When he was originally profiled in the pages of Yard & Garden in 2003, Richard Pregler, of Pregler Lawn & Garden in Glenpool, OK, shared his story of attempting to expand into a multi-store operation. Not satisfied with the workforce available at the time, he decided instead to commit his energy to one well-run dealership.
Pregler stands by that decision. He remains a single-store operation and has grown sales over a quarter of a million dollars in the last nine years. Through lean operation and embracing technology, he has grown his residential customer base and sales by improving the service he provides. His experience shows that you must embrace changes in technology and your customer base in order to succeed.
Staff changes
The lifeblood of any dealership is your staff. Without a good staff, a dealership is less likely to succeed. That was Pregler's main complaint when attempting to expand. Without the right people, he learned an expansion isn’t worth the time and labor.
A LEAN operator, Pregler was disappointed by the extra work a second location created. "It is just very difficult to find technicians and people you could trust," says Pregler. "I found it to be two or three times as much work for me and not any more money."
Long-time staff member Rick Level is no longer with the business. He played an important role in the business' initial success and was paid a salary. In peak months he would work overtime and receive the same pay as in slower months when he could head home for the day as soon as he was no longer needed. The three current employees on staff are paid an hourly wage, and work hours that fluctuate with the current season's demands and their availability.
Embracing technology
While 10 years ago he didn’t rely on a computer too heavily, Pregler knew it was a tool to embrace that would not be going away anytime soon. A self-proclaimed frugal man, he believes the cost of the investment as well as the time to train yourself and your employees is well worth it.
"I'm pretty conservative about everything and I am not a big spender," says Pregler. "However, I think dealers in my age range (60s) need to embrace the technology. We could not operate without a computer and Business Management System (BMS), because it saves us so much time."
Through the years, he has learned to use his BMS more effectively. It is used for automatic warranty registrations and lost sales, among other things. Pregler does admit that he has a ways to go before he is using it to its full potential, but mastering it is a goal of his.
"A lot of what the system will do I still have not tried," says Pregler. "I'm not that technologically savvy, but I'm learning. When you have to be your own IT support it just takes time."
Seeing more of his customers and manufacturers embracing technology, Pregler continues to also follow the trend. The company's marketing efforts have moved to online marketing from the traditional Yellow Pages phonebook advertisement. They now spend money with Google and yellowpages.com.
Today's customers and products
The customer base at Pregler Lawn & Garden has remained mostly residential, but the behavior of those customers has changed. Pregler says they expect more from their dealer—and fast.
"Customers are much more impatient than 10 years ago," explains Pregler. "I call it the 'me' generation. They want what they want and they don’t want to wait."
To meet the demands of today's customer, Pregler has added some time-saving tools to the shop. A new lift and ultrasonic carburetor cleaners increase shop productivity and decrease equipment repair time.
Another change in the shop is their labor rate. It has gone up from $50 an hour to $70. They have certainly seen an increase in service demand in recent years with customers using equipment to its last breath. Additionally, the small dealers closing in their area have brought work their way. Still, they try to limit what repairs they will take on in order to keep existing customers happy.
"The shade tree guy working out of his garage is no longer here," Pregler explains. "It helps when we get that business if we want it. We still try to limit our repairs to brands and products we sell. We've got all we can do with the customer base we have."
One thing Pregler thinks might slow repairs is the higher labor costs and higher parts prices. Together, they are pushing consumers toward the purchase of low-quality "throw-away" equipment.
"They seem to go for more throwaway units even in the premium-brand products," says Pregler. "If it’s a $150 trimmer, people won't spend the $70 or $80 to repair it."
Another trend that is keeping Pregler and his team on their toes is E15 ethanol. Pregler fears that unless manufacturers introduce E15-tolerant products, his business will suffer.
"The biggest thing we are dealing with is ethanol in fuel and bad gasoline," says Pregler. "I would say 80% of our business is related to fuel problems. Nothing in our store will run on it. Manufacturers will have to create new products, but I don’t know that they have the technology."
