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POWERlines
A Hatton-Brown Publication www.poweret.com
Weather That’s Wanted, Dreaded DAN SHELL
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eather makes the lawn and garden industry go round, for sure. Every time PET does a dealer survey and asks about future business prospects, there are always a couple dozen dealers who answer to the effect: “Hey, as long as it rains, we’ll be fine.” But perhaps especially this year, it’s amazing how much things can change when it comes to weather, and weather-dependent businesses. Looking on the google-net-web at some recent news stories, back in January and into early February the word across the upper Midwest was no snow, lack of snow and still waiting on snow. Article after article three months ago covered the lack of snow in places like Minneapolis, where the author was rollerblading on a sunny day in January in the balmy upper 30s. The gist of the story was rollerblade rentals benefit while the ski/skate/snowboard and snow blower suppliers go wanting for business. Of course, it’s never that simple, and in mid to late February through much of March the northern U.S., Rockies and Sierras were hammered by repeated storms. Showrooms went from quiet to busy overnight, snow business of all kinds picked up. Salt shortages developed. The weather news went from no snow to late snow, spring snow and even more snow! By late February news reports abounded similar to the Husqvarna dealership and hardware store in Iowa where the owner sold 20 bags of a 100 bag salt order before he finished signing the invoice—and the rest gone in two hours while the phone was ringing off the hook after Iowa received a foot-plus of snow in four days. Yet these same storms northern dealers waited for and welcomed brought much different weather to the South as squall lines and warm-cold temperature changes combined to create extreme weather throughout the region. Nowhere saw worse weather than Lee County, Alabama, where an F4 tornado stayed on the ground for more than 70 miles through a rural but well populated area and on into west Georgia before it dissipated. Twenty-three people were killed in Alabama and dozens injured in a mile-wide swath of devastation. And while the storm wasn’t to the scale of a Hurricane Michael last year or the Tuscaloosa tornadoes in north Alabama in 2011, the grief is just as large—and the need for community recovery just as great. Fortunately, these are situations where dealers shine, as homeowners, commercial operators, utilities and other groups desperately need the equipment and expertise dealerships provide. Sunsouth-Auburn, part of a large multi-branch Deere and Stihl dealership in central Alabama, is the closest dealership to the major damage and tragedy that occurred in the little community of Beauregard south of Auburn. A representative with the company says the business saw a spike in saw, bar and chain sales after the storm and offered discounts to non-profit and charity groups. But what really stood out, he said, were the groups that came in and essentially wiped the dealership out of accessories such as chaps, gloves, eye and ear protection and more— almost all purchased with donations given by charitable–minded folks near and far. And almost a month after the storm those groups were still coming by, he added. “It was amazing to see how many people came together from around the state and really around the country,” the rep said, noting that the dealership had seen companies from as far away as Washington and Oregon that came to help out. Whether it’s weather that’s welcomed or dreaded, dealers have an undeniable role in helpPET ing communities cope and recover, to weather a storm of inconvenience or tragedy.
Contact Dan Shell; ph: 334-834-1170; fax 334-834-4525; e-mail: dan@hattonbrown.com
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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 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
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Our 731st Consecutive Issue
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Founded in 1952
Renew or subscribe on the web: www.poweret.com
FEATUREstories
8 ALL SEASONS 14 VP RACING 18 INDUSTRY VOICES Residential Focus
Fuel Can Fix It
Implementing Stay Bonuses
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Power Suppliers ______________________________ 6 5 Minutes With ______________________________ 12 Dealer Voices________________________________ 16 Showroom __________________________________20 Distributor Library ___________________________ 24 PowerWorks ________________________________ 27 PETcetera/Ad Index __________________________29 Dealer To Dealer _____________________________30
COVERphoto The family behind Pineville, La.’s All Seasons Sales & Service treats everyone like family, even Mayor Clarence Fields, shown with Kristen Squyres Deville, beginning on Page 8. (Cover photo by David Abbott; Cover design by Shelley Smith)
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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 Excel Breaks Ground On Facility Expansion In mid-December 2018, Excel Industries held a groundbreaking ceremony to begin construction on a multi-million-dollar facility expansion, following the selection of Conco Construction to be the prime contractor. The expansion will provide additional manufacturing space to support new product introductions as well as an upgrade to the existing paint system. The project is slated to be completed by the end of third quarter 2019.
NDIDA, MSEDA Merge Form New Association
The North Dakota Implement Dealers Assn. (NDIDA) and the Minnesota-South Dakota Equipment Dealers Assn. (MSDEDA) will undergo a historic merger to form a new organization known as the Pioneer Equipment Dealers Assn. The announcement was made January 23 by NDIDA Chairman Jamie Melgaard, Minot, N.D., and MSDEDA Chairman Corey Marzolf, Spring Val-
ley, Minn. Matthew Larsgaard will be named President/CEO of the new association, which will be headquartered in Fargo and has an expected launch date of April 1, 2019.
EETC Launches Non-Proctored Exams
The Equipment & Engine Training Council (EETC) stepped up its efforts to address the critical shortage of qualified service technicians in the power equipment industry by introducing an online, non-proctored, 4-stroke engine certification exam. The new exam has received recognition from Briggs & Stratton Corp. “The EETC has really improved its exam technology, making it easier for anyone to take a test,” John Piechowski, Director, Global Dealer Support, Briggs & Stratton Corp., says. “We’re excited to begin recognizing the EETC’s 4-stroke engine exam as equivalent to our ‘Authorized Dealer’ exam. Technicians can now take either exam for Briggs & Stratton educational credit.”
Stihl Hits Manufacturing Milestone In Va.
Stihl Inc. announced the production of its 75 millionth powerhead at the company’s headquarters in Virginia Beach, Va.—a milestone that coincides with the company’s 45th year of manufacturing operations in Virginia. Stihl established its American operations in Virginia Beach in 1974, and Stihl Inc. has evolved from assembling a single model of chain saw to manufacturing more than 80 different models in its cutting-edge, highly automated operation.; producing a variety of gasoline- and battery-powered handheld power equipment, including chain saws, trimmers, hedge trimmers and blowers. “From the first unit built in 1974 to today’s milestone, our operations continue to improve year over year to meet our customers’ demand for quality products,” Bjoern Fischer, President of Stihl Inc remarks. “Delivering this 75 millionth unit highlights how vertical integration and the latest technologies enable us to maximize quality, reduce costs and remain competitive in today’s global market.” 6
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The new exam will allow individuals looking to become 4-stroke engine certified to take the test online, without a proctor, at their own convenience. “This streamlines the whole process and allows them to take the test 24/7,” EETC Executive Director Erik Sides adds. “We’re moving to proctor-less testing for all eight of our certifications.” For more information and to register for the EETC’s new online 4-stroke engine certification test, visit eetc.org.
Toro, Ditch Witch Announce Purchase
The Toro Co. has announced that it has entered into a definitive agreement to acquire privately-held The Charles Machine works, Inc., an Oklahoma corporation and the parent company of Ditch Witch and several other leading brands in the underground construction market—for $700 million in cash—subject to certain adjustments set forth in the definitive agreement. The transaction is subject to regulatory approvals and other customary closing conditions and is currently anticipated to close before the end of Toro’s third quarter fiscal 2019. Charles Machine Works generated calendar year 2018 revenues of approximately $725 million. “The addition of Charles Machine Works will further strengthen our portfolio of market-leading brands supported by talented employees, a commitment to innovation, a best-in-class dealer network and longstanding customer relationships,” Richard M. Olson, Toro’s Chairman and CEO says. “The company expands our business in a meaningful way in an adjacent category we know well through our own specialty construction business and in a market that is attractive given the potential for growth in addressing both aging infrastructure that is currently in place and new infrastructure that will be needed to support next generation technologies like 5G.”
OPEI Board Appoints New Leadership
The Board of Directors of the Outdoor Power Equipment Institute (OPEI) met with staff recently at the association’s headquarters building to discuss the challenges and opportunities ahead for the power equipment industry. During the meeting, the Board appointed Rob Moll, CEO of MTD, as a
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POWERsuppliers director, and named Tom Duncan, President and CEO of Positec, to the executive committee as secretary/treasurer. OPEI’s 2019-2020 officers and members of its Board of Directors are Chair Bjoern Fischer, President, Stihl Inc.; Vice Chair Rick Olson, Chairman, President and CEO, The Toro Co.; Secretary/Treasurer Tom Duncan, President and CEO, Positec; Immediate Past Chair Dan Ariens, Chairman and CEO, Ariens Co. The other members of the OPEI Board of Directors are: Earl Bennett, President, Husqvarna North America, Husqvarna Professional Products; Edward B. Cohen, Vice President, Government & Industry Relations, American Honda Motor Co., Inc.; Tim Dorsey, President, Echo Inc.; Peter Hampton, President and CEO, Active Exhaust Corp.; Tim Merrett, Vice President, Global Platform Turf & Utility, Deere and Co.; Lee Sowell, President, Outdoor Products, Techtronic Industries Power Equipment; Todd Teske, Chairman, President and CEO, Briggs and Stratton Corp.; Mark Wagner, President and CEO, Club Car, LLC; Joe Wright, President and CEO, Excel Industries, Inc.
Dealer Groups Pledge Midwest Flood Relief
In response to devastating flooding in Nebraska that began in mid-March, the Equipment Dealers Foundation (EDF), Equipment Dealers Assn. (EDA) and Iowa-Nebraska Equipment Dealers Assn. (INEDA) have released a call to action for their members and the entire industry. The groups are urging anyone who can to make a donation to EDF’s Disaster Relief Fund. The Disaster Relief Fund was created following Hurricane Katrina in 2005 and has been providing grant money to offset the financial demands of dealership employees who are affected by natural disasters. Grant money can be used for temporary housing, food, water and other necessities. Andy Goodman, INEDA President and CEO, has pledged the group will match any donation the fund receives from one of his dealer members. “We are calling on all members of the agriculture community, especially those in Iowa and Nebraska, to support your colleagues and peers who are facing terrible destruction, incredible expenses and months of rebuilding as a result of this flooding,” says Goodman. “INEDA is proud to commit to making a matching
EPA Drafts E15 Rule, Year-Round Sales One Step Closer In early March, the U.S. Environmental Protection Agency sent a draft of its proposed rule allowing year-round sales of higher ethanol blends of gasoline to the White House Office of Budget for review. The rule expanding sales of E15 was promised by President Donald Trump late last year as a way to help corn farmers, but includes measures sought by the oil industry to curb biofuel credit market speculation. In a statement to news outlet Reuters, EPA spokesman Mike Abboud says, “We hope to expeditiously propose and finalize the rule consistent with the President’s direction.” In keeping with the governmental process, the proposed rule is currently published for public input before being finalized. The proposed rule does not have to be approved by Congress. In order for E15 to be available this summer, the process must be completed before June 1. At the end of February, the proposed rule of E15 year-round sales caused some public disagreement between Secretary of Agriculture Sonny Perdue, who said the EPA was not going to be able to finalize the rule on time after failing to release the rule in early February (due in part to the 45 day-long government shutdown) and EPA Administrator Andrew Wheeler, who was confident the agency would get the rule in place. donation to the EDF for every INEDA member who donates.” Disaster Relief Funds go directly to assist employees of equipment dealerships impacted by natural disasters. Donations can be made online (https://www.equipmentdealer.org/contribute-now/) or by completing a pledge card and mailing your check (made out to Equipment Dealers Foundation) to: Equipment Dealers Foundation, 165 N. Meramec Ave. Suite 430, St. Louis, MO 63105. EDF also accepts donations made via credit card over the phone. Please call the EDF office at 636-349-5000 for additional information or fill out the Disaster Relief application online.
EDA Presents Legislative Award
The Equipment Dealers Assn. (EDA) presented its third annual Legislative Leadership Award to Senator Joni Ernst of Iowa in Washington D.C. as part of a joint legislative fly-in hosted by EDA
and the Iowa Nebraska Equipment Dealers Assn. (INEDA). Over 40 agriculture and construction equipment dealers from around the country attended the fly-in. One of the EDA’s core functions is advocacy for federal legislation, which positively impacts the way equipment dealers and their customers do business. In recognition of the important role that legislators play in promoting and protecting their members’ interests, EDA established the Legislative Leadership Award. “We are privileged to present Senator Ernst with the Equipment Dealers Assn. Legislative Leadership Award during the fly-in,” says Kim Rominger, President and CEO of the EDA. “The purpose of this award is to recognize leaders in Washington who promote legislation that benefits our industry and advances EDA’s mission of building the best business environment for equipment dealers. Senator Ernst is the epitome of an advocate for agriculture and we thank her for her efforts to protect American trade and support farmers.”
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All Seasons Focuses On Residential Side
She sells the mowers that are on the floor now, but when Kristen Squyres Deville was young, along with her little sister, she sold hot dogs.
BY DAVID ABBOTT PINEVILLE, La. n the background, at a pleasant volume, clearly audible but not distracting, the store is filled with the sounds of a local radio station playing music throughout the store, the country music of the late 1980s and early ’90s, when country music was actually country. As Reba McEntire tells about the night the lights went out in Georgia, when they hung an innocent man, through the front door and directly to the parts counter walks a customer. He just so happens to be Clarence Fields, the mayor of the town of Pineville, located in Rapides Parish, just across the
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Kristen Squyres Deville, Justin and Autumn Squyres
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All Seasons customer base is 85% residential, though the dealership sells commercial grade mowers to large property homeowners.
Red River from Alexandria, making Pineville part of the Alexandria Metropolitan Statistical Area. Kristen Squyres Deville steps up to greet him. “Hi, Mr. Mayor, what can we do for you today?” she asks with a smile. “I want to drop off a blower for some work, and a pressure washer,” Mayor Fields, who’s served in his post since 1999, answers. He’s been a regular customer at All Seasons Sales & Service, LLC for years. Among his purchases are two zero turn-mowers, a push mower, pole saw, pressure washer and a trimmer. Within minutes, Kristen has him taken care of and on his way. “They’re a really good family,” Mayor Fields says. “Their service is excellent.” Kristen and her mother, Autumn Squyres, generally run things in the front of the house, helping customers and tackling warranties and financing. Autumn’s husband, Justin Squyres, who started All Seasons in 2002, prefers to stay in the background, handling the business side from behind the scenes. Justin grew up in the business; his father had a different All Seasons store in Pineville’s larger sister city, Alexandria, but closed it before Justin was old enough to take over. As soon as he was able, at only 19, he opened his own All
Seasons here, where it’s been ever since. Autumn joined him in 2006. Prior to that, she had been a legal secretary for many years. “I couldn’t tell the difference between a spark plug and a starter,” she laughs. “I had to learn from scratch. Back then I worked more in the office, but over the years Justin and I have swapped roles. Now he spends more time in the back office and Kristen and I talk to customers. He’s not really
a people person but he is better on the business end, and we are not as mechanically inclined but we deal with people better.” Kristen, who was just 6 when the store opened, started coming in to help out after school and on weekends as soon as she was old enough. She earned an associate’s degree in general science, but there was never much doubt that All Seasons was in her blood. “She would constantly tell us
Techs are certified in the highest level available from Toro and Scag, All Seasons’ major brands. POWER EQUIPMENT TRADE
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All Seasons opened its doors in 2002, and the Squyres family has worked hard to maintain a solid customer base since then.
that when she was in her classes, all she could think about was what she needed to be doing here,” her mom says. “So it was kind of her calling.”
Wet Early Season Another customer has stepped up to the counter, and this time Autumn fields it, asking him how business has been. “If the sun would come out for a week it might help,” he shrugs. He had just recently purchased a new mower from All Seasons. “All the landscapers are the same way: rained out,” Kristen says. “It’s a very residential area so we are geared more towards homeowners here. It’s about 85% residential. We sell commercial grade mowers, but mostly to homeowners who own large property.” She speculates casually that she could probably name all their commercial customers off the top of her head. “I definitely could,” Autumn interjects after finishing with one of them. “There’s not that many, so we know them on a first name basis, and they know ours, too. We like it that way.” Most of them, she adds, have been coming here since day one 17 years ago. All Seasons swapped to its mowing season hours on Friday, March 1, officially kicking off the busy time of year. In season, the store’s three service technicians aim to keep turnaround on repairs within a week or two, and Autumn says they stay pretty true to that standard. Posted shop rate is $85 an hour. Speaking of the three men in the back, “They are a real good group of guys,” Kristen says, and Autumn nods agreement. One of them, Lee Bridges, 10
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All Seasons’ shop team, from left, Joel Humphries, Lee Bridges and Marcus Church
has been at All Seasons for 10 years and another, Marcus Church, for a littler under five. Joel Humphries has only worked here a few months, but Autumn says, “We are so super very excited to have him here, and he has fit right in to what we do. He came here already very knowledgeable about larger equipment, and has been learning lots of good stuff with small engines.” Autumn and the techs go through training updates periodically from all the major manufacturer lines sold and serviced by All Seasons. Autumn has completed gold certification training from Scag both on the tech and the sales side, and the shop is a Master Service dealer for Toro. Justin also travels with the techs to a yearly Kawasaki engine school, and Kohler brings training to them locally in Alexandria. “With all the brands we sell, especially our major lines, like Toro and Scag, we try to have the highest certification level offered,” Kristen says.
Lines Toro, Scag and Columbia are the mower lines carried by All Seasons. The dealer offers handheld equipment from Echo, Shindaiwa and Maruyama, as well as Troy-Bilt push edgers, Little Wonder blowers, Brinly carts, Giant Vac products and chemical sprayers by Jacto and Master Manufacturing. They sell Kawasaki, Honda, Briggs & Stratton and Kohler engines. “Also, Toro is making their own engine that has done very well for us,” Autumn says. The store offers customers financing through Sheffield Financial. Another product All Seasons is happy to carry is TruFuel. “Our biggest problem, mostly with handheld products now, is not necessarily ethanol but trash that sits in the holding tank at the gas stations,” Autumn explains. “Small carburetors don’t process that trash very well, and TruFuel fixes that. So we sell a ton of it.” Kristen expands the explanation:
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“The problem you run into with ethanol is that it is an alcohol so if people let it sit up, when ethanol evaporates, it hardens everything. Any moving parts, gaskets and diaphragms, things won’t flex like they should. Anything rubber will shrink when ethanol evaporates.”
Part Time, Long Term The ladies consider parts a bigger part of their business than whole goods. “We love selling parts,” Autumn says. “Of course we are happy to sell whole goods too but when we sell a weed eater or chain saw or lawnmower, we know they come back for spark plugs, belts, blades, all the maintenance items. So we are really investing in a long term customer.” Kristen adds, “Everybody who comes in is a long term customer. We have people who walked in the first day we opened and still come in today. We’re a family-based operation so that to us means the world.” Autumn continues, “Our girls are 23 and 19, and we have old guys who come in here who remember when they were 6 and 2.” When the girls, Kristen, and her sister Courtney, were little, they would set up a hot dog stand in front of the
store in the summers and sell snacks and drinks. “We were teaching them young that you have to buy your products and mark it up to make a profit, so we fronted them the money to buy their first condiments and buns and so on. And then we had them pay us back from the money they made, and that was their profit, to reinvest and buy more supplies. The kids made a killing and lots of friends.”
