In the sponsor a race program, samples of contractors’ work is hung in the shop, and the dealership passes business handouts on to their customers with a high recommendation. The racecar is often displayed in the showroom.
When he’s not turning wrenches in the shop, son Paul is taking laps around the racetrack in his Ford Thunderbird.
Scott Tuthill with daughter Susan, wife Gayle and son Paul of Hudson Valley Power Equipment in Monroe.
Hudson Valley Power Equipment
Monroe, NY
hvpe.com
Founded: 1983
Owner: Scott Tuthill
Employees: 3 full time,
2 part time
Annual Sales: $1 to $2 million
Sales Mix: 66% wholegoods, 19% parts, 15% service
Customer Mix: 70% commercial, 30% consumer
Shop Labor Rate: $65 per hour
Major Lines: Billy Goat,
BOB-CAT, Redmax, Ryan, Snapper, Stihl, Toro, Wright
Everything about this outdoor power equipment dealing family has been about setting goals and working nonstop to reach them. Located less than an hour from Manhattan, and surrounded by the box store competition, they built a new dealership from the ground up to attract contractors and prosumers to the commercial-grade equipment that occupies 80% of the new showroom floor. When the green flag waves, the Tuthills are ready to go.
Having been in the industry since 1983, working his way up from the bottom of the dealership chain, Scott Tuthill of Hudson Valley Power Equipment in Monroe, NY, had developed a vision for what his own dealership could be. The vision began with a newly built outdoor power equipment superstore.
A STORE THAT SCORES
The dealership Tuthill originally purchased had been on its lot for 40 years, starting as a simple shop in a garage. “It was just one guy doing part-time work out of his garage,” says Tuthill. “The man he sold to built on, and later we purchased it.” When Tuthill purchased the business, it had seen several additions built on. They continued to work with what they had and installed new lighting, displays, counters and signage.
Business was booming and soon their sales would be too much for this building to hold. “We had a lease with the option to buy after five years,” says Tuthill. “Our fourth year we were already over a million in sales.” The year the Tuthills took over the dealership, the last owner’s sales were at $560,000.
“We were bursting at the seams and there was no way we could function anymore in that building,” explains Tuthill. He was lucky enough to find a piece of property only half a mile down the same stretch of road. On that lot, Tuthill built from the ground up what he envisioned to be a dealership that could compete with the best big boxes in town. Good thing he did, because he was surrounded by them.
In 2004 they moved into their new superstore. “We copied the big box store and did something modern,” says Tuthill. “We wanted to take it to the next level. Our last location was typical of the industry, but we saw the writing on the wall and knew that if you’re not clean and orderly you won’t attract customers—and you won’t last.”
The new store featured showroom-style lighting, public restrooms (the last store only had an employee bathroom behind the shop), clean and durable concrete floors, and equally durable steel walls.
I’ve been to many places that use nice tile or carpeting, and had been framed with drywall,” says Tuthill. “Initially, when you first put it in, it looks great. But after moving equipment around for two or three seasons, there is a lot of upkeep and it starts to look ratty.” Tuthill has maintained a bright but durable look in the dealership, rivaling the big box stores.
COMMERCIAL EQUIPMENT FOCUS
Tuthill attributes the sales success that necessitated the larger dealership to their focus on commercial sales. He wanted to be the go-to guy for commercial equipment, and that is what he soon became. “The business as it existed was not really catering a lot to commercial guys even though the area had experienced huge residential growth,” says Tuthill. “The easy commute to Manhattan made us a bedroom community for New York City.” Within two years of taking over, Tuthill switched sales from 80% residential and 20% commercial to 50-50.
Now, 80% of the showroom is dedicated to displaying commercial products. “We work very hard for our landscapers and that is what it comes down to,” explains Tuthill. “Nearly every year they are buying new equipment, and regularly need repairs and parts.” The Internet has taken away some of their parts business, making it easy for the end-user to purchase parts. Landscapers, who need parts fast and frequent, continue to stop in regularly for anything from blades to trimmer line to oil.
The Tuthills have focused on providing commercial equipment options to contractors, but they won’t shut out a consumer customer, many of whom come in after visiting an area big box. As houses in the area continued to go up, big boxes did as well. “We tried to coexist with them initially, doing service work for the local Home Depot, Wal-Mart and Tractor Supply,” says Tuthill. “But we couldn’t find a way to make money doing it.”
The warranty repairs didn’t pay, and have since stopped. Consumer customers continue to come in for repairs on equipment bought elsewhere, but are quickly informed that they won’t be first on the “to do” list. “Shop wise, we work on the homeowner stuff as much as we can,”says Tuthill. “But it is explained that if a homeowner has purchased something from us, they are in the normal lineup on the service side. If they haven’t, we will service it, but let them know that my customers come first.” Tuthill says this honest explanation sometimes angers customers, but many other times it helps convert one of the big box shoppers into a dealer-loyal customer.
“I have customers that decide to purchase from us after being explained the situation,” shares Tuthill. “We are very proud of the way we take care of our customers, and it shows. I would say I get just as many sales that way as I would trying to work on everything the mass merchants send our way.”
To the Tuthills, a visit from a consumer is just another opportunity to pair someone up with a commercial unit. “Roughly 20-25% of my commercial sales are to residential customers,” says Tuthill. “In our area, customers have anywhere from two- to three-acre yards and are getting tired of the throwaway tractors that give them nothing but problems.”
Tuthill and his team, which consists of wife Gayle, daughter Susan and son Paul (see “The Lean Team” on page 12 for more), appeal to the value of time vs. money when selling commercial-grade equipment to residential users. “We explain to them that for a little bit more money, they will get a lawn that looks like a landscaper maintains it, but in very little time,” says Tuthill. “The equipment is also going to last nearly 15 years because they aren’t running the product to the max like it is designed for.”
Once one person in the neighborhood gets a mower from Hudson Valley Power, others take notice and often come in for their own piece of equipment. They may have even seen Tuthill himself on a neighbor’s lawn giving a demo. “We try to get the serious customers to know what the product’s about and think about what it can do for them,” says Tuthill. “We often do that with onsite demos of three or four units similar in size to what they need or want.”


