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Volume 65
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Number 2
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April 2016
Our 713th Consecutive Issue
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Founded in 1952
Renew or subscribe on the web: www.poweret.com
FEATUREstories
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2016 DEALER SURVEY
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Looking At 24 Years Of Data
FUEL ADDITIVES
Ways To Maintain Freshness
WHITE OAK EQUIPMENT Construction Dealer Diversifies
PREVENTING THEFT Is Your Dealership Secure?
VALUEadded Power Suppliers __________________________ 6 Industry Voices __________________________ 28 Dealer Voices____________________________ 34 Showroom ______________________________ 36 Distributor Library ________________________ 40 PETcetera/Ad Index ______________________ 45 Dealer To Dealer _________________________ 46
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COVERphoto Power Equipment Trade presents the latest installment of the Dealer Survey, covering everything from revenue trends to industry outlook and more, beginning on Page 10. (Cover design by Shelley Smith, Sally Sosler photo)
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 ® 2016. 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.
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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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POWERlines
A Hatton-Brown Publication www.poweret.com
DAN SHELL
‘Give Us Your Thoughts’
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favorite part of the PET Dealer Survey is the open- ended “give us your thoughts about industry and its future” question that always draws a wide range of material, from pithy dealer insights to borderline NSFW stuff. This year, 127 dealers took us up on the offer and gave us their thoughts. Citing solid service as a key, Tim Baum, owner of Brodner Equipment in Rochester, NY, is looking forward to “solid 10% annual growth because of offering the right products with and advanced service department. Our shop has two laptops just for techs, and we have five techs, one service manger and one service writer. I see other shops falling behind and unable to service EFI and newer technology drive and electrical systems. We have positioned my dealership for the future with propane/battery/robotic products although they are not yet in demand.” Dealers are having a tough time with consumer and supplier demands, says Ken Ringer, owner of Albright Hardware in Allentown, Pa.: “Dealers are being squeezed from both ends. Customers are becoming more demanding even if they didn’t buy from you. Manufacturers are also lowering reimbursements and increasing demands without compensating the dealer. Their expenses can be pushed down to the dealers but the dealer doesn’t have much choice except to absorb the expenses.” Super service is the key to success, says William Zacotinsky, president of East Road Motors in Carmel, NY: “The money is in service. Do service packages with higher prices and market them as a better value—and menu price all small services. Provide exceptional service (blow them away!) that changes customer expectations of what a power equipment service center is, and make yourself the ‘go-to-guy’ in your area. And always advertise, advertise, advertise!” Succession planning and finding quality technicians are two big issues confronting Dennis Klei, president of Klei Mower in Cincinnati, Oh.: “The dealer base is going to shrink. Older dealers are retiring, and I do not believe anyone is going to open a new dealership as a single location. If dealers are able to make things more profitable through efficiency and management they will survive and stay in business. Succession planning will be key for our dealer base going forward. We need more training in high schools and tech schools to get more interest for our industry. Currently, finding new technicians to grow our service department is my biggest problem. We turn more work away in a year than we actually take in because we simply cannot get it all done.” Take care to do what’s best for your business, not meet expectations that are best for others, says Bob Conyea, owner of Ashokan Turf & Timber, in Shokan, NY. He believes much of industry promotes a “grow, grow, grow” philosophy of growth at any costs that can work against you. “There’s an old saying; ‘growth eats cash’ and it’s very true,” Conyea says. “The reason is that gross dollars may rise at a steady rate, but profitability has its peaks and valleys as overhead costs increase.” Instead, he focuses on the business at hand: “We don’t try to be all things to all people. We avoid the entry level price points in nearly all categories. We have focused on the pro and serious user market and people drive not just from surrounding towns, but in the case of pro chain saw users, from surrounding area codes to do business with us. No magic; we just found a niche and stayed with it. It’s really more a matter being comfortable with our own identity as a business and making the effort to take care of our core customers and not worry about who’s shopping at the box stores.” According to Dale Magie, president of Moe’s Outdoor Equipment & Supplies in Liberty Township, Oh., “The industry will continue to be more challenging, and we will have to smarter and work harder to deliver the highest value to our customers, while trying to maintain profit margins required to allow us continue to invest in our people and our business. We need to work better with our suppliers to enhance our relationships and needs PET so we can be successful and be stronger partners moving forward.” Contact Dan Shell, ph: 334-834-1170; fax 334-834-4525; e-mail: dan@hattonbrown.com
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 Dale Stotts, Greg German Art Director n Cindy Segrest Ad Prod. Coordinator n Patti Campbell Circulation Director n Rhonda Thomas Marketing/Media n Jordan Anderson 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 Candace Able Tel: (334) 834-1170 Fax: (334) 834-4525 Email: candace@hattonbrown.com Europe & Scandinavia Murray Brett Tel: +34 96 640 4165 Fax: +34 96 640 4022 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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POWERsuppliers Ariens Introduces New Logo For Ariens Brand Recently, the Ariens Co. launched a new logo for the Ariens brand of power equipment. The new brand mark blends the company’s history with a new, modern look. The Ariens gear has been used by the company for decades, on both equipment and in corporate marks, and has now been incorporated into the brand once again. The gear was included as part of the brand mark to put history and legacy at the forefront of the brand conversation. As part of the launch, Ariens introduced two variations of the logo — a primary, vertically-stacked version and a secondary, horizontally-aligned version. The placement of the gear and the text is reminiscent of the Gravely logo format, which was introduced in 2014. The new logo will be introduced initially on Ariens snow product, the first of which will be seen in Ariens dealerships, starting this summer. Lawn and garden equipment will have the new logo beginning in fall 2016. The first look at the new lawn and garden lineup will take place at GIE+EXPO 2016 in Louisville, Ky.
Stellex Capital Mgmt. Acquires Morbark
Morbark, LLC, parent company of Boxer Equipment, announced that an affiliate of Stellex Capital Management has acquired the company. The acquisition is focused on providing growth capital and resources to significantly expand Morbark in the future. “Our acquisition of Morbark is a great fit for us. We believe the company is well positioned to grow in the coming years, and we are confident that the capital and resources we bring will fuel that growth,” David Waxman, Principal of Stellex, says. “Morbark is exactly the type of company we look to invest in—strong history, market presence, products, and an outstanding workforce. In addition, we believe with the right investment and resources they represent a significant growth opportunity in the coming years.” Lon Morey, Morbark CEO and son of the founder, says, “Though always difficult to leave a family business, we felt 6
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this was the right time with the right investor who can build on the legacy my father started and I have spent my entire life dedicated to. We are confident that the Stellex group will be able to take Morbark to the next level of excellence and growth. We are excited for the company and its employees and the future envisioned for them.”
Country Clipper Adds Utah Distributor
Country Clipper recently announced the appointment of Ellis Equipment in Logan, Ut. as the distributor of Country Clipper zero-turn mowers, accessories and parts for the states of Utah, Idaho, Washington and Oregon. Under the agreement, Ellis Equipment will also become the primary provider of service and application support in the covered regions.
SSBC Names Echo Preferred Supplier
Echo Inc. has been chosen by Sunshine State Biomass Cooperative (SSBC) to be their preferred supplier for handheld outdoor power equipment. Echo Inc., in cooperation with its distributor and dealer base, will supply Echo and Shindaiwa products to a network of over 100 landscape maintenance, tree trimming, golf course and land clearing companies based primarily in Florida. The agreement took affect March 1.
OPEAA Announces 2016-17 Leaders
The Outdoor Power Equipment Aftermarket Association (OPEAA) announced its 2016-2017 Officers and Board of Directors during its 30th Annual Meeting held February 6-8, 2016. OPEAA Officers for 2016 include President Scott Harris, Blount International; Vice President Mitzi Kiefer, Stens Corp.; Secretary/Treasurer Britton Harold, Husqvarna; and Immediate Past President Franck Sogaard, Jarden Applied Materials. Angela Golden, NGK Spark Plugs, and Walter Rieck, Prime Line, were elected to the Board. Jerry Alexander, HBD/Thermoid, and Rodney DeLoach, Rotary Corp., are continuing their service on the board. According to President Scott Harris, “This year’s annual meeting highlighted many global changes the outdoor power equipment industry is experiencing. The
strong U.S. dollar, lower energy pricing, and new technologies continue to demand flexibility of dealers, distributors and manufacturers alike. Market demands are shifting to include products powered by lithium ion batteries and more efficient gasoline engines. Consumer decision-making is vastly different from just a decade ago. Taking advantage of the digital tools available today allows our industry professionals to yield a better understanding of customer expectations and trends. In 2016, OPEAA will focus on expanding these resources available to our members, allowing their businesses to excel in the future.”
Stihl Names New VP
Stihl has chosen to once again fill from within, naming former director of strategic planning and controlling Mark Scavillo the new Vice President of Finance and Information Services. Scavillo, who started with the company in February 2009 as a manager of finance projects, has served as director of strategic planning and controlling since October 2012. He is assuming the Vice President position from Bjoern Fischer, who was appointed President of Stihl Inc. on Jan. 1, 2016.
UTV Education At GIE+EXPO
The UTV industry just got a new dealer training program, UTV University, at GIE+EXPO, announced the Outdoor Power Equipment Institute (OPEI). OPEI is the majority partner in the trade show to be held October 19-21, 2016 in Louisville, Ky. The UTV education sessions will be held the first day of the show, October 19, from 8 a.m. until 3 p.m. The education program will have a trade focus and will feature classroom-based sessions conducted by recognized powersports industry experts from Powersports Business. For more information, visit gie-expo. com.
Kohler Releases New Software
Kohler Engines has enhanced its EFI diagnostic software with Bluetooth capability for fast and easy wireless access. Users now have streamlined access to the platform so they can quickly view engine data and other resources from a variety of
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POWERsuppliers devices, including laptops, smartphones and tablets. Kohler EFI diagnostic software helps guide technicians through the diagnostic process and supports troubleshooting with multiple data display screens and graphs showing engine data logged by the engine control unit (ECU). Quick access to service manuals and fault code visibility helps users to accurately identify failures and reduce downtime. The software provides a variety of engine information including: operating conditions, total hours, oil temperatures and detailed load parameters. The Bluetooth version of Kohler’s EFI diagnostic software is currently available for Android devices with additional versions anticipated soon. For more information, visit KohlerEngines.com.
Two Dealer Groups Merge
The members of the Ohio-Michigan Equipment Dealers Assn. (OMEDA) and Mid-America Equipment Retailers Assn. (MAERA) have voted to merge effective
January 1, 2016. Implementing the complete merger will be a process over the next few months, but will be overseen by a unified Board of Directors. The newly formed association will be called the United Equipment Dealers Assn. (UEDA) and will represent 747 members in four states including: Indiana, Kentucky, Michigan and Ohio. Twelve board members from these four states will oversee UEDA. Last fall, the OMEDA and MAERA board of directors approved a merger plan and submitted it to the members for a ratification vote. The members approved the merger by an overwhelming margin. “This merger is another step in the process that began in 2007 when OMEDA and MAERA formed an association management company, AMG, LLC, with joint ownership by both associations.” Kim Rominger, CEO and Executive Vice President for UEDA, says. “With the continued consolidation of dealerships operating in multiple states this merger strengthens the unified voice for all dealers in our region. The association will be able to react quicker and represent all of our members’ interests in a more effective
manner. This will also give us increased strength of numbers when speaking with manufacturers on issues and concerns going forward.”
Efco Announces New Distributors
Comet USA has recently signed on two new distributors for their outdoor power equipment brand, Efco: Power Equipment Co. & WCS Distributing. Power Equipment Co. is located in Cortland, Ill. and will represent Efco in Illinois and Indiana. WCS Distributing is located in San Bernardino, Calif. and will represent Efco in the states of California, Nevada, Washington, Oregon, Utah, New Mexico, Alaska, Idaho and Arizona.
OPEI’s First 2016 Board Meeting
The Board of Directors for the Outdoor Power Equipment Institute (OPEI) held their monthly strategy meeting January 24-26 in Sarasota, Fla., where they welcomed new board members, discussed issues central to the in-
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POWERsuppliers dustry’s health and well-being, and made plans for 2016. The January board meeting agenda included discussions about proposed changes to California’s emissions regulations and attacks on the managed landscape from the drought in the West. Also discussed was the expansion of OPEI’s TurfMutt environmental stewardship and education program, created in partnership with Scholastic; recent developments on ethanol and fuel pump labeling; and OPEI’s consumer-based ethanol education program, Look Before You Pump.
Power Distributors Acquires MWE
Power Distributors has acquired the assets of Midwest Engine Warehouse (MWE). The combined company brings together the talents and resources of each organization to serve and supply an expanded sales and distribution footprint now extending across all fifty U.S. states. With this acquisition, Power Distributors now supplies more than 25,000 independent lawn and garden dealers, rental accounts, industrial, hardware and retail accounts nationwide from 11 distribution centers, multiple customer contact centers and administrative facilities strategically located throughout the U.S.
Kawasaki Engines Expands Distribution
The Engine Division of Kawasaki Motors Corp., U.S.A. announced an expansion of its arrangement with UPS logistics services for the handling of part warehousing and delivery, to include a new full service warehouse in Dallas, effective in February. Utilizing UPS warehouses in Hebron, Ky. and Mira Loma, Calif. has shortened the time between dealer order and actual delivery. Placing dealers in a better position to provide service to their customers, Kawasaki says. According to Rodger Howe, Vice President at Kawasaki, the addition of the Dallas location should reduce delivery to Gulf Coast and central Midwest states by one or two days. He says the new Dallas facility will encompass more than 25,000 square feet and will stock in excess of 5,000 SKUs. Dealers in the following states will be serviced by the new Dallas facility: Alabama, Arkansas, Colorado, Kansas, Loui8
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siana, Mississippi, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming.
TurfMutt Announces Materials, Grant Contest
Brainchild of OPEI and Scholastic, TurfMutt, the popular environmental stewardship and education program for kids, teachers and families, has announced the return of its annual “Be a Backyard Superhero” contest. The contest awards a $5,000 grant to improve two winning schools’ green spaces. New for this year, TurfMutt’s in-classroom material offerings for k-5 grades expand with a new digital storybook titled “The West Coast Mission,” an online climate change game, and lesson plans for teachers at scholastic.com/ TurfMutt. “With drought ransacking the West and many other parts of the country, understanding how to care for green spaces is more important than ever,” Kris Kiser, President and CEO of OPEI, says. “The new digital storybook and climate change game help children understand the importance of taking care of these living landscapes and what they contribute to our communities.” To inspire kids to apply what they are learning to real life, the “Be a Backyard Superhero” essay contest offers students in grades k-5 the opportunity to compete for a chance to win a $5,000 grant for a green space makeover at their school. For entry information and official rules, visit TurfMutt.com.
Excel Issues Statement Following Tragedy
Officials with Excel Industries released a statement following the mid-February shooting at the Excel plant in Hesston, Kan. when employee Cedric Ford stormed into the building and shot 15 people, killing three. Ford, who also wounded three other people on his way to the Excel plant, was killed by police. According to the statement, “The Excel family is deeply saddened by the horrific event that occurred. Our hearts go out to our employees and their families who are enduring this tragedy. Our first priority has been and will remain the safety and wellness of all our employees. We are fully cooperating with the law
enforcement agencies and the Red Cross. Our internal teams are fully engaged in crisis management. We are thankful for all the support we are receiving during this very difficult situation.” In a recent update, a local woman has been indicted for supplying firearms to Ford, who wasn’t permitted to own them as a convicted felon.
Lail To Lead Stihl Southeast
Stihl Southeast, Inc., distributor of Stihl power equipment for Florida, Georgia, Alabama and portions of the Caribbean, has announced that Randy Lail has been named president of the company effective immediately. Randy succeeds Bob Noble, Jr., (affectionately known as JR) who died unexpectedly the morning of March 8, 2016. Stihl Southeast, Inc. owner Bob Noble, Sr., made the announcement. Noble, Sr., says, “JR was not only my son, he was a great friend and leader. He absolutely loved his employees and was very proud of the accomplishments our company experienced since he became president. I am going to miss him every day.” “I felt it necessary to continue the company’s direction without the need for any major changes,” adds Noble, Sr. “Randy was the logical choice to take over the reins. He has done a superlative job as our Vice President of Finance and I have complete confidence he will continue the path JR set. Our entire executive group will remain intact and I will be more involved in major decisions moving forward.” “I want to assure our customers and employees that the direction JR set for Stihl Southeast will not change whatsoever,” Lail says.
Exmark Wins Engineering Award
The American Society of Agricultural and Biological Engineers (ASABE) has named the Exmark Stand-On Spreader Sprayer winner of a 2016 AE50 award. The award was presented to Exmark representatives February 9 in a ceremony at the ASABE Agricultural Equipment Technology Conference (AETC) in Louisville, KY. AE50 awards honor the year’s most innovative designs in engineering products or systems for the food and agriculture industries.
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2016 Survey Says: Dealers Looking Up Almost a decade after 2008, lawn and garden dealerships are finding better business prospects, though issues remain. BY DAN SHELL
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lways seeking to inform readers about the industry they’re in, Power Equipment Trade is proud to present results from the 2016 Dealer Survey. We’ve surveyed dealers every other year since 1992, including a
dozen or so “base questions” about dealership size, sales and practices, plus questions that evolve or fall away as issues come and go. This year 331 dealers responded to the survey, everyone from those grossing more than $2 million (22%) to dealers turning less than $100,000 annually (17%). Special thanks goes out to those who took the time to take the survey providing a collective picture of industry’s dealer base that yields both positives and negatives.