Succession Another customer, a Mr. Banks, comes in to pick up push mower he’d left for repairs. Kristen promptly calls back to the shop to check with the technicians, and sure enough it was ready to go. Mr. Banks paid his bill and the techs brought it his mower out to him. Although Justin and Autumn are still young, the long-term plan is obviously for Kristen to take over, though she might not do so alone. Sister Courtney is currently working through nursing school and has no desire to join the family business, but there’s also their little brother Jeffrey, 9. Like his dad, he doesn’t seem to care much for talking to customers, but he enjoys the shop. Perhaps, in another 10 years or so, he will want to manage
the back end while Kristen handles things up front. “We’ve always said we wouldn’t force any of our kids into this, but my hope is that our son will be interested, because it is difficult for one person to do this alone,” Autumn says. There’s also another possibility: Kristen is working on creating the next generation. She and her husband, Taylor Deville, who has a good job in the oil fields, are expecting their first child in September. This will also be the first grandchild for Justin and Autumn, and they’re excited. After Kristen had the ultrasound to learn the baby’s gender in late March, the doctor gave the results to Courtney, to Taylor’s sister and to Justin. For the gender reveal party, Justin built a home-made cannon that would fire confetti in either pink or blue to announce to Kristen and Taylor if they are having a boy or a girl (spoiler alert: it turned out to be a girl). In fact, while PET was at All Seasons, Justin was busy testing the cannon and the confetti. So, it’s entirely possible that by the time he and Autumn retire in 20 years or so, Kristen may have her own daughter, if not other children, eager to follow in her footsteps. Maybe PET can check back in with them then. PET
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Five Minutes With...Sara Hey Born into an industry that often relies on growing their own employees, Bob Clements’ daughter Sara Hey shares some insights on what she sees for the future and what dealers need to pay attention to moving forward.
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ara Hey packs a tiny, but mighty, punch as a member of Bob Clements International’s team of dealer-focused trainers. Here, she spends a few minutes with PET as the busy spring-summer sales season moves into high gear: Power Equipment Trade: How did you come about being with Bob Clements International? Sara Hey: I started with Bob Clements International (BCI), full-time, out of necessity. I told my dad, Bob Clements, that I would never join the family business. However, my husband and I were living in Chicago, and we just had twin girls and I really needed a paycheck. As a result, my dad asked me to come and do inside sales for the organization. I started knowing nothing about the industry or sales, but over the years I found it was something I loved and it has been a privilege to be part of the business with my family. PET: Bob Clements International is heavily involved in dealer specific sales coaching. Have you noticed any trends during your tenure with BCI that dealers need to make sure they pay attention to? SH: As a sales professional, stick to the basics of keeping your funnel full. One way that we encourage sales people to do this is by focus their attention on customers who have bought from them in the last five to seven years. In your CRM, you should be able to pull up this list and just touch base with them. By focusing on this group, you will typically find customers whose product is out of warranty and they have paid off the equipment. Most of the time, they will be in the market for a new product or 12
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will be ready to start looking shortly. PET: When you enter a showroom, what do you notice first? SH: One of the things that we commonly see dealers do is put every model of every item they have on the showroom floor. In essence, making their showroom just an extension of their warehouse. Most of the time, dealers are trying to make sure that the customer has a plethora of options, however it makes the dealership look too small and disorganized. We encourage dealers to treat their showroom like a car dealership. Have only a few models of equipment out on the floor, but make sure they have everything available on them. It’s harder for a customer to add an additional accessory to the equipment they are interested in than it is for them to have it removed. PET: What do you think the one thing dealers need to be doing in 2019 to have their best year ever? SH: I think dealers really need to look at their service departments. With the economy being strong over the last few years, it has been an easy thing for dealers to ride the wave of wholegoods sales. However, when the economy starts to slow down, the dealers who have strong service departments are the ones that will succeed. In a service department, we measure technician’s time by the tenth of an hour. If you can start identifying where your technicians time is going, and you require them to be a minimum of 85% efficient, it will put you on track to make sure that your service department is like an ATM machine for your dealership, regardless of what is going on in the economy. PET: Give us your thoughts on the future of the servicing dealer sales model. SH: One of the greatest transformations over the last few years is that OEMs have continued to focus on creat-
ing a strong dealer base, not just a large dealer base. This focus has had a large effect not only for the dealers now, but the effect will continue to be felt into the future. We have found that when a customer brings their product to a dealer (that they didn’t buy the product from) for service, and they have a positive experience with the service department, 60% of the time they will buy the next unit from that dealership. I see this continuing into the future. When dealers and OEMs are working together to provide the best experience and product to the customers, everyone ends up stronger for it. PET: Any words of encouragement for dealers that are feeling like their business is going stale? SH: Pick one thing to work on. So many times, dealers look at their business and feel overwhelmed, because it looks like everything and everyone needs their attention. When dealers start by choosing one small thing they can focus their time and effort on, that will make their lives easier, it makes them feel like they are gaining momentum. It also gives them more time to focus on the next thing and it becomes a domino effect. Start small; don’t go into your service department thinking you are going to change all of the processes over night. Focus on something like getting good customer contact information on work orders, or having your technicians triaging to get in front of the parts orders. By focusing on one, specific task over time you will move from being the firefighter in your dealership back to being the owner. As a speaker and presenter at national meetings, the GIE+EXPO and BCIS’s Boot Camps, Sara Hey helps owners and managers discover effective ways to manage, motivate and find key employees. In addition to conducting webinars and traveling to national events, she works with key manufacturers and leads BCI’s product development. Currently, Hey is working to launch BCI’s dealers-specific Learning Management System, The Dealer Classroom, and promoting upcoming regional management boot camps. For more information about Bob Clements International’s selections of products and services, visit bobclements.com.
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ADVERTORIAL (Material Supplied by VP Racing)
Street Gas Brings Disgruntled Customers BY J.K. KELLY
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ecently I met an unhappy customer at a power equipment repair shop. “I bought this new chainsaw here a year ago and had to bring it back for a fuel system rebuild,” he said. “Six months later I’m back getting the same work done. Is it me or is this shop taking advantage of me?” He had been using pump gas, but the shop neglected to warn him about the problems with street gas and the advantages of fueling with ethanol-free fuels formulated for quick starts. How many dissatisfied customers do you think that shop has? They might not ever know since they just won’t come back. I’ve also heard that 95% of OEM warranty work is pump gas related—so I’ll bet they’d like you to use small engine fuels too. Problems with ethanol fuel are here to stay, but luckily some very easy to use, simple solutions are too. Whenever a new engine leaves the shop, I’d have a quart of small engine fuel in it. From what I’ve seen on the market, VP’s Small Engine Fuel line is the choice I’d make. It’s an internationally known racing fuel company based in Texas, and considering they put the same effort into small engine fuels as they do for the profes-
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sional racers, you can bet its good stuff. I use it, and it is available for 4-cycle engines and also for 2-cycle engines, using full synthetic FD rated 2-cycle oil. I used to mix oil and gas for my chain saw and when I raced karts, but the pre-mix makes it easy for anyone to use. One last thought: I had a small generator that purred for hours but began to run poorly and then not at all. Yep, I was cheap and was using pump gas. The rebuild quote was $150, and then I noticed a can of VP’s Fix It Fuel on the shelf. They never mentioned it, but I bought a can, poured it in, and within five minutes I heard her liven up and run like new.
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3/29/19 9:33 AM
DEALERvoices
Tackling The Tech Shortage
People are expensive, sure, but the truth is, the most valuable technicians will go where they feel valued the most. BY SAM STEARNS want to tackle an issue that makes many of us lose sleep at night—the technician shortage. Just let me assure you that I don’t have all the answers. I just may have an idea or two that we can try. One thing we can definitely do to attract better technicians is to pay more for them. People are expensive. No way around that. If you’re running your service department correctly, you should be able to pay your top-level technician 30% of your shop labor rate. So if my labor rate is $80/hour, I should be paying my top, A-level technician $24/ 16
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hour. How many of you cap the pay rate in your shop at $18? You either need to raise your labor rate, or you need to run your shop more efficiently. Or you need to just pay your technicians more, if you have a high enough labor rate and your shop is running efficiently. For reliable metrics to measure your shop’s profitability, I highly recommend the helpful folks at Bob Clements International (BCI). They know what a high performance service department is and how to help you get there.
Basic Math Let’s just do a little math. If you have an A-level technician who’s 100% efficient (meaning he bills as many hours as he works), and your labor rate is $80/hour, then your technician will generate $3200 in a 40-hour week. If you’re paying him $24/hour, he earns $960 that week, leaving you with $2240 left over to work with for
that single week. In a well-run system, your top tech should be more than 100% efficient. Some techs get into the 120% range! If you have efficient systems in your shop and good flat rating, your techs can reach this. If that same technician were billing out 20% more hours than he was working, he’d be generating $3840 in a week. I understand the fear of paying a lot for a technician. But the truth is, the most valuable technicians will go where they’re valued the most. The best technicians out there will generate you a lot of money, and the only way to make sure they’re working for you, instead of your competitor, is to make it worth their while to work for you. How well you compensate them has a lot to do with that. It’s helpful to not look at your technician as an expense, but rather as an investment. A good technician can make you lots of money! But if he truly is an expense to your organization, you probably need to let him go work for your competitor for the rate that he’s worth, and find someone you can invest in, who will actually help your service department. Those owners and managers who actually have a valuable technician who is well-compensated, happy and dependable, understand most of all just how important and valuable they are.
Time off, flexible work schedules and being a part of something with importance and meaning (more than just doing a job and being paid for it) are all things that tend to be just as important (or more) as money, to the millennial generation. But for the younger generation, it’s not all about the money. Time off, flexible work schedules and being a part of something with importance and meaning (more than just doing a job and being paid for it) are all things that tend to be just as important (or more) as money, to the millennial generation. For more on that, I would recommend seeking out the people at BCI.
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Who do We Hire? What do we look for when hiring someone to work in our dealerships? Are previous experience, knowledge and skill the top things we look for? For the health of your dealership, I hope not! These qualities are of little value if the person is unmotivated and does the good work he’s capable of only when he’s in a good mood. I would much rather hire someone who had no experience and who knew nothing about the work we did, if he or she was dependable, knew how to deal with people, and had good, solid character. I can teach them the specific things they need to know to work here. I can be patient as they learn new skills. But I can’t deal with someone who will undermine my business and steal from me; or someone who will alienate my customers by being angry or rude to them or by doing shoddy work on their equipment. In my particular situation, I know a family with eight boys, and I started a few years ago with boy #3 coming one or two days a week to work with me for a few hours. Then boy #4, and now I’m
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working with boy #5. I’ll probably end up with boys 6-8 eventually! These are all solid young men who will be an asset to anyone’s organization, regardless of the industry. When I’m ready to hire someone to help (soon, hopefully), I’ll likely approach one of these young men first. They are trustworthy, and they’ll be able to grow into the positions where I need them. It is a blessing for me to have known this particular family for years. I also know several good quality young people from other organizations and relationships. Do you know any young people who might be a good fit for your organization? If not, do you think you can put yourself in a place to get to know them and build those relationships? Get knowledgeable of the nearest technical school in your area, or look at the young people in your church, or get familiar with your local high school’s FFA or
other organizations. Be favorable toward these organizations and the young people in them. It just may be that when you need to hire another person, you’ll have a pool of quality young men and women to choose from. And if you’re an OPE technician who wants to work in the southern Indiana area, by all means give me a call! PET Sam Stearns owns and operates Mr. Mowerman, Scottsburg, IN, 47170; e-mail: mr.mowerman@hotmail.com. The views of Sam Stearns do not necessarily represent those of Hatton-Brown Publishers, Inc.
3/29/19 2:39 PM
INDUSTRYvoices
Effectively Using Stay Bonuses After the death of a beloved business owner, employees often find other opportunities leaving companies in the lurch. Instead, consider offering “stay bonuses” to help retain key employees to mitigate challenges.
T
he unexpected loss of an owner is a big shock to a business. The sudden change can cause a ripple effect that threatens the entire organization. Some forethought might help avoid uncertainty in business succession while satisfying the owner’s wishes. Take the following example: Bob is the third generation to run his family
ance coverage on himself to provide cash flow to cover debt and some money to compensate for his loss, as long as his key employees stay with the business. However, he is concerned that this might not be enough to retain his valuable employees. Bob may consider a “Stay Bonus” program, a prearranged plan with funding that rewards key employees for business. His son and daughter, who he toughing it out in the first years after hopes will be the fourth generation, are losing the owner. With such a program, active in the business, but neither have Bob would prearrange funding (usually all the necessary skills to take over and with a life insurance policy) so that, if successfully run the business if Bob they keep the business running profitshould die suddenly. ably, the business could give them There are three key employees who each a bonus after a specified period of could keep the business successful until time. The terms of the bonuses— the children are ready to take over. The amounts, timing, conditions, etc.—can employees know Bob wants his children be customized to fit Bob’s circumto take over and have no designs on stances and requirements. He chooses ownership themselves. Bob is conwhether to discuss this contingency cerned that they might not want to stay plan with key employees. If not, a desif he dies. Bob has key person life insurignated person, such as his attorney, could discuss the plan immediately after Bob’s death to determine if they are willing to stay. If the stay bonus program is not needed, the accumulated values in the policy may be used as a retirement exit bonus for the business owner. Think of a stay bonus proNot all dealerships have a second or third generation able gram as a disaster recovery plan for management. It to keep the business profitable. helps employees refocus, forms a common bond and provides a protective barrier against recruiters. It demonstrates, at a critical time after a loss, how much a business owner values and appreciates PET team members.
