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POWERlines
A Hatton-Brown Publication www.poweret.com
DAN SHELL
Online Sales Topic Looms On Survey
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n issue that’s come on strong in this year’s PET Dealer Survey is dealership online sales: Parts only? Whole goods? Both? None? This is a touchy subject, especially with whole goods, since dealer expertise including unit set-up and initial tuning is a big part of the dealer’s value proposition. Meanwhile, there’s no doubt that more dealers are selling more online, and the trend is likely to continue, according to the 2018 PET Dealer Survey. We didn’t really ask the specific question until two years ago, but we did bring up the subject in 2012 when we asked what dealers hoped their web sites would do for them, and only 9% mentioned a contribution to sales. By 2016, 14% of dealers said they were selling over the internet, including 11% who sold whole goods online and 3% selling parts. This year, 12% of dealers say they’re selling whole goods on the web and 6% selling parts. Now 6% might not seem like much, but seeing the number of dealers selling parts on the web double in two years is significant. These changes are also reflected in dealers’ opinions of online sales in general, which we asked about specifically two years ago. Attitudes have changed quickly in the time: In 2016, 42% of dealers said there should be no online sales; this year, only 35% of dealers say online sales shouldn’t be allowed. In 2016, only 12% of dealers said online sales should be open to both parts and whole goods; today, 15% of dealers say both parts and whole good online sales are OK. After a generation of unrelenting competition from big box stores, dealers are understandably leery of even more competition from online sales by parts houses, discounters, other dealers, even their own distributors in some cases, some dealers claim. The whole internet/online sales thing also requires some thought. Remember, this is an aging dealer base with 50% of dealer principals over age 60. When most of these guys were starting out, microfiche and a fax machine were considered high-tech. Like in this month’s dealer profile, where Randy Longnecker, owner of J&I Power Equipment in Olympia, Wash., says he’s never really picked up on the social media personally, but he definitely sees the importance of a digital presence in business. His daughter Angela is heading up an effective social media marketing program. It’s a matter of going where the customers are, Longnecker believes. And if customers and potential customers are spending hours a day nose down in their “personal devices,” then that’s where your business needs to be. Now whether your business is going where the customers are digitally or simply handing out brochures and videos, or offering up a shopping cart to fill along with the latest suggestive selling software is a question all dealers must answer themselves in the context of their organizational capabilities, but to simply ignore the growing trend of online sales is PET a dangerous move indeed.
Co-Publisher/Adv. Sales Manager David H. Ramsey Co-Publisher/Executive Editor David (DK) Knight Chief Operating Officer Dianne C. Sullivan Publishing Office Street Address: 225 Hanrick Street Montgomery, AL 36104-3317 Mailing Address P.O. Box 2268 Montgomery, AL 36102-2268 Tel: (334) 834-1170 Fax: (334) 834-4525 Editor-in-Chief n Rich Donnell Managing Editor n Jessica Johnson Editorial Adviser n Dan Shell Senior Assoc. Editor n David Abbott Associate Editor n Jay Donnell Contributing Writers Greg German, Sam Stearns, Dale Stotts Art Director n Cindy Segrest Ad Prod. Coordinator n Patti Campbell Circulation Director n Rhonda Thomas Marketing/Media n Jordan Anderson Advertising Sales Southern U.S. Randy Reagor Tel: (904) 393-7968 Fax: (334) 834-4525 E-mail: randy@hattonbrown.com Midwest U.S., Eastern Canada John Simmons Tel: (905) 666-0258 Fax: (905) 666-0778 E-mail: jsimmons@idirect.com Western U.S. & Canada Susan Windham Tel: (334) 834-1170 Fax: (334) 834-4525 Email: windham.susan4@gmail.com Europe & Scandinavia Murray Brett Tel: +34 96 640 4165 +34 96 640 4048 Email: murray.brett@abasol.net Distributor Library Kathy Sternenberg Tel: (251) 928-4962 ksternenberg@bellsouth.net Classified Advertising Bridget DeVane Tel: (334) 699-7837 (800) 669-5613 bdevane7@hotmail.com
Contact Dan Shell, ph: 334-834-1170; fax 334-834-4525; e-mail: dan@hattonbrown.com
Reprint Sales Patti Campbell Tel: (800) 669-5613 patti@hattonbrown.com
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Volume 67
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Number 2
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APRIL 2018
Our 725th Consecutive Issue
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Founded in 1952
Renew or subscribe on the web: www.poweret.com
FEATUREstories
8 12 18 20
J&I POWER
Embraces Social Media
2018 DEALER SURVEY The Results Are In!
SPRING PRODUCTS
From Engines To Handhelds
FIVE MINUTES WITH
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Bob Walker, Walker Mfg.
VALUEadded Power Suppliers ______________________________ 6 Industry Voices ______________________________22 Dealer Voices________________________________24 Showroom __________________________________26 Distributor Library ___________________________30 PowerWorks ________________________________36 Ad Index ____________________________________ 37 Dealer To Dealer _____________________________38
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COVERphoto Washington’s J&I Power sees renewed growth as a second generation steps up to the plate with focus on teamwork and social media, beginning on Page 8. (Cover design by Shelley Smith; photo by Dan Shell)
Member Verified Audit Circulation Power Equipment Trade (ISSN 1063-0414) is published 6 times annually (February, April, June, August, October and December) by Hatton-Brown Publishers, Inc., 225 Hanrick St., Montgomery, AL 36104. Subscription Information—PET is sent free to qualifying industry professionals in the U.S. All non-qualified U.S. subscriptions are $55 annually; $65 in Canada; $95 (Airmail) in all other countries (U.S. funds). Single copies, $5 each; special issues, $20 (U.S. funds). Subscription Inquiries—TOLL-FREE 800-669-5613; Fax 888-611-4525. Go to www.poweret.com and click on the subscribe button to subscribe/renew via the web. All advertisements for Power Equipment Trade magazine are accepted and published by Hatton-Brown Publishers, Inc. with the understanding that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Hatton-Brown Publishers, Inc. harmless from and against any loss, expenses, or other liability resulting from any claims or lawsuits for libel violations or right of privacy or publicity, plagiarism, copyright or trademark infringement and any other claims or lawsuits that may arise out of publication of such advertisement. Hatton-Brown Publishers, Inc. neither endorses nor makes any representation or guarantee as to the quality of goods and services advertised in Power Equipment Trade. Hatton-Brown Publishers, Inc. reserves the right to reject any advertisement which it deems inappropriate. Copyright ® 2018. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Periodicals postage paid at Montgomery, Ala. and additional mailing offices. Printed in USA. Postmaster: Please send address changes to Power Equipment Trade, P.O. Box 2419, Montgomery, Alabama 36102-2419. Other Hatton-Brown Publications: Timber Harvesting n Southern Loggin’ Times n Timber Processing n Panel World n Wood Bioenergy
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POWERsuppliers Husqvarna Integrates Alexa Functionality Husqvarna has announced that Husqvarna robotic mowers will be compatible with the cloud-based voice service Alexa from Amazon. With the integration, homeowners with Husqvarna Automower Connect equipped mowers will be able to start, stop, park and get status updates from their mower by asking Alexa starting September 1. This includes mowers already in service.
