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POWERlines

A Hatton-Brown Publication www.poweret.com

OPEI Gives Us A First Look At 2020 JESSICA JOHNSON

t’s decidedly not really ever “fall,” where PET is headquartered in central Alabama, thanks to temperatures at or above the 90° mark in October, but still the calendar flips to October and my mind automatically drifts. It’s the end of the year; the meaty part of college football is about to begin and my Crimson Tide are, after looking not quite their always NFL quality best, ready to show what they are really made of with conference games and, God willing and the creek don’t rise, a spot in the CFP. My mind drifts to cooler weather, holidays and another year closing. The year 2020 is going to be a difficult one for our country, with the extended election cycle and those growing weary of whichever side they find offensive. In the past, election years have pointed to a somewhat unstable economy but consumer confidence remains high for next year. With those considerations, the Outdoor Power Equipment Institute (OPEI) released its fall quarterly forecast, predicting a strong finish to 2019 and growth in U.S. shipments of power equipment in 2020. “Our forecast indicates that 2019 will finish with moderate year-over-year growth in several key segments, and the industry will post more gains in 2020,” Kris Kiser, President and CEO of OPEI said in a statement. “We continue to see advances in commercial-grade mowers used by professionals, and battery/electric equipment continues to pace growth in consumer segments. As an example, 2019 will be the first year of more than 1 million battery/electric walk-behind mower shipments.” The forecast was released at OPEI’s Market Statistics Forum, an annual daylong event open to all association members that fosters discussion and analysis of industry and macroeconomic trends impacting the business. Kiser adds that key macroeconomic indicators—GDP growth of 2%, dropping interest rates and historic low levels of unemployment—bode well for another year of steady growth for the power equipment industry. “As we look to 2020, we’re predicting equipment shipments to post gains of 2 to 5%, depending on the category.” OPEI projections use as their basis the compiled monthly shipment data reported by OPEI members, constituting more than 90% of all shipments in the U.S. market. OPEI projections reflect shipments of products to include all power sources (gas, battery, corded, diesel and propane).

Highlights Include Commercial mower (zero-turns, intermediate walk-behinds) shipments will grow 7% in 2019 over 2018. Forecast for 2020 is another growth year of 5%. Handheld shipments will rebound in 2019, with 3% growth over 2018. Forecast for 2020 is another growth year of 2%. The driver of growth is battery-powered products. Wheeled shipments (walk-behind mowers, consumer zero-turns, tillers) will be down 1% overall in 2019 over 2018, but are forecast to rebound with 2% growth in 2020. Notably, battery-powered walk-behind mower shipments grew considerably in 2019, and are forecast to do the same in 2020. OPEI first started its shipment data collection in 1953, and has since expanded the program to include more than 30 products across multiple power sources, reflecting the innovation and growth in the U.S. market. All OPEI members that ship the subject products in the U.S. are eligible to participate in the program, assuring that OPEI data in most cases constitutes near full market representation. Additionally, all OPEI forecasts are developed through a third-party working in consultation with member manufacturers. Only time will tell if these forecasts are correct, and I’d love to hear from dealer-readers about their own 2020 projections. My inbox is always open. PET Contact Jessica Johnson; ph: 334-834-1170; fax 334-834-4525; e-mail: jessica@hattonbrown.com

Hatton-Brown Publishers, Inc. 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 Publisher/Adv. Sales Manager David H. Ramsey Chief Operating Officer Dianne C. Sullivan Editor-in-Chief n Rich Donnell Managing Editor n Jessica Johnson Senior Editor n Dan Shell Senior Assoc. Editor n David Abbott Associate Editor n Patrick Dunning Contributing Writers Greg German, Sam Stearns Publisher/Editor Emeritus David (DK) Knight Art Director n Cindy Segrest Ad Prod. Coordinator n Patti Campbell Circulation Director n Rhonda Thomas Marketing/Media n Jacqlyn Kirkland 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 Reprint Sales Patti Campbell Tel: (800) 669-5613 patti@hattonbrown.com

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Volume 68

Number 5

OCTOBER 2019

Our 734th Consecutive Issue

Founded in 1952

Renew or subscribe on the web: www.poweret.com

FEATUREstories

10 WILMINGTON LAWN & LEISURE 16 GIE+EXPO 2019 20 DEALER SPOTLIGHT Family Run Dealership Stays Strong

Everything Dealers Need

Oregon’s Ed’s Mower & Saw

VALUEadded Power Suppliers ______________________________ 6 Expo Elite ___________________________________26 5 Minutes With... _____________________________34 Showroom __________________________________36 Industry Voices ______________________________38 Distributor Library ___________________________ 39 PowerWorks ________________________________44 PETcetera/Ad Index __________________________45 Dealer To Dealer _____________________________46

COVERphoto Wilmington Lawn & Leisure has seen three generations at its helm throughout the years, all while remaining true to its roots—quality products with quality service after the sale. Story begins on Page 10. (Cover photo by Jessica Johnson, design by Shelley Smith)

16 20

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 ® 2019. 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 Rotary Announces National Sales Awards

Rotary Corp. recognized several team members for outstanding performance in sales and leadership during the company’s national sales meeting in July in Lake Oconee, Ga. The Duke Award, named in honor of the company’s late founder, Duke Harvey, was presented to Bill Parker. Parker was recognized for consistently displaying “competitive and positive efforts” to ensure continued growth and success at Rotary. He was also honored for recruiting the highest number of new dealers during the past year. Sid Cox, Cindy Deloges and Brannon Underwood were the recipients of outstanding sales awards for the largest quantity of Copperhead Blades sold by category. Terry Clauson and Chris Gould received awards for the highest Copperhead Trimmer Line sales. Rotary’s Rising Star Award was presented to Dave Kaip, who achieved the highest increase in sales, while Darrell Mullins won the Rookie Award for recording the largest sales increase in his territory during a three-five year period. “We are pleased to recognize our outstanding sales team which has been instrumental in the growth and success of our independent dealer network,” comments Ed Nelson, President and CEO of Rotary. “Our sales representatives continue to excel in helping dealers improve their profitability through sales promotions, pre-season incentives and growth initiatives. Our commitment to building strong relationships with our dealer partners has always been job one at Rotary,” he adds.

Altoz Announces New Finance Partner Altoz, Inc. has finalized a retail financing program with Western Equipment Financing, a full-service commercial equipment finance company that provides both conventional financing for commercial customers and lease-purchase options for municipalities and government entities. Western Equipment Financing offers credit decision in less than 60 minutes with fast, hassle-free customer service and streamlined documentation. “Altoz consumers deserve every possible financial advantage when purchasing our products,” Karl Bjorkman, Sales and Marketing Director at Altoz, says. “Our partnership will help open quick financing or lease-purchase options for new and used Altoz mowers that didn’t exist before.” The lease-purchase program is a dis6

OCTOBER 2019

tinct advantage for municipalities and government entities that need to preserve their operating budgets. The retail financing program for commercial customers offers distinct advantages to finance new and used Altoz mowers at competitive rates and helps those with sub-prime and limited credit history financing options.

Briggs Expands In Missouri

Briggs & Stratton has announced the expansion of its current facility in Poplar Bluff, Mo. creating 130 new jobs over the next 12 months, with an average salary of $36,531, and additional hiring in 2021. The project represents a capital investment of $15 million to help streamline production and increase the utilization of available square footage. Poplar Bluff Chamber of Commerce President Steve Halter says, “We have

been a Briggs & Stratton town for over 30 years now and are proud to have such a great employer and supporter of our community.” The company selected Missouri following a competitive process with Kentucky. Poplar Bluff was chosen for the expansion due to the availability of a skilled and trained workforce as well as several buildings that could accommodate new product lines. One of the Missouri Department of Economic Development department’s new programs, Missouri One Start, was key in the company’s decision to expand. Through this program, $175,000 is available to Briggs & Stratton to train new and existing employees. In addition, Missouri One Start will provide the company with personalized recruitment and screening assistance to ensure the company has the skilled workforce they need to be successful.

John Deere Releases Virtual Reality

John Deere recently unveiled an augmented reality experience that allows Apple iPhone or iPad users to interact with a virtual John Deere Z994R diesel ZTrak zero-turn mower and explore its physical features. With the new feature, customers can use their iPhone to drop the mower into their surroundings, whether it be their yard or in unexpected places such as their work cubicle. Using the link on the Z994R model page of the John Deere website, users with an iOS12 device can drop the machine into the space around them using “Quick Look” technology. This augmented reality experience enables users to spin the mower around, resize it and go inside the mower deck to see the blades. Users go to the John Deere website using the Safari browser to enjoy this experience without downloading a special application, making it easily accessible to customers. To experience the John Deere Z994 in augmented reality, visit the Z994R model page on Deere.com. This experience is only available while using the Safari browser on an iOS12 Apple iPhone or iPad.