A stay bonus program can keep key employees protected in the event of a death that might have other dealers knocking on their door.
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This article is intended to provide general information and recommendations regarding risk prevention only. There is no guarantee that following these guidelines will eliminate any risks or result in reduced losses. This information may be subject to regulations and restrictions in your state and should not be considered legal advice. Qualified counsel should be sought regarding questions specific to your circumstances and applicable state laws. Submitted by Federated Mutual Insurance Co. For more information, call 800838-1760.
POWER EQUIPMENT TRADE
3/29/19 9:56 AM
Husqvarna Launches New Generation Forestry, Tree Care Saws New saws with outstanding productivity, durability and maneuverability now available in North America in time for Husqvarna’s 60th chain saw anniversary
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usqvarna has officially launched its new chainsaw generation across North America. The new line of saws includes two brand new saws in the 70cc class, the company’s lightest professional gas-powered tree care saw ever, as well as two 50cc saws completely redesigned from scratch— launching an entirely new generation of cutting excellence as Husqvarna celebrates its 60th chain saw anniversary. The new generation of saws were designed and built from scratch on a completely new platform on the same grounds in Sweden where Husqvarna’s chain saw history began in 1959. True to Husqvarna’s chain saw heritage, they offer a user-centric design that keeps the forestry and tree care professional in mind. The well-balanced saw body with low gyroscopic forces provides excellent maneuverability and handling, enabling users to work longer without tiring. With an updated version of Autotune, the new saws offer a faster calibration time, while the new engine design increases productivity, which in turn minimizes environmental impact.
Husqvarna 572XP and 565 Pushing the boundaries of innovative product design, the Husqvarna 572XP spearheads this new chainsaw generation by delivering a 12% higher cutting capacity over similarly sized Husqvarna saws. The new engine design offers a wide usable RPM range for peak performance, while its new cooling capacity provides for a longer engine life. The new state-of-the-art filtration system provides longer and better filtration and therefore a healthier engine and optimized performance. Weighing just 14.5 lbs. and equipped with a powerful 5.8 HP engine, the 572XP has a better power-to-weight
ratio than any other comparable Husqvarna saw. The Husqvarna 565 delivers next-generation cutting performance, also in the 70cc class, that lets professionals work faster and more efficiently. It comes equipped with excellent cooling capacity, state-of-the art filtration, AutoTune and Air Injection and offers low vibration. The efficient air injection system filters out 98% of incoming dust to deliver full working days with maintained performance and less wear on the engine.
Husqvarna 550XP Mark II, 545 Mark II The redesign of the new 550XP Mark II and 545 Mark II chainsaws ushers in a new level of cutting capacity, maneuverability and endurance with a 13% higher cooling capacity compared to the previous generation of 50cc chainsaws from Husqvarna. The Husqvarna 550 XP Mark II was designed for demanding use in felling, limbing and bucking operations. The saw delivers maximum power in the 50cc class and was developed to deliver outstanding cutting capacity for handling small and mid-sized trees. Through a series of internal tests against a Stihl 261 C-M, Husqvarna has shown that the 550 XP Mark II provides best-in-class cutting capacity. The Husqvarna 545 Mark II is a powerful and durable 50cc saw that has more power over a wider RPM range compared to the previous model, and its low, slender saw body design makes the chainsaw easy and convenient to handle in any situation.
Husqvarna T525 Additionally, Husqvarna launches the Husqvarna T525, which was designed to be the company’s lightest gas-powered tree care saw for full-time professional use. This new 27cc saw features a quick release air filter cover that saves time when cleaning or changing the saw’s spark plug or filter. The belt eyelet makes it easy to connect the saw to the climbing harness, and the auto return stop switch means the saw automatically resets to the on position for easier starting. PET For more information, visit husqvarna.us/newchainsawgeneration. POWER EQUIPMENT TRADE
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SHOWroom FEATUREproduct
TriLink Harvester Brand Chain, Guide Bars TriLink Saw Chain strives to provide the best quality, value and service in the industry. Understanding the market needs and being able to deliver a solution that meets TriLink standards allows the company to proudly introduce the new TriLink Harvester product line. In the harvesting industry, quality and durability keep the machines cutting. Maximum performance and dependability are definitive to harvester operators. The harvester line is meticulously engineered, designed and manufactured to meet the demanding challenges faced by cutting operators. The TriLink harvester guide bars are manufactured using state of the art technology. Solid steel precision cut bars incorporate a fully riveted nose construction providing strength and durability. The breakaway nose design allows for minimal bar damage if pinched during cut. Complementing the bars, the TriLink harvester chain is manufactured from high quality alloy steel. Each chain is produced with a multi-layered industrial chrome plating adding durability and strength. Enhanced engineer grind and a computer-controlled inspection process provide superior out of box cutting speed and sharpness. Designed with high profile cutters for maximum chip clearance, TriLink harvester chain maintains a smooth fast cut even after heavy use. The micro radius semi chisel cutters increase cutting speed while providing wear resistance. An increased kerf width yields advanced cutting efficiency while larger rivets increase strength and bearing surface of the chain. Tested and proven to perform, TriLink Harvester provides a superior and more durable alternative to the competition. For more information, email sales@trilinkglobal.com.