Court Throws Out $24M Exmark Verdict
A federal appeals court has thrown out a more than $ 24 million jury verdict in a patent infringement case that favored a Exmark Mfg. The 2010 lawsuit alleged that Briggs & Stratton and Schiller Grounds Care were manufacturing mowers that infringed on one of Exmark’s patents for multiblade mowers equipped with baf es between blades, which allowed users to convert from mulching to side-discharge. Following the 2015 trial in U .S. District Court, a jury awarded Exmark nearly $ 24.3 million after deciding Briggs & Stratton had willfully infringed on Exmark’s patent. The court, because of the willful infringement, doubled the award. A three-judge appeals court panel ruled
that the District Court judge in the case erred when he dismissed a Briggs & Stratton claim that the Exmark patent in question was not valid. Additionally, the 8th U .S. Circuit Court of Appeals panel also threw out the damages award because it said an expert employed by Exmark did not provide an adequate explanation as to how she came up with a royalty rate figure a figure the jury relied in calculating damages. Both issues were remanded back to the District Court for reconsideration, including a potential new trial.
UEDA Offers 2018 Flat Rate Guide
fficials with nited uipment ealers Assn. ( U EDA) recently announced the group’s new, interactive U nited OPE Flat Rate Guide is now available for annual subscription enrollment. This new online tool provides dealers with a web portal and secure I to find and report power e uipment at rate repair times with more current accurate information than what is provided by OEMs. The new system, developed in partnership with, and powered by, Charter Software, Inc., and with data incorporated in conjunction with Bob Clements International, includes an API that will work with most dealer management software systems. U EDA will provide
Generac Releases Pro Line Of Products
At The Rental Show 2018, held in New Orleans, La. Generac introduced its new Generac Pro line of rugged power equipment designed and engineered specifically for commercial users and rental applications. The new assortment, under the Generac Pro brand, will consist of the following products: XC series portable generators ( 6500 and 8000 W) XD5000E diesel-fueled portable generator 3800 PSI belt drive pressure washer ( 3.2 GPM) al behind field and brush mowers with in. and in. cutting width Tow behind field and brush mower with a in. dec Walk-behind trimmer with a 22-in. cutting width 60-in. power grader 34-ton hydraulic wood splitter with a road tow kit Chipper/ shredder with a road tow kit Stump grinder Trash and semi-trash water pumps Towable backhoe with a 12-in. bucket Powerwagon with an 8.0-cu.ft. bucket and 800-lb. hauling capacity Many of the products under the Generac Pro banner are powered by the company s Force engine, originally designed by enerac specifically for generator applications and first introduced on the company s series portable generators.
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interested business system vendors access to the at rate I at no charge so they can build integration, allowing work orders in their software to access and report on the at rate information. Repair information is included for selected manufacturers, with additional manufacturers to be added as demand dictates: AGCO, Allis Chalmers, Briggs & Stratton, Craftsman mowers and garden tractors, Craftsman snow throwers, Cub Cadet, Exmark, Honda, Husqvarna, J ohn Deere, Kawasaki, Kohler Engines, Massey, MTD ( et al) , New Holland, Poulan, Scag, Simplicity, Toro and Weed Eater. During the next several months U EDA will be adding data for compact and utility tractors as well as RTVs and U TVs. According to Kim Rominger, U EDA Executive Vice President/ CEO, “This is the only industry resource that factors actual dealer times into the at rate calculation used to determine job pricing.” e adds that the pro ect benefits not only U EDA members, but all dealers who carry those lines. For more information or to subscribe to the OPE FRG, contact Dennis Alford, 800-606-6332, dalford@ amgllcusa. com.
OPEI Announces HQ Opening
The Board of Directors for the Outdoor Power Equipment Institute ( OPEI) met in Miami, Fla. in February to discuss the association’s strategic initiatives for 2018 and beyond. The board also elected two new members: Mark Wagner, President and CEO, Club Car LLC, and J oseph C. Wright, President and CEO, Excel Industries. “Growth and engagement are the watchwords of OPEI this year,” says Kris Kiser, President and CEO of OPEI. The final plans for I s new headquarters building at 1605 King Street in lexandria, a. also were finalized at the meeting with the grand opening and ribbon cutting set for Monday, May 7. Both OPEI’s handheld products and engines and fuels committees will be meeting that week in the new conference center.
OPEAA Announces 2018-19 Officers
During its 32nd annual meeting, the Outdoor Power Equipment Aftermarket Assn. ( OPEAA) announced its 2018-19
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POWERsuppliers fficers and Board of irectors. The meeting, held February , at oews ortofino Bay otel in rlando, Fla. was well attended, organizers report. notes that all meeting partici pants were very generous in giving to the Bill elson scholarship endowment, which offers scholarships to employees and families of members. For , the fficers are resident ue haney, ales o. ice resident ohn Bauersfeld, tens orp. ecretary Treasurer Britton ar old, us varna. embers of the Board of i rectors are Brett Beddow, Blount Interna tional ar rric , rric , Inc. onny es arlais, BI orp. urt ayes, T roducts alter iec , rime ine and hris oessler, otary orp.
Stihl Breaks Ground On New Admin Facility
tihl Inc. celebrated the beginning of a new administration building and other campus improvements with a ground brea ing ceremony on arch , .
The million administration building pro ect is part of the company s contin ual investment in infrastructure in sup port of growing . . operations. In ad dition, there will be significant improve ments to an outdoor demonstration area for hands on training, enhancements to the entry guard house and updates to traffic ow and security at the main en trance gate. The expansion will replace the former , s . ft. administration building and has an anticipated completion date of mid .
EMB Announces Grand Prize Winner
The web site eansBusiness. com has announced the winner of its a or eague Baseball ll tar
ame ac age. on oleman, owner of reenscapes , won a trip for two to the ashington game next uly. ot only is oleman in the green in dustry, he runs a player little league organization in his hometown of oot stown, h. long with him, oe and ince oia from oleman s dealer, oia Implement, of avenna, h., also will receive the game pac age. In con unction with the launch of the cho eans Business B portal, registrants to the site were eligible to win daily, monthly and wee ly give aways. ach member who participated in different features of the web site were entered for the prizes, the grand prize being the B ll tar ame pac age. B was launched in pril of with the help of the ser dvisory roup . cho Inc. is the sponsor of the B platform but does not use the site for advancing its brand or selling its prod ucts. The site is meant to be brand neu tral. t the center of the program is the , which is a volunteer group of landscapers and other grounds main tenance professionals.
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Second Store Boosts J&I Power Equipment Additional location opened in 2006 gives dealership more reach into a sprawling market as younger generation takes stronger role in business, boosts online marketing presence.
BY DAN SHELL YELM, Wash. hen operating a power equipment dealership, it’s always good to have viable options and a plan, and dealer Randy Longnecker has both as he approaches a business crossroads at age 60. Owner of J&I Power Equipment in Olympia, Wash., Longnecker and his wife Lori and many dedicated employees have built one of the most successful dealerships in the Pacific
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Second store gives a large segment of J&I’s market a convenient premium equipment option.
Yelm store has seven employees compared to more than two dozen at Olympia.
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Northwest, growing from $5 million in sales when PET visited back in 2001 to more than $15 million in sales now. They’ve done it the old fashioned way, offering Stihl handheld, Honda Power Equipment and Kubota tractor-industrial equipment for the most part, backed by top notch customer service. Along the way, they’ve embraced efficiencies and technology to build a powerhouse dealership in the south Puget Sound market of western Washington. The dealership opened a second location 20 miles away in Yelm in 2006, weathered the economic downturn at both locations and is picking up more steam as the business grows along with improved economic conditions. Two of the Longneckers’ children, Angela, 38, and Greg, 36, are also heavily involved with the business, with Angela managing the Yelm store and Greg the operations manager at Olympia. Considering this is what he’s done since he was 18, six days a week, Longnecker says it’s getting close for his time to get out. One of his big goals has already been met: Good investments over the years mean he doesn’t have to sell the dealership to retire. Yet decisions remain as to business continuation and what form it will take. Like many dealers and small business owners facing similar situations with a younger generation to potentially take over, some days Longnecker says he thinks they can handle it, some days he worries. Ultimately finding the key seems to be to let go and let them fly whenever possible. “It’s easy to look back and think you were doing better than they are at your age as far as decision-making, but I’m not sure that’s true,” he says. Growing up in and around the business, Angela says even though she worked other jobs in other fields, she was always involved and willing to lend a hand even if it was just running to get something from a distributor or helping out in the busy spring season. But in the past five or six years, as
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her children have gotten older, she’s decided to come back to the family business full time and for the long term.
Setting Goals Though the initial plan wasn’t for Angela to manage the Yelm store, she did move there 18 months ago to get a handle on customer service, after the Longneckers received reports the dealership experience was below par compared to the Olympia store. Angela says what she found at Yelm was good employees with poor direction, lack of a team environment and atmosphere. One of the first things she did was create a set of store goals, not individual ones, to get everyone working together. Even Randy thought the goal she set—a 20% year-over-year increase— was a little too audacious, but she says it’s her philosophy to always aim high. Indeed, the increased teamwork paid off, as the store recorded a 33% sales increase for the year. Angela says she’s tried to implement a culture of total customer service and follow-through. “When someone buys from us, we take that purchase seriously,” she says, “and if someone is considering buying from us we stay in touch and make sure they have all the information they need.” To keep in touch with customers through social media, Angela has developed Instagram and Facebook pages for both locations. “We try to keep people engaged online, and we do a lot of promotional ads on Facebook,” she says. Another neat tool is selling used equipment online through the J&I OfferUp page. “It’s been very successful for us,” Angela says, noting the many customers who say “give me a call” when the store comes across a used mower or tractor. “Instead, we redirect them to check online,” she says, noting that it’s important to keep the page current, with newly available and just sold items added and removed immediately. “It would be hard to reach that many people without the platform,” Angela adds. J&I also uses the Constant Contact email marketing software. Compared to social media interaction, customers are more sensitive about the number of emails they receive Angela believes, so she tends to reserve email communications for major sales events and
J&I President Randy Longnecker and daughter Angela, left, are currently working at the Yelm store, while Randy’s wife and J&I Vice President Lori Longnecker and their son Greg, right, who’s operation manager, work at the Olympia store.
service specials. Longnecker says Angela has taken up the digital marketing effort and run with it. “We don’t sell equipment or even parts over the internet; we never embraced that,” he says, “but I can see how important (a digital presence) is, and part of the success here is her ability to promote through social media.” Personally, Longnecker says he doesn’t do much with social media. “Maybe it’s an age difference thing, but I can also see where it’s very important to business, and dealerships really need to have someone looking after it.” In some ways, Longnecker says digital marketing and social media remind him of old school techniques of developing customer relationships and staying close to those customers for their equipment needs. “It’s like going where the customers are (online),” he says. “What drives us is taking care of the customer, and this is one way she does it.”
Two-Store Coordination Longnecker says before deciding to open a store in Yelm, “We noticed it was getting harder to get to our Olym-
pia store,” for customers from the south end of the county as the area around town began filling up with people and subdivisions. Yelm sits 20 miles southeast of the Olympia market, roughly halfway along a key beltline state highway that stretches along the foothills of the Cascade Mountains some 40 miles between Spanaway on the south end of the Tacoma market to the Centralia area along I-5 south of Olympia. The area is chock full of two- to five-acre homeowners, small farms and other properties that all need the premium power equipment products and service J&I Power Equipment provides. As Longnecker notes, the Yelm location gives all those customers in the south end of the county who might think twice about going all the way into Olympia an easy power equipment sales and service option. The two J&I stores maintain separate dealer numbers in many cases, but much of the equipment inventory tracks through the Olympia location, where there’s a lot more warehouse and assembly room. The Olympia store still does much of the ordering for both loca-
Compared to the large Olympia facility, the Yelm store is more of a traditional lawn and garden equipment shop.
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tions, and while all Honda more than 50% for the first and Kubota units go to six months ending in Olympia, Stihl delivers March compared to last separately to both stores. year. Service operations and “We’ve had a pretty normanagement are a big mal spring,” in terms of part of J&I’s success, and weather conditions, he coordinating service beadds, noting that the next tween the two stores re90 days—April, May and quires playing to each faJune—provide a big chunk cility’s strengths. For exof annual sales. “We’re ample, the Olympia store looking forward to a really has two dozen employees good second half of the with specialized techniyear as well,” he adds. cians plus related support Staffing issues have Ranpersonnel, whereas the dy currently working at the Teamwork approach and digital marketing have Yelm location in a growth mode Yelm facility is more a Yelm store in mostly a sales traditional lawn and garrole as Angela handles overRoad To Success den shop with seven employee’s doing all store management. a little more of everything, including The dealership’s roots date to 1970 as “That’s one of the reasons I’m out assembly, delivery and prep work. an old school saw shop and filing room here—it’s forcing me to take a step “We try to keep the bulk of service at for sawmills. Longnecker’s father, Virback,” he says, adding that it’s been enOlympia because it’s more efficient,” gil, and a partner bought the business in joyable to go back to basics in a smaller 1974, and Randy joined a year later. He Longnecker says. “We have service store in a fast-growing market. remembers in 1978 when they decided to writers, parts people, even a triage It’s also been refreshing to be closer go Stihl exclusive for their handheld line group, and we can run a large volume to the customers than he typically is they were told they’d better get a popular through there.” when working in Olympia, he says. “It’s McCulloch or Homelite line as well beTurnaround time ranges from 48 allowed me to see how, even if the incause no one knew anything about Stihl. hours to maybe 10 days during the dustry is changing, we’re really still in The company expanded in 1996 height of spring activity, Longnecker it for the same reason.” when it was able to add on to the front says. Trucks hauling equipment back With such a large sales and service of its existing building, and Longnecker and forth may only run twice a week in organization, it’s easy to get caught up built an 18,000 sq. ft. building in back winter, but summer sees twice-a-day in managing finances, market share and to house the service department and hauls when really busy. the bottom line, he says, “But it’s really warehouse. The showroom, parts deWhen PET visited late February, the all about being part of the community partment and administrative areas occudealership was doing a good bit of and being here for the customers.” py 8,000 sq. ft. in front. winter service special work, with a Angela says having her dad working When PET visited J&I back in 2001, couple hundred units—mostly mowside by side is “a blessing” as she conthe dealership was bringing in roughly ers—at the Olympia store and trucks tinues to learn the business. The slower $5 million in annual sales. Since then, already making daily equipment hauls. pace at Yelm means they also have that’s ballooned to $15 million. Stihl, Labor rate for both stores is $86/hr., a more time to talk and plan. Honda and Kubota provide the bulk of figure that’s low for his area and prob“We have more time here to interact sales, and the dealership also carries ably needs to be revisited soon, Longabout the business, and he’s able to be Bear Cat chippers, Billy Goat, Cub Canecker says. “You obviously have to more of a mentor to me,” Angela says. det and Hustler, Land Pride attachments watch your rate, but we concentrate “He’s letting me make more decisions, and BE pressure washers. more on efficiencies and flat-rating, and he knows things are a lot different “At this point we’re pretty happy,” ideally,” he adds. now than when he was just starting Longnecker says of the product lineup One thing dealership management has out, especially outside influences on and overall market positioning. “We’ve learned is play to each store’s strengths. customers.” tried different things here and there, but Ideally the two facilities would be cookShe says she plans on continuing the we’ve always tried to stay focused on ie-cutter identical stores, but because dealership’s growth, but realizes “that having equipment that the customer they’re located in different market areas brings on more challenges with inventoneeds, equipment we know will hold in widely varied facilities it’s not possiry management and customer folup,” he says. “We’re problem solvers ble: The Olympia store’s size and space low-through.” for them.” alone gives it more capacity whereas the Noting the potential for much more Yelm store has more of a traditional growth in Yelm, Angela says the founsmall dealership atmosphere. dation her parents have built provides Spring Season Yet the potential for growth at Yelm is the strength and positioning that makes Going into the spring-summer sales big. “It reminds me a lot of Olympia in it possible. period, Longnecker says the dealership 1975 when we were starting out,” LongHaving that foundation makes more is coming off the strongest off-season necker says. “We’re also hearing a lot of growth possible and also makes the it’s ever had. The dealership’s fiscal the same things we did then like customdealership more resilient during a year is different than the calendar, and ers being new to the area, recently buydownturn, she believes. “Our goal is to Longnecker notes that sales are up by PET ing property, those kinds of things.” honor their legacy.” 10
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2018 PET Dealer Survey Report More than 300 dealers responded to biennial Power Equipment Trade Dealer Survey, an endeavor PET has undertaken every other year since 1992.
