Equipment Dealer Business Outlook
Quite a few dealers took it on the chin this year, but remain upbeat about their prospects in 2013.
Looking ahead to next year, roughly 29% plan to add service staff, 20% plan to hire in the parts department, 14% are looking to hire salespeople, and 5% plan on adding office staff. Only 2-3% of dealers expect to lay anybody off.
Shop rates
There’s been a big increase in the number of dealers that are now charging $61-70 per hour in the service department—from 23% to 37% to be exact. The number that charge more than $70 per hour is holding steady at 24%. (See graph 3.)
When asked if they plan on raising their shop rates in 2013, roughly 53% of dealers said they did, which represents a 6% increase from one year ago. (See graph 4.)
Profitability
More dealers were unable to turn a profit this year; 9% compared to just 5% last year. On the other end of the scale, the number of dealers making at least 11% net profit held steady at 34%. (See graph 5.)
When asked about 2013, 74% of dealers said they expect to be more profitable—up 11% from one year ago. (See graph 6.)
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