‘Typical’ Dealer There’s no doubt the power equipment industry’s dealer base continues to
add a shade or two of gray with each new PET Dealer Survey, as the typical lawn and garden power equipment dealer continues to get older. This year, 77% of dealers checked the “over the age of 50” boxes, including 40% who are age 60 and older! This aging of dealers is reflected in both ends of the age spectrum: Since PET began surveying dealers every other year in 1992, the percentage of dealers under the age of 40 has trended downward from 27% almost a quarter century ago to 18% in 1998 to 11% in 2010 to 8% in 2016. Meanwhile, the percentage of dealers over the age of 50 has gone from 58% in 2006 to 66% in 2010 to 77% today. That’s an increase of nearly 30% in the
Dealers are enjoying improved business conditions based on reported annual sales, business investment and general outlook.
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number of dealers 50 and over in the past decade. Most dealers are true independent small businesses, with the emphasis on small: Even after the toughest economic downturn in almost a century, 63% of dealers have five or fewer employees. Meanwhile, 19% of dealers say they employ 6-10, while 17% of dealers have 11 or more employees. The number of employees in a dealership has trended toward larger operations the past 15 years: In 2000, 70% of dealerships had five or fewer employees, and only 12% had 11 or more employees. Total annual sales is another area where the trend is going toward fewer lower-revenue dealerships and more high-volume operations: In 2016, 45% of dealers report annual equipment/parts/service sales of $500,000 or less. Another 20% of dealers report sales of half a million to $999,999. Meanwhile, 35% of dealers have total annual sales of more than $1 million. The trend has been ongoing: In 2000 65% of dealers reported $500,000 or less in sales, dropping to 56% in 2010 to 45% now. At the same time the number of million-dollar dealers has continued to rise, going from 15% in 2000 to 28% in 2010 to 35% now. Asked to break down their sales into service-to-whole goods ratio, the typical dealer gets somewhere between 30%-40% of their revenue from service, and 60%-70% from whole goods sales. Some 36% of dealers chose a ratio within that range when asked to pick from a sliding scale from 10% to 100% service. When it comes to overall power equipment profit margins, in 2016, 29% of dealers say their profit margins are “good (25%) to very good (4%).” Another 28% say their margins are “poor (21%) to very poor (7%).” Meanwhile, 43% say margins are “fair.” Looking at profitability, 42% of dealers reported riding mowers as their most profitable
Total Sales
The number of dealers grossing more than $1 million annually has doubled since 2000.
Battery-powered equipment is drawing the most interest among “green” consumers.
Better business conditions allow dealers to be more discriminating in the equipment they service. POWER EQUIPMENT TRADE
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equipment. The second-most category reported, “other,” was selected by 16% of dealers, and commercial and zero-turn mowers were most profitable for that group. Accessories were selected as most profitable by 11% of dealers, followed by chain saws, which were most profitable for 10% of dealers. Trimmer/brushcutters were most profitable for 9% of dealers, followed by lawn and garden tractors (5%) and walk-behind mowers (5%). One equipment segment that’s seeing more consumer interest is battery-powered equipment: In 2016, 50% of dealers reported seeing more demand for battery-powered equipment, compared to just 27% of dealers in 2012, when PET added several “green” equipment questions to the survey. Establishing green equipment markets is going to require some work, however. Asked what types of environmentally sensitive equipment is drawing the most interest from customers, 41% of dealers reported battery-powered products. Next were low-emissions gas engines, reported by 12% of dealers. Propane-powered products were reported by 3% of dealers as drawing most interest for “environmentally sensitive” equipment, while corded equipment was selected by less than 1% of dealers. The big catch for building green equipment demand in dealer sales channels is reflected in the question’s number one response: 44% of dealers reported “There is no demand for ‘environmentally sensitive’ equipment in my market.” Dealers report the most common symptoms of ethanol-related service issues.
Service
As the economy improves slowly and costs continue to rise, dealers are upgrading their labor rates to better cover costs and deliver more profit. For example, in 2016, 30% of dealers report posted shop labor rates of more than $75/hr. Just four years ago, only 12% of dealers reported labor rates of $75/hr. or more. The increase in labor rate is also reflected on the lower end of the scale: This year 35% of dealers report labor rates of $65/hr. or less, while four years ago almost twice as many—67%— reported rates $65/hr. or less. Almost two-thirds of dealers (63%) report they raised their labor rate in either 2014 (23%) or 2015 (40%). Overall, only 13% of dealers reported they Though a significant segment is against online sales, most dealers are open to it with some guidelines. had not raised their labor rates 12
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in the past five years. As for service technician pay, 70% of dealers say they pay techs by the hour; 22% of dealers pay a base rate plus commission; and 8% say they pay on straight commission. Technician pay has also risen along with an improving economy and rising labor rates. In 2016, 36% of dealers report they pay their “most experienced” service techs $10-$15/hr. while 64% say they pay $16/hr. or more, including 25% who pay their top technicians more than $20/hr. Comparisons to the 2006 survey here are a little off since we tweaked the pay brackets in more recent surveys (but close enough to see the big picture). Ten years ago, 60% of dealers reported they paid top technicians $17/hr. or less, while only 40% paid $17/hr. or more. Looking at parts usage, 20% of dealers report they spend $300,000 or more annually on parts; 29% of dealers spend between $100,000-$300,000 on parts annually; and 51% of dealers spend $100,000 or less on parts annually. Compared to six years ago, the 2016 figures reflect a rebounding dealer base from the economic downturn: In 2010 only 15% of dealers were spending $300,000 or more annually on parts while 42% of dealers were spending $100,000 or less annually. Looking at overall parts used in a dealership, the typical dealer (40%) says aftermarket parts make up 20% or less of their overall parts mix. Another 31% of dealers say aftermarket parts make up between 20%-40% of their overall parts mix. In general, most dealers (72%) say they have a better profit margin on aftermarket parts than OEM parts.
Compensation for “best, most experienced” service technicians has been rising.
Technology PET stopped asking dealers if they owned a computer in 2010, when 99% of dealers said they had one. And though the industry has been relatively slow to adopt new technology (10 years ago 14% of dealers still didn’t have a computer), dealers are doing their best keeping up. One issue that gets dealers wound up is internet sales and whether sales of premium equipment can be properly conducted online. First, 22% of dealers report they don’t have a web site. Of those who do, most deal-
Dealers are investing primarily in service equipment and computer-related products this year. POWER EQUIPMENT TRADE
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Dealers are using social media in different ways, with more online marketing involved.
ers—67%—say the main function of their web sites is general information about their businesses (57%) and lead generation (10%). Another 12% of dealers say they do sell whole goods (9%) and parts (3%) online through their web sites. Meanwhile, a significant segment of dealers (42%) wants to restrict all internet sales. Another 36% say they would like to see sales restricted to parts only, no whole goods. That leaves 10% of dealers who
say they’re OK with online parts and whole goods sales with some guidelines or restrictions, and the remaining 12% who say online sales should be wide open for all dealer products. Asked what digital equipment is most beneficial in a dealership, 84% of dealers cited desktop computers, while 13% reported laptops as most beneficial. Smartphones (2%) and tablets and iPads (1%) finished well behind the top two.
Diversification A little more than one out of five dealers (22%) say they already offer products outside traditional lawn and garden equipment, while 26% of dealer say they are looking to diversify. Of the product categories of most interest to dealers, 37% are looking into recreational equipment including watercraft and scooters in addition to ATVs and UVs, and 26% are interested in a trailer line. Lawn accessories such as grills, furniture, fountains and feeders appeal to 19% of dealers looking to diversify, while Dealers are looking into a variety of non-traditional 17% are looking at sprayers products to diversify their businesses. and 15% are interested in landscaping supplies such as seed, fertilizer, chemicals. Also on the landscaping side, 16% of dealers say they’re interested in carrying larger equipment such as skid steers or mini excavators. 14
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As for social media, dealers were asked if they have a digital newsletter to contact customers, or Facebook pages and Twitter and Google+ accounts. Facebook is the most widely adopted social media for dealers, with 58% reporting they have Facebook pages, 21% have Google+ accounts, 9% use Twitter and 7% send out an eNewsletter to customers. But don’t think the lawn and garden industry’s dealer base has completely fallen for social media and digital customer relations: A full 39% of dealers say they have “none of the above” when asked about Facebook, Twitter, Google+ and eNewsletter utilization in their businesses. Yet many dealers are making headway: 17% say they find the internet to be their most effective advertising and marketing tool. Looking back 10 years, in 2006 almost one out of five (19%) of dealers weren’t even online, and 30% of dealers said the internet was “not very important” to their businesses. Meanwhile, in 2016 print media remains the most effective ad and marketing vehicle for 24% of dealers, followed by 18% who said direct mail was most effective. After the internet (17%) dealers rated radio (16%), traditional wordof-mouth (11%) and TV (8%) in descending marketing effectiveness. When buying ads or otherwise spending on marketing, 71% of dealers say they use a mixture of their own money
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Expanding?