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ndustry’s power equipment dealer base has responded to PET’s Dealer Survey every other year now for the past quarter century-plus, 26 years since the industry’s longest-running dealer trend database began painting the industry by numbers in 1992. Average dealer age? The dealer base continues to age, as now just over 50% of dealer principals are over age 60, an undeniable trend that’s more than doubled in the past 20 years: 20% of dealers were
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over 60 in ’98, and only 26% of dealers were over 60 in 2008. Employment, revenue increasing: Dealerships are getting bigger, as now
15% have more than 10 employees, compared to ’08 when 10% did, and ’98, when 9% of dealers employed more than . This is also re ected in
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annual revenues, as this year’s survey shows 33% of dealerships are now grossing more than $1 m illion annually, compared to 21% in ’08 and 15% in ’98. One big positive some 10 years after the start of the economic downturn is that business is good: 48% of dealers report sales increases the past two years, including 28% who have seen double digit sales increases during that time. Dealers are responding to the increased business activity, as 23% say they plan to expand in the next two years, either at their current store ( 17%) or by relocating ( 6%) . Two thirds of dealers are positive about the future, with 44% who say their business will grow and 22% who believe their business will hold steady. Service focus: In the 26 years PET has asked the question, the number of dealers who’ll work on any brand of
equipment has stayed remarkably stable: within four points of 50% either way. What does change is the dealers who’ll only work on what they sell ( 13%) , and more dealers appear to be
going that route, compared to 8% in ’98 and 11% in ’08. Technician pay: Twenty years ago, only 28% of the industry’s “top technicians” were paid more than $ 15/ hr. Today, just over 75% of top technicians are making more than $ 15/ hr., including 9% who earn more than $ 30/ hr. Labor rate increases: It’s telling that the range of shop labor rate answer options in the 1998 survey wouldn’t even apply in 2018, the window has shifted so far upward. Today, two-thirds of dealers charge $ 65/ hr. or more, including 15% who charge more than $ 85/ hr. and those
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high-dollar shops ( 3%) posting $ 100/ hr. or more. In ’98 only 3% of dealers charged more than $ 50/ hr. and in ’08 only 21% of dealers were at more than $ 60/ hr. In a related question, 61% of dealers reported they had raised their labor rate within the past two years, and another 10% say they plan on raising their labor rate in the next two years. Streamlining continues: Dealers continue to pare down product line offerings and work with fewer suppliers, as 70% of dealers say they have fewer primary
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handheld or wheeled lines than they did two years ago, and 64% report working with fewer suppliers than two years ago. Web work: Two-thirds of dealers have a web site, 59% of them are independent and 7% are as part of an OEM site. Of dealers who have a web site, 69% say its main function is general store and product information, while 12% each say lead generation and whole good sales are the main function of their sites. Another 6% say parts sales are the main function of their sites.
Lots of dealers don’t want to see any online sales, but that number is going down, as this year 35% of dealers say there should be no online sales, compared to 42% in 2016. Meanwhile, the number of dealers who say online sales should be unrestricted has gone up to 15% now, compared to 12% in 2016. As far as a business presence online in addition to web sites, 59% of dealers say they have a Facebook page, 8% of dealers have a Twitter account, 7% of dealers offer an e-newsletter to custom-
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ers, and 6% have an Instagram page. Looking at getting results from digital marketing, 19% of dealers say social media is their most effective marketing tool, while another 12% of dealers say their web sites and e-newsletters are most effective.
Raised Voices One always fun feature of the PET Dealer Survey is the open question where we ask dealers for their thoughts and
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comments about the future the industry, opinions on any issues, etc. This year, 124 dealers took us up on the offer. And as one might imagine with more than a hundred dealers telling us “how they really feel” about the industry, the responses varied widely: one-liners, paragraphs, funny, sad, insightful and just plain confusing all apply. However, several themes did emerge from the comments— the impact of online sales, the difficulty of finding and keeping good technicians and the increas-
ing popularity of battery-powered equipment were frequently mentioned. Of those who commented, 22 dealers mentioned the impact of online sales on their businesses and the future, while 16 dealers cited technician or personnel issues, and 14 said they see more batteries in their handheld futures. Here’s just a quick sampling of the comments and predictions we received about online sales, which are opposed by 35% of dealers, welcomed by 15% and approved with some restric37
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SPRINGproducts Vanguard EFI Small Block Engine Vanguard from Briggs & Stratton has expanded its lineup of electronic fuel injection (EFI) offerings to include a horizontal-shaft Small Block v-twin engine. The Small Block engine features an open-loop EFI system with e-governing engineered for the demands of the commercial construction and rental markets. Vanguard engineered the Small Block system to deliver fuel based on operator throttle inputs, shifting the system’s primary benefits to power delivery and throttle response, making it ideal for generators and general purpose equipment. Vanguard designed the e-governing system to optimize usable power while providing more responsive and efficient delivery. The e-governing also improves shock load acceptance and speed control, reducing engine droop to near zero. The Small Block EFI engines feature a battery-less backup recoil start for ultimate reliability, even if the battery is dead. The recoil start uses energy generated by the recoil system to power the engine control unit and fuel system as opposed to relying only on the battery for electricity. Additionally, the open-loop EFI system is calibrated for automatic altitude compensation. Visit v gu rdengines.com.