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POWER EQUIPMENT TRADE
3/29/19 2:22 PM
SHOWroom
HANDHELDS
Shindaiwa EB262 Blower
The all-new Shindaiwa EB262, ideal for commercial landscapers or arborists, has features to make it a leader in the handheld blower category. With 15.8 Newtons of force behind it, this commercial blower is made for professionals who need efficiency in their equipment. Commercial features include chrome cylinder plating, a 2-ring piston and a blower tube wear ring for durability and longevity. Variable cruise control allows users to lock the throttle at differing speeds for specific tasks. The rubber grip on the main handle reduces fatigue while a secondary handle below the fuel tank increases comfort and maneuverability. The pleated paper main filter and foam prefilter with tool-less access provide excellent filtration in dusty conditions and make maintenance a breeze. The EB262 double grid intake pattern reduces blockage from leaves, and the large 20.3 oz. fuel tank provides extra run time. The EB262 includes both round-end and flared-end tubes. Visit shindaiwa-usa.com
ENGINES
Kohler Integrates Command Pro EFI With Electronic Throttle Body Kohler has integrated an electronic throttle body into additional models within the Kohler Command Pro EFI engine lineup. This performance-enhancing technology electronically controls air intake to optimize an engine’s power and load response. When combined with Kohler’s closed-loop EFI system, benefits delivered through the updated engines are numerous for commercial users, including quicker and easier starting, enhanced fuel efficiency and faster response in challenging operating conditions. The technology, first introduced in 2017 was engineered into the company’s 999cc engine for commercial zero-turning radius lawnmowers. Today, the technology is being added to the company’s 694cc and 747cc Command Pro EFI models— ideal for welders and other utility equipment commonly used in the industrial and turf markets. Visit KohlerPower.com.
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SHOWroom
PARTS & ACCESSORIES Fisher Barton LaserEdge Eversharp Developed with commercial lawn care professionals in mind, LaserEdge EverSharp features Fisher Barton’s EverSharp advanced edge technology, where the blade actually sharpens itself while in use, eliminating the need to sharpen the blade and avoiding the costly downtime associated with blade sharpening. In addition, LaserEdge EverSharp consistently produces the high quality cut that customers expect from commercial lawn care professionals. In addition to Grasshopper’s widespread availability in 2018, new brands include Cub Cadet, Hustler, Husqvarna, Big Dog, Kubota, Ariens, Ferris and Snapper Pro. John Deere just released an offering of LaserEdge EverSharp blades available for their 900 Series commercial mowers. Visit laser-edge.com.
SHOWroom Rotary Corp. Filters Rotary carries a complete line of premium quality filters for small engines, trimmers, chain saws, ATVs and golf carts. A 60page special section of the company’s new 2019 catalog features the industry’s widest selection of air filters and pre-filters plus fuel, oil and transmission filters including 10 new items. Rotary filters are built to ensure maximum efficiency and peak performance. Backed by an exclusive warranty, all Rotary filters are guaranteed to meet or exceed all OEM standards for operation. In 2017, the company opened a new manufacturing facility in Georgia, which produces a full line of pleated paper filters and foam air filters. 100% of all Rotary foam air filters are made in the U.S.! Visit rotarycorp.com.
poweret.com
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POWER EQUIPMENT TRADE
3/29/19 2:22 PM
POWERINGgood
Landscapers Create Garden For Those In Recovery What was once a patch of weeds behind a treatment center, now offers peace and quiet to those who need it. BY JOSEPH LUIZ
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and that was once was a patch of weeds has been transformed into a tranquil refuge for people undergoing treatment for substance abuse. A group of Bakersfield landscape contractors worked together to install a garden on in mid-March behind Bakersfield Recovery Services (BRS). “I didn’t think there would be so
many companies coming together for this,” says BRS Executive Director Eric Sanders. “The turnout is just amazing. I think what they’ve done is fantastic.” The garden includes shrubs throughout as well as some flowers and small trees. Much of the garden is covered with gravel so that tables and chairs can be brought out to provide seating for clients. A concrete walkway is also in place to help clients navigate the garden. John Lamar owns the land at the site and leases it to Bakersfield Recovery Services, a private, nonprofit organization that primarily provides residential treatment to men and women struggling with substance abuse. Lamar first came up with the idea for the garden around a year ago, shortly after reaching an agreement with BRS for use of the land.
Lamar mentioned his idea for a garden to Olga See, owner of O. See-emBloom Landscaping. See reached out to other area businesses that are members of the California Landscape Contractors Assn. to see if they would be interested in helping. “I thought it would be a great little project to enhance our community, to have this serenity garden where people can sit and meditate,” she says. Tom Pasek, president of the organization’s board of directors, says he believes the garden will go a long way in assisting clients with their recovery efforts by providing a welcoming space where they can relax and reflect and even meet with counselors or family members. “What it really is, from my perspective, is a mission-fulfillment project,” he says. “This is not just to make the area nice—it’s to lend something to our mission. Our clients, while they’re here, really need to feel a sense of hope.” PET A version of this article originally appeared in The Bakersfield California, on Bakersfield.com and is reprinted here with permission.
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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 TX, OK, AR, LA, NM, MS
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Southeastern U.S. 4331
MD, DE, WV, VA, NC, SC, KY, DC, AL, GA, FL, TN
4408
AR, LA, MS, OK, TX
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
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Nationwide
AR, LA, MS, NM, OK, TX
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MN, ND, SD, IA, TX, WI
DE,MD,NJ,NY,PA,VA,W.VA,NH,VT,CT,RI,ME
For more information about placing your ad in PET’s Distributor Library Section
Call Kathy Sternenberg • 251-928-4962
Shelby County Implement • Shelbina, MO 63468 Ph: 573-588-4731 • 573-588-2020 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 Green Machine Bob’s Lawnmower Service 7632 State Hwy. 7 Maryland, NY 12116-3201
607-638-9297 phone or fax
HOMELITE PARTS BUY & SELL NEW, USED & OBSOLETE
Ask For Ray 502-228-1462 • Fax: 502-228-7737
POULAN WEED EATER PARTS
YOU COULD BE READING YOUR AD HERE!! Contact Bridget DeVane 800-669-5613 for more information
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8100
Stihl * Homelite * Lawnboy * Briggs & Stratton New * Obsolete * Used Parts THOUSANDS OF PARTS!