Yanmar Acquires ASV Holdings

Yanmar Group has announced the completion of its acquisition of compact equipment manufacturer ASV Holdings Inc. (ASV), a designer and manufacturer

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POWERsuppliers of compact tracked loaders and skid-steer loaders. The announcement is the final step in the acquisition, following a disclosure in June 2019 of a definitive agreement to acquire the company through the mechanism of a statutory merger. Yanmar has acquired 100% of ASV’s outstanding shares of common stock for total consideration of $70.70 million, or $7.05 per share. ASV’s independent dealer network throughout North America, Australia and New Zealand will join Yanmar’s existing global construction equipment operations. The company also sells OEM equipment and aftermarket parts, and owns and operates a 238,000 sq. ft. production facility in Grand Rapids, Minn.

been together ever since.” “The TurfMutt program was greenlighted by the OPEI Board of Directors, but Lucky was the ‘dog force,’” adds Kiser. “People, and especially children, related to the personality of a real dog and he became a great teacher for many. Lucky’s story is a redemption story because he went from being a street dog to being a backyard superhero that inspired others.” Over the last 10 years, environmental

education lessons featuring Lucky were distributed to children in grades K-8 through partners Weekly Reader, Discovery Education and Scholastic, the TurfMutt youth curriculum’s current home. Lucky also was animated and “cartoonized” in videos and the program developed a robust online presence with www.TurfMutt.com and social media platforms. “Thanks to this dog, we at the TurfMutt Foundation look at yards a differ-

OPEI Launches TurfMutt Foundation

The Outdoor Power Equipment Institute (OPEI) has officially launched The TurfMutt Foundation, an organization that will further the mission of the TurfMutt environmental education and stewardship program that began 10 years ago. The Foundation will continue to encourage outdoor learning experiences, stewardship of our green spaces, care for all living landscapes for the benefit of all, and will likely expand into new areas in the next few years. The Foundation launch has a bittersweet beginning as its founding spokesdog, Lucky the TurfMutt, a real-life rescue dog who “pawed it forward” by spending a decade educating children and families on taking care of our green spaces, passed away recently while at work at the TurfMutt Foundation office in Alexandria, Va. “TurfMutt got started thanks to a little black and white dog from Indianapolis who, 13 years ago, I rescued from an Indianapolis roadway,” says OPEI’s President and CEO Kris Kiser. “He shot in front of my car on a freezing winter morning, cold and hungry, and we’ve POWER EQUIPMENT TRADE

OCTOBER 2019

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POWERsuppliers Stihl Donates Equipment To The Fuller Center Stihl Inc. is supplying battery-powered mowers and accessories valued at $72,000 to support The Fuller Center for Housing’s promise to provide adequate shelter for people in need worldwide following a donation in 2016 of Stihl battery-powered products. The Fuller Center for Housing is a 501(c) 3 nonprofit organization that seeks to eradicate poverty housing by partnering with community leaders and organizations to build and refurbish homes. “All the houses we build or restore have something in common — a yard, and yards require maintenance. This gift from Stihl will be of tremendous help to these families as they strive to maintain their new homes,” says David Snell, President of The Fuller Center for Housing. “We’ve learned that one new, well-kept home goes a long way towards improving entire neighborhoods, so the benefit of this gift will go well beyond the new homeowner.” The 100 Stihl battery-powered lawn mowers donated will allow these new homeowners a means to maintain their properties without the cost of fuel. For more information about The Fuller Center for Housing visit fullercenter.org.

OCTOBER 2019

ent way. We see through TurfMutt’s eyes, realizing that ordinary, home yards, parks and school yards have a larger purpose than just our human one,” Kiser says. “They are suburban and urban habitat that supports our ecology and climate, provide homes and food for pollinators and wildlife, and give us a safe and healthy place to play, relax and de-stress.”

Country Clipper Awards Distributor Of The Year

Zero-turn mower manufacturer Country Clipper has recognized Marr Bros., Inc. as its Country Clipper 2019 Distributor of the Year during the company’s annual distributor conference. Marr Bros., Inc. operates in Dallas, Tex. and serves dealers in Texas, Oklahoma, Arkansas, Louisiana, New Mexico and Mississippi. This award recognizes Marr Bros., Inc. for their exceptional sales growth, dealer development and excellence in delivering on customer needs. For over 70 years, Marr Bros., Inc. has delivered exceptional customer service and provided high quality products.

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POWERsuppliers OED Takes Mid-Atlantic For Walker Mfg. Outdoor Equipment Distributors (OED) of Raleigh, NC will now handle distribution for the Mid-Atlantic states for Walker Mfg. OED has purchased the Walker distribution territory from GHS Corp. of Denton, NC who has distributed Walker Mowers since 1985 as pioneering members of the Walker distribution program. OED now takes responsibility to support Walker dealers in marketing, selling and servicing Walker product in North Carolina, Virginia, West Virginia, Delaware and Maryland. “We are absolutely delighted to join the Walker family and have been very impressed with the on-boarding process and the way they have welcomed us to the team,” explains OED President Rob Zucker, “Walker Mowers fit beautifully into the offerings we provide to our dealer network and we look forward to a long and prosperous future for all parties as we work together to grow the Walker Mower line.” OED is a 3rd generation wholesale dis-

tributor founded in Raleigh in 1931 that has transitioned throughout their history from auto parts wholesale to power equipment. Their strengths include strong sales and marketing programs, support for dealers and robust customer service and shipping departments.

Scag Blower Could Win

Scag Power Equipment, a division of Metalcraft of Mayville, has had its windstorm stand-on blower nominated for the 2019 “Coolest Thing Made in Wisconsin” contest. The annual competition, presented by Wisconsin Manufacturers & Commerce (WMC) and Johnson Financial Group, aims to highlight the state’s manufacturing industry. A popular vote took place from Sept. 9 to Sept. 15 at madeinwis.com; the Windstorm placed in the Top 16—and was placed in a bracket-style tournament called Manufacturing Madness. Products compete against one another in head-tohead matchups, and those that receive the highest votes in each match-up will advance to the next round. The final rounds

took place from Oct. 1 to Oct. 8, with the winner announced on Oct. 8 at WMC Foundation’s Business & Industry Luncheon at State Fair Park in Milwaukee.

POWER EQUIPMENT TRADE

OCTOBER 2019

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Dealer Stays Hyper Focused Since 1974, Wilmington Lawn & Leisure has been a single location John Deere dealer, focusing on quality support products.

OCTOBER 2019

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Wilmington Lawn & Leisure keeps handhelds in their own room, away from the larger tractors, which Jason Herring believes helps with the sale.

The Herring family has owned and operated “The Leisure” since 1974.

WILMINGTON, NC ason Herring is the third generation of Herrings to run the John Deere tractor dealership on Wilmington’s main drag. Started by his grandparents in 1974, Wilmington Lawn & Leisure has stayed with John Deere as times, and the town, have changed. Alongside his aunt Kim Smith, and her grown son Evan, Herring runs the family business, which sees success as the single

store location, they’ve been in since the beginning. “When we opened,” Herring explains, “we sold small stuff, commercial equipment, but also stuff you had fun with and not just worked in your yard with.” Hence the name Wilmington Lawn & Leisure. The building, floors and general set-up of the store are all original. For a period of time in the 1970s, Wilmington Lawn & Leisure, nicknamed “The Leisure,” was a John Deere model store.

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Herring admits that John Deere’s business model has definitely changed, and while “The Leisure” still has a John Deere bicycle, it’s no longer for sale. But Herring believes the family’s continued success is not trying to change themselves. “We’re still the one single

“I don’t care if they are buying a $329 trimmer or a $32,000 tractor. He’s our customer,” he explains. “If we can get them in the door with the handheld, and take care of them, he’s a customer for life.” store and we’re surviving doing what we do. We’re very focused. A lot of dealers like that they’ve got this brand, this brand and this brand, with a lot of duplication,” he emphasizes. Additional lines aside from the Deere brand include Walker Mfg.,

Honda, Echo and Shindaiwa. Herring believes each of the lines complements the other well and by just focusing on one additional line in each category, the dealership operates very lean. The concentration in terms of lines also allows the dealership’s 12 employees to be thoroughly versed in what is sold and serviced. Herring says, for the sales staff at ‘The Leisure, handheld sales are viewed to be as important as large tractor sales. “I don’t care if they are buying a $329 trimmer or a $32,000 tractor. He’s our customer,” he explains. “If we can get them in the door with the handheld, and take care of them, he’s a customer for life.” The strategy is paying off: Herring reports that 2016-2017 was the biggest year ever for the dealership. And last

With the handheld room, customers don’t have to feel intimated by the much larger ticket items in the showroom.

