Published and copyrighted 2025 by Lessiter Media, 16655 W. Wisconsin Ave., Brookfield, WI 53005. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.
| Dealers Expect Solid Growth 2014 in • Improving Seasonal Cashflow • Selling Rotary Cutters: Keep it Simple • RLD Dealer Advisory Board Debuts |
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| TABLE OF CONTENTS Volume 7, No. 4, Winter 2014 FEATURES COLUMNS Editorial Advisory Board . . . . . . . . . . . . . . . . . . . . . . 8 From the Field Back to Basics in a Maturing Market . . . . . . . . . . . . . . 6 Advertisers Index . . . . . . . . . . . . . 55 Top dealers serve on magazine’s first-ever advisory board. Dealer Business Trends & Outlook Dealers Forecast Growth in 2014 Despite Lingering Concerns . . . . . . . . . . . . . 10 The upward trend for equipment and aftermarket revenues continues as the rural lifestyle market grows. Season to SEASON Part 1 of 3 Industry Q&A What is one thing you’ve done recently that has helped you be more efficient, productive and profitable? . . . . . . . . . . . . . . . . . . . 48 Take the Lead Set a Clear Plan For 2014 . . . . . . . 56 To start your year off right, you must know where you want the year to end. Season-to-Season Facing the Challenges of a Seasonal Business . . . 24 Season to SEASON Part 1 of 3 Rigg’s Outdoor Power Equipment shares its best practices for dealing with the seasonality of cashflow and employee productivity in Rural Lifestyle Dealer’s year long ‘Season-to-Season’ series. What Rural Lifestylers Want From You The Right Machine for the Job . . . . . . . . . . . . . . . . 34 Rural Lifestylers What Want From You Vegetable grower Jeff Hurtgam produces 23 different crops on 35 acres. He boosts efficiencies by matching tractors to the tasks. How-To-Sell Boost Rotary Cutter Sales with Basic, Yet Strategic, Tactics . . . . . . . . . . . 40 HOW TO SELL ROTARY CUTTERS Selling this basic implement should be simple, but don’t let the sale end there. Use this necessity purchase to build customer relationships. Industry View Point Thinking Big . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 INDUSTRY VIEW POINT Ag and commercial landscaper markets drive new product developments for Kubota. Find us on facebook Rural Lifestyle Dealer is published 4 times per year (Winter, Spring, Summer and Fall issues). Visit www. rurallifestyledealer.com for subscription information. Published and copyrighted 2014 by Lessiter Publications, Inc.. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. POSTMASTER: Please send change of address to Rural Lifestyle Dealer, P.O. Box 624, Brookfield, WI 53008-0624. Application to mail at periodical postage prices is pending at Brookfield, WI and additional mailing offices. 4 Follow us on Twitter PRODUCTS Dealer Business Operations • Lawn Tractors & Zero-Turn Mowers • Tractors & Skid Steer Attachments & Implement • Tillers����������������������� 49 ON THE COVER Dealers Expect Solid Growth 2014 in • Reducing Cash Flow Challenges • Selling Rotary Cutters: Keep it Simple • RLD Dealer Advisory Board Debuts In the 2014 Dealer Business Trends & Outlook survey, dealers ranked zero-turn mowers number 1 in terms of growth. The cover image is a model in Toro’s Z Master 3000 series. Photo credit: The Toro Co. Exclusively Online Season-to-Season Video Series and Bonus Content Managing Editor Lynn Woolf’s Editorial Interactive digital issue: www.rurallifestyledealer.com 2013 Dealership of the Year Video Series twitter.com/rldeditors Rural Lifestyle Dealer’s Editorial Advisory Board • Rick Bailes, Bill’s Tractor, San Antonio, Texas • Alan Foy, AgriVision, Pacific Junction, Iowa • Chris Frodel, Mid-State Equipment, Janesville, Wis. • Summer King, Kingline Equipment, Cantonment, Fla. • James Little, Little Tractor, Metropolis, Ill. • Eric Roach, S&H Farm Supply, Joplin, Mo. • Gene Saville, Lamb & Webster, Springville, N.Y. • Jamie Trinchitella, AgriVision, Pacific Junction, Iowa R U R A L L I F E S T Y L E D E A L E R n W I N T E R 2 014 |
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| From the Field 225 Regency Court, Suite 100 P.O. Box 624 Brookfield, WI 53008-0624 Phone: 262/782-4480 • Fax: 262/782-1252 Back to Basics in a Maturing Market FOR CHANGE OF ADDRESS CALL: 262/432-0388 • Fax: 262/786-5564 PUBLISHER Michael Ellis (ext. 432) mellis@lesspub.com PRESIDENT Mike Lessiter (ext. 403) mlessiter@lesspub.com EXECUTIVE EