Is Being 'Brand Loyal' Business Smart?

Even though the media loves to report that these are the worst of times, most outdoor power equipment dealers are as busy as ever during this time of year. There is no question that customers are more discerning and many are repairing machines rather than replacing them. However, it would seem that dealers, at least PPEC members, are staying the course. Many large manufacturers are reporting double-digit losses and sales figures 20 to 30% below 2008—but it makes you wonder where the losses are coming from. Are smaller, less progressive dealers suffering more than the cutting edge, innovative ones? Could it be possible that the mass merchants are not selling equipment at previous levels? The manufacturers that are true partners with their dealer base are the ones that have helped avert the storm by acting proactively. Special pricing and promotions, zero percent financing (in some cases up to 36 months), aggressive discounts for bid assistance, and fleet pricing and demo programs all help us achieve our common goal of selling products. If we continue to do that one task, everyone wins—and both the manufacturers and dealers thrive. Do you consider brand loyalty when you decide which products to place in your showroom? Many manufacturers are subtly trying to steer dealers away from competitive brands. Is it really a good business practice to place your name beside only one brand of power equipment? No one brand can cover every category, in spite of what the OEMs want you to believe. You can do your business a disservice if you do not keep your options open. If an OEM provides a quality product and a competitive price, why should they care if their competition is close at hand? May the Best Manufacturer Win If it is true that the largest companies are experiencing double-digit declines in sales, who will survive and what will happen to the remaining manufacturers? A lot of companies have been purchased or absorbed: Dixon, Snapper, RedMax, Shindaiwa and Great Dane to name a few. This begs the question, who is next? Bush Hog is teetering on the edge, and many manufacturers have been furloughing a record number of employees. This seems to suggest that the size of company is not a contributing factor, but rather the way the companies are managed. How helpful are the sales representatives from your OEMs or distributors? Do they treat you like a customer, partner or percentage of their paycheck? A successful rep will visit you often, explain programs, solve service issues, and provide the feedback to the manufacturer based on your comments. If you are really lucky, he or she will spend some time on your sales floor helping you during the busy season, will provide loaners or demos to help a customer in need, and also help resolve service, co-op or many of the other issues as they come up. The best ones care about your business and understand that they will only be successful if you are. Moving forward, most of us are doing whatever we must to close sales. We treat our customers with courtesy and respect, giving them a reason to choose Professional Servicing Dealers (PSDs) over the mass channel. There are two truths that will always keep us moving forward: Grass will always need to be cut, and leaves will fall toward the end of the year. As long as those needs are out there, we can provide the solutions and answers that make this industry so unique. Join us at the PPE Congress (ppecongress.com) and share your thoughts and ideas with your fellow dealers. ~ The Professional Power Equipment Congress