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October/November 2017

Volume: 55
Edition: 8
Used Equipment Remarketing Edition
  • Table of Contents

    Table of Contents

    Lessiter

    To the Point: Victors of Next-Gen Technology?

    By Mike Lessiter posted on October 14, 2017 | Posted in Product Innovations & Introductions

    Welcome to our first “Remarketing” themed edition. After nearly a year of to-the-shoulders immersion in used equipment (perhaps nostril-level for conference lead Kim Schmidt), we’re proud to see the Dealership Minds Summit, and this issue, come together. Our two national conferences in Omaha in August showed our audiences’ energy, a “let’s get after it” attitude and a sincere willingness to share what they know. Thanks to all who participated in this sold-out gathering.


    Read More
    Lead
    2018 Dealer Business Outlook & Trends

    Dealers See Increasing Revenue Levels in 2018

    If rising levels of optimism can be turned into equipment sales, dealers could have a good year ahead of them.
    By Dave Kanicki posted on October 14, 2017 | Posted in Data & Forecasts
    It has been nearly 6 years since North American farm equipment dealers expressed the level optimism about their revenue prospects as they have for 2018. In 2012, more than 55% of dealers expected revenues from the sales of new farm machinery to increase in the year ahead. By 2015, less than 20% of dealers held out hope for improved business levels for the coming year. This improved very little (22.4%) by 2017.
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    4 Steps to Turn Used Equipment Into Cashflow

    Consultant Dr. Jim Weber urges dealers to buy smart, limit reconditioning, be attentive to sales mix and compensate sales on what matters most.
    By Dan Crummett posted on October 14, 2017 | Posted in Used Equipment Remarketing
    There is cash in used iron, and for most farm equipment dealers that pre-owned inventory represents the path to the overall health and lifeblood of their business. Dr. Jim Weber, a 40-year veteran consultant and trainer in the farm and construction equipment industry, says an on-going survey of large volume dealers in Canada shows used equipment turn rates — and corresponding positive cashflow rates — have fallen by about a third since 2012 as many dealers have been busy selling new equipment, with wholegood transactions averaging 81-82% of their dealership’s total sales.
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    Comparing Compensation Programs: Focus on What You Want

    AgriVision (John Deere) and Livingston Machinery (AGCO) detail the compensation programs they’ve developed to keep attention on used equipment — and the actions they most want to drive.
    By Mike Lessiter posted on October 14, 2017 | Posted in Best Practices, Used Equipment Remarketing, Operations & Finance, Department Management
    Used equipment experts agree that there’s no silver bullet when it comes to a compensation plan. There are numerous variables, personalities and ways of doing business and no single program is a panacea. But like most things, as a manager, you get to choose which behaviors you most want to drive, and also the set of challenges that go along with them.
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    H&R’s Valuation Process Minimizes The Risk That Comes With Trade-Ins

    H&R Agri-Power has developed a proprietary app that guides its sales team through the trade-in process, ensuring all the necessary information is included to value it properly — quickly.
    By David Gibson posted on October 14, 2017 | Posted in Used Equipment Remarketing
    The primary functions of our wholesale division are used equipment evaluations. We evaluate possible trades for 43 salesmen. My counterpart Eddie Borders and I provide an educated and well researched opinion of the wholesale value for each potential trade.
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    Are You Playing Football or Baseball With Your Trades?

    Forrester Equipment & Butler Machinery share their approaches to bringing discipline into the valuation process for used machinery.
    By Mike Wiles posted on October 14, 2017 | Posted in Used Equipment Remarketing
    Every dealership has its own unique way of dealing with trades. Some are aggressively pursuing acquisition of used equipment, viewing it as a profit source, and dealing in high volumes. That tendency usually goes with being in a non-row-crop area with smaller equipment and less risk of making mistakes.
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    For Success After the Trade-In, Preparation Trumps All

    Customer transparency and equipment showcasing is key, but according to trade-in experts, most sales are won or lost before customers step into the dealership.
    By James DeGraff posted on October 14, 2017 | Posted in Best Practices, Used Equipment Remarketing, Dealership Marketing
    Equipment might get old, but smooth trade-ins at maximum margins never go out of style. With little question about the pitfalls of leaving used machines on the lot too long, dealers tuned in to learn the good, the bad and the ugly of equipment turnover strategies.
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    Differentials for Mastering The Turnover Timetable

    Just because a trade-in is only on Day 2 doesn’t mean you have to treat it that way.
    By Don Aberle posted on October 14, 2017 | Posted in Used Equipment Remarketing
    Nobody said reselling used equipment would be a guaranteed avenue for success, and even our most valiant attempts will occasionally beckon to the auction block. But with the right preparation and mentality to sell trade-ins in a timely manner, I think dealerships can find more success than they would lead themselves to believe.
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    Ask the Expert

    Finding the 1st and 2nd Trade

    By Casey Seymour posted on October 14, 2017
    When it comes to the future trade-ins, I’m not so much concerned about trying to find a home for the $100,000 combine. What I’m more concerned about is that first and second trade that are $350,000 or $280,000 machines. So when I look out there, I try to see how many guys might be interested in those units. Unfortunately, right now when we go to talk to somebody about a high dollar, late, low hour used model, that same person is probably someone who could buy a new one, too. So we have to be careful who we talk to. We have to get to know their business before saying, “Hey, why don’t you buy a new one?” Because there’s a likely chance they should be buying a used one.
    Read More
  • Featured Articles

    Featured Articles

    Lead
    2018 Dealer Business Outlook & Trends

    Dealers See Increasing Revenue Levels in 2018

    If rising levels of optimism can be turned into equipment sales, dealers could have a good year ahead of them.
    By Dave Kanicki posted on October 14, 2017 | Posted in Data & Forecasts
    It has been nearly 6 years since North American farm equipment dealers expressed the level optimism about their revenue prospects as they have for 2018. In 2012, more than 55% of dealers expected revenues from the sales of new farm machinery to increase in the year ahead. By 2015, less than 20% of dealers held out hope for improved business levels for the coming year. This improved very little (22.4%) by 2017.
    Read More
    Lessiter

    To the Point: Victors of Next-Gen Technology?

    By Mike Lessiter posted on October 14, 2017 | Posted in Product Innovations & Introductions

    Welcome to our first “Remarketing” themed edition. After nearly a year of to-the-shoulders immersion in used equipment (perhaps nostril-level for conference lead Kim Schmidt), we’re proud to see the Dealership Minds Summit, and this issue, come together. Our two national conferences in Omaha in August showed our audiences’ energy, a “let’s get after it” attitude and a sincere willingness to share what they know. Thanks to all who participated in this sold-out gathering.


    Read More
  • Online Extras

    Online Extras

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Finance Scope is able to provide the best financing opportunities for equipment dealers and customers through a diverse mix of lending companies under one single platform. Our large group of lenders, allows for competitive rates regardless of credit scores. Additionally, dealers and customers have access to the industry’s best expertise surrounding finance and lease structures, for all purposes, within the agricultural and construction industries. We provide all of this into one online platform to provide our customers with the best available tailored finance solution for their equipment.
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