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Seizing Opportunity

Here at Power Equipment Trade we’ve repeatedly noted the trend of dealership owners skewing older and the impact that will have on the dealer base. It’s another dynamic that affects the dealership “churn” that’s always been there as power equipment businesses startup, rise and fall, expand and grow or simply fade away and disappear: In general, when a dealership churns through a transition and remains intact, it’s usually either a family member, staff member or new owner who takes the reins and seizes the opportunity the churn has wrought.

Dealer Keith Stephens, owner of Stephens Garage highlighted in this issue, is a great example of doing just that in his career: A GM-certified mechanic working at an auto dealership, he grabbed the opportunity to rent the service area and start his own auto service center business after the dealership vacated the building. After acquiring the building he later went into the lawn and garden business after his late wife noticed the customer traffic at a local dealership that closed. The result is a dual-sided business that’s busy as an anthill as it serves both automotive and lawn and garden customers. And just last year, Stephens started a new dealership in a much larger community 20 miles away, home to a mid-sized public university and located at the split of a major U.S. highway that connects Alabama to the gulf side of Florida. After a longtime, well-respected dealership there closed, the market had a need for service capacity and premium equipment sales. Again, Stephens is seizing opportunity.

The pages of Power Equipment Trade are full of such stories, men and women in the right place at the right time who’ve seized opportunities, taken over for family, bought out their bosses or just decided it would be a cool business to own and operate. That’s a large part of what PET does: Showing how owners and operators in this industry have made the most of their opportunities, and how readers may apply some of that information to seize the opportunities they have in their own businesses.

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And while it may be fashionable these days as independent businesspeople to go on and on about how no one wants to work and lament the scourge of supply chain issues and labor pains, the opportunities are there, as Stephens and many others have shown. In most any market, there’s always an opportunity for premium power equipment represented well and serviced quickly and accurately the first time. It’s just a matter of seizing it.

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Stihl Expands Manufacturing

The City of Virginia Beach has announced that Stihl plans to invest $49 million to expand its chain saw guide bar manufacturing facility. The expansion will add 26,000 sq. ft. of space to an existing building, totaling 86,000 sq. ft. upon completion. The project is also expected to create 15 new jobs with an average annual wage of $60,000 to $100,000.

The Virginia Beach Development Authority (VBDA) voted to award Stihl an Economic Development Incentive Program (EDIP) grant of $500,000 for the expansion based on job creation and retention, plus capital investment estimated at $49 million. In addition to increasing its footprint in Virginia Beach, Stihl plans to invest in state-of-the-art equipment and add highly skilled positions to its team, including maintenance mechatronic technicians, process engineers, tool and die makers, project coordinators, and machine operators.

For nearly 50 years, the City of Virginia Beach has created an ideal environment for Stihl to continue to grow our

business and offer meaningful careers to over 2,500 current employees in Hampton Roads,” comments Terry Horan, President of Stihl Inc. “We are incredibly proud to be able to continue to expand our Virginia Beach-based manufacturing operations to fulfill the increased demands of our more than 10,000 loyal Stihl dealers nationwide and their customers.”

What started as a 20,000 sq. ft. manufacturing facility has grown into a 150acre campus with 2 million sq. ft. of combined industrial and office space. The new project will allow for a third chain saw guide bar production line to be added, increasing production capacity. Currently, most chain saw guide bar production takes place at other Stihl locations overseas, but this expansion lays the groundwork for additional manufacturing activity to be moved to the company’s Virginia Beach location.

Positec Corp. Names Jones President & CEO

Positec Tool Corp., manufacturer of lawn, garden and power tools under the Worx, Rockwell, Kress and Cat brand

names, has announced that Michael A. Jones has been appointed to the position of President and Chief Executive Officer (CEO) of Positec North America, effective November 30, 2022. Previously, Jones served as Executive Vice Chairman for Ranpak Holdings Corp.

“With decades of experience in domestic and international sourcing, as well as sales and service excellence across a broad range of consumer and professional-grade goods, Michael comes to Positec at a time of tremendous product innovation and portfolio growth,” states Ben Dalziel, Group Executive Vice PresidentSales and Marketing, Executive Member of Positec’s Corporate Board. “Michael’s ability to drive business excellence is second to none, and we are delighted to have him guide Positec’s strategy and operations at this important moment in our company’s history.”

Jones

Beginning his career as a longtenured executive with General Electric, Jones served as Chief Commercial Officer–Europe, while living abroad in Budapest, Hungary with his family for GE’s European Lighting, Appliance and Power Control business, serving Europe, Middle East and Africa. He then became President for Husqvarna AB’s North and South American business operations, followed by executive roles with Lowe’s Companies, Inc.

“Together with the Board of Directors, I share tremendous optimism for Positec and its category-leading brands,” says Jones. “The founder, Don Gao, and his global leadership team—with best-inclass R&D and proven brand-development capabilities—have built a powerhouse portfolio of innovative products, and I sense tremendous potential for growth in the coming years.”

Stens To Close Indiana Footprint

Arrowhead Engineered Products has announced Jasper, Ind.-based Stens would close later this year and be incor-

porated into the newly constructed distribution warehouse in Portland, Tenn. According to Arrowhead, the transfer will likely be complete by the early fall of 2023. The move impacts 150 employees at Stens.

The warehouse staff is around 70, and they are all being offered relocation, according to the company.The remaining office staff will go fully remote. The move is being driven by Arrowhead and an internal review of the distribution network, showing a new mega-facility was needed to serve the company’s growing customer base and support and expand the hub and spoke distribution model.

The newly constructed 540,000 sq. ft. warehouse and distribution center in Tennessee will create nearly 400 full-time job opportunities at the new facility when it opens in July 2023.

Jim and Charles Stenftenagel opened Stens in a one-room garage servicing power equipment in the 1979s. By 1983, Stens shifted its focus to the replacement parts market. After the Ariens Co. purchased Stens, they grew it to eight distribution centers across the U.S. and moved into the current distribution center and

headquarters. Arrowhead Engineered Products acquired Stens in 2016.

The building housing the current Stens headquarters and warehouse in Jasper will revert back to the owner at the end of the lease in December.

HBS Systems, Kenect Announce Partnership

HBS Systems, a provider of web-based equipment dealership management solutions has partnered with Kenect, a texting platform for equipment dealers, to enhance communication efficiencies.

This partnership will provide dealers utilizing HBS Systems’ NetView ECO equipment dealership management solution with an even more robust communication platform to increase efficiency, strengthen customer satisfaction and maximize revenue. The integration will allow dealers to text their customers from their existing business phone line. Messages can be assigned to team members, set up auto-responders, schedule appointment reminders, attach files, invoices, videos, and more.

“As the number of consumers who in-

dicate texting as their preferred method of communication with dealerships continues to increase, especially in the service and rental departments, we’re proud to provide additional options,” says Chad Stone, President and CEO, HBS Systems. “Our team is constantly working to provide an open API to easily bring partners into the HBS Systems NetView ECO software ecosystem.”

Yanmar Announces Expansion Plans

Yanmar Compact Equipment North America (Yanmar CE NA), encompassing the Yanmar Compact Equipment and ASV brands, announces plans for a 32,000 sq. ft. expansion to its Grand Rapids, Minn. facility. The newexpansion and a subsequent paint system will increase paint capacity by up to three times with maximum automation and allow a parts manufacturing capacity increase of up to two times in the previously occupied space. This project sets the stage for future capacity increases with company officials projecting the addition of hundreds of full-time posi-

tions over the next five years.

The new paint system will be more efficient, have less environmental impact, and convert a liquid paint process to a powder coating system with more paint capacity for a higher production rate. The relocated paint system will allow the space previously occupied to be outfitted with robotic weld cells and cutting tables, optimizing plant flow. The company expects to break ground in the spring of 2023 on its expansion with a target for completion in 2024.

Equip Exposition Celebrates Anniversary

Following record-setting attendance, hotel bookings and sell-out of exhibit space last year, Equip Exposition in 2023 will expand on its success by offering new, advanced education, additional entertainment and events including a new arena concert, expansion into the West Wing of the Kentucky Exposition Center (KEC), and improved logistics and food options.

Show attendees each year gain access to the latest equipment, technology and

software, as well as education and connection with their peers. “But they should also expect new and improved experiences,” says Kris Kiser, President, Outdoor Power Equipment Institute, who owns Equip. “So when attendees speak, we listen. Our philosophy is ‘same show, new show, every year’.”

Equip turns 40 this year!

Equip Expo will be held October 1720, 2023.

A sneak peek into the new 2023 show experiences being planned include:

A new arena concert at the Yum! Center featuring headline band, Third Eye Blind

Return of the New Product Showcase Welcome Party at the downtown Kentucky International Convention

Center (adjacent to the downtown Marriott and Hyatt hotels) with a concert from Expo house band, The Crashers

An “adventurous” keynote speech by Polar Explorer and master storyteller Ben Saunders who completed the longest-ever polar journey on foot

The debut of the Equip Exposition Equipment Museum to showcase the evolution of the industry

The addition of a business lounge, meeting spaces and expanded seating areas at the KEC

Landscape education for young people sponsored by the TurfMutt Foundation. Children ages 12 and up may attend the show

Improved shuttle bus, rideshare and transportation logistics

More coffee shops and food offerings on-site, including breakfast options

Fan favorites also will return to the 2023 Expo, including can’t-miss education and connection events for dealers, Mulligan’s Fun Run & 5K, the UTV Test Track, the Drone Zone, and Mulligan’s Mutt Madness, a national dog adoption event, sponsored by the TurfMutt Foundation.

“For those who attended our ‘22 show, you may have noticed TV cameras shooting episodes of Lucky Dog and Mission Unstoppable, both television shows on CBS,” says Kiser. Look for the shows to be aired early this year in February, March and April. “Also, expect the return of the television show’s presence at Expo,” he said.