OCTOBER 2019

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“The Leisure’s” building is original—setup has changed over the years, but the core has remained the same.

year, was on track to topple that until, a slow start to the season was then complicated by Hurricane Florence, whose powerful eye washed ashore less than 10 miles from the dealership. Thankfully, there was no damage to the dealership’s building, and the store

closed for a few days immediately after in consideration of the safety of the employees and their customers. “We decided to stay in Wilmington because we felt that if things went badly, we needed to be here to open up and help put things back together. I

had a big order of generators, saws and chains before the storm came, so it could get here if possible,” Herring explains of the strategy. While the dealership suffered no losses, Herring’s house flooded completely, and in the aftermath of 32

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GIE+EXPO Offers Dealer Education, Showcases Equipment Trends GIE+EXPO offers dealers ample opportunity to explore over 1,000 exhibits and workshops tailored toward enhancing their business. BY PATRICK DUNNING

eld inside the Kentucky Exposition Center in Louisville, Ky., October 16-18, the industryâ&#x20AC;&#x2122;s

largest event features networking opportunities, service department seminars and outdoor equipment demonstrations from manufacturers showcasing their newest product lines. Over the course of three days, the latest technology in landscape maintenance and design, light construction, lawn care, irrigation and power equipment will be on display to further develop every aspect of dealerships; more than 20,000 industry members all inside a 500,000 sq. ft. space. Indoor exhibits will open Wednesday at 11 a.m. for dealers only and then at 3 p.m. for all attendees. Adjacent to indoor exhibits, 20 plus acres of turf for

outdoor demonstrations and test-driving the latest equipment will be open to all attendees Thursday at 9 a.m. and Friday at 8 a.m. On Wednesday, Equipment & Engine Training Council (EETC) will be offering technician training and certification. Two-hour sessions ($35 each) begin at 7:30 a.m. Wednesday covering the basics of EFI systems and Cub Cadet EFI and e-governor engines. Three-hour sessions ($45 each) begin at 8 a.m. Wednesday and cover electrical troubleshooting, hydrostatic transmissions, two-stroke failure analysis, EFI systems and hydraulic troubleshooting. Other

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EETC will be on hand on Wednesday with a variety of training, testing.

workshops will offer panels on customer satisfaction and adapting to future changes in the industry. UTV University will host three consecutive one-hour sessions featuring powersports dealer training specialists. The kick-off keynote, sponsored by John Deere, features Lt. Col. Rob “Wal-

Attendance gives dealers valuable new product insight

do” Waldman on Wednesday at 2 p.m. for those interested in improving profitability. The highly decorated fighter pilot, completing over 65 combat missions, correlates his life experiences with placing trust in your wingmen and building high-performance teams. Bob Clements International’s

(BCI) first session “Maximizing Your Profitability,” begins its first session of the expo at 8 a.m. on Wednesday. Other BCI sessions will be held at 8 a.m. and 10 a.m. on Thursday focusing on the keys to being a successful service manager and fine-tuning service processes. All of BCI’s work-

POWER EQUIPMENT TRADE

OCTOBER 2019

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Lucky’s Mutt Madness is back! Adoptable dogs will be at GIE+EXPO looking for fur-ever homes.

shops are free to attending dealers. An emphasis on winning in the service shop is highlighted by Sara Hey, vice president of business development at BCI, Thursday at 9 a.m. as she discusses the vitality of finding, hiring and keeping technicians.

OCTOBER 2019

Other Thursday sessions include increasing sales through demonstrations (12 p.m.) and “All You Have to do is Ask and Follow Up,” (1:00 p.m.) both hosted by agricultural sales professional Greg Martinelli. Industry economist Brian Beaulieu hosts the Dealer Keynote: More Growth—More People—More Business at 9:30 a.m. on Friday stressing the state of the economy and how it relates to the industry in the future. Free concerts will take place each night at Fourth Street Live! on the Mercedes-Benz Vans Stage, sponsored by Stihl. The lineup includes The Crashers on Tuesday, Easton Corbin with opener Layla Spring on Wednesday and Cassadee Pope with opener JD Shelburne on Thursday. Back by popular demand, the Mutt Madness dog adoption event, featuring the dogs of the Kentucky Humane Society, will be held in Freedom Hall from 11 a.m. to 2 p.m. Thursday. There will be two different opportunities to enter sweepstakes, first the Stihl $5,000 dealer giveaway will take place Wednesday at 2:45 and the $15,000 UTV Giveaway Friday at 12 p.m. The free GIE+EXPO mobile app features searchable exhibitor and products databases. Available on iTunes and Google Play, dealers are able to build a personal itinerary and select exhibitors to visit with the interactive floor plan. The app also features the show’s schedule along with ongoing sessions, updates and more. The annual event is sponsored by the Outdoor Power Equipment Institute, Inc. (OPEI), Professional Grounds Management Society (PGMS) and National Assn. of Landscape ProPET fessionals (NALP).

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DEALERspotlight

Ed’s Mower & Saw Maintains Market Service focus keeps dealership at forefront of local homeowner, pro markets. MILWAUKIE, Ore. uilding on a new-generation power equipment retailing store when it opened here in 1988, Ed’s Mower & Saw Shoppe remains the “elite” dealership it was after a major remodeling 30 years ago with bright showroom and signage and a cool split-level design with parts and service downstairs. The business dates 40 years back to

1979 and a $500 investment in a tiny tin building east of the current location before moving to another lot. Ed’s Mower & Saw Shoppe moved to its current site in 1988 after the I-205 interstate route around Portland was constructed, and an exit went right through its former building. Current General Manager Grant Ward had operated a power equipment dealership in Idaho and was on his way to the Oregon Coast to start a wood carving business when he stopped in Milwaukie and went to work to help Ed Herrmann get the new location up and running. However, Ed died unexpectedly in 1990, and Ward stayed on at the busi-

ness to help Ed’s wife, Judy, President of the company, keep the business afloat. That was 29 years ago, and there’s been plenty of mowers and saws sold since. The two have continued Ed Herrmann’s original vision, to provide a cleaner, attractive retailing experience supported by top-notch service. Judy and Grant have built the business over the years following Ed’s philosophy. “That’s what Ed wanted it to be, more of a professional business and not another greasy shop,” Judy says. “We wanted to be more presentable, and also appeal to women.” She adds that at the time the dealership was just getting

Judy Herrmann and Grant Ward have built the business following founder Ed Hermann’s vision for a neat, clean and attractive retailing experience backed by the best customer service and equipment repair in town.

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started at its new location, Sears was considered a big competitor as the “big box” lawn and garden retailing revolution was just around the corner. Ed’s Mower & Saw Shoppe was the very first Exmark dealer in Oregon, Ward says, noting that Toro and Husqvarna were the first two lines the dealership took on. Echo and Shindaiwa are major handheld lines. Key lines also include Billy Goat and BearCat. The dealership is also a Briggs & Stratton, Kawasaki, Kohler and Honda engine service center. Ward says the dealership has grown the Husqvarna business greatly over the years, and in the riders they’ve stayed with the upper-end v-twin and hydrostatic units. As an early Exmark supplier, Ed’s Mower & Saw Shoppe did very well with commercial contractors. When other dealers began pursuing the market as well, dealership managers made a decision to “go back to basics” and focus more on homeowners. Ward says that while Exmark and commercial customers remain a key part of the business, he believes working with, and taking care of, homeowners and landscapers and solving their equipment problems goes more to the foundation of the business. “For a while we were non-stop focus on commercial,” he says. Adding that a silver lining to the additional competition was, “We went back to what built this dealership.”

Leo Ward, left, Grant’s son, goes over an older Shindaiwa saw that’s come in to the service department. The dealership was one of Shindaiwa’s first on the West Coast after the company opened its North American offices in nearby Tualatin in 1981.