Kioti K9 Utility Vehicle Kioti Tractor’s new K9 utility vehicle series, and its debut model the K9 2400, joins the Mechron series as part of an expanded utility vehicle product offering from Kioti and includes contemporary styling, enhanced ergonomics and an abundance of storage. Landowners will benefit from a new automotive-style dash configuration, tilt steering and front/rear independent dual a-arm suspension with CV joint guards. The K9 boasts a 24 HP, 3 cylinder, in-line vertical, water-cooled Daedong diesel engine with a ground speed up to 31 MPH. Additionally, the K9 has one of the largest all-metal beds in its class with an impressive 1,102 lbs. capacity and an optional hydraulic dump kit. Other key standard features include a 12.5-in. ground clearance with HD, Turf, ATV and Tomahawk tire options; a towing capacity of 1,300 lbs. and payload capacity of 1,598 lbs. Optional accessories include a rear screen, working lamps, remote hydraulic kit, canopy and windshield. Visit k ioti.com. 18
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Husqvarna 525LST Trimmer
The Husqvarna 525LST trimmer is a durable and powerful trimmer designed for professional use. This is a robust trimmer with durable components providing trouble-free use and making it easy to maintain. Featuring the patented X-Torq engine, users will have more power with less fuel consumption and exhaust emissions compared to a conventional engine. Other features include an air purge system that removes air from the carburetor and fuel system for easier starts, an auto return stop switch and other intuitive controls making the choke and purge easy to reach and understand. Lightweight, well-balanced and ergonomically designed, users will experience minimal fatigue while still getting the job done quickly and efficiently. Visit husq varna.com/us.
Billy Goat Next Gen Sod Cutter Billy Goat’s next gen hydro-drive sod cutter now features an exclusive laser clad cutting blade that provides a hardened leading edge and offers three times longer blade life. The blade has a coated edge with proprietary powder material: When tested in harsh sandy conditions, the blade showed 0.04 grams of edge loss over 180 hours of use compared to the same loss on other blades at only 60 hours of use. The recently released next gen hydro-drive sod cutter is built upon the most rugged frame in the industry and features a heavy-duty gear box and cutting system with oversized sealed bearings, tight shaft mounted eccentrics and a 1-in. lateral stability bar. Other user-friendly features include an hour meter, a heavy-duty front bumper bar and six convenient tear drop tiedown points for stable, safe strapping during transport. Operators will also appreciate the reverse feature when backing out of a truck or trailer, or when coming up against a fixed object while cutting. A reliable 133cc Honda GXV engine, backed by a threeyear limited warranty, powers the next gen sod cutter from Billy Goat. The machine carries a one-year limited bumper to bumper warranty. Visit b il l ygoat.com/ na.
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SPRINGproducts Rotary Fuel Stabilizers A complete line of small-engine fuel stabilizers and treatment additives are featured in Rotary’s 2018 master parts catalog including Sta-Bil, Ethanol Shield, PRI-G and pre-mixed VP Fuels. Fuel stabilizers from Rotary are ideal for lawnmowers, chain saws, snow blowers, generators and other types of 2- and 4-cycle engines. The additives help prevent corrosion and gum or varnish buildup from ethanol-blended fuels. Use for prolonged storage or at every fill up to remove moisture and clean carburetors, fuel injectors and intake valves for improved engine performance and fuel economy. Rotary’s stabilizers and additives are available in a variety of sizes, from 4 oz. bottles to one-gal. bulk containers. Rotary’s 2018 catalog is free for servicing dealers and distributors, and it is now available to download in PDF format at rotarycorp.com. Backed by an exclusive parts warranty that ensures quality and performance, Rotary offers a wide range of power equipment parts and accessories for lawnmowers, trimmers, chain saws, brushcutters, pressure washers, snow blowers, garden tillers and more! Visit rotarycorp.com.
Honda V-Twin Engine Series Honda V-twin engines are designed to offer more power and adaptability with greater fuel effi ciency in a more compact package for a range of product applications. Honda v-twin models ( GX/ GXV630 and GX/ GXV690) , available in horizontal and vertical shaft configurations, are well suited for commer cial turf, construction and rental equipment and off-road, light utility vehicles. ore specifically, these engines are designed for demanding, power-hungry, commercial applications including zero-turn mowers, lawn tractors, trenchers, stump grinders and chipper/ shredders. Featuring an advanced style that looks different from other engines in their class and providing increased functionality, Honda v-twin engines are more compact and offer greater versatility. A number of elements, including a hemispherical combustion chamber, an integrated cylinder and cylinder head, forged steel connecting rods, a 9.3:1 compression ratio, a digi-
tal CDI with variable ignition timing, and twin barrel inner-vent carburetion, contribute to overall enhanced operation, fuel efficiency and emissions performance. Honda is the world’s largest manufacturer of engines for a diverse array of automotive, powersports, marine, aerospace and power equipment products. The company offers a complete line of small, general-purpose engines that supply smooth and dependable power for thousands of different product applications in the industrial, commercial and rental industries along with the consumer and residential markets. Honda’s fuel-efficient, 4-stroke models provide easy starts, quiet low-vibration operation and dependable power—helping people get things done. Visit engines.honda.com.
Stihl RB 800 Pressure Washer The new Stihl RB 800 is the most powerful industrial strength high-pressure washer in the Stihl line, boasting a 429cc (14.0 HP) engine delivering 4,200 psi hitting the toughest heavy-duty commercial cleaning projects with up to 4.0 GPM. And it is built for extensive use, featuring premium commercial-grade triplex pump components: Brass manifold design, stainless steel valves and solid ceramic pistons for longevity and durability. The 50 ft. durable, steel-braided hose limits frequency of relocating machine while working. Premium engine features include durable cast-iron liner and low oil shutdown feature to help prevent engine failure, while the adjustable pressure regulator on pump allows for user adjustment to match the cleaning job. The fold down handle design allows for compact storage to save space, and every machine comes standard with detergent injector system for efficient cleaning—complementary to multiple Stihl cleaners that are hard-water-stable to prevent staining (the all purpose cleaner for general use; deck and house wash for build up on paint; and the heavy-duty degreaser for stubborn dirt and grease). The RB 800’s accessories are optimized for cleaning performance: Rotary surface cleaner and water broom attachments designed for large surfaces such as driveways, decks and sidewalks. Additionally, there are three nozzle options available, a multi-function nozzle offers versatility of six spray patterns; a long range detergent nozzle allows application of detergent in hard-to-reach places; and a rotating 5,100 psi nozzle for stubborn stains requiring more aggressive cleaning. Competitively priced at $1,299.95 MSRP, the Stihl RB 800 features a protective roll caged frame to help protect engine and pump components. Visit STIHLusa.com. POWER EQUIPMENT TRADE
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Five Minutes With Walker Mfg.’s Bob Walker Longtime mower supplier and industry innovator Walker Manufacturing is celebrating its 40th anniversary this year.