The TurfMutt Foundation, which has sponsored Lucky Dog and Mission Unstoppable shows for several years, is the education arm of Equip Expo and the Outdoor Power Equipment Institute.

Last year, Equip Expo attracted more than 25,000 attendees who hailed from all 50 states and 49 countries, with the furthest traveling attendees journeying from Guam, New Zealand and Australia. Equip Expo 2022 also was the largest show in its 40-year history.

Registration opens for Equip Exposition 2023 in April. “We sold every inch of both indoor and outdoor exhibit space last year, and, in fact, had a waiting list,” says Kiser. “I encourage anyone seeking to participate in this year’s show to act quickly. In fact, book your hotel room early. If you’re going to fly, book it

Opportunity Knocks For Stephens Garage

Changes in local market bring automotive business into lawn and garden segment.

BY DAN SHELL

LUVERNE, Ala.

There’s always plenty of activity as lawn and garden and automotive customers come and go at the cool building on the south end of old downtown Luverne, with its county seat courthouse and two redlights, straddling U.S. Hwy 331 in south central Alabama.

The building with its striking curved window and full lot of autos and tractors is the home of Stephens Garage and Small Motors, which celebrated its 25th anniversary in 2022 since owner Keith Stephens, 53, bought the building in 1997. Originally a Chevrolet dealership that dates to the 1940s, the building and surrounding lots offer plenty of room to operate an automotive service center and lawn and garden dealership from the same facility.

Stephens Garage & Small Motor operates with two parts and service counters: automotive, left, and lawn and garden.

Background

Stephens worked at the dealership as a mechanic when he was in his 20s, then after the dealership closed he rented the service area and started the automotive service center.

The automotive business rocked along, with the operation doing service and warranty work for another car dealership that rented some of the lot; Stephens also expanded into working on industrial haul trucks and trailer trucks.

In 2010, he made the move into premium lawn and garden equipment. His late wife, Janna, managed a local Jiffy Lube near a small dealership and noticed the customer traffic at the operation. (She died tragically and unexpectedly in 2017 of a heart condition.)

Janna was the one who had the idea the garage ought to go into the lawn and garden segment, Stephens remembers, especially after the nearby dealership went out of business. Stephens Garage started with two product lines the business still has today: Husqvarna (the only handheld brand) and Ferris. The dealership added Mahindra tractors in 2019 and Scag mowers in 2022. The dealership also carries Kawasaki and Briggs & Stratton engines, along with Oregon aftermarket parts. In these times of parts scarcity and backorders, the dealership also works with RBI and NHC Distributors for their parts needs.

Luverne is a small town of 3,000 in a decidedly rural area of south Alabama, but with multiple communities nearby. The bulk of lawn and garden customers are homeowners, and there’s also a decent commercial customer segment though many tend to be smaller and part-time. The move into Mahindra tractors opened up a new customer base and also broadened its geographic reach.

Stephens offers battery-powered handheld equipment, and while he says he’s not seeing the overall demand he’d like, he’s sold on the product category. He notes that many customers may have tried an older generation of lower powered electrics that didn’t perform as well, but the new machines are much higher quality. The lack of a starter pull cord is definitely an attraction for women and older customers, he believes.

Operations

The facility’s original eight automotive bays are still in use, with two bays dedicated to tractor service. The lot slopes downhill, with a large lot for auto parking and staging above, the building with showroom, parts counters and service bays

Keith Stephens

The dealership has cultivated multiple parts sources but still has some backorder issues

Adding tractor line in 2019 opened new customer base.

in the middle, and a large lot below the building that’s used for tractor display. Stephens added a covered area in the lower lot for tractor staging and final assembly. The handheld service area is in a room just below the main service bay floor.

Stephens Garage employs 11, and that includes two dedicated auto mechanics, a dedicated tractor technician, handheld technician and a “floater” mechanic who works where he’s most needed. Stephens says he’s not currently looking for additional technician capacity here in the winter, but he’ll probably be looking to hire some summer help soon.

Posted labor rate is $100/hr. on lawn and garden and tractor work, and $85/hr. for automotive. The lawn and garden rate

went up from $90/hr. in 2022, Stephens says. The dealership uses an informal handheld flat rate system to avoid the labor charges that might send customers elsewhere.

Currently, the dealership is working through an advertised January-February service special that features free pickup and delivery for in-town customers.

Courtney Barrow, Stephens’ daughter-in-law, began working more closely with the dealership’s marketing effort in the past three to four years, especially as the dealership has sought to raise its online profile and presence.

In an area where customers are scattered in rural counties, Barrow says she finds Facebook “boosting” to be the most effective form of marketing overall. The Facebook advertising program boosts the dealership’s geographic reach and drawing power. She also uses GoogleAds to keep the dealership near the top of search engine results.

To get the word out about special offers, and to keep up with customers in real time, Stephens Garage utilizes the Kenect business texting system to send out promotions and stay in contact with the customer base.

Though Barrow questions its overall effectiveness compared to online advertising, she does run a schedule of football season radio ads as a sponsor of the Troy University game broadcasts and also home games for local high schools to maintain a community support profile.

The dealership also maintains a couple of billboards, and does some print advertising in local media, usually around special events and not on a regular schedule.

Expansion

For a dealer who’s been in the lawn and garden market now 13 years, Stephens sees opportunity in his trading area. In fact, in 2022 he and a longtime friend went into a partnership and started a new, separate dealership, S&K Lawn & Equipment, in Troy, a much larger community 20 miles to the east with more population and a major university. Plus, a longtime and well established dealership, Troy Small Motors, had recently closed, leaving a big hole in local service capacity and premium power equipment representation.

The new dealership offers Ferris, Snapper and Cub Cadet wheeled goods, Maruyama and Efco handheld and Dewalt battery powered handheld products. Stephens notes that S&K is adding the Kress battery powered product line this year as well. “There’s a lot of market in Troy, and we’ve already got a good clientele we’re building there,” he says.

Across both businesses, Stephens says employees are straightening, organizing and cleaning through the relatively slow winter months. “We won’t have time after the spring really gets going, and it gets wild in April, May and June and some years won’t slow down at all until late August,” he exclaims. PET

EQUIPMENT TRADE

The dealership sells some battery-powered handheld equipment but Stephens believes the category will grow.

The dealership employs automotive, tractor and handheld service technicians.

New For 2023: Product Showcase

A few eye-catching innovations to fill dealership shelves this year.

Altoz TSX 561 i Stander

The TSX 561 i, available with either the HV all-terrain deck or finish cut Aero Deck, tames the difficult terrain other mowers cannot mow safely by combining the quick maneuverability of a standon mower with the unmatched slope-terrain grabbing ability of the Altoz track system.

The HV all-terrain deck is constructed of two pieces of heavy, reinforced 7-ga. laminated steel with three multi-bearing, heat-dissipating cast steel deck spindles. Equipped with an industry-exclusive six pivoting swing blades—forged and heat-treated for exceptional long-lasting sharpness, the blades pivot when hitting an immovable object to protect the spindle, clutch and engine. The sloped back rear discharge efficiently processes a high volume of material. Cutting height can be adjusted in 1⁄4 in. increments from 2.5 to 5.5 in.

Power through harsh conditions and rough terrain with speeds up to 10 MPH with the TSX all-terrain track system featuring rear axle torsion suspension that delivers maximum traction, stability, and low ground pressure for minimal earth compaction. This along with the flat-free tires beneath the TorqFlex front suspension provides a smooth, comfortable ride.

Efco PTH 2500 Pruner

The latest edition to the Efco H Series product range is the PTH 2500 pruner. Designed to make pruning at height safe and easy, the PTH 2500 is well suited for jobs around the home and farm. Featuring an Italian designed 25.4 cc engine rated at 1.2 HP, you can count on plenty of power for those tuff pruning jobs. With an overall length of 81 in. and weight of 11.9 lbs., the PTH 2500 is lightweight and easy to handle. Plus, it’s backed by a two-year consumer warranty. Experience legendary Italian design and performance with Efco.

Oregon SpeedCut Nano Conversion Kits

Oregon Tool is excited to launch new SpeedCut Nano Conversion Kits forselect Echochain saws.SpeedCut Nano is a low-profile cutting system—saw chain, guide bar and sprocket—designed to optimize saw performance in battery and small gas saws from one to three horsepower.The SpeedCut Nano cutting system provides 24% faster cut speed, 11% more cuts per battery charge, reduced tendency to stall the saw and smooth cutting quality with no chatter for professionals who make felling small to medium trees, limbing,pruning, and bucking their livelihood. Currently SpeedCut Nano conversion kits product offerings are available on select Husqvarna and Stihl saws. The new SpeedCut Nano conversion kits will be applicable to four Echo saws upon launch.Achieve new levels of performance and run time unlike any other cutting system on the market today, with the new kits available in spring 2023.

Rotary Adds 350 Items In 2023 Catalog

The performance and reliability of power equipment parts is essential to the success of servicing dealers and landscape professionals. From service jobs and minor repairs to complete engine overhauls, Rotary has the replacement parts it takes to get the job done.

Among the 350 new items are a variety of Copperhead professional-grade mower blades plus heavy-duty belts, air and oil filters, fuel pumps, pulleys and chain saw accessories. Rotary now offers a full line of arborist equipment, gear and supplies from the industry’s leading manufacturers. Popular items include rope, flip lines, lanyards and hardware. Available for dealers and distributors, Rotary’s master catalog of over 9,500 guaranteed quality parts, tools and accessories has photos, illustrations, descriptions, cross referencing and part numbers for every major brand. Backed by an exclusive warranty, Rotary parts are available for mowers, trimmers, chain saws, brush cutters, pressure washers, snow blowers, garden tillers and much more.

Stens Chain Locker Storage Containers

Chain Locker storage containers from Stens are a durable, safe way to transport chainsaw chain and eliminate frustrating tangling. Lockers are available in two models: Standard that holds chains from 6 in. to 20 in. and is available in orange, black and gray, and the Pro Series model which holds chains from 6 in. to 46. and is available in orange and yellow.