Service Focus Grant says one niche Ed’s Mower & Saw Shoppe pursues is to be the “go-to” dealership for small engine service for local consumers. The dealership employs two full-time technicians and one part-time tech. Labor rate is $85/hr. “We’re seeing most of the other dealerships in the area only working on their own product lines; anything older than six or seven years, they won’t work on it,” he says. Instead, he says, Ed’s will “work on most anything of high quality we’ll work on it if we can get the parts,” he adds. While many dealers view such service jobs as a hassle, Ward sees them as a way to introduce a customer to the business and its capabilities and begin building a relationship that will lead to future sales and service. An example is the TruFuel premixed 2-stroke fuel and Star-Tron fuel additive the dealership sells, driven by ethanol in gasoline. “We work close

The dealership will work on most higher-quality equipment, if they can get the parts.

Corner office also backs up sales counter. POWER EQUIPMENT TRADE

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DEALERspotlight

Ed’s Mower & Saw Shoppe dates back 40 years to this small tin building, plus another location that had to be vacated when the I-205 interstate bypass came through.

with our customers and educate them on the equipment and what they need to do to take care of it,” Judy says. After 30 years in the same location and with a sterling reputation in the local community for top notch repairs and customer service, Ed’s Mower & Saw Shoppe doesn’t have an extensive marketing and advertising program. Ward says word-of-mouth and standing in the community remain the most effective. “We get at least four or five people a day in here who say they heard about us from someone else,” he adds. One of the dealership’s best marketing attributes is its location on the heavily travelled 99E highway (Mcloughlin Blvd.) that runs the length of the state, and in the Portland Metro area, from the southern suburbs like Oregon City, West Linn and Milwaukie all the way through downtown and up to the Columbia River. Judy notes that years ago along the stretch of highway where Ed’s is located, it was estimated almost 50,000 vehicles passed by daily—mostly at speeds under 45 MPH—and that number has only grown since. There’s an easy access curb cut and parking in front and back, with plenty of room for landscaper trailers. Add in the outdoor flags and mower displays roughly 15 ft. from the right-ofway, and that’s a lot of exposure.

Changes

Showroom has center wall that roughly separates the larger wheeled from handheld equipment.

Highway location provides great visibility and exposure.

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Ward says the internet has “definitely affected the business and the way people think.” Technology is allowing customers to learn more and do more research before they even approach a retailer, he adds. “From online shopping to comparison research and looking up parts, customers are more educated and it’s mainly because of the internet.” The business maintains an informative, attractive web site, but finding personnel to take on the workload has kept Judy and Grant from going to far into digital business or online sales. “We’re a bit limited with our resources and what we can do online,” he says. In 2019, the spring season got off to a good start. “Our service business has been through the roof, Ward says. He adds that the dry season came a bit early this year, but the dealership has also done real well with its rider sales and walk units. And though handheld sales were a bit slow to start ,the business has had some good handheld sales PET lately as well.

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EXPOelite EDITOR’S NOTE: The following companies are advertising in this issue and also exhibiting at the Green Industry & Equipment Expo (GIE+EXPO) October 16-18, 2019 in Louisville, Ky. at the Kentucky Exposition Center. These companies submitted the following editorial profiles and photos. See their advertisements and contact information throughout this issue of Power Equipment Trade. ECHO—For nearly 50 years, Echo has been setting the standard for the power equipment industry. Our mission at Echo is to deliver innovative and reliable products that bring power and authority to green space professionals. We continually push the boundaries to provide customers with unmatched experiences and products. Founded in 1972 in Northbrook, Ill. as Kioritz Corp. of America, Echo was initially an importer of high-performance 2-cycle engines and handheld products. In 1978, we officially established under Echo Inc. and shifted our focus towards engineering and manufacturing. We produced our first lawn care product, the GT-200 grass trimmer, and continued to expand our product offering to include chain saws, straight shaft trimmers, brush cutters, backpack and handheld blowers and hedge trimmers. In 1985, we established our present-day Americas corporate headquarters and manufacturing facility in Lake Zurich, Ill. Today, we continue with our goal of providing people with innovative products that offer real solutions. We bring ultimate power to the pros through the Echo X-series brand, which is made up of our most powerful, lightweight models that offer exclusive features and innovations, all designed to give you greater productivity. One of our other exciting initiatives is our partnership with Minor League Baseball (MiLB). Through this partnership, users of Echo products can experience the brand in fun and memorable ways. Our goal is to stay inspired, innovative and engaged, so that’s why we’ve teamed up with MiLB to refurbish youth baseball and softball fields in Minor League Baseball communities. We are proud to partner with such an incredible organization to give back and support young athletes. Echo is excited to provide professional-grade, high-performance power equipment for our customers and continue to be a recognized leader in the industry, and 2020 will be one of our best. Visit us at GIE+EXPO to see our new lineup and learn more about ECHO’s #20for2020! Contact us at indoor booth #5112 and outdoor booth #7451-D; visit echo-usa.com. FLUID FILM—Fluid Film is a lanolin based, solvent free, rust and corrosion inhibitor as well as a penetrating lubricant. Fluid Film provides excellent protection for metal components. The formula is 100% solvent free and will not get gummy or tacky. The non-tacky material also aides with cleanup of the underside of lawnmowers as the moist grass will not stick to the material, saving time and money cleaning the equipment at the end of a job. It is nonconductive and will prevent corrosion on battery terminals or electrical components like automatic sprinkler systems. The use of Fluid Film in landscaping helps to extend maintenance schedules, resulting in significant cost savings and longevity of equipment. Fluid Film’s soft, active coating penetrates to the base metal, where it migrates to create a formidable, protective wet barrier that prohibits corrosion on a molecular level by displacing moisture and locking out oxygen. The wool wax formulation is classified as non-toxic and non-hazardous and will not burn greenery when used on cutting devices. Fluid Film provides excellent lubrication for moving parts like hedge trimmers, mower decks, chains and gears. The barrier provides powerful protection from atmospheric corrosion in storage facilities. This makes Fluid Film ideal for preparation for off-season storage and keeping infrequently used equipment in top working order. In harsh climates or conditions, Fluid Film will not readily freeze and retains a slick consistency, keeping chains and moving parts from binding or building up dirt and debris. Fluid Film is ideal for frame and chassis undercoating to protect from salts and brines on vehicles and trailers. With a high flashpoint and exceptional water displacement, Fluid Film is the perfect protectant for endless applications. Fluid Film also brings luster back to sunbaked coatings and helps prevent dirt and mud from caking on surfaces. Fluid Film comes in an easy 11.75 oz. aerosol or in bulk form of 1-, 5-, and 55-gal. drums to handle any size job. Fluid Film has been made and manufactured in the U.S. for over 75 years. Contact us at indoor booth #9156; visit fluid-film.com.