While 25% of dealers are looking to expand, almost two-thirds are planning on keeping things the same.
and co-op money, 20% say they only use their own funds and 9% of dealers only advertise with co-op money.
Operations Looking at sales the past two years shows a brightening revenue picture for dealers as 51% report sales increases from 2014 through 2015 (and 30% with increases of 10% or more). Meanwhile, 17% of dealers report sales decreases in 2014 through 2015. This compares much more favorably to six years ago, when dealers were asked about sales in 2008 and 2009. Back then, only 33% of dealers reported sales increases, and 45% reported sales decreases the previous two years. In the past two years, 40% of power equipment dealers report they have expanded their business, 15% say they have downsized, and 45% of dealers say they’ve kept their business the same size. This year’s results reflect an improving economy and better dealer prospects: In 2010 only 32% of dealers reported business expansion while 20% of dealers said they had downsized the past two years. A trend toward more streamlining among the industry’s dealer base is reflected by the 65% of dealers who say they now carry fewer primary handheld and wheeled equipment lines than two years ago, compared to 35% of dealers who said they carry more. Also reflecting this trend—as well as more supplier consolidation—are the 64% of dealers who report they’re doing business with fewer distributors than they
were two years ago, compared to the 36% of dealers who are working with more. Looking ahead to the near future and spending plans, 60% of dealers plan on buying service tools and shop equipment in the next year, followed by 36% who are buying computer hardware or software. Twenty-five percent of dealers are planning to spend on in-store displays, shelving, etc., and 23% are planning to upgrade exterior lighting, signage, etc. Almost one-quarter of dealers (24%) say they are not planning to spend in any of those areas. As for expansion plans in the next two years, 20% of dealers are expand-
ing at their current location, while 5% are expanding at a new location. Another 10% of dealers say they plan on downsizing the next two years, while 64% of dealers say they have no expansion plans. Asked for their overall outlook for their business and industry, a healthy 54% of dealers say they plan to remain in the industry and believe their businesses will grow. Another 24% are staying in the industry but don’t see much growth, while 17% say they can’t afford to quit. Four percent of dealers are actively looking to get out of the business PET ASAP.
Ethanol It’s well established that dealers are seeing more fuel system problems since ethanol-blended fuels have fully penetrated the retail gasoline market in the past decade. When it comes to ethanol-related service issues, what are dealers seeing most often? Gummed up carburetors led the list, cited by 56% of dealers, followed Dealers are seeing multiple symptoms of ethanol effects. by 13% seeing water in the fuel system most often, 10% who see stale fuel as the primary culprit and 7% who’re seeing ruined fuel lines most often. Then again, 14% of dealers say they see “all of the above” fuel system problems most often. POWER EQUIPMENT TRADE
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FUELadditives (Material supplied by Star Brite)
Star Tron Improves Fuel To Wake Up Engines Now that warm weather has returned, it’s time to use lawn mowers, chain saws, string trimmers and all your other gas-powered equipment. Fuel quality is the most important factor in making sure that gas-powered engines coming out of winter storage start easily and run smoothly. All fuel needs to be stabilized, especially ethanol-blended fuel. Ethanol and gasoline cannot form a chemical bond, which is why E10 fuel is formulated to be used within 30 days of blending. As fuel ages, it begins forming gums and other debris that clog carburetors in small equipment, making engines run rough or suddenly become difficult to start. The engines are fine—it is the fuel that is the problem. However, you need more than a traditional chemical fuel stabilizer that can “only stabilize.” Star Tron Enzyme fuel treatment’s unique formula is the ideal way to improve the performance of all gas-powered outdoor equipment— and all other gas engines—yearround. The proprietary blend of enzymes make Star Tron a multifunctional fuel treatment. Engineered to stabilize fuel for up to two years, Star Tron is perfect for keeping the fuel fresh in snow blowers, generators and other winter equipment that is going into storage until next snow season; but it does much more than just stabilize fuel. The enzymes allow more oxygen
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to attach to hydrocarbon fuel molecules, resulting in a more complete burn of the fuel charge. This translates into maximum power, crisper throttle response and improved fuel economy. Now that it’s time to work on the lawn, Star Tron helps restore much of the power and fuel economy lost in ethanol blended fuels, because ethanol does not produce as much energy as gasoline. A more complete burn of the fuel charge also helps prevent carbon deposits and keeps engines running clean, with significantly reduced emissions. If gum or other debris is already in the fuel, Star Tron’s enzymes break it apart to disperse it throughout the fuel so that it can be eliminated while the engine operates. Because alcohol attracts water, moisture is another ethanol issue. Star Tron’s enzymes break apart clumps of water molecules into tiny submicron-sized droplets that are then dispersed throughout the fuel to be safely eliminated while the engine is running. Beware of additives that claim to remove water or make it burn; neither is possible. Most of these products rely on alcohol or other emulsifiers that degrade fuel quality and can result in significant carbon deposits. Used year-round, Star Tron Enzyme fuel treatment keeps all engines starting easily and running smoothly. For more information, call 800327-8583 or visit startron.com.
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FUELadditives (Material supplied by TruFuel)
True Pros Use Trufuel The Original Engineered Fuel
When you need your equipment to start immediately and run smoothly in every situation, you need Trufuel, the original pre-mixed fuel for power equipment like string trimmers, blowers and chain saws. Landscapers, loggers, contractors and first responders rely on Trufuel for the performance boost and protection it provides. The ethanol-free advanced formula is engineered specifically for small engines and comes in ready-to-use containers that are easy to store, helping your customer’s operations become more efficient and lowering the likelihood of repairs resulting from self-mixing of inferior pumped gas and oil. For that reason, many commercial outfits across the country now use ethanol-free Trufuel for improved performance and equipment protection. If your customer’s first stop in the morning isn’t the job but a gas station to fill up, then they are losing time and money.
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Plus, filling a red container with gas that contains ethanol and other harmful components can lead to costly repairs. By offering them Trufuel, you are helping them get ready to get the job done with a precision blend of high-octane fuel, the best quality synthetic oil, a top-performing fuel stabilizer and other protective additives. Available in pre-mixed 50:1 and 40:1 fuel oil ratios for 2-cycle gear, and a straight fuel version for 4-cycle equipment, ethanol-free Trufuel is the nation’s first packaged, engineered fuel formulated to protect engines from the ill-effects of ethanol. Trufuel ensures peak performance, and protects the significant investment users make in power equipment. There’s never an off-season with Trufuel. Since it can be stored for over five years unopened and over two years after opening, Trufuel is always ready. For more information, visit trufuel50.com.
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FUELadditives (Material supplied by Sunbelt Outdoor Products)
Sunbelt Offers Top Quality Additives Sunbelt Outdoor Products has been offering high quality power equipment service parts and accessories for over 60
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years. Throughout the decades Sunbelt has become a preferred source for a variety of lubricants and fuel additives in-
cluding your choice of two top quality additives with Star Tron and Sta-bil. Sunbelt has 17 part numbers of Star Tron fuel treatment for gas and diesel including individual containers and countertop and freestanding floor displays. Star Tron uses enzyme technology to improve overall fuel quality making engines start easily and run smoothly. It also helps prevent phase separation, removes gum, varnish and carbon deposits and will stabilize fuel for up to two years. It works in boats, cars, motorcycles, small equipment, or any other 2- or 4-cycle engines. We also carry seven different part numbers of Sta-Bil fuel additives. We have multiple sizes of fuel stabilizers, marine formulas and ethanol treatments. Sta-Bil is America’s top selling fuel stabilizer and helps remove water, prevents and protects against corrosion; cleans fuel injectors, carburetors and intake valves to keep the fuel system free of gum and deposits. Perfect for use in your car, truck or SUV as well as for your small gasoline powered equipment like lawn mowers, chain saws, trimmers and snow blowers. Depend on Sunbelt Outdoor Products to provide you with all your fuel additive, lubricant and power equipment part needs with high quality parts, competitive pricing and top-notch customer service and support. For more information visit aiproducts.com.
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FUELadditives (Material supplied by B3C Fuel)
Just In Time For Spring B3C Fuel Offers Full Line Of Solutions The weather is warming up and the days are getting longer. This means that spring is quickly approaching…and with spring comes the necessity to resurrect lawn and garden equipment out of storage and use it for the task at hand. In a perfect world, customers stored all their equipment properly and either completely drained the fuel out of the system or used Ethanol Shield fuel stabilizer in their tanks to prevent the issues caused by bad fuel, water and ethanol. In this perfect world, no one had issues starting their equipment in spring, and no one grabbed a can of three-month old gas and put it in their equipment to try to start it. Finally, no one brought their equipment to you, the dealer, claiming the equipment does not work, wanting you to give a refund or fix it for free. But we know this is not a perfect world. So in our imperfect world, what can we suggest customers do? First, we can recommend that Mechanic In A Bottle be added to the first tank of gas prior to the first start of each season. If the engine starts, the Mechanic In A Bottle will flow through the fuel system to provide a thorough fuel system cleaning and help keep that engine running properly all season long. If the engine will not start or runs poorly? Mechanic In A Bottle will fix fuel system issues without the need to remove any parts. Just prime it into the fuel system and Mechanic In A Bottle will clean any gum or varnish that may have accumulated over the winter. It will revitalize the gas, rubber, and plastic parts so the engine will start when needed, ensuring top operating condition.