Frequent saw users appreciate the stacking capabilities of the lockers and often use two lockers in different colors, to make it simple to identify chains ready to go (sharp) from those needing resharpening (dull).

VP Racing Fuels EcoGen Renewable Fuel

VP Racing Fuels, Inc. has announced that it is accelerating its renewable fuel initiative with the launch of a new, renewable fuel, EcoGen. EcoGen is a renewable, non-alcohol alternative to ethanol and butanol-based fuels found at the pump. VP Racing has engineered high-octane renewable gasoline components incorporated into gasoline to help meet the increasing demand for higher-octane, cleaner-burning fuels. VP Racing now offers EcoGen as a high-octane blendstock for alcohol-free gasoline.

EcoGen from VP offers impressive advantages, like improved fuel economy with a higher energy content than standard pump gas; up to 10% renewable content; reduced carbon emissions, and friendly on fuel system components, so no ethanol corrosion.

VP Racing’s EcoGen is perfect for small engines such as lawn equipment, all power sports vehicles, ATVs/UTVs, side-bysides, and more.

today. I can’t stress this enough.”

Tegtmeier Honored By Nebraska

The Nebraska Chamber of Commerce and the University of Nebraska-Lincoln (UNL) College of Business announced the 2023 inductees into the Nebraska Business Hall of Fame on January 12, including Will Tegtmeier, a co-founder of Exmark.

Tegtmeier, who died in 2013, has been lauded as a pioneer in the mower industry making sketches drawn in his basement into two successful businesses. He designed his first line of mowers at Kees Mfg. in the 1970s before starting Exmark Mfg. with partners in 1983 and launching a new line. In 1988, he formed a new mower company, Encore Mfg., which grew quickly. Both companies remain major drivers of Beatrice, Nebraska’s economy. Exmark is now a division of the Toro Co. Encore was sold to China-based World Lawn Power Equipment on the condition that the facility continue operating in Beatrice.

Rotary Adds Territory Managers

Rotary Corp. continues to expand its sales division with the appointment of two new territory managers, according to an announcement by Mark Smith, Chief Sales Officer.

Jeffrey Cox, a third-generation Rotary employee, has been named territory manager for dealers in South Carolina. Since joining the company 13 years ago, Cox has worked in several different departments including sales and technical services.

Alejandro Rivera, who has been involved in the industry throughout his career, will be the new territory manager for southern California. A former owner of a mower repair shop, Rivera grew up working on mowers and other lawn

equipment in the San Diego area.

“We are delighted to have Jeffrey and Alejandro on our sales team. Both are very experienced and well-prepared to serve our independent dealers with outstanding service and ongoing sales support,” Smith comments. “Alejandro will be an asset in dealer recruitment as we continue to expand our footprint in southern California while Jeffrey will serve our large network of dealers throughout South Carolina.”

Briggs Moves Production To Ala.

Briggs & Stratton is moving its engine-component production to Auburn, Ala. according to a Wisconsin television station. Announcing production at its Wauwatosa, Wisc. plant has ceased, resulting in 160 layoffs. This comes after Briggs eliminated tractor and snowthrower production in Wisconsin last fall.

In 2021, Briggs announced a $9.4 million expansion at its Alabama facility, where it is one of the largest manufacturing employers in east Alabama. Along with the move for engine-components, Briggs’ air-cooled home standby generator production will move to Bluff, Mo. The decision came due to the Wauwatosa plant losing money.

Dixie Chopper Acquires Indiana Facility

Dixie Chopper has finalized its purchase of the former manufacturing facility located in Coatesville, Ind.. The original family farm where Dixie Chopper was born is now the new (old) home for the assembly of mowers.

“I can remember where we drew the frame design on the barn floor with chalk for the first production Dixie Chopper,” says Wes Evans, Business Unit Manager of Dixie Chopper. “My team and I are very excited to move back to the Coatesville facility and continue building the ‘World’s Fastest Lawn Mower’.”

Dixie Chopper currently utilizes a building on the west side of Indiana for zero-turn mowers assembly and warehouse for the parts department. The transition to the new facility, located less than

10 miles away, is scheduled to be completed in the summer of 2023.

“We have absolutely outgrown the Fillmore facility,” says Lisa Tubbs, President of RhinoAg and Dixie Chopper. “In order to continue growing the Dixie Chopper business, it was imperative that we located a bigger building to facilitate this growth. The Coatesville building has such a sentimental value to the employees and we are ready to get moved in.”

NAEDA Releases 2022 Benefits Report

The North American Equipment Dealers Assn. (NAEDA) has released of its 2022 Compensation & Benefits Report. At 120+ pages, this report is the equipment industry’s most comprehensive collection of data on dealership compensation and benefits. Survey data is collected every two years from agriculture, construction and power equipment dealers across North America.