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EXPOelite HEFTEE INDUSTRIES—For 20 years the Heftee 4000 has been the lift of choice for technicians working on the largest riding mowers and commercial turf equipment. The 4000 safely accommodates equipment up to 87 in. wide and lifts up to 4,000 lbs., to 6 ft., in less than a minute. It’s ideal for shops short on floor space; there is no special installation required and the Heftee 4000 operates on 110V. Technicians stand comfortably with unrestricted access to service areas, no longer lying on cold concrete floors in awkward positions to perform under-equipment jobs. And the Heftee 4000 is freestanding for easy relocation within shop. The Heftee 4000 standard equipment package comes complete with jacks, boom and extension arms for completing virtually any repair job. Heftee’s revolutionary single-mast design gives unrestricted access to the equipment. There are no crossbars or twisting cables, and the jacks, booms, support arms and easily adjustable work platforms—all integrate with the lift. Making hard-to-service equipment easy to service is Heftee’s business. Any lift can lift. Heftee lifts are equipped with unique features that enhance service. The technician can focus on repairing hard-to-service turf equipment and utility vehicles better, faster, safe. Contact us at indoor booth #8198; visit heftee.com. HONDA POWER EQUIPMENT—Honda Power Equipment powers into GIE+EXPO 2019 in Louisville, Ky. with technologically advanced outdoor power products. In the spotlight at the company’s interactive, experiential display will be the all-new Honda HRN lawnmower lineup. Designed from the ground up, Honda HRN lawnmowers replace the company’s popular HRR series and feature four major areas of innovation: More power and torque, a rugged design, intuitive controls and easier operation and serviceability—all with the goal of making the task of grooming grass more productive and more enjoyable for lawn care enthusiasts. Powered by the new Honda GCV170 engine, Honda HRN models deliver 9% more power and 18% more torque than HRR models, allowing the user to power through thick, heavy grass and enjoy a smooth, even cut. What’s more, the new Honda GCV170 engine offers improved maintenance and usability through a larger fuel tank spout, easier oil changes and reliable, dependable starting and re-starting. A smart engine layout makes for easy access to the spark plug and an optimized air cleaner that can be changed without tools. The Honda HRN series is designed with an array of intuitive controls for even smoother operating than the outgoing Honda HRR models. Technologically innovative features begin with an improved design of the Adjustable Smart Drive that allows for ease of speed variation with a press of a wide paddle control on the handlebar. In addition, a 3-in-1 Clip Director lever, located on the side of the engine cowling, controls an entry shutter between the lawnmower deck and the grass bag, allowing the operator to easily select either mulching or bagging options without tools or attachments. Other features of HRN mowers include a simplified cut height control system consisting of a new dual-lever height adjustment. With just two levers, the operator can make quick and convenient adjustments for seven different cutting heights, making it fast and easy to take a little off the top, make a deep cut or mow at standard maintenance heights. And a two-way releasing rear wheel ratchets increase maneuverability by the reducing effort required to turn or pivot in tight areas. Four new Honda HRN216 models—HRN216PKA, HRN216VKA, HRN216VLA and the HRN216VYA—feature a range of options and choices for consumers. Pricing and availability of the new models will be announced at a later date. Contact us at indoor booth #3118 and outdoor booth #6046D; visit powerequipment.honda.com. HUSQVARNA—Since 1689, Husqvarna has manufactured high performing products and delivered industry-changing innovations such as anti-vibration and automatic chain-break on chain saws, as well as the world’s first commercial robotic mower. Today, Husqvarna offers a broad range of high performing outdoor power products for parks, forest and garden and represents technological leadership in the key areas; chain saws, trimmers, ride-on mowers and robotic mowers. Husqvarna products are sold in more than 100 countries, mainly through servicing dealers and retailers. Husqvarna offers innovative products and total solutions to meet all of your landscaping needs. Stop by our indoor booth and outdoor booth for a hands-on experience with brand new 2020 Husqvarna products, including the all-wheel drive Automower, new handhelds, battery series products, mowers and more. Contact us at indoor booth #9094; outdoor booth #7800D; visit husqvarna.com/us. POWER EQUIPMENT TRADE

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EXPOelite MASPORT—Masport was introduced in U.S. for the first time in 2012. A household name in New Zealand and a leading manufacturer of lawn and garden power equipment in both New Zealand and Australia with a proud engineering history dating back 109 years, Masport has steadily grown its U.S. dealer base in the past eight seasons. It has an extensive range of consumer and professional rotary gasoline walk behind mowers, as well as consumer battery mowers, cylinder mowers, shredders, edgers and cultivators that are also sold in 45 countries around the world. Power Distributors are the Masport distributors in U.S. and Power Source Canada in Canada. They distribute Masport’s range of consumer and commercial power equipment to servicing dealers across North America. Masport is a dealer only brand in North America and is ideally suited to this form of distribution as its products are feature rich and of high quality. Masport Mowers are available in various cutting widths and are powered by Briggs & Stratton and Honda engines. Masport mowers mulch, catch and side discharge, feature aluminum and steel decks, ball bearing wheels and single lever height adjustment. At this year’s GIE+EXPO Masport features their robot mowers, battery mowers and handhold equipment as well as their BBC commercial walk behind mower. The “Masport Contractor” 3N1 professional mower has a very robust 14 ga., 21-in. steel deck, fully professional “GT” 3 speed transmission, die-cast aluminum wheels fitted with precision bearings, bolt-in heavy-duty axles and large diameter heavy gauge handles. It is available in both engine brake and BBC configuration. Masport offers competitively priced, quality, unique products which are not available in the Big Box stores. See us at our booth or contact Power Distributors or Power Source Canada for more details on the Masport 2020 dealer only program. Contact us at indoor booth #10180; visit masport.com; powerdistributors.com. OPEI—The Outdoor Power Equipment Institute (OPEI) is managing partner of GIE+EXPO, the industry’s national landscape, outdoor living and equipment exposition. The show is the place to be if you’re in this business, and the best place to equip yourself with solutions to the challenges you’re facing. GIE+EXPO is much more than power equipment. Exhibitors are showcasing technology, software, tools and auxiliary products—everything you need to do business in today’s market. In fact, with 40 companies exhibiting software and computer/business technology, GIE+EXPO has the largest concentration of software companies of any industry event in the country. Special features—both business and fun—also help make GIE+EXPO a valuable investment for attendees. Arborist demos by the Women’s Tree Climbing Workshop will put a 40 ft. tree inside the Kentucky Exposition Center and give attendees the opportunity to learn climbing techniques from a group of women who are experts in their field. The sessions, presented by Davey Tree are sponsored by Stihl, with support from SHELTER Tree. Open to all attendees, these sessions are included with trade show registration. Attendees have the opportunity to win big prizes, including $20,000 in the Fabulous Friday giveaway sponsored by MercedesBenz Vans and the $15,000 UTV giveaway, which will award one lucky winner their choice of UTVs manufactured by one of the participating UTV Giveaway sponsors. Free parking at the Kentucky Exposition Center will allow easy access for all attendees and exhibitors. No more waiting at the gate means more time on the show floor. Lucky’s Mutt Madness, a national dog adoption event operated in partnership with the Kentucky Humane Society, returns for a second year, giving attendees and chance to take a break from the show floor on Thursday, visit — and even adopt — rescue dogs in Freedom Hall. At last year’s inaugural event, 11 dogs found forever homes. Lt. Col. Rob “Waldo” Waldman will present the free opening keynote, “Never Fly Solo: The Power of Partnership to Reach New Heights in Business and Life.” The highly decorated fighter pilot has a valuable message about placing trust in your wingmen and building high-performance teams. The keynote is sponsored by John Deere. Brian Beaulieu, one of the country’s most informed economists, will present a Special Friday Report. This free session, “More Growth—More People—More Business,” will provide insights on the state of the economy and how it relates to our industry to help attendees plan their businesses for the future. Contact us at opei.org.

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EXPOelite STIHL—Join Stihl for exciting new product launch news at GIE+EXPO! Stihl has been defining the future of power equipment for more than 90 years. This year, we’re continuing this legacy of innovation—providing your customers even more options within the extensive Stihl lineup of gasoline, electric or battery equipment. Back by popular demand, GIE+EXPO is providing exclusive early access for dealers! Dealer-only access to the show floor on Wednesday, October 16 will give you the opportunity to meet one-on-one with exhibitors and preview new products ahead of the crowds. Join us in the Stihl booth and enjoy refreshments, a special presentation at 2:30 p.m. on Wednesday during the dealer-only access, and a preview of new Stihl products. One lucky attendee who enters to win will walk away with $5,000! (Must be present to win.) Contact us at indoor booth #5068; visit stihlusa.com. SUNBELT OUTDOOR PRODUCTS—Sunbelt Outdoor Products is a long time participant at GIE+EXPO and is returning for the 2019 show. Come visit the friendly folks at the Sunbelt booth and check out a sampling of premium Sunbelt parts. Sunbelt Outdoor Products has been busy expanding its already large 60,000+ product offering and we remain committed to providing an extensive lineup of replacement parts for much of today’s power equipment. Sunbelt offers a large and expanding selection of accessories, tools and equipment for all types of outdoor work. We have added well over 1,000 part numbers in the last year alone and have big plans for the year ahead! Sunbelt Outdoor Products Predator and XHT blades are the strongest blades on the market. Their strength and durability comes from a patented austempering process that creates steel that is 30% harder than steel used in competing blades. Ideal for professionals, these blades require less sharpening, last longer and are lighter weight. Sunbelt has recently introduced a lineup of professional grade lawn care equipment. This 45-piece offering including dump carts, spreaders, lawn rollers, dethatchers, aerators, hose reel carts, sprayers and more. Push and tow behind options are available for most equipment types, making for quick efficient work of even the toughest lawn care jobs. Quality build materials are used throughout, including heavy-duty poly and steel components and large wheels. This lineup also features easy assembly with assembly times ranging from three to 45 minutes and the vast majority of products assemble in 30 minutes or less. Sunbelt Outdoor Products is a wholesaler of premium turf products and is ready to help retailers large and small to meet the needs of their customers. Add Sunbelt products to your business! With a nationwide network of warehouses across the U.S., Sunbelt can help you get the parts you need when you need them. Contact us at indoor booth #7010; visit sunbeltparts.com. TD PARTNERSHIP PROGRAM—Whether you’re looking to build sales with homeowners or lawn and garden contractors, Yard Card Financing can offer the right solution for your dealership. This industry-leading lawn & garden consumer financing program lets your customers bring home what they need, and helps your business grow. The Yard Card from the TD Partnership Program, a division of TD Bank N.A., gives your customers the purchasing power they need to buy what they want with powerful revolving financing offers. After all, customers want and expect payment options; financing can help close sales. Over the long term, The Yard Card’s revolving credit line facilitates repeat purchases and helps build customer loyalty. The Yard Card’s business-friendly benefits enable you to stand out from the competition with attractive financing offers. Additionally, the program’s strong credit limits help your customers buy more without maxing out their bankcards or tapping their bank accounts to make high-ticket purchases. Other key features include: Instant online transaction processing and fast funding; TD’s customercentric services; ongoing marketing support to drive sales and repeat business; and training for your sales associates. Better yet, your store name is imprinted directly on every card. Contact us at indoor booth #8164; visit tdpartnershipprograms.com/yardcard.