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dding to the four decades celebration this year is also a celebration marking production of the 150,000th Walker mower to come off the line, an achievement that will be noted during the company’s “Family Reunion” celebration this year at its Ft. Collins, Colo. Bob Walker headquarters and manufacturing facility. “We are a company that likes to celebrate,” explains Walker President Bob Walker. “We believe taking time to recognize achievements both big and small helps keep a company healthy and reminds us of our blessings.” Here, PET spends a few minutes with Walker as the busy spring-summer sales season moves into high gear: Power Equipment Trade: As a strong family-owned company, tell a bit about your family history with Walker Mfg. and family involvement. Bob Walker: My father and mother started the company, manufacturing the Walker Executive Golf Car in 1957. My brother, Dean, and I joined the company in 1975, and we built our first Walker Mower prototype in 1977. My brother and my dad did the design work, and I focused on sales, marketing, finance and business. PET: You’ve been quite successful 20
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competing in a marketplace with lots bigger companies. Any secrets to your success? BW: Our approach to the market is to design and build machines that are not available from other manufacturers. Unique, high-valued machines allow us to compete with bigger companies. Thinking about our start in the mower business, we had the little slogan—“If you can’t buy it, build it,” and so we did. PET: How’s business right now? Good last year? Prospects for this year? BW: Last year was a good year of increasing sales, with export markets recovering nicely and a modest increase in domestic sales. Now completing the first six months of fiscal 2018, we are again seeing some nice single digit growth. PET: Are there any special plans or programs for dealers that Walker is working on right now? BW: Our “Out Front Advantage” factory sales training program for dealers has been well received since introduced in 2013. Over 600 dealer sales personnel from all over the world have attended the two-day program. With the Family Reunion celebration of the 150,000th Walker Mower this summer, we are taking a one year hiatus on sales training but will be back for summer 2019. Also our Dealer Showroom Enhancement program for creating Walker Space at dealerships is being received with enthusiasm by many dealers. PET: Are there any special product features or benefits or general improvements you’re working on right now? BW: We have a continuous improvement program for our existing product
Walker showroom program boosts dealers.
line. There are several new models of tractors (ride-on power units), mower decks and attachments that are in development for introduction in 2018 and 2019. The Power Tilt-Up option for the Model H mower deck and the new tractor model H37i are a couple of our most recent introductions to the market. PET: How important are dealers to Walker’s R&D effort, feedback from the field, etc.? BW: Our distributors, dealers and end-customers have all given valuable input to us on product improvement and new designs. We readily admit that we don’t have all of the good ideas, and so feedback from the field is welcomed and helps us keep moving ahead. PET: What do you want dealers to think when they think of Walker Mowers? BW: We would like dealers to think of Walker as a high-valued, high quality product, produced by a family-owned manufacturing company in Colorado, in the U.S. and know that Walker products are sold only by a single channel network of servicing dealers around the world. While dealers have seen many other brands of power equipment come and go over the last 38 years that Walker has been on the market, Walker remains as an exclusive opportunity for dealers. PET
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INDUSTRYvoices
Cold Weather Means Engine Starting Problems Ever talk to customers about how winter’s temperature outside can affect engines starting in the spring?
tains up to 1% water. In an effort to learn more about the amount of water in pumped gas, B3C Fuel Solutions obtained gasoline straight from the pump at various gasoline providers in multiple states, and then tasked an ISO cerBY BRIAN BOEZI AND GREG ALLEN tified laboratory perform a Karl Fischer he average U.S. temperature in analysis. For those that early January this year was might need a chemistry around 11° F. This unusually cold class refresher, a Karl weather may be the reason for engine Fischer analysis, inStarting problems mean an opportunity to offer a liquid fix. starting problems throughout this vented in 1935 by Gerspring. Unfortunately, engine starting man chemist Karl two years. Although this is problematproblems in relation to the weather are Fischer, uses either measurable elecic, you can turn this problem into an tricity or measureable volume opportunity. to determine amounts of waFirst, use this opportunity to educate Water is the greatest enemy to fuel ter in a sample. your customers about some of the many The findings showed that evfactors that cause equipment to fail to and engine systems in equipment. ery sample had water exceedstart. Then show them: B3C’s Mechanic ing 1,000 PPM (parts per milIn A Bottle 2-in-1 gasoline quality test driven by a number of factors working lion), which is considered the high swabs allow you to quickly and easily together—and not just because it was ASTM specification for ethanol to meet identify if they have water in their gas, extremely cold. fuel grade standards. Now, think back to as well as identify if the fuel is fresh or Water is the greatest enemy to fuel January, February and even March: At stale. But don’t just point out the proband engine systems in equipment. lower temperatures, phase separation, lem—offer a solution. Whether it be a Pump gas, or any gas containing ethawhen water enters a tank that contains an product that will clean the fuel system nol, by design will contain water beethanol/gasoline-blended fuel, can occur without removing the carburetor or ofcause the ethanol used for fuel conwith very little water present. This will fering a premixed ethanol free gas, the mean more startconversation gives you a revenue opPET ing issues for cusportunity for a liquid fix. tomers. Brian Boezi is the President, CEO and Finally, it is chief scientist of B3C Fuel Solutions, comcommonly bining his knowledge of engine mechanics known that “year and his expertise in the field of chemistry to two” is often the develop products and solutions that resolve time a piece of modern fuel related issues. With over 25 years of experience, Brian is also sought by equipment expemajor industry participants to consult about riences starting problem discovery and resolution. issues—even unGreg Allen is the Vice President of Marder normal condiketing for B3C Fuel Solutions, leveraging tions—however his experience in brand management, adlast year was not vertising, public relations, partnership maras cold as this keting and more to drive the marketing efyear! And it isn’t forts for B3C and its core brands, including even as cold as it Mechanic In A Bottle and Ethanol Shield has been the last Fuel Stabilizer.
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DEALERvoices
Remaining Professional As dealers, Sam Stearns believes you are largely responsible for the way your customers treat you and react to you. BY SAM STEARNS
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enerally, I like to address issues in this column that we as dealers can do something about. That’s just kind of how I think, I guess. Why would I get hung up on something I have no control over? But if I can do something to improve a situation or avoid a bad situation, that’s exactly what I want to focus on. In my last column, I broke from this general trend and directed my voice toward manufacturers and distributors, whose sales reps can often act and speak unprofessionally to us dealers. But this time, I want us to focus on ourselves again. After addressing how OEMs treat and talk to their customers (that’s us!), I now want us to consider how we talk to and treat our own customers—the people who pay us. I have a confession to make: I love my customers! I genuinely appreciate them because the reality is that they come to me only because they choose to, not because they have to. And I take it as a personal compliment when someone I’ve done business with shows up at my door or calls my number a second time. My customers and I have a very harmonious relationship. I like them; they like me; everyone’s happy. Of course, there are exceptions. However, those are extremely rare in my experience. But I’ve been noticing something lately. I’ve been in places that have given me the opportunity to hear and see what other dealers say about their customers, and what I’m hearing from them is a lot different from my experience. I hear a lot of dealers gripe about how dumb their customers are, or how inconsiderate or unreasonable or confrontational they are. I 24
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have a pretty small operation here (it’s just me), so I know there are some parts of this business I don’t know as well as those of you who have been doing this for a few decades or have at least a couple employees. But I’ve been in this business 12 years now, and I figure the people I deal with aren’t any different from the people everyone else deals with. There’s really nothing unique about my small town or the people in it.
You probably won’t do business with many of his friends either. I don’t know about all you guys, but in my business, I simply can’t afford to alienate people. It’s bad for business. I heard a statistic recently that a customer who has a bad experience at your dealership will tell, on average, 10 people about his poor experience. And each of those 10 people will spread the story to an average of six people. So that’s 60 people whose business you’re not likely to earn any time soon. Call me crazy, but I’d want to nip that process in the bud.