The Compensation and Benefits Survey questionnaire includes wage data relative to office or professional staff, sales, parts and service departments. The survey was designed to capture data on wages and total compensation of dealership employees, comments on the composition of commission/bonus programs and employee benefit offerings. The data collected from the survey has been broken down between the U.S. and Canada and by region within the two countries. The survey data is also broken out by sales volume.

The survey questionnaire was reviewed and evaluated by industry experts, key dealer management, human resource personnel, insurance/benefits experts and NAEDA staff.

In 2022, 720 equipment dealer ownership groups submitted data, the highest participation to date. These dealers represent 2,129 dealership locations throughout the U.S. and Canada.

“The participation in this survey has grown year after year since we expanded the scope and the depth of the survey,” says Kim Rominger, NAEDA CEO. “The breakout by dealership sales volume, in addition to both U.S. and Canadian regional numbers, provides a more localized report that brings more value to the data.”

The members who completed the survey will receive a link to download a complimentary copy of the report. Those that did not participate in the survey, may order a copy of the report on NAEDA’s website.

Tegtmeier

Rivera

Here’s An Idea: Optimize Your Service Department Flow Using Technology

Have you thought of using technology to reach shop efficiency goals?

BY CRISTINA BACIU

Is your service department operating as efficiently as it could be?

If you’re operating with a team that is already stretched thin, unexpected roadblocks like parts shortages, customer complaints, and employee turnover can really throw a wrench in things.

After working with hundreds of dealership owners, here are the ten most common service department bottlenecks, and how to unblock them.

The secret to some of the most efficient dealership service departments out there? They’ve optimized the most time-consuming, headache-inducing pieces of their service department processes using technology.

Common Bottlenecks

Every dealership is different, meaning every service department will have its own unique set of challenges they need to overcome. But after talking to many dealerships, there are common bottlenecks faced by most dealerships at some point in their growth.

The 10 most common service department bottlenecks are:

1. Back-and-forth between departments

2. Technician availability and scheduling

3. Miscommunications with customers about when their unit will be ready

4. Double (sometimes triple) data entry

5. Parts shortages and miscommunications about parts availability

6. Waiting on approvals from customers

7. Accurately tracking technician time

8. Collecting outstanding payments from customers

9. Accessing your system while doing mobile service

10. Manual check-in process …and a million other little things, right?

But there are ways to unblock these bottlenecks in service department flow, through integration and automation. The secret isn’t to totally change the current workflow—after all, there are likely things that work well for your dealership.

1. Back-and-Forth Communication Between Team Members And Departments

It’s hard to keep everyone on the same page within a team, let alone within your entire dealership—especially if you have multiple locations. Each department has its own set of priorities and challenges to keep them busy. They each have their own programs that they’re using. But you can avoid tunnel-vision on your team by making information like tasks, appointments, customer details, and

The

Use Automation

There are a ton of opportunities to make your service department processes faster and more efficient through automation. Here are some of the most common ways forward-thinking dealerships are automating their processes.

more readily available for everyone, across your dealership.

Rather than piecing together different processes using different software and tracking systems, see if you can create a seamless flow of information within your dealer management system (DMS). This will create one single source of truth for all requests coming in, which makes it a lot easier to keep everyone on the same page.

That way, sales reps can input customer details that the service depart-

secret is to use tools to enhance and accelerate your processes. Automation can be a powerful tool to do that.

ment can access to gain more context for a work order. Meanwhile, service writers and technicians can input customer and work order details that will give your sales team more context for how to engage customers and leads in the future.

2. Tech Scheduling And Job Management

When a technician is dealing with customers, that’s time they’re spending not turning wrenches. But it’s hard to avoid—after all, technicians tend to wear a lot of hats.

With so many different jobs and tasks on the go, it can be confusing to keep track or who said what, when they said it, and who is accountable. Often enough, the person “accountable” will end up being the elusive “they,” as in they said we should do this.

Not only that, but often your team will find themselves managing customers with different levels of urgency. If a pro’s machine is down, they need it serviced fast. Working that into your team’s already busy schedule is no small challenge.

3. Communication With Customers

Communication is the foundation of any strong relationship, and the same applies to your customers. In 2020, many dealerships were forced to adjust how they operate, moving operations from in-person-first to digital-first due to the COVID-19 pandemic. But a surprising positive came from this challenge—many dealerships upped their communication game significantly.

In fact, according to Don Miller, Data Consultant at Constellation Dealership Software, dealerships that maintained good communications with their customer base were the most successful in 2020.

your accounts receivable account is automatically updated with the payment.

That means fewer data entry and less room for errors—which means less need for a back-and-forth between departments. It’s a triple-win.

5. Inventory Management and Special Parts Availability

As you know, the time it takes to assess a unit and identify the parts you need to order can take more time than you would think. Not only that, but when you have to order parts for the same unit from different sources, you’re likely to run into conflicting delivery schedules.

To optimize this, you can integrate your department calendars to make scheduling a seamless process. This creates one central location for schedules, making it easy for anyone on the team to check what is being worked on and by whom. Plus, you can save time by creating templated jobs based on your team’s most common tasks or by using job codes with flat rates. That way, all the information pertaining to the job is available for the team to reference.