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EXPOelite TRILINK SAW CHAIN—TriLink Saw Chain is proud to introduce our new machine harvester ¾ in. pitch saw chain. The ¾ in. pitch chain complements our existing line of machine harvester .404 in. pitch chain, guide bars and handheld chains, bars and accessories. Quality, value, durability and dependability are what TriLink strives for throughout our product line. Our new ¾ in. machine harvester chain is just that with precision engineered components to provide maximum chain life, keep you cutting, and limit down time. All TriLink Harvester chains are manufactured from high quality alloy steel. The CAD designed semi-chisel cutters have excellent cutting speed for increased board feet production. The chrome-plated aggressive cutting edge is designed for extreme cutting conditions from the coldest winters in Sweden to the hottest summers in the Western U.S. TriLink Harvester products provide a superior and more durable alternative over the competition. Our products are state of the art manufactured, engineered and tested to deliver the most advanced technology and quality for all your needs. TriLink is your link to quality. Contact us at indoor booth #1208; visit trilinksawchain.com. WALLINGFORD’S—Wallingford’s Inc. will be displaying at the 2019 GIE+EXPO, featuring GB ProTop chain saw bars, and introducing the new Orbit 3/8 full chisel saw chain. Both are manufactured and designed for the professional market. The full line of ICC lawn and garden and ATV/UTV tire chains will also be featured, as well as a complete Aquiline compact tractor tire chain offering. ICC carries a full line of tire chains for all applications. ICC also offers a full line of industrial chain, hooks and load binders. Stop by the Wallingford’s booth to learn more about our extensive offering. Dealer inquiries invited. Contact us at indoor booth #10083; visit wallingfords.com.

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“Our service department is really profitable because they don’t have to switch gears to a brand they only work on two times a week that we don’t sell,” Herring explains.

Each part has a specific drawer and bin within the drawer for easy location.

Technicians service only what The Leisure sells, which keeps equipment moving quickly.

13 the storm he stayed home with his wife and child to salvage what they could, while Smith came in and took the reigns of “The Leisure.” In all, Smith estimates that the dealership lost 10 total work days, but was able to open back up and fill needs in the community—including taking credit cards for existing customers using an old credit card imprinting machine they dug out of storage. “Yay for hoarding!” Herring laughs.

He estimates that while the 2018-’19 year isn’t quite over yet, it should be another recording-breaking year, smashing ’16-’17’s volume, a welcomed boost following the difficulties of ’17-’18.

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Service Department Just as the sales staff is able to be highly focused because “The Leisure” only carries five wholegoods lines, the service department is incredibly focused

as well. Only servicing what they sell, “The Leisure’s” service staff each has primary roles and secondary roles, which allows for product to be turned quickly. “Our service department is really profitable because they don’t have to switch gears to a brand they only work on two times a week that we don’t sell,” Herring explains. As with all John Deere dealerships, “The Leisure” does all service work for Lowe’s and Home Depot in the surrounding areas, including helping with setup. Smith says this is her primary task, and it truly takes one person fulltime to stay on top of the amount of work the dealership takes in from the arrangement. PET

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Five Minutes With... TD Bank’s Mike Rittler P ET caught up with Mike Rittler, Head of Retail Card Services, Personal Lending & Business Development at TD Bank, and avid Philadelphia sports fan, to help encourage dealers going the extra mile to sell equipment—by offering financing solutions in-house—and how the right financing partner can help businesses thrive.

Power Equipment Trade: Why is it important for a dealer to offer credit solutions for customers? Mike Rittler: In today’s environment, it’s essential for retailers to find a way to make their offerings accessible and attractive for customers. Competition is growing due to on-demand retailers and the online shopping environment, making benefits for customers more critical. The value of a personalized shopping experience and tailored financing solutions is what forms long lasting relationships with customers. Loyalty will become even more important as we move toward the later end of the economic cycle. PET: One of the best tools a dealer can have is a good salesman. How can a good salesman leverage offering an in-house financing program to close a sale? MR: The key difference between a good salesman and a great salesman is training. A good salesman already can sell merchandise, it’s inherent to them. But armed with the right compliant training on in-house financing, a knowledgeable salesman can close more sales and increase the size of their tickets simply by being well versed in financing. Salesmen should view in-house financing programs as another tool in their tool belt to support their custom-

OCTOBER 2019

ers. Financing programs help customers feel confident in their purchases and increase the likelihood that they can acquire the equipment that they need to be successful, on the payment terms that best fit their specific needs. The benefits of the right financial partner also go beyond just the program they offer, as they support a salesman with deep insights and information about their customer’s preferences and purchasing behaviors. With this information in hand, they can better customize their approach and tailor their tactics to each individual customer.

PET: What do you think the most underutilized point is when it comes to talking to landscapers about using dealer offered financing instead of just a “regular” credit card? MR: When it comes to the landscaping world, the payment flexibility that financing allows is a key advantage over purchasing with a credit card. When a landscaper pursues financing through a dealer backed by a finance partner well versed in the green industry, they are more likely to have access to custom programs and incentives that meet their needs. This includes payment flexibility, which is especially beneficial for landscapers whose business and income is largely cyclical in nature and depend on securing equipment and servicing. Regular credit card providers don’t have the same understanding of the customers they’re working with. PET: What, if any, dealer initiatives/programs is TD Retail currently planning? MR: The TD Yard Card is our flagship offering in the green industry,

helping retailers provide a seamless financing experience to consumers. At the heart of the Yard Card offering is a focus on the retailer itself, with branded physical cards that provide revolving lines of credit that can be used for everything essential for a green industry consumer, from equipment to parts and service. Through the Yard Card and our partnership with Cub Cadet, TD understands the needs of the industry and the timing of when consumers are purchasing. We strive to provide specialized financing plans available at times consumers may need financing help most, which not only is helpful for the customer, but increases sales for the dealer as well. When the customer comes out on top, we all win. PET: Any words of encouragement for dealers that are feeling like their business is going stale? MR: With the extended election cycle already upon us, we’re entering a period that is historically punctuated by financial uncertainty. But despite sentiment in the market that the economy is slowing, consumer confidence remains high. Interest rates have lowered, people are continuing to spend, and the overall retail environment is continuing to see strong sales in the face of uncertainty. For retailers, it’s a good time to consider expansion while returns remain solid. However, in a business that can be cyclical and seasonal, thinking about the impact of a downturn can feel amplified. But by fostering deep relationships with your customers and working with partners that truly understand your business, you can help keep the momentum even in more challenging times. As we move into the fall, it’s a great time for dealers to think about how you can ramp up your efforts to connect with customers, offer new and innovative products, and create customized programs that meet their indiPET vidual needs.