Change Your Attitude
Most of the time, we can be successful in reducing or stopping this damage to our business if we stop viewing our displeased customer as an adversary to defeat and start viewing them as a challenging person to win over. I’m a big proponent of swallowing my pride and viewing Change Your Thinking the situation from the other person’s perWhy on earth am I not experiencing spective. Try to determine why your custhe kind of headache that a lot of you do tomer is unhappy, and seriously consider when one of your customers gets hot if you’d feel any differently if you were in under the collar in front of your service his shoes and didn’t know the things he counter and storms didn’t know. (And a lot out the door, ranting of them don’t know I take it as a personal and cussing the whole much of anything, but way, and then leaves that’s why we’re in compliment when you a nasty 1-star rebusiness, right?) In my someone I’ve done view on Facebook? I experience, I’ve nearly think I’m starting to business with shows up always been able to unfigure out the answer derstand my unhappy at my door or calls my to that question. As I customer whenever I number a second time. listen to dealers talk took this approach. about their obnoxious, Once I understand stupid, and unreasonable customers, I them, I’m in a much better position to win also get to hear how these dealers rethem over, and I’ll have a much better spond to them. And I’ve come to a conchance of getting their money in the fuclusion: If I said the same things to my ture, as well as their friends’ money, customers that a lot of other dealers say which is really what we’re in business for, to theirs, I believe I’d have a lot of the right? same angry customers they do. So let’s reorient our thoughts about our My fellow dealers, we are largely recustomers. They put food on our tables sponsible for the way our customers and in our families’ mouths. Learn from treat us and react to us. If we’re having the mistakes you make that rub them the trouble with customers getting angry at wrong way, and be quick to apologize. our dealerships, we are likely the largest You’ll have happier customers, they’ll part of the problem. give you more money, and your blood I’m always amazed at how many pressure will be a few points lower. I dealers view their customers as oppoguarantee it. nents, as adversaries. When their cusBe the kind of dealership you would tomer says something mean spirited or want to do business with. Would you do PET leaves a nasty online review, they feel business with you? justified responding in-kind. If you’ve Sam Stearns owns and operates Mr. Mowdone this, I hate to break it to you, but er Man, Scottsburg, IN, 47170; e-mail: mr. you’ve just blown to smithereens any mowerman@hotmail.com. The views of Sam chance you may have had at earning Stearns do not necessarily represent the views of Hatton-Brown Publishers, Inc. this customer’s business ever again.
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SHOWroom FEATUREproduct
Wood-Mizer Zero-Turn Mowers Since 1982, Wood-Mizer has earned a reputation as a forestry equipment manufacturer with a strong legacy from its innovative wood processing products. Now, the parent company of Lastec, has engineered a residential zero-turn mower released for the first time under the Wood-Mizer name. Built in the U.S., the WR series mowers from Wood-Mizer are available in 52- or 61-in. mowing decks and powered by a 26 HP Kohler gas vertical shaft engine and dual integrated hydrostatic transaxle Hydro-Gear ZT-3100 transmission. Both mowers feature a 1- to 4.5-in. adjustable cutting height. With fully welded-steel decks, heavy-duty fabricated frame and durable powder-coat paint finish, Wood-Mizer mowers are a durable, dependable zero-turn mower that is engineered for years of heavy-use. The ergonomically designed adjustable operator control seat accomplishes optimal control and comfort with large diameter control handles. Premium components including Kevlar belts and commercial-grade drive motors increase run times and require minimal maintenance. The mowers are backed by a three-year or 300 hour warranty. Visit woodmizer.com/us/products/mowers.
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SHOWroom Yamaha MX-V Series
ENGINES
Yamaha’s new MX-V carbureted engines are designed for high fuel efficiency, without sacrificing performance, to increase zero-turn mower run time. Using feedback from the market, the MX-V series was built from the ground up with a focus on power, torque, reliability and simple serviceability. The vertical v-twin engines feature power and torque to provide a smooth, even cut with consistent speeds even in difficult high-grass conditions. The MX-V engine series now includes both electronic fuel injection (EFI) and carbureted models. MX-V engine development tapped into Yamaha’s advanced sound engineering technology to reduce vibration and noise, maximizing user comfort. An optional stainless steel muffler designed in conjunction with the engine’s development is tuned for optimal sound and performance and further improves operator comfort. The new muffler is an included component of the three-year engine warranty. Visit yamahamotorsports.com/multi-purpose-engine.
Kohler Command Pro 999cc Kohler has integrated an electronic throttle body into its Command Pro EFI 999cc engine, which electronically controls intake airflow—much like in automobile engines—to optimize power and load response. The electronic throttle body is combined with Kohler’s proven electronic fuel injection (EFI) system, as well as the latest engine cooling technology, in the updated Command Pro EFI 999cc to deliver a range of benefits, including quick and easy starting, excellent fuel economy, improved durability and enhanced response in challenging mowing conditions. Ideal for commercial zero-turn mowers, the Kohler Command Pro EFI 999cc is available in models between 35 and 38 HP. Durability and performance features are numerous and include large-capacity filters, high-performance spark plugs, hydraulic valve lifters and a fully-integrated oil cooler. For added peace-of-mind, the engine is also backed by Kohler’s threeyear commercial warranty. Visit kohlerengines.com/EFI.
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SHOWroom
PARTS
Cub Cadet Fastattach
Cub Cadet’s new FastAttach blade technology allows operators to change blades faster and easier than ever before. The FastAttach blade system has been rigorously tested for safety and security, and includes Secure-Lok technology, which ensures the blades are in their proper position and stay securely in place, until the next blade change. The FastAttach high-lift bagging blade system is standard on select 2018 Cub Cadet models. Cub Cadet also offers two additional FastAttach blade options: The Xtreme mulching blade recycles grass into finer clippings, whereas the FastAttach sand blade lasts up to three times longer than standard high-lift blades in sandy conditions. Visit cubcadet.com.
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SHOWroom
MOWERS Gravely Pro-Turn Z
Wright Mfg. 42-in. Stander I
Gravely’s newly introduced Pro-Turn Z was designed with several of the features commercial cutters have come to love on Gravely’s Pro-Turn line, at a more affordable price point. Packed with features like an industry-leading frame and deck sizes available in 52- or 60-in., the Gravely Pro-Turn Z is a durable zero-turn built to withstand work in any environment. The Gravely Pro-Turn Z has a 10-ga. welded deck design that’s 5.5-in. deep with a reinforced leading edge that provides the airflow needed to tackle tough mowing conditions. Built on a large formed tubular frame rail, the Pro-Turn Z is also built on an industry-leading large formed tubular frame rail, which serves as the backbone to support the loads of the machine. Larger front and back tires add to the machine’s durability and efficiency, while the easily-serviceable Hydro-Gear ZT3100 transmission reduces downtime. All models are available with new Gravely 23.5 HP engines, which are serviced directly by Gravely. Visit gravely.com/en-us.
Wright Mfg., in response to customer feedback, has expanded the Stander Intensity lineup to include a 42in. aero core deck option. The 42-in. floating aero core deck tilts side-to-side and front-to-back, allowing the mower deck to better follow terrain contours. The deck height can be adjusted “on the fly” in quarter-inch increments, and anti-scalp rollers automatically adjust the deck height to changes in terrain. The floating stand-on platform absorbs rough terrain through elastopolymer bumpers that provide a dampened feel similar to a car. The bumpers are progressive to accommodate various weight operators. The wide stance provides greater control and its forward slant makes the controls more ergonomic. In addition to the 42-in. deck, Stander I mowers are also available with a 36-, 48- and 52-in. deck sizes. Engines range from 18.5 to 22.1 HP. Visit wrightmfg.com.
