According to the 2024 Dealer Business Outlook & Trends Report, 49.4% of dealers are forecasting their service revenue will increase at least 2% in 2024 vs. 2023.
65% of dealers expect losses in revenue of excess of 9% due to the inability to hire open tech positions, with 34.7% projecting losses in excess of 20%.
In 2016, Valley Truck & Tractor achieved a parts and service absorption rate of 106%. According to the Western Equipment Dealers Assn.’s (WEDA) 2016 Cost of Doing Business study, the farm equipment industry average absorption rate was 64%, with an industry benchmark target of 80%-plus.
Chad Stoline, corporate service manager for Van Wall Equipment, explains that a majority of the dealership's service revenue comes from preventative maintenance service specials. Large storage sheds on Van Wall's lot allow the service techs to stage equipment under a roof without taking up space in the shop, which is appealing to customers. Van Wall Equipment earned top honors in Farm Equipment's 2016 Dealership of the Year program.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.
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.
At Machinery Scope, we believe you deserve the best risk management solutions for your investments in heavy equipment. Since 2013, we have been proud to offer extended warranty, appraisals, and inspections. Machinery Scope is a family-owned business built on our experience in farming and equipment dealerships. We understand your business and provide a personalized and professional level of customer service. Machinery Scope has built a strong warranty product with our customers in mind, offering the same professional level of service from the time you get a quote, through the processing of a claim.
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.