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SHOWroom FEATUREproduct

Cannon Bar Works DuraLite SuperBar

Cannon Bar Works enters the light-weight chain saw bar category with the all new Cannon DuraLite SuperBar. This bar combines the professional quality of the traditional Cannon SuperBar with the weight reduction that the industry has been demanding. The new Cannon DuraLite SuperBar is made from a virtually completed SuperBar. After the bar has been grooved and the rails have been flame hardened, Cannon eliminates weight by milling out pockets on either side of the SuperBar, leaving a steel core in the center for strength. The center section is then perforated with holes. This method of construction is based on the same principal that one would see in an I-beam. Cannon then uses a special adhesive which not only bonds the steel to two flexible aluminum inserts, one on each side of the bar, but also creates a chemical bond or weld between the two inserts. The new DuraLite SuperBar remains ridged and stiff, has the same quality characteristics as the traditional SuperBar, but weighs about 20% less. Prototypes of these bars have been put to test by many hand fallers in British Columbia, Washington, Oregon and California over the past year and all reviews have come back extremely positive. Cannon will have these bars available October 2019 and is now accepting new dealers, along with booking orders for the DuraLite SuperBar. Email info@cannonbar.com

MOWERS

Exmark 96-In. Lazer Z X-Series

Exmark 96-In. Lazer Z X-series For 2020, Exmark has introduced the gas-powered 96-in. Lazer Z X-series zero-turn mower. Powered by a Kohler Command Pro EFI aircooled engine and equipped with Exmark’s patented RED

technology, the new machine features a durable UltraCut Flex Wing cutting deck. With a 48in. center deck and two 24-in. wing decks, the 96-inch Lazer Z X-series is the right tool to make quick work of the largest, toughest jobs, while delivering Exmark’s signature cut quality. By cutting more grass, on more properties, with fewer operators, the 96-in. Lazer Z X-series enables customers to reduce labor costs and increase revenue potential. It provides the performance, productivity and value today’s landscape maintenance operation needs. Visit exmark.com 36

OCTOBER 2019

Ferris ISX 800

The Ferris ISX 800 from Briggs & Stratton Corp. offers the patent-pending ForeFront suspension system, the next generation in Ferris independent suspension technology—a natural evolution of independent suspension for Ferris. The system utilizes four upper and lower control rods that ensure the front caster bearing remains vertical through the full range of travel. This controlled motion results in a smoother ride, more precise tracing of the terrain and an improved cut. The ISX 800 has an innovative two-belt iCD cutting system which reduces the chance of a belt dislodging or rolling from the pully, increasing its reliability in a variety of conditions and is covered by a three-year belt limited warranty. Equipped with a Hydro-Gear ZT-3400 transaxle for added durability with every pass, the ISX 800 is powered by the operator’s choice of Briggs & Stratton Commercial Series engines or Kawasaki engines. Operators can choose from a 52 in. or a 61 in. iCD cutting deck. The ISX 800 is capable of mowing at up to 10 MPH and features larger front casters and rear tires than the IS 700Z. The ISX 800 is backed by a 2+2 year limited warranty. This simple warranty covers the unit for four years or 500 hours. During the first two years, the mower is covered for unlimited hours. All suspension components, including the coil-over shocks, are covered for five years. Visit ferrismowers.com

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SHOWroom

SNOW & ICE MANAGEMET

CHIPPERS, SHREDDERS

SnowEx Helixx Spreaders

MacKissic 12P Series

Whether spreading 100% salt, 100% sand, or any mix in between, the SnowEx Helixx spreader is engineered to prevent clogs and provide a flow of material superior to that of traditional auger spreaders. Designed for use with full-size pickups, flatbed trucks or dump-bed trucks, the Helixx poly hopper lineup includes four different models, ranging in capacity from 1.5 to 5.0 cu. yd. For quick installation and removal, fork pockets are built into the legs. Baffles within the spreader’s chute direct material to key areas on the spinner, resulting in a remarkably even and consistent spread pattern, while also reducing material directed back at the vehicle. Three spinner height adjustments (standard on the two largest models) allow the spreaders to achieve a consistent spinner height of 18 to 22 in. off the ground, regardless of vehicle type. A dual variable-speed control allows independent adjustment of spinner and Helixx speeds for precise material delivery, whether at low or high output. It also features no-blast startup and an auto reverse function. Visit snowexproducts.com

The MacKissic Mighty Mac 12P series is the right shredder-chipper for the homeowner looking for toughness, versatility and speed for those big jobs. You’ll get dependable, professional-level operation in a machine that can be used season after season and year after year for debris clean up, gardening and landscaping. The 12P’s 3 ½ in. chipping capacity, rotor and flywheel weight, 24 heat treated hammers, large feed hoppers, centrifugal clutch and available assortment of discharge screens, enable the operator to get the job done fast and easily. All models have flat-free tires and are offered with either two wheels and handlebars (12P) or four wheels and a tow bar (12PT). An optional electric start towable unit (12PTE) is also available. Visit mackissic.com

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INDUSTRYvoices

Should I Stay Or Should I Go? Change through growth will become a necessity for most dealers and using mergers to achieve that growth can carry many positive benefits. BY LANCE FORMWALT

s a dealer operating in an industry that is experiencing a lot of change, you are constantly assessing whether you still “fit” in the industry and whether it makes sense to stay in the business or start thinking about leaving the game. This decision is often made more difficult because simply saying you want to stay and keep doing the same thing isn’t really a longterm option. Instead, a decision to stay usually means you need to be thinking about how your organization will grow. Growth as a necessity for dealerships is being driven by many of the key players in your business—customers are demanding more from their dealers as they grow and go through their own period of rapid consolidation, manufacturers are driving dealers to grow by creating programs that often favor larger dealers and give them a leg up on maintaining profit margins, and your own employees are looking for larger organizations that can give them opportunities for growth. Unfortunately, unless you are a dealer just sitting on piles of cash (I have yet to find too many of those!), growth is a bit more complicated than just pulling out the checkbook. And even if you have the equity cushion in your business to pull off an acquisition, you will find that the equity percentage gets reduced quickly as you pay blue sky for a dealership and take on more inventory that is fully financed (and creates a corresponding drag on equity percentage or ratio). Mergers have become a popular op38

OCTOBER 2019

tion for dealers who want to stay in the industry and need to find a way to grow despite capital and/or management challenges. Although they aren’t easy to pull off, a merger can be used in many different situations to facilitate a dealer’s desire to grow without using capital or requiring outside investors because a merger is simply a transaction where two or more dealers pool their resources in exchange for a smaller piece of a hopefully larger pie.

Value Benefits Preserve Operational Value: Increased scale of your organization through a merger should help you maintain (and ideally expand) your margins and ultimately the value of your dealership. Protect Organizational Value: With manufacturer approval a necessity in this industry, having multiple adjacent buyers is key to a successful sale price. Mergers allow you to expand your geographic boundaries to create more touch points with potential buyers and sellers and reduce the risk of being boxed in by a single in-line competing dealer. No Tax Loss of Value: Mergers can generally be structured so that they are tax-free. Favorable Changes to Exit Timing: Merged organizations generally increase the number of owners with many of them having different time horizons for exiting the business. While this makes it less likely that the dealership will be sold as an entire business in the future, it creates more opportunities for you to liquidate your ownership interest when the time is right for you. This is a positive benefit because your co-owners become viable buyers for your business and the tax consequences of selling your ownership interest versus the assets of the business are often better. Attract Different Categories of Future Buyers: There has been significant interest in dealerships by outside investors looking at the equipment dealer in-

dustry segment as an investment strategy. While it is still too early to tell if this will be a long-term trend in the industry, what I do know is that your dealership will be much more attractive to outside capital (and likely drive a higher valuation) as it grows in size. Outside investors often set a minimum threshold of profits and/or sales to even have any interest in a dealership.

Organizational Benefits Management Depth: A larger organization must have solid management and bench strength to be successful. The resources from a merged organization will generally make it easier for you to attract and retain management talent. Professional Management: Larger organizations will gravitate toward professional management who are often better trained to implement processes and strategies to help improve the performance and value of your dealership. It is important to note that “professional management” and “family management” are not mutually exclusive terms. Family members of ownership groups may certainly make great managers, but in larger organizations, these positions are much more likely to be earned through performance and should generally be viewed as a positive organizational development. Outside Expertise: The additional resources and scale that come from a large dealer organization allows you to invest more in outside expertise. While you should not give up your management/investment instincts that allowed you to create tremendous value in your dealership, the ability to access insights from other perspectives outside of your organization, whether through advisors or independent directors, can give you an edge that smaller competitors may not have. Limit Risk: As dealerships get bigger, owners can reduce personal risk. This will primarily occur in two forms: eliminating or reducing personal guaranties to manufacturers and lenders and getting more pre-approval of ownership changes from manufacturers. PET

Lance Formwalt is the leader of the Equipment Dealer Group at Seigfreid Bingham, P.C. The firm also serves as legal counsel to equipment dealer associations and many individual equipment dealers. Lance may be contacted at lancef@sb-kc. com. This article is intended to provide general recommendations and is not intended to be legal advice.