Customers expect you to stay in communication with them throughout the service job process. The problem is, many dealerships still rely on tracking the process in a spreadsheet or some other piecemeal system, which allows communication to fall through the cracks.

Consider optimizing communication by sending automated messages to customers letting them know when their unit is ready for pickup. See if you can also create templated messages updating customers on the status of their unit, throughout the service process. For example, when parts are ordered or when a warranty is approved.

Automating your customer communications makes it easier for your team to manage ongoing relationships and prevent customers from slipping through the cracks.

4.

Double Data Entry

Does your team need to flip between multiple spreadsheets, forms, and software? When that’s the case, your team can end up needing to enter the same information in multiple places, multiple times; or you need to have someone on staff to handle it.

But you can save time and costs by integrating your department data and automating data entry. Instead of stitching together multiple systems, have all roads lead to the same place. Using your DMS, your data should automatically flow from your sales, service, and F&I departments right into your accounting system. For example, when a customer makes a payment, you can automate the event so that

Combine that with parts backlogs and you can end up with unexpected parts shortages and miscommunications between your sales and parts departments about parts availability.

Obviously this why many dealerships are implementing a triaging system— eliminating unnecessary delays on simpler repairs, which comprise a huge percentage of jobs in dealership shops.

If you have an efficient inventory management system in place, you can easily stay on top of inventory numbers. Once a unit is checked in for a repair job (not scheduled maintenance), a technician can take a portion of their day to triage each unit to determine if a teardown is needed or if the repair is a simple parts swap. If the unit needs those parts, a service advisor can check availability on those parts and order any parts needed so that when the unit is next-up in the shop, the parts are already laid out for the job.

6. Getting Approvals from Customers

A lot of time can be spent tracking down customers who are hard to reach. So can reaching out to customers to give them an estimate.

On top of that, if your team is in the habit of getting verbal approvals on work orders from customers, you don’t have a paper trail to reference—which can lead to miscommunications on your team, information falling through the cracks, and potential legal repercussions.

But you can cut down the wait time and set your team up for success by leveraging text message communication. Check in your DMS, and see if you can

The secret isn’t to totally change the current workflow—after all, there are likely things that work well for your dealership. The secret is to use tools to enhance and accelerate your processes. Automation can be a powerful tool to do that.

set automated messages to go out to customers with an estimate before they spend their money. This will give you approval in writing that your team can reference while also speeding up the approval process significantly. Not only that, but text messages have a 98% open rate, meaning the odds of a customer missing your message is much lower than if you were to send them an email.

7.

Tech Time Tracking

Are you concerned that your technicians may be marking jobs as “done” before all of the work is actually complete? It’s important that your technicians are held accountable for what they say and do—both to help manage costs and to deliver on better customer service.

But with so much going on at your dealership, it can be hard to stay on top of each individual employee.

Have you thought about making it easy for your service technicians to clock in and out of jobs—when they’re done—by using a mobile app? Some DMS systems allow this.

8.

Collect Payments From Customers

Customers can take a long time to pick up units, for a number of reasons—

they’re on vacation, or they have some grievance and don’t want to pay. This can create a serious bottleneck in your service department by slowing down receiving money, stalling warranty payments, and taking up service space.

Stop relying on in-person payments by upgrading to e-payments. You can email invoices to customers and allow them to make payments from their personal computer or mobile device, from the comfort of their homes. That means you can receive your payments in a fraction of the time it would take if you had to wait for a customer to swing by your dealership.

Plus, if you use an integrated DMS, you can link your payments to your accounting module, so your accounts receivable statements are automatically logged and accessible for later.

9. Accessing Your System While Doing Mobile Service

Do you have mobile service trucks at your dealership? Then your team are probably no strangers to running back and forth across the lot to check the computer for work order information, parts availability, and other details. Not only can that slow the repair pro -

cess down, but it can also really wear your team out.

That’s where having a DMS with mobile capabilities can make a huge difference. By having a system in place that automatically syncs your desktop to your team’s mobile devices, your team has the power to access your dealership’s entire database of information without leaving the unit they’re working on.

10. Checking In Customers Manually

Many dealerships still use clipboards to check in customers. That means hours can go by before the information is entered into your computer system— leaving your team without full visibility into your true backlog.

Service advisors check in with a clipboard, where you need to enter the information into their tracking system later to start the job—they don’t have full visibility into what their true backlog is because they have some stuff on paper. Expedite check-ins by using a DMS mobile app on a tablet or phone. That way, any information you enter will automatically be logged in your system, keeping you in the loop up to the minute. PET Cristina Baciu is a content marketing writer with Ideal Computer Systems.

Steel Green Manufacturing Moves To New Facility

Steel Green Mfg. has begun production at its new facility in Lebanon, Ind. The news comes earlier than the expected May 2023 move, and Steel Green credits Merritt Contracting with the facility’s expeditious construction.

Steel Green now has 30,000 sq. ft.—more than double the size of its previous facility— to manufacture its growing line of zero-turn spreader/sprayers. The new location is just a minute’s drive from the previous one, making it an easy transition for suppliers, staff, and customers.