Finally, to prevent these issues from happening again, you can recommend that consumers always keep their fuel treated with Ethanol Shield fuel stabilizer. Ethanol Shield will stabilize the fuel to keep it from going bad, and prevent ethanol and water from causing fuel related issues. As a bonus, it works great to protect engines during storage. Mechanic In A Bottle and Ethanol Shield work in all 2- and 4-cycle gasoline engines and are safe to use in any application from motorcycles, marine, automotive (even classic cars) and everything in between. So, as a dealer, although the world is not perfect and fuel is not perfect, we have solutions to fix and prevent fuel related problems, which make your world a better place. For more information, call 616-916-6284; visit b3cfuel.com.
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FUELadditives (Material supplied by Rotary)
Rotary Offers Variety Of Fuel Stabilizers Several types of small engine fuel stabilizers are featured in Rotary’s 2016 master parts catalog, including PRI-G, Ethanol Shield, Sta-Bil and a new line of VP Fuels, available in 32 oz. bottles. Rotary’s fuel stabilizers are ideal for lawnmowers, chain saws, snow blowers, generators and other types of 2- or 4-cycle engines. The additives help prevent gum, varnish and corrosion while improving engine performance and fuel economy. Rotary’s 2016 catalog is free for servicing dealers and distributors. The entire catalog is now available online and downloadable in a PDF format. For more information, call 800-841-3989; visit rotarycorp.com.
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Construction Dealer Goes Into Handhelds Four-location Virginia dealer grows into new lines and a new location. BY JESSICA JOHNSON SUFFOLK, Va. n the year 2008, many equipment dealers were thinking it might be time to hang up the hat, so-to-speak. But for Virginia-based White Oak Equipment, Inc. it was the time they wanted to take on more lines. The four-location dealership, which began in
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1970 and is headquartered in Fredericksburg, Va., actually was focused on construction equipment and didn’t sell any lawn and garden power equipment. “We knew the Stihl product line from what we had seen our customers using,” White Oak’s Suffolk Branch Manager Dorsey Ficklin says. “We had also seen the Kubota ag and turf line, knew it was a quality product—those were the areas and markets we wanted to be a part of.” So, after watching the construction market in their area fall to amazing lows after the 2005 peak, White Oak decided diversifying to two well respected lawn and garden lines was the right strategic move. “Being able to diversify was one
of the keys to survival,” Ficklin says. Now, the economy is nothing like 2008. Business is starting to pick up on both the construction and lawn and garden sides. Ficklin says since adding the Kubota ag and turf lines and Stihl handheld equipment, White Oak’s revenue has grown each year in Suffolk. The diversification has worked so well for White Oak that in December 2014, the dealership moved to a 14,000 sq. ft. building with 3,500 sq. ft. dedicated showroom space. 2015 numbers proved that between diversification and the location change White Oak has made some positive decisions. Sales were up 50%. The move was a big change, and a
White Oak’s vast showroom allows customers to have breathing room when browsing for equipment.
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welcomed one, Ficklin says after spending years hidden in an industrial park. Now, on a main interstate, White Oak is positioned in the path of people looking for equipment, just miles away from a Tractor Supply and Lowe’s. With the old location, White Oak was losing deals they were never on, he says: “When we talked to customers that bought equipment at other dealers they would say I didn’t even know you were there.” Thanks to the location change, there is an excitement in the air at the dealership. But Ficklin is quick to point to key manufacturer relationships as another reason for success. One of the most important things, he says, that should be a part of every equipment dealership is a quality product supported by service performed by experts at a fair profit. White Oak felt that Stihl incorporated that guiding principle into their dealer agreement—which made them a natural fit for each other. In the beginning, White Oak wasn’t strictly Kubota and Stihl—the dealership carried a mix of handheld and mower brands. Ficklin says it just wasn’t as successful as it could have been, so the dealership opted to focus strictly on one brand of mowers and one brand of handhelds: “So, we put our name on Stihl and Kubota. Rather than spreading out thin, and not being great at any one thing, we can focus and be great at the quality products that we do sell.”
Daily Operations White Oak’s full equipment lineup features Kubota ag and turf, Takeuchi, Stihl, Wacker, Morbark and Boxer Equipment. “Our mix is across the board. If it touches dirt, we’ve got a product for it,” he says cheekily. While other White Oak locations focus strictly on the compact construction equipment from Takeuchi and Kubota, the Suffolk store enjoys the mix of construction and homeowner. Suffolk’s customer base is a healthy mix. Though, being in a rural area, “homeowner” can be a loose term, Ficklin says. Properties are large (most around 1-5 acres) so while they might not be a professional landscaping company, they might still need a trimmer with a blade or the biggest, baddest saw. Geographically, Suffolk is one of the biggest cities in the Commonwealth of Virginia; population-wise it is one of the smallest. “It’s not often we talk them down be-
cause we’re still very much in a rural area,” Ficklin adds. Within 30 days of joining the team at White Oak, employees are bronze level Stihl trained. Ficklin believes that sets his staff above the rest: “When a customer walks in we have the confidence; we have the know-how; we will find a solution for the problem they have.” White Oak’s service department employs three full time technicians and one part-time— two of whom have been with the company since 1994. “There’s nothing they haven’t seen,” he says with a chuckle. A dedicated small engine bench handles all mower and handheld repairs with a turnaround timeline of less than a week, usually. In addition to repair work, White Oak offers free carburetor Parts counter stays busy. adjustments—whether you purchased the piece from them or not. “As long as it says Stihl on the side, of the unit. If it is going to be over that we do free adjustments for the life of amount, customers receive a quote on the the unit,” he explains. Why? “In the day total amount. Almost every repair qualiof EPA and emissions and ethanol, I fies for flat rate pricing, which White Oak does in an effort to save their customers would rather have my tech adjust that money. “We don’t want to punish the carburetor than a customer go in and customer for a tech that may take longer tinker with it and lean the saw out or than a speedy tech,” Ficklin says, adding have other failures related to their adthat flat rate pricing is just a fair way. justments.” White Oak does use some aftermarOn all repair work, customers pay a ket parts, mainly RBI, Rotary and Stens, deposit that goes to diagnosis and repair on equipment—but not on Stihl. Ficklin says the shop will service all brands, and uses aftermarket parts with them, but Stihl parts are competitively priced and, for White Oak, the product liability isn’t worth it. “You can save a dollar that will cost you ten down the line,” he adds. If a unit comes into the shop and the customer has paid for diagnostics, but is not, dollar-wise, worth repairing, White Oak offers customers a 10% discount on a new unit. He believes that helps the dealership show loyalty to their customers who might otherwise be annoyed they’re down a unit. “You trusted us with your unit to repair it; if it isn’t worth repairing we shouldn’t punish you. That softens the blow, but keeps them in a product they know is what they need and will be reliable,” he says.
Future Outlook Two of White Oak’s techs have been with the dealership since 1994.
A strong White Oak management team supports the extremely successful Suffolk operation. Ficklin’s father,
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Construction equipment is still very popular at White Oak, accounting for a good chunk of business now that the economy is turning around.