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Western U.S.

Do you offer products in the power equipment industry? Advertise your company to PET’s subscribers nationwide in our Distributor Library section. Call Kathy Sternenberg 251-928-4962 DE,MD,NJ,NY,PA,VA,W.VA,NH,VT,CT,RI,ME

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Shelby County Implement • Shelbina, MO 63468 Ph: 573-588-4731 • 573-588-2040 Email: sci63468@hotmail.com M/C, Visa and Discover Accepted 3524

WISCONSIN ENGINE PARTS NEW–OBSOLETE • BUY–SELL HARD TO FIND PARTS CLOSEOUT PRICES

H&M Industrial Supply (800) 346-4331 2236

Obsolete McCulloch & Obsolete Homelite Parts Bob’s Lawnmower Service 7632 State Hwy. 7 Maryland, NY 12116-3201

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PETcetera 7 Social Media Trends To Watch Before 2020 The world of social media is regularly evolving, with fastpaced shifts and updates throughout Instagram, Facebook, Twitter, TikTok and other key social platforms. Here are seven social media trends to watch out for before the new year starts. More ad budget will be spent on TikTok. The average TikTok user now spends around 45 minutes per day on the app for creating and sharing short videos, according to Fast Company, which is more time than on Facebook. Marketers see TikTok taking incremental ad budgets from Facebook, as momentum keeps swinging in the new network’s favor. Facebook will continue investing in long-form news shows, but with a European focus. The platform’s bid for long-form, episodic content shows no sign of lessening any time soon, leading to more mid-roll programmatic advertising opportunities for brands. There will be more ads within Instagram Stories. Story ad frequency has drastically increased in recent months, to the point where it’s detracting from the overall Instagram user experience. For example, Instagram was experimenting with increasing ad volume in Stories via testing back-to-back Stories ads from different brands. This kind of feature could really tick off users. Instagram will continue its inevitable decline of organic reach. Facebook-owned Instagram will follow the path of the holding company. We will see organic reach continue to decline, as brands will need to continue to pay more to access the community they’ve invested in growing. The latest data shows a steep decline over time, and it is expected to accelerate in the next 12 months. Facebook Groups will provide a big opportunity for brands. Facebook has platform challenges, as audience growth stagnates and young people leave the platform in droves. Facebook needs to find a purpose in people’s lives, and the company believes that will come in the form of Groups. Facebook is changing the user experience to put Groups and community at the center of the platform, which offers an opportunity for brands that act quickly and start to nurture their own communities in this arena. Twitter will continue to offer brands the most cost-effective opportunity to reach many people. Twitter continues to hold value in the social world, despite changing since its inception. A well-written, well-timed tweet is one of the only ways in which a brand can create viral magic, reaching millions of people without paying big media bucks. Due to the success of fast food brands and other playful brands on Twitter, we’ll see many companies try their hand at the art of Twitter satire. 50% of all brands will launch or plan to launch their own podcast. Podcasting allows marketers to create selfowned media outside of social algorithms and change up their media offerings. With the entry level to podcasting rather low from an investment standpoint, many brands will try creating branded podcasts. Most believe many of these brands will fail, but the 20% of brands that get them right will reap all the rewards. Source: 7 Social Media Trends To Watch Out For Before 2020 Hits, Oliver Yonchev, www.mediapost.com/publications/article/341006/7-social-media-trends-to-watch-out-for-before-2020. html

Coming in December

Trimmer Annual with... Trimmer Charts PETevents OCTOBER 16-18—GIE+EXPO, Kentucky Exposition Center, Louisville, Ky. Call 812-949-9200; visit gie-expo.com. NOVEMBER 5-8—Far West Equipment Dealers Assn. 2019 Convention, Phoenix Marriott Resort Tempe at the Buttes, Tempe, Ariz. Call 707-678-8859; visit fweda.com. DECEMBER 19-21—WEDA International Dealer Conference, Westin Kierland Resort & Spa, Scottsdale, Ariz. Call 816-5615323; visit westerneda.com. Listings are submitted months in advance. Always verify dates and locations with contacts prior to making plans to attend.

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DEALERtodealer

Many Ways To Be Successful SAM STEARNS

Are you at peace with the financial decisions you’ve made regarding your dealership?

’m not a financial adviser or anything close to it. I know very little about the world of finance. My ignorance notwithstanding, I do have a basic understanding of a general principle or two of debt and finance, and I have a basic understanding of being an entrepreneur. I have, after all, been what you might consider an entrepreneur for several years now. Not necessarily a great one, but an entrepreneur nonetheless. My desire for my fellow dealers is that you would be able to make financial decisions about your dealerships and be completely at peace about them. Maybe we feel like that goal of being at peace about the state of our business finances is unattainable. Perhaps it truly is unattainable in some cases. But maybe we can all make a step in the right direction at least and reduce the level of stress that many of us feel because of the financial burdens we carry. Some of us are in way too much debt. And I bet a lot of you reading this know it and feel that weight. There’s one thing we should be able to agree on: Debt is bondage. The borrower is servant to the lender. During day-to-day operations, we may not necessarily be aware of our “servant” status, but the fact is that a big reason for continuing business operations is: “We owe! We owe! So off to work we go!” What would happen if you decided you wanted to stop your power equipment business and do something else? You can’t, because you have incurred financial obligations. See, it’s not just about making a living to provide for our beloved families. And if one or two cogs of our business machinery were to stop or fall apart, we’d be in a pickle, 46

OCTOBER 2019

owing money that we had no means to pay. That’s enough to keep one up at night, isn’t it?

Goes Both Ways For all the successful experiences that you PET readers have had using borrowed money for the benefit of your business (I’m really glad for you, by the way!), there are also horror stories. Entrepreneurs involve themselves in “can’t miss” deals that fall apart in ways they never envisioned. Another inescapable reality is that we don’t know the future, and we’re not in complete control of our environment. I heard a story a couple of years ago about a very successful landscaping company. Things were really looking up for them, and they invested in 10 brand new commercial zero-turn mowers that were going to pay for themselves in just a few months, so they’d be able to pay them off quickly. But the problem in this particular scenario was that this company had relied heavily (for years!) upon migrant workers. But right around the time they financed all that new mowing equipment, the government suddenly made a law that significantly reduced the number of work visas that this country could issue to migrant workers. The business climate changed, and this successful landscaping business suddenly had no workers to make these new, shiny mowers make the money to pay for themselves! They tried to hire others to replace them, but they weren’t nearly as fast or reliable. Sadly, this successful company was forced to shed half of its accounts! This “can’t miss” strategy, for which no one would have blamed them, fell apart so quickly and without warning. I have been told, and I’m sure many of you would tell me, that a successful power equipment dealership cannot be built and ran without any debt. It depends on what you mean by “successful.” If, by “success,” we are referring to having a giant showroom, carrying 10-15 lines of equipment and relying on

an 11% profit margin on a projected $3 million in annual wholegoods sales to pay all our employees and make a halfway decent living for ourselves, I suppose it’s going to be hard to run that type of a dealership without using debt to do it. If that’s what you believe a successful dealership is, go for it! But if, by “success,” you mean that your parts and service departments fully absorb all the costs of your dealership, and your sales department is merely a profit center, and you don’t have to hit $2.4 million in sales just to break even, then we can see how leveraging debt can be just an option, not a necessity. As I relocate and grow my dealership, a certain part of me wants people to look at it as they drive by and say, “Wow, he’s gotten really big and successful!” But you know what I like more than that? Peace. Being able to sleep at night. I enjoy the knowledge that Mr. Mower Man could just stop all operations today, and it wouldn’t owe anyone a penny. That’s peace of mind, and that’s valuable. And you know what? It’s not even at the expense of providing for our families. That’s the really neat thing about it. So if you’re trying to grow a dealership, please be careful about indebting yourself. And if you have an established dealership in the throes of financial slavery, you can take steps to work out of it. It will take some time for a lot of you, but you can do it! My best advice for you is to find a business owner, not even necessarily in our industry, that has successfully made this kind of change, and emulate them. So instead of simply replying, “Our business just can’t be done that way,” remember that the hallmark of entrepreneurship is creativity. How creative can PET we be? Are we up for it? 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 the views of Hatton-Brown Publishers, Inc.

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