), discusses effective ways of addressing this common issue. Many of the methods he shares can be executed through the use of a business management system such as Charter Software’s DealerWin.

Walker says many dealers book and bill as much as 40% of their shop work in the last two to three days of the month, some even paying employees to work extra hours just to close out the month. Avoid this month-end panic by managing work orders in your business management system. Why delay payment on work completed due to incomplete paperwork? The longer a work order is open, the worse the cash flow in your dealership—each open receivable takes upwards of 60 days to receive payment! Walker recommends that lessening the average number of days to close a work order be made a