Tom, serves as President of White Oak money into our showroom to show our eve though there are a million reasons to Equipment and co-owns the business customers we’ve invested in them as be apprehensive this year; the same is true along with Ficklin’s two cousins, Mark much as they have invested in us,” Ficklin about any year. The products we have McCarty, Vice President, and Brian McPET says. “We had a great year last year and people are still going to need.” Carty, Secretary/Treasurer, who are sons of White Oak’s founder Frank McCarty. In a time when a lot of businesses are going to the internet, outside of brick and mortar, White Oak believes very strongly that a hometown feel, a place where a customer can have a relationship throughout the sales process over and over again, is still very much the future. Ficklin says being able to identify customers by first name, nurturing relationships whether through product or personal life has greatly aided in the dealership’s success. Focusing on connections is very important to White Oak. That being said, White Oak will use technology to enhance the customer’s experience. One of the draws to the new location was the ability to put in lots of counter space. “We’ve invested a lot of 26
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INDUSTRYvoices
How Dealers Can Engage Hispanic Customers By better engaging local Hispanics, dealers will bring in more business. BY JUAN TORRES
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rand and marketing investment to capture the increasingly influential Hispanic market in the U.S. has grown significantly over the last 10 years and it doesn’t show signs of slowing down. According to the Advertising Age 2015 Hispanic Fact Pack, ad spending for the U.S. Hispanic media market alone has grown by 12%. Due to the large role that the Hispanic American population plays in landscaping, these trends are likely to be reflected in this industry as well. To understand this, we must first take a look at the influence that Hispanic Americans have on the landscape industry. Consider that they make up 35% of the industry’s workforce—more than half a million people—and over 16% of the landscape industry’s business owners are Hispanic Americans, twice the national average. As an association that facilitates greater professionalism and business success in this industry, the National Hispanic Landscape Alliance (NHLA) has consistently emphasized the importance of growing Hispanic leaders in the industry through the right resources and education. In doing so, we help them to elevate their businesses and expand their client rosters, allowing them to purchase more equipment and increase profits for those dealers who understand the positive economic impact of engaging with Hispanic business owners. Our organization has seen great strides made among dealers who have approached us, recognizing that we are a critical link to Hispanic consumers. When referring to Hispanic customers with whom they may not have previ28
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ously been able to establish strong connections, it is of utmost importance to offer a positive sale and postsale experience. According to the U.S. Census Bureau, by 2020 Hispanics will make up over half of all U.S. population growth. This momentous growth is also reflected in their A great way to engage Hispanic customers is through education. Consider hosting an open house and making Spanish language projected buying materials available. power, which by Share Information 2019 is estimated to be a whopping If you know about educational events $1.7 trillion. Now it all makes sense, or workshops that may benefit your clidoesn’t it? ents, let them know. The more successful your client becomes, the more need Steps To Connect they have for the purchasing and mainEngage tenance of equipment. Universities, Hispanic Americans are very pertrade associations, water districts, local sonable by culture. Get to know your governments and chambers of comcustomer on a one-on-one level. Your merce can all be great sources for low counter staff needs to demonstrate that cost learning and networking. they care to help. Come out from around the counter and shake your cusHire tomer’s hand. Consider how the cusHire Spanish speakers who can help tomer feels when they walk into your facilitate communication and answer any shop, whether they’re the big boss or a questions your customers may have. crewmember. Dedicate attention to Most manufacturers have printed materianyone who walks in and offer to help als and videos in Spanish on proper and to your best ability by answering quessafe use of equipment and on proper tions and providing valuable tips and maintenance practices. These can be great suggestions. training tools for bilingual sales staff, whatever their experience level may be. Show Interest If you engage, take interest and become The Hispanic community is typically the go-to source for equipment and inforvery family-oriented. A great way to mation, then you will establish a positive demonstrate interest in your customer is relationship that will keep customers comto ask about their family. Many dealering back to your shop. Among the many ships are family operations; this is some positive traits that are consistent among solid common ground. Share personal Hispanic consumers is loyalty. To be sucanecdotes and communicate the fact cessful in any business, we must connect that you value family. All things considand exchange information to learn from PET ered, your business hopefully feels a one another and grow. sense of family when it comes to both Juan Torres is the founder of Next Step employees and clients. A friendly rapSolutions and the President of the National port goes a long way. Hispanic Landscape Alliance.
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Is Your Dealership Theft Proof? Preventing equipment theft from your dealership involves training, common sense, and implementing proven security measures.
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ore than any other crime, theft is a crime of opportunity. The simplest targets attract thieves. And, just because you haven’t had a theft yet doesn’t mean your dealership is theft proof.
Preventable Crime Thieves follow the path of least resistance. They watch for easy access to your valuable equipment. You can assess security at your dealership by looking at some key areas—open lot security, building security and other possible exposures. Strong doors, cylinder locks, fences, barriers and proper lighting all have value, depending on your specific circumstances.
Many dealerships store equipment behind fencing. Ensure the fence is secure with no holes, or easy to cut through areas. Only select employees should have keys. ● Do you instruct your employees to remove the keys from all equipment when they are finished using, moving, servicing or demonstrating it? Keep in mind that even the sturdiest door and the strongest lock can’t stop a thief who has a key. Make sure only
Train employees to act as if they own the business. Raising their awareness of theft is one positive step toward preventing a loss. Some additional questions to consider include: ● Do you provide adequate lighting for all areas where a break-in might occur? ● Do you have any blind or obstructed areas where a thief could work unobserved? ● Do you know the police officer or sheriff’s deputy in your area? 30
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authorized personnel have access to keys and that all keys are accounted for. Train employees to act as if they own the business. Raising their awareness of theft is one positive step toward preventing a loss. Whether you are an agricultural, industrial, or outdoor power equipment dealer, don’t make it easy for thieves. Fencing, lighting, and improved invento-
ry practices are the top three security best practices suggested by dealers, and they are relatively inexpensive to implement. An Equipment Dealer Security Survey is one of the tools included in the Equipment Dealer Theft Prevention material developed by Federated Mutual Insurance Co. and the Equipment Dealers Assn. (EDA) based on input from dealers. This checklist can be used to evaluate PET the security of your dealership. 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 800-838-1760.
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New Survey Shows Some Lack Understanding A recently released poll shows that consumers still don’t fully grasp the damaging affect of ethanol on small engines.
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wareness and knowledge of how to use high ethanol fuel blends remains relatively unchanged among consumers over the last few years, according to a recent national poll conducted online by Harris Poll on behalf of the Outdoor Power Equipment Institute (OPEI). According to poll results, price continues to drive decisions at the pump and consumers do not pay much attention to pump warning labels. OPEI conducted similar research in 2013 and 2015. The 2016 poll results show that almost two-thirds (64%) of American adults 18 or over who own power equipment say they either are not sure (42%) or do not pay any attention (22%) to what type of fuel they are using. In 2015, almost half (45%) were not sure what type of fuel they used and one in five (20%) did not pay any attention to the type of fuel used. Gasoline containing greater than 10% ethanol (E10) can damage or destroy power equipment, including lawn mowers, chain saws, generators, utility vehicles and other small engine equipment such as motorcycle, snowmobile and boat engines, according to most engine manufacturers. Yet, the poll, conducted in March of this year, shows 66% of Americans will use the least expensive grade of gasoline whenever possible, versus 63% in 2015 and 71% in 2013. In addition, 60% of Americans assume that any gas sold at a gas station must be safe for all of their vehicles or power equipment versus 57% in 2015 and 64% in 2013. By Federal law, it is illegal to use those higher ethanol fuel blends 32
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in outdoor power equipment. “The research continues to prove that Americans are still unaware of the damage that can occur to their power equipment as a result of mis-fueling,” says Kris Kiser, President and CEO of OPEI. “There are 100 million legacy power equipment products in homeowners’ garages, maintenance sheds and facilities across America. The scope of this issue is massive and shows that much more education is needed.”
Attention At The Pump According to the poll, while 85% of Americans understand gasoline contains ethanol, price is the overriding priority for the gasoline-consuming public. Among those who drive and buy from a filling station, the vast ma-
60% of Americans assume that any gas sold at a gas station must be safe for all of their vehicles or power equipment versus 57% in 2015 and 64% in 2013. jority (92%) notice the price, but far fewer look at anything else, including ethanol content (24%), octane rating (56%), and even warning labels (50%). Nearly 57%, an increase of six percentage points over last year, confess that they typically only pay attention to labels on fuel pumps if they read “Warning” or “Do Not Use In...” And 51% demonstrate that they don’t give it much thought as they tend to fill up their portable gas tank with the same fuel used to fill their vehicle. This is a three percent increase over last year’s poll findings (48%). “We hope the Environmental Protection Agency (EPA) will engage in more education as additional blended fuels are introduced in the marketplace. Otherwise, we could continue to see confusion among consumers,” Kiser says. “The power equipment industry has supported consumer education through our “Look Before You Pump” campaign since 2013. But it’s clear our government needs to do more.” PET The March 2016 survey was conducted online within the U.S. by Harris Poll via its Quick Query omnibus product on behalf of OPEI from March 1115, 2016 among 2,023 adults ages 18 and older. The 2015 survey was conducted online within the U.S. by Harris Poll on behalf of OPEI from April 2327, 2015 among 2,015 U.S. adults age 18 or older. The 2013 survey was conducted online within the U.S. by Harris Poll on behalf of OPEI from July 31-August 2, 2013 among 2,040 U.S. adults age 18 or older. For complete survey methodology, including weighting variables, contact ami@fourleafpr.com.
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Time To Stop Cheating! There’s no shame, or harm, in charging premium rates for premium services. BY SAM STEARNS
W
hen I first started my power equipment repair business, I was a big cheat. As you can imagine, I had very few customers doing business with me. After all, who wants to do business with a cheat? But people started to call me on it. Sometimes these people were other dealers, sometimes they were customers, and sometimes they were concerned family and friends. And I began to understand that to survive in business, I had to stop being a cheat. That should be a no-brainer, right? With each passing year, I’ve been slowly putting my cheating ways behind me. Not surprisingly, I’ve gained more customers with each successive year. But old habits die hard, don’t they? Even now, despite the indisputable evidence that cheating has been detrimental to my business, I still struggle with the urge to cheat. Sometimes I wonder if I’ll ever completely get over it. Now, lest you misunderstand, let me explain something. I confess that the beginning of this is intentionally devious. What I said is completely true, yet I worded it in such a way that you would get the wrong idea. Let me clear things up by saying that I never cheated my customers. My recently adopted tag line, “A friendly dealer you can trust,” would’ve fit quite well from the very beginning. I don’t know of anyone who would accuse me of being dishonest. When I said I was a cheat, and still struggle with being a cheat, I’m referring to cheating myself. Read the beginning again, this time with the understanding that the one be34
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ing cheated was me, not my customer. Different story now, isn’t it? The only reason my business continued to exist was that I was employed elsewhere at the same time and didn’t have to rely on my business income to survive. I had absolutely no clue how to charge customers for my work. For instance, consider a repair I did for someone in my first year. I drove 25 miles to pick up a lawn tractor, brought it back to the shop to rebuild the carburetor, and took it back to the customer. The
foreign to me. It was my introduction to the right way to think about my business. The following year at GIE, I met a dealer who said something so profound to me that I don’t think I’ll ever forget it: “Cheap prices attract cheap customers.” As I’ve gotten more comfortable with this new way of thinking, I can definitely see how it has positively impacted my small dealership. Would you assume that charging higher prices would scare off customers? That’s what I used to assume. But now that I have a shop labor rate of $70/hour (instead of $30 or $40), I have many times more customers now than I used to have. The only customers I lost are the cheap ones! It hasn’t hurt me at all! I’ve heard many of my fellow dealers nobly state that their goal is to earn a decent living. Why are you carrying the load and dealing with the headache of running your own business just to make
If you own a business in the power equipment industry, you have the potential for more than just a decent living. We are professionals who provide a service that a lot of people need and are willing to pay for. bill? Three thousand five hundred pennies, also known as 35 bucks. For a carburetor rebuild and a 50 mile round trip. Go ahead and laugh, because that’s just plain awful! That’s cheating myself, with a capital “C.” I hope that what I’m saying in this column will encourage some of you dealers out there. And I also hope it will challenge some of you if you have the wrong idea of business like I used to have. I used to think that the worst thing in the world was to have someone say I charged too much. If I ever earned the reputation of being “high,” I’d be the scum of the earth and my business would be toast. The fear of overcharging nearly consumed me. Perhaps this describes some of you reading this. It has taken me years to get over this way of thinking, and I’m still not fully over it. The first time I ever saw Bob Clements at GIE+EXPO in Louisville, Ky., he said that customers of a dealership’s service department should be saying, “They’re a little high, but they do great work!” I want people to say I’m a little high? That concept was completely
a decent living? If that’s all you want to do, just get a job where you can work an 8-hour shift and then go home and forget about work. On top of that, you’d be free on the weekends to hunt or watch sports all day! If you own a business in the power equipment industry, you have the potential for more than just a decent living. We are professionals who provide a service that a lot of people need and are willing to pay for. We have the right to profit from that service, and to profit handsomely. Contrary to the popular doctrine trumpeted by socialists whose existence depends upon stirring up envy in the masses, there’s nothing immoral or greedy about making lots of money. Making lots of money is what happens when your products and services are valuable to a lot of people. I’m trying to be as valuable as I can to as many PET people as I can. Who’s with me? 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.
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SHOWroom FEATUREproduct
Shindaiwa Professional Grade Cordless Line Shindaiwa has launched a new lithium-ion 56V cordless product family to be sold exclusively through Shindaiwa servicing dealers. The first three models, the Shindaiwa T3000 string trimmer, the EB6000 handheld blower and the DH2000 hedge trimmer, will begin shipping to booking dealers in time for the spring season. With gas-like performance, all three pro-grade cordless tools feature powerful brushless motors and use a shared 56V battery platform. The 56V lithium-ion batteries come in 2 Ah and 4 Ah sizes. The tools may be purchased with or without batteries and chargers, further leveraging the investment. The 2 Ah battery will fully charge in 72 minutes with the standard charger and 42 minutes using the rapid charger; the 4 Ah battery will fully charge in 150 minutes with the standard charger and 88 minutes with the rapid charger. A gauge on the charger illustrates charge status, while a series of indicator lights on the battery show the remaining charge life. The new cordless line carries five-year consumer and two-year commercial warranties. The battery carries a two-year warranty. Visit shindaiwacordless.com.
MOWERS Grasshopper 100V Series Mowers
John Deere ZTrak Mowers
New for 2016, select Grasshopper 100V mowers will be equipped with 61-in. cutting decks capable of mowing up to 4.5 acres per hour, making the V-Series the perfect entry point for commercial contractors looking to step up from walk-behind or stand-on mowers. 100V Series models feature single-fill, 6.5-gal. fuel tanks located under the seat for a lower center of gravity, enhanced traction and longer mowing intervals between fill ups. For added convenience, the fuel gauge is located in a visible location in front of the operator seat. Grasshopper V-Series mowers are available in 41-, 48-, 52-, and 61-in. cutting widths to provide the agility of a zero-turn mower with a compact size able to maneuver in tight spaces without the fatigue of a walk-behind mower. Visit grasshoppermower.com
New mower and expanded models offerings add to the popular zero-turn mower line from John Deere, ZTrak. The Z960M provides professional landscape contractors with a powerful, reliable machine at an affordable price point. Boasting 31 HP, the Z960M is available in three deck offerings—60 in., 60 in. mulch on demand (MOD) or 72 in. The Z970R now features two additional deck options—60 in. side discharge (SD) or 60 in. MOD, offering more deck options on the most powerful machine in the Z900 Series line-up. Visit deere.com.
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HANDHELDS Efco Powerline Trimmer Line
Stihl BGA 100
For 2016, Efco is introducing new and improved Powerline trimmer line. For users, there will be two options: Powerline Round and Powerline Power Twist. The round trimmer line has a rich mix of resins and exclusive additives that increase line durability and cutting performance, while being forgiving around fences and poles. Power Twist comes with a twist profile that greatly reduces the chances of fraying and splitting at the end of line; a white flexible core absorbs shocks and helps prevent line failure against sharp and angular posts/fences. To top it off, Power Twist has an outer layer that acts as a shield to increase line durability. Powerline is universal to all brands and will come in a variety of sizes. Visit efcopower.com.
The Stihl BGA 100 handheld blower is the lightest, quietest and most powerful handheld blower in the Stihl line. Its jet engine-inspired axial turbine fan not only delivers more blowing force than many other battery products on the market, but performs better than many gasoline-powered models. And because the unit requires no fuel or oil, and has minimal maintenance, operating costs are reduced. Instead of an on-board battery, the BGA 100 uses a Stihl battery belt or AR backpack battery. This unique feature aids in reducing the unit weight, reducing operator fatigue. A variable speed throttle trigger delivers four performance levels. The low/medium/high multi-level power levels allow operators to use only the power they need, getting the work done with run times up to five hours with the Stihl AR 900 backpack battery. Rear-mounted air intake allows the blower to be used right- or left-handed. Visit stihlusa.com.
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INDUSTRIAL Briggs & Stratton P2200 Generator
Equipped with parallel capabilities, the new Briggs & Stratton PP2200 PowerSmart Series can be tethered together with either a second P2200 or a P3000 inverter for additional quiet, consistent power. The P2200 is the latest addition to the Briggs & Stratton PowerSmart Series lineup of inverter generators, which is exclusively designed for any outdoor recreation and tailgating activity in which a reliable and quiet power source is an expectation. The new PowerSmart Series P2200 offers a convenient control panel that includes three outlets (two 120V outlets and one 12V DC battery-charging outlet) and a USB adapter to offer the flexibility to power an extensive combination of lights, music, TVs, crock pots, blenders and personal electronics. The inverter technology automatically adjusts the engine speed to protect sensitive electronics like smartphones, tablets and laptops. Best of all, it operates at 59 dB, and has 1,700 running watts and 2,200 starting watts—while being up to 45% lighter than traditional camping generators. Visit briggsandstratton.com.
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TURF EQUIPMENT Classen Stand-On Aerator The new Classen PRO SA30 Stand-Aer aerator is part of Classen’s new PRO product line for professional landscapers and rental centers. Designed to protect wear parts and significantly minimize downtime, the Stand-Aer features a cover for the chains, decreasing dirt and debris buildup, and Classen’s unique automatic chain tensioner reduces the likelihood of chain slippage and popping. The Stand-Aer also offers maximum efficiency with a 15 HP Kawasaki engine providing transport speeds as fast as 7.4 MPH. Its true zero-turn maneuverability allows contractors to work close to shrubs and trees. The unit also offers a generous 5-gal. fuel tank. On Classen’s Stand-Aer, operators can use the manufacturer’s simple pin setting system to select a depth between 2 to 5 in. The operator platform features vibration absorbers, and operators can conveniently reach the controls at hand level. Operators can also flip up and lock the platform in place to convert the unit into a walk-behind aerator for working on a slope.
Classen backs its PRO SA30 Stand-Aer aerator with a twoyear commercial and rental warranty. Visit classenturf.com.