“We’ve always been proud to say our machines are made in the USA,” comments Brent Mills, co-founder and senior product specialist at Steel Green. “This

PETcetera

new facility gives us room to continue building machines right here in Lebanon as we grow into the future.”

Since its founding in 2018, Steel Green has expanded to serve lawn care operators, sports field managers, and golf course superintendents across the country. One thing that hasn’t changed over the years is Steel Green’s commitment to providing customers with quality products and excellent service.

PETevents

APRIL 12-15—Equipment & Engine Training Council annual meeting, Walker Manufacturing Company, Fort Collins, Colo. Call 888-406-1810; visit eetc.org.

JUNE 20-22—Outdoor Power Equip. Institute annual meeting, Omni Grove Park Inn, Asheville, NC. Call 703-5497600; visit opei.org.

OCTOBER 17-20—Equip Expo, Kentucky Exposition Center, Louisville, Ky. Call 812-949-9200; visit equipexposition.com.

Listings are submitted months in advance. Always verify dates and locations with contacts prior to making plans to attend.

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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.

Getting Ready For The Season

BY SAM STEARNS

The 2023 season is going to have its challenges, as all years do. Our job as business owners/managers is to identify the challenges and get ahead of them. All of us have challenges that are unique to each of our businesses. You may have challenges related to your particular location, your particular health or motivation (hey, it happens!), or with the brands you carry at your dealership. Something that seems to be pretty widespread among dealerships the past few years is personnel challenges, but even something widespread like that will have unique expressions from business to business.

From what I’ve heard, it seems that parts availability is something that will be a little better for dealers on the whole than it was last year. That prospect makes me smile! Also, it seems that whole goods availability is on the upswing as well, which bodes well for those of us who struggled with tumbleweeds blowing through our showrooms last season. Having plenty of product to sell is a breath of fresh air!

Concerning whole goods, though, it seems to me that some caution is in order. After last season, I would think that at least a few of us dealers are tempted to place big orders, when we have the opportunity to do so, if we haven’t done so already. I’ve spoken to just a handful of other dealers about this, and there seems to be some uneasiness in the back of our minds that the demand for whole goods, which was a dream come true for much of the past two years, will be much softer this year.

I may be completely wrong about this, but here’s my simple reasoning

(which is generally the only kind of reasoning I do): For the past several months, virtually all of us are spending much more money than before just to buy life’s essentials. Incomes, on the whole, have not risen with the level of increased spending. Thus, there is less overall expendable income for most households than in the recent past. On top of that, power equipment is a lot more expensive than it was a couple of years ago. The residential zero-turns we were selling for under $5,000 in 2021 are around $6,000 today, and the commercial zero-turn that was $14,000 in 2021 is now nearly $18,000. And

the business that can make us obscene amounts of money. Are you flat rating? Are you assigning the right amount of billable time to jobs so that your best tech is billing out at least 125% of his time? Are you adjusting your flat rate times according to the condition of the equipment? How does your recovery rate look in your shops? Paying attention to these metrics will work wonders!

Second to service is your parts department. Do you have a pricing system in place for your parts such that your profit margin is 48%-53%, yet you’re super competitive on price sensitive items? Do your parts people consistently cross sell? Do they offer an air filter and a quart of ethanol-free fuel along with that carburetor? These are great opportunities to increase your parts department profitability.

depending on the brands you carry, I’m sure some of you have even more drastic price increases than this. But the point here is that many people who were thinking about upgrading to a new zero-turn a year or two ago now feel really uneasy about it. So would many of us.

With that being said, I think it’s reasonable to expect sales to be more challenging this year, which is why I’m advising caution on stock orders. No one wants an empty showroom, but I’m thinking a showroom full of product when people aren’t really buying is even worse.

If sales are going to be down, or at the very least, we can’t count on them not to be, we need to make sure the other parts of our dealerships are profitable so that we can survive this turbulent economic atmosphere. Service is now as important as ever, both to our customers and to our bottom line. Most of us have an understanding that the service department is the backbone of our dealerships, the most important part of

I’ve said it in this space before, but diversification is another idea that comes to mind. In the Bible, Ecclesiastes 11:6 says, “Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well.” For me, selling mini-barns has been a good way to diversify. And lately, I’ve been starting to think about adding a little bit of equipment rental to supplement my income. There aren’t many places in my town that offer equipment rental, and I’ve been told that the main rental place in town needs more competition, so I think it’s worth exploring.

What opportunities do you have where you are? Give yourself a few hours every week to explore and pursue those opportunities, and your odds of surviving and thriving in a difficult economy will become more favorable.

Sam Stearns owns and operates Mr. Mower Man, Scottsburg, IN 47170; e-mail mr.mowerman@hotmail.com. The views of Sam Stearns do not necessarily represent those of Hatton-Brown Publishers, Inc.

How we handle our unique situations will define our success.

No one wants an empty showroom, but I’m thinking a showroom full of product when people aren’t really buying is even worse.