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PETcetera Four Ways To Attract Millennials B2B ecommerce is expected to become a $1.8 trillion market and account for 17% of all B2B sales in the U.S. by 2023. Driving this growth is the increasing number of millennials stepping into decision-maker roles within their organizations. As these digital natives stand at the helm of many B2B purchasing decisions, it’s crucial to understand the ways in which millennials are redefining the traditional notion of B2B sales. In looking at the numbers, millennials are currently the largest generation in the workforce, according to PEW Research Center. Furthermore, according to a 2014 report from Google, millennials comprised nearly half of all B2B buyers (and we can assume that this number has only increased over the past five years). They want speed, accessibility and instant-gratification. A recent study from Forrester Research found that 60% of B2B buyers would rather not communicate with sales reps as their primary source of information. Instead, the overwhelming majority (68%) of B2B buyers prefer to research solutions independently online before ever engaging with a company. This is not necessarily surprising; B2B millennial buyers are also the same consumers who have grown up using technology at their fingertips to find information and interact with other people. They are comfortable and confident in the self-reliance that technology provides when it comes to making purchasing decisions, and they value the speed, accessibility and instant-gratification that mobile devices and social media provide. Translated into their B2B buying patterns, leveraging these same devices and technologies at work allows the comparison of product features, availability, price, etc., and the ability to actually place orders, without having to go to a physical store location or talk to a sales rep over the phone. If a vendor’s ecommerce platform is not simple, seamless and intuitive, many buyers will simply walk away in favor of a quicker, easier solution—even if the competition’s product or service offering is subpar. To avoid this, vendors should look to modernize their ecommerce capabilities and consider some of the following features and tactics to most effectively reach and convert today’s B2B buyer: Transparent product catalog: Provide all of the pieces needed for the prospect to make a purchasing decision in one place, in an easily digestible format. Data-driven approach: Study buyer behavioral data, such as shopping cart abandonment, time spent on page, etc. to learn where you’re losing potential ecommerce sales. For example, perhaps the checkout process is too arduous, the total cost is not transparent, routine transactions require the additional step of interacting with a sales rep, the shipping cost is deemed too expensive, or the buyer doesn’t even make it to checkout because there’s not enough product information available to make a decision. Consumer-grade experience: B2B buyers are expecting an online shopping experience that’s intuitive, easily navigable, pleasant and responsive. Invest in developing a sophisticated front-end for B2B buyers by benchmarking against some of the best features in B2C ecommerce apps and mobile shopping experiences: wish list building, loyalty programs, personalization and product recommendation engines, single-page checkout, subscription buying options, and, buy-online-pick-up-instore, are just some of the features that can be adopted. Marketplace capabilities: An evolved ecommerce platform
also provides new avenues for growth, for example, reselling products and services that are complementary to the core. Source: How to engage millennial decision-makers as they redefine B2B ecommerce, Kyu Cho, Digital Commerce 360, https:// www.digitalcommerce360.com/2019/02/16/how-to-engage-millennial-decision-makers-as-they-redefine-b2b-ecommerce/
PETevents MAY 7-9—National Hardware Trade Show, Las Vegas Convention Center, Las Vegas, Nev. Call 203-840-5622; visit nationalhardwareshow.com. JUNE 18-20—Outdoor Power Equip. Institute annual meeting, Stein Eriksen Lodge, Park City, Utah. Call 703-5497600; visit opei.org. 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.
ADlink 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
Altoz Cannon Bar Works Heftee Industries Husqvarna Forest & Garden K & M Manufacturing Masport Rotary Seat Warehouse Sunbelt Outdoor Products TD Retail Card Services Trilink Saw Chain VP Racing Fuels
PG NO.
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ADLINK is a free service for advertisers and readers. The publisher assumes no liability for errors or omissions.
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DEALERtodealer
Online Competition Is Real And Here To Stay GREG GERMAN
Now, more than ever, it’s important to remind customers and potential customers the benefit in buying local.
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mazon, eBay, Partstree, plus many more….all are competitors to you as a dealer. If you don’t think they are, it’s time to take your head out of the sand. Recently, I heard that Amazon was contacting dealerships to ask if they would put their OEM parts onto the Amazon marketplace. When the dealer asked if they were having much luck in adding dealers, he was told that there was a large group of Amazon employees contacting agricultural, outdoor power and powersports dealers and would continue to contact dealers until they had every OEM part listed on their site for sale.
ted to give their customers a good reason to shop locally, such as qualified employees to answer customer service questions, better stocking levels of normally requested parts and making sure that they were regularly reaching out to their customers and communicating their ability to service their customers at the highest level possible. That was good to hear. Dealers aren’t just going to take it lying down. My question is, what are you going to do about it in your local market? In 2018, e-commerce sales grew 15% in the U.S. from the prior year. This pace is most likely not going to slow. As the millennial generation begins to move into being an active buyer of power equipment, this pace is likely to increase to e-commerce versus the traditional distribution channels. Dealers need to get active in defending their turf by increasing their presence with their local customers. Make sure you are leveraging your local presence. If you are not a
As the millennial generation begins to move into being an active buyer of power equipment, this pace is likely to increase to e-commerce versus the traditional distribution channels. Online competition is for real and it is growing at an exponential rate. A few months ago, I attended a dealer meeting and this particular topic came up for discussion. Many dealers are resolved to the fact that a certain group of their customer’s parts business would be lost as they would seek those items out from the convenience of their laptop or smartphone, instead of visiting their dealership. The consensus was that either you needed to be in the e-commerce business in a big way, or you needed to set yourself apart in the marketplace in a different way than those who were offering their aftermarket parts on the web. That being said—there wasn’t a dealer in the group who was taking this situation lightly. All said that they were commit30
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member of your Chamber of Commerce, it may be time to consider joining. Many of these types of organizations are regularly promoting a “Buy Local” campaign. Posting signage that promotes both your community and your dealership can help remind your customers how important it has become to buy local as more and more brick and mortar businesses in many communities are shuttering. These brick and mortar local businesses are the collateral damage of the switch to the e-commerce lifestyle. Another good idea is to make sure that you are taking an active role in your community by being active in local causes and events. Many dealers have implemented the idea of donating a UTV for community groups to use for different weekend events and then
branding the UTV with their dealership by covering it with either a branded “skin” or signage that can be mounted on the vehicle. Since many dealers are regularly being asked to donate for a particular cause, instead of just donating money or product, make sure that you are asking the organization to offer you additional free advertising for your donation. Many will give you extra mentions in their programs, signage at their events and other special treatment to give you greater value for your donation. The bottom line to combating the inevitability of e-commerce competition is to make sure that you are better. Talk to your employees about the importance of a positive attitude to the customer. They can make a huge difference in your customer’s perception of your dealership. Make sure that you are regularly monitoring fast-moving items for proper stock levels and confirm that your prices are competitive. Most of us have access to aftermarket products that are similar quality to OEM. Make sure that your parts people are offering alternatives when the customer begins to question the price of OEM options. By doing this, your dealership can be the alternative instead of the other way around with the e-commerce channel being first choice. You can compete. You just need to have a plan as to what ways are going to be the best you can use to differentiate yourself from the adversaries. As in any battle, you better make sure that you are well-armed and well-trained. Victory PET will be yours. 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 309385-2540; e-mail ggerman@german-bliss. com. The views of Greg German do not necessarily reflect those of Hatton-Brown Publishers, Inc.
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