In the last few issues of Farm Equipment, including this one, we've covered dealer succession planning in some depth. One of the concerns expressed by many of those getting ready to step aside is that the new generation that's stepping up into positions of ownership have never been through the really tough times. If you think about it, no one under 46 years old was a working professional during Ag's Great Depression of the 1980s when most dealers couldn't sell their souls to the devil, let alone a tractor to a farmer.
It would be difficult to find a farm equipment dealer in North America who hasn't in some way been affected by the consolidation of the retail side of the business in the last decade. Whether or not they've yet been told directly - or not so directly - that they must make the decision to be either a buyer or seller, to expand or exit the business, it's on their mind. As the days pass, it's becoming a front of mind issue. Dealers know it's something they need to come to grips with. Either take control of it and set a course, or have circumstances or someone else dictate the future.
Many farm equipment dealers with precision farming interests consider auto-steer to be the entry point for customers who want to utilize technology. In many cases, those systems are now standard features on new tractors rolling off the assembly line. The tangible benefits of auto-steer are easily proven through reduced operator fatigue and the ability to maintain a straight path though the fields.
It's a common complaint heard from dealers across North America, "I can't find good techs." However, finding the right sales team can be just as challenging, and is just as important. Keep in mind, the quality of the sales team starts with the quality of the sales management. The better the management, the better the sales team.
With a several year run of strong farm equipment sales, dealers are seizing the opportunity to upgrade their facilities, many in a big way. Most new stores are taking on more of a retail feel with customer comforts and amenities in mind. But beyond being far more accomodating than traditional dealer facilities of the past, several of the new dealerships are also being designed and built for practicality, efficiency and productivity, first. While adapting many of the features suggested by their major suppliers, most are also adding their own distinctive touches to set themselves apart.
When Triple W Equipment built its new 54,000 square foot facility in 2009, Ken Williams, says he needed the room because, with the exception of big sprayers, the dealership carries every John Deere equipment line, including ag, construction, forestry, commercial work products, lawn and garden and golf.
It's just been incredible the amount of traffic that our new building has brought. We really look at it not necessarily as building a new building. For us it's more about how much better it allows us to serve our customers,? says Bill Shrock, owner of Plevna Implement, Plevna, Ind.
In June 2012, Ag Power Enterprises opened its brand new 81,000 square foot facility in Owatonna, Minn. According to Mike Milstead, general sales manager, the building was designed around functionality and efficiency, starting with the over 30,000 square foot shop. The shop includes four 3-ton overhead cranes, easy access to parts, heated floors and a 40 foot sliding door. We were trying to cram our business into four separate facilities, and now have a building designed for our business, says Milstead.
According to Holly Jackson, marketing & merchandising coordinator for Green Line Equipment in Grand Island, Neb., "For over 45 years, the dealership has been serving the needs of farmers, ranchers and townsfolk. Now, we'e expanded in a spacious, state-of-the-art building."
In 2012, Dinkel Implement Co. added 4,400 square feet to its Norfolk, Neb., stores says John Dinkel. "The addition included three new sales offices, expanded showroom and additional space for the parts department. We added a brick exterior and facade to update the dealership's appearance and we also did some refurbishing of original showroom and offices."
"Middletown Tractor Sales is proud to be home to West Virginia's one and only John Deere Place,"says Heather Hudson, corporate marketing manager of the 3-store dealership group. "Opened for business in May 2011, the store is truly a marvel and offers the ultimate in customer experience," she says. "From the time the front doors are opened, the friendly design allows clear direction and flow of merchandise so customers can easily see in a glance everything we have to offer."
With 9 locations in Iowa, Vetter Equipment is currently making significant investments in several of its stores, including the facilities in Denison and Nevada. According to the company, the Denison store now operates from a state-of-the-art, 55,000 square foot facility.
Sydenstricker Implement Co. celebrated 69 years as a family owned and operated business with the grand opening of its new facility in Mexico, Mo., in January. More than 2,000 people attended the event.
Van Wall Equipment has recently been part of three new service shop construction projects that range in size from 12,000-15,000 square feet. According to Don Van Houweling, president, the electricity for heat and light for the new facilities is being generated by wind turbines.
In March of 2012, Brikey's Farm Store's Henry, Ill. location completed its new 41,000-square-foot building, which sits on 17 acres. The new building was designed as a multi-propose building, keeping resale in mind, according to Jerry Read. The facility includes a top-notch expo center that is used for customer clinics. Another unique feature is the wash bay, which can fit eight combines in it. The floor is sloped outward so all the water drains to the sides. Read says this makes it possible to clean two to three machines in a row without the sludge clogging up the grate. Since the floor is mostly flat, he says that keeps the floor drier since the plumbing isn't directly under it. In addition, the mud on the floor can be scraped up at the end of the day.
Ben Garton reports that the dealership recently remodeled its Newman, Calif., facility. "We now have an expanded parts department, additional offices and a training room," says.
Gary Dible, operations manager for 21st Century Equipment, sent along photos from several modernization and expansion projects that the Kansas-Nebraska-Colorado John Deere dealership group has finished or which are in process. Among these, Dible lists:
You may recall that we featured the beautiful new Hiawatha Implement facility in our April/May 2012 issue (please see Farm Equipment, April/May 2012, "Hiawatha Implement's New Store Combines Form & Function,"p. 28-36). We weren't able to run all of the photos in the available space, so here's a look at some other unique features of that very unique dealership.
As dealers explore expansion into precision data management service offerings for farm customers, one of the major industry challenges is a uniform method for gathering, storing and analyzing information. But one group is working toward a standardized approach to data management.
Keeping farm customers productive and efficient is the goal of every farm equipment dealer. This is particularly true during harvest time. Unfortunately, not all customers are looking far ahead when it comes to getting their equipment ready. A lot of times this is particularly true when it comes to combines. But, you can help them prepare by hosting a combine clinic focused on maintenance and harvest preparation.
When Witmers Inc. in Columbiana, Ohio, hosts a clinic, it does its best to ensure the day is free of distractions - for both the customers and the staff. One way they do this is by holding the clinic down the road from the dealership at a local hotel in town. "That way we don't have to deal with the telephones and distractions,"? says Scott Highfield, sales manager.
What have you found to be the practical benefits of your dealership participating in a dealer 20 or other peer group? What have you specifically learned that has opened your eyes to better ways to manage your own dealership?
While last month's column looked at "The Myth of Market Share," (see Farm Equipment, March 2013, p. 90) this column will address the realities of market share.
With a several year run of strong farm equipment sales, dealers are seizing the opportunity to upgrade their facilities, many in a big way. Most new stores are taking on more of a retail feel with customer comforts and amenities in mind. But beyond being far more accomodating than traditional dealer facilities of the past, several of the new dealerships are also being designed and built for practicality, efficiency and productivity, first. While adapting many of the features suggested by their major suppliers, most are also adding their own distinctive touches to set themselves apart.
In the last few issues of Farm Equipment, including this one, we've covered dealer succession planning in some depth. One of the concerns expressed by many of those getting ready to step aside is that the new generation that's stepping up into positions of ownership have never been through the really tough times. If you think about it, no one under 46 years old was a working professional during Ag's Great Depression of the 1980s when most dealers couldn't sell their souls to the devil, let alone a tractor to a farmer.
Many farm equipment dealers with precision farming interests consider auto-steer to be the entry point for customers who want to utilize technology. In many cases, those systems are now standard features on new tractors rolling off the assembly line. The tangible benefits of auto-steer are easily proven through reduced operator fatigue and the ability to maintain a straight path though the fields.
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
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