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4331
Southeastern U.S.
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TX, OK, AR, LA, NM, MS
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Nationwide
MN, ND, SD, IA, TX, WI
DE,MD,NJ,NY,PA,VA,W.VA,NH,VT,CT,RI,ME
Do you offer products in the power equipment industry? Advertise your company to PET’s 16,000* subscribers nationwide in our Distributor Library section.
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Western U.S.
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Shelby County Implement • Shelbina, MO 63468 Ph: 573-588-4731 • 573-588-2020 Email: sci63468@hotmail.com M/C, Visa and Discover Accepted 3524
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16 tions by 50% of dealers: “Parts sales are being lost to Amazon and other online stores. That’s our highest profit department. . .The dealer is being pushed out by the online sales of parts and equipment. . .continued shift to online purchasing by average customer. . .more online sales, particularly parts. . .continued shift to online purchasing by average customers. . .online sales are killing “front door” retailers across the board. . .increasing internet parts sales, even distributors are getting into that act. . .need to sell online to compete. . .I have had great success reducing my parts inventories by using eBay. . .” And here are several dealer comments that touch on a variety of topics: “I believe battery products will play a large role in power equipment industry. 3D printing of parts will be a major player. For a dealer to stay in business in this environment he must be diversified. Focus on brands that provide good margins. Stay up to date with technology and offer top notch service. A strong focus on an efficient service and parts department is a must.”—Glenn Leid, Nolts Power Equipment, Shippensburg, Pa. “Power equipment sales and service is primarily being handled by an older group of people. I don’t see a lot of interest from the next generation. They are better educated than we were and see better opportunities elsewhere.”—David Thomas, Dave’s Power Equipment, Inc., Great Bend, Pa. “Small market power equipment dealers must diversify to survive. Hand-
held market will be 90% battery power within five years.”—Roger Zerkle, Zerkle Diversified Enterprises, Flat Rock, Ill. “I am 63 years old. While I train my own techs, it is impossible to find reliable, trainable young men. In covering the deficiencies of milennials, I am working longer hours than ever. I have
adopted plans for semi-retirement. I have eliminated most whole goods sales because I am surrounded by at least two of each mass merchant with power equipment sales. In the next two years I plan to transform my continually growing business into a hobby I can run in semi-retirement. I don’t see much of a future as internet sales will hurt the dealers that have significant separation from the big box retailers.”—Rob Leiser, Leiser Rental, Easton, Pa. “There is a large generation retiring from our business and no skilled workers to fill in the gaps. This will become a very specialized field in the next couple of years and that may push people to make their equipment disposable rather than trying to fix items. It is good for us dealers that can hold the line and wait for that generation to retire, but in the meantime, with smaller and smaller margins every year, our fellow businesses are dying quickly.”—Stephanie Charette, Tractors 2 Trimmers, Woodstock, Conn. “Battery is definitely the next wave. Better get on board with that. Being a medium-sized business will be harder and harder to maintain. Shop closings will continue, dealer consolidation will also be a big deal moving forward. The industry will begin to follow Deere’s lead here. And as always, hiring dependable employees will remain a challenge.—Philip Socorso, Foulk Lawn, Wilmington, Del. PET Dan Shell and Jessica Johnson—and the 300+ dealers who took the time to fill out the survey—contributed to this report.
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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. ADVERTISER
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DEALERtodealer
Getting Your Digital Dollars Worth GREG GERMAN
Don’t miss out on creating some of the best ROI possible with highly targeted advertisement opportunities available only online.
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igital marketing, SEO, PPC, banner ads, impressions, click thru rate, average position, conversion rate: Do these terms mean anything to you? If so, great. You are probably on your way to creating some of the best return on your investment for your advertising dollars that you have ever realized. If these are foreign terms to you, then you are likely missing out on some highly targeted ways to make sure that you are reaching the specific kinds of customers that you want to drive into your dealership. PET has already spent considerable amount of editorial time in this area and I am hoping that you have taken the time to read some of those articles. But for those of you who have not, maybe a few words from one of your fellow dealers will be enough for you to invest some of your time to learn about one of the most exciting changes to happen to marketing in decades. Traditional advertising space such as the yellow pages, newspaper display ads, radio and even TV commercials, are going through a difficult time of transition as more and more marketing dollars are getting soaked up by companies like Google, Bing, Amazon and Facebook. As an example, our dealership right now spends almost 90% of our annual advertising budget on digital ads. We no longer utilize the yellow pages display ads; we purchase very little newspaper print, radio or TV. The reason is simple. With digital ad-
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vertising such as Google and Bing, we can pay to have our ad show up in specific areas when customers are searching for specific keywords that match up with what we sell. By advertising your products and services on Facebook or other social media channels, you can specifically target who will see the advertisement based on geographical area, income, personal interests, hobbies and many other key aspects of who fits your targeted customer. Today, most of your manufacturers are working in this marketing arena. They have probably presented you with turn-key digital marketing plans so that their marketing representative will take
kets do you want to reach; and most importantly, who is your target customer in each market. If you can give them this simple information, they can put together a robust marketing plan that will give you a much greater return on investment than doing the same old tired plan of the yellow pages, radio ads and newspapers. Do you ever really know when those types of media are working and when your dollars are wasted? I am guessing you don’t. This is my challenge to you: If digital is new to you, search out an advertising firm that is interested in creating a long term relationship with your company, but is willing to prove themselves to you first. Ask them to create a small digital campaign on a particular product line for you. Pay them for the advertising and have them monitor the results with you. Make sure that you have them design a program that has a specific call to action for the customer so that you can see how well it impacts your target audience and you can measure the results. This will allow you to see how the
By advertising your products and services on Facebook or other social media channels, you can specifically target who will see the advertisement based on geographical area, income, personal interests, hobbies and many other key aspects of who fits your targeted customer. your investment and target the customers in your specific geography. Sound good? Maybe. I am usually a bit wary of these types of programs—that doesn’t mean that I don’t take part in them, but I am going to understand them before I hand over my greenbacks. One of the better decisions that I have made over the past few years was to hire an impartial third party to help us develop our annual marketing plan. I have written on this before, but in your marketplace, I would bet that you can find a small marketing firm that has the necessary expertise in-house to help you spend your dollars more wisely and to educate you on digital marketing. Your job is to educate them on your business; what you do well; why you are better than the competition; what types of different equipment mar-
advertising firm works with you and what kind of results they can create with this new medium. If you like what you see, then you can begin a longer-term relationship with them. If done well, your real investment is nothing because your dollars spent will be so much better utilized through efficient targeting. Digital is here to stay—there is no better time to make sure you are leveraging PET it for your success.
Greg German is President of German-Bliss Equipment, Inc. in Princeville, Ill., which operates two power equipment dealerships that market products for the lawn and garden, industrial and agricultural sectors. He can be contacted at P.O. Box 440, Princeville, IL 61559; fax 309-3852540; e-mail: ggerman@german-bliss.com. The views of Greg German do not necessarily represent those of Hatton-Brown Publishers, Inc.
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