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POWERworks AR, LA, MS, OK, TX 4408
ND, SD, MN, WI, MI, IL
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TX, OK, AR, LA, NM, CO, MS
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Stihl * Homelite * Lawnboy * Briggs & Stratton New * Obsolete * Used Parts THOUSANDS OF PARTS!
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POULAN WEED EATER PARTS
Busy lawnmower, trimmer, snow blower and chainsaw sales, service and repair shop in business since 1965 includes all inventory, parts, equipment and a list of over 1700 current customers. Lots of traffic and tons of room for expansion and growth into new products. The business is on a 26 acre parcel and operates out of 10,000 square feet of interior space comprised of 3 buildings - a 42x90 clear span steel building for storage and work space, a 20 x 40 storage building. And a third building with a 32 x 60 showroom, office, additional storage area and a 24 x 80 service shop. 5454 Route 32, Catskill, New York. Come take a look ............... NOW ONLY $385,000
Call Steve at Steve Hubbard Real Estate 3821 Services. 845 246-2022
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PETcetera New Way To Think Of Leads The start of a potential sales process is a lead, and there are many ways to obtain leads. In business to business (B2B) sales, your lead is not a person— it is a company. We need to transform our thinking about the sales prospecting process to focus our efforts on companies instead of individual people. Why? Well, there are likely many people in a given company that could benefit from your product or service. So it doesn’t make sense to just go after one person. Find several contacts within each target account who see value in your product or service, and engage each of them. This will not only strengthen your foothold in the account, it also mimics the way people buy today. According to studies, an average of 5.4 stakeholders are now involved in each B2B sales deal. Just make sure to tailor your approach to each contact. No two people are the same. Would you approach a conversation the same way with every one of your friends? Probably not, because each has different perspectives, tastes, and feelings. So you interact with them differently. Think about this when you engage your contacts. It’s not good enough to just say “sure, I bet they could use what I sell”—challenge yourself to answer the question “why?” Why could they use what you sell? What pain points do they have that your product or service could mitigate? What opportunity do they have that you could help them capitalize on? Discover a trigger event that could form the basis of your outreach to the company; once you have your reason, all that’s left to do is make that initial call or email. Leads are precious, and so it’s important to not waste them by giving up too soon. Personally, I don’t give up on a lead until I get a definitive “yes” or “no.” When prospecting, your job is to get your contacts to say one of two things: “Yes, I’d like to talk more,” or “No, I do not want to meet, and this is why.” Until you get a clear response one way or the other, your job is not done. To be better than the other sales reps out there, you need to think differently about how you will get to your number. It is not always about quantity but the quality of leads in your name. Strive to identify quality companies to contact, and then broaden your reach by engaging multiple contacts within those organizations. Source: Sales Reps Are Thinking About Leads Completely Wrong, Ali Powell, blog.hubspot.com/sales/sales-reps-are-thinkingabout-leads-all-wrong
Why Online Reviews Matter Still not convinced that online reviews are worth your time? Consider these 5 Reasons Online Reviews Matter for Your Business from Outbound Engine. 1) 68% of consumers trust opinions posted online. “I read it on the internet, so it must be true.” 2) 88% of consumers trust online reviews as much as personal recommendations. 3) Customers are more likely to share bad experiences than good ones. “Think of your last negative customer experience—did you tell anyone about it?” 4) You can turn a negative review into a positive review. “Reviews are influencing the opinions of potential customers, but they don’t have to be a permanent black mark on your digital record.”
5) 72% of consumers say positive reviews make them trust businesses more. “Reading a multitude of positive reviews provides a potential customer with a sense that the business can be trusted.” Source: tedmag.com/News/features/Why-Should-Distributors -Care-About-Online-Customer-Reviews.aspx
PETevents MAY 4-6—National Hardware Trade Show, Las Vegas Convention Center, Las Vegas, Nev. Call 203-840-5622; visit nationalhardwareshow.com. JUNE 21-23—Outdoor Power Equip. Institute annual meeting, The Omni Grove Park Inn, Asheville, NC. Call 703-549-7600; visit opei.org. JULY 12—Iowa Nebraska Equipment Dealers Assn. annual meeting, Embassy Suites, La Vista, Neb. Call 515-223-5119; visit ineda.com. SEPTEMBER 4-6—SPOGA International Trade Fair, Cologne Köln Messe, Cologne, Germany. Call 773-326-9920; visit spogagafa.com. OCTOBER 19-21—GIE+Expo, Kentucky Exposition Center, Louisville, Ky. Call 812-949-9200; visit gie-expo.com. NOVEMBER 2-4—Far West Equipment Dealers Assn. annual meeting, Marriott Newport Beach Hotel & Spa, Newport Beach, Calif. Call 707-678-8859; visit fweda.com. Listings are submitted months in advance. Always verify dates and locations with contacts prior to making plans to attend.
ADlink Easy access to current advertisers! www.poweret.com/advertiser-index Don’t forget to bookmark this link! 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 After Market Services American Honda Power Equipment B3C Fuel Solutions Billy Goat Industries Briggs & Stratton Cannon Bar Works Eureka Chemical Green Industry & Equipment Expo Heftee Industries Husqvarna Forest & Garden Masport Morbark Outdoor Power Equipment Institute Rapco Industries Rotary Shindaiwa Star Brite Sunbelt Outdoor Products TD Retail Card Services TruFuel Walbro
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DEALERtodealer
GREG GERMAN
Importance Of Finding Your Sweet Spot
One of the biggest keys to longevity in this industry is finding, and working in, your sweet spot.
T
his year marks my 30th year in the power equipment business. I know my picture at the top of the column is a little old—at least some of my fellow dealers say it is. I promise that I will update it soon and then you can judge for yourself how I have aged in this high-stress industry where we have all chosen to make our living. During the past three decades I have been blessed to learn a thing or two. One of the most important lessons is one that should come as no surprise to any of us. The advice is simple: Work in your sweet spot. Most of us can identify our sweet spot for ourselves. We know when we are operating in our area of talent. When we are, things just come easier. We actually get a shot of extra chemicals into our brain that urges us on to complete the task. When we are done, we might be physically tired, but emotionally we are raring for more. Have you taken inventory lately of the activities that you perform around the dealership and note which of those tasks bring energy and focus and which ones simply wear you out? I know exactly which functions are motivators for me.
Know Yourself As an example, we recently rolled out some new initiatives for our organization. It was necessary for me to hold multiple team meetings throughout our company. In one day I gave the same basic message four different times to different departments. Each message was tailored to that particular department’s needs and culture. Normally, that task would emotionally wear out 46
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the average person. For me, it was a huge energy driver. I came out of those meetings enthusiastic and looking forward to the next one. At the same time, each month I am presented with a stack of retail orders to review. I do this to make sure that every deal over a certain amount is correct by checking that all attachments, equipment, rebates and costing is correct. As the owner of the business, this is a very important task for me. I should be excited to review all of the month’s activities, and review what our sales team has accomplished. Yes, I am excited to see what we have developed, but to review every deal is tedious. It is an energy zapper for me and I simply don’t enjoy it. I do it because I have to, not because I want to.
The ability to work with our natural talent is the difference between being excited about each day and dreading it. Each of us has countless tasks like this every day. The ability to work with our natural talent is the difference between being excited about each day and dreading it. As I write this column, we are in the midst of adding three new sales representatives to our stores. We have recently moved to a defined geographical territory model and found that as we did this, we have some areas that are not being covered like they need to be. Like you, we have hired lots of salespeople over the years who are wellintentioned, but when it was time to be out beating the bushes and prospecting, the steering wheels on their trucks would not turn left or right. They drove right by countless potential customers. We have started testing our qualified applicants to make sure their psycholog-
ical profiles matched that of a successful profile for an outside equipment salesperson. We have found a testing agency that has created a set of personality profiles best suited for equipment dealership positions. We don’t make this test the foundation of our decision, but it is one of the three parts of our decision. (The other two parts being past work experience and the quality of their interviews.) The test makes it very clear if the person is working in their natural talent or if they have to adapt their personality to the requirements of the position. When people have to adapt, it doesn’t mean that they can’t be successful; it simply means that they have to try harder to be something that they aren’t naturally. We look for those who have the natural personality traits that will most likely help them to succeed. The same thing holds true for you. If you have the natural skills and desires to be a service technician, but have found yourself having to be the manager of the organization, I would imagine that you long for the methodical approach to problem solving in the service department. Not the daily tasks of marketing and personnel management. If that is you, it might be time to hire someone who is better suited for that position and you get back to what you really want to do. Trust me, you will be a much greater asset to the organization when you work in your area of talent. Your business and your family will appreciate the change. Take my advice: PET Work in your sweet spot. Greg German is President of German-Bliss Equipment, Inc. in Princeville, Ill., which operates three 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 309-3852540; e-mail ggerman@germanbliss.com. The views of Greg German do not necessarily represent those of Hatton-Brown Publishers, Inc.
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