One dealer shared his thoughts on the dealer-manufacturer relationship. Do you agree, disagree — or have your own opinion?
Manufacturers need to wake up to the realization that their dealer network is their most valuable asset. They need to listen to their dealers and treat them as valuable business partners.
Our suppliers are too focused on hitting quarterly market share goals. Market share is important, but the overall health of the dealer network is critical.
Pushing dealers to order more inventory than they are comfortable with will be disastrous long term. As floor plan interest rates go through the roof, inventory is dumped into other dealers' primary area of responsibility and bad trades are made.
Customers love the discounted prices and huge trade allowances, but when the selling dealer is unable to service the equipment due to distance, the customer soon forgets the low price and becomes very unhappy. Eventually, the equipment is traded for a competitive brand. The selling dealer ends up with a lot filled with overpriced trade-ins and that is a killer.
Ours is a very tough business and there aren't a lot of long-term dealers left.
— Name withheld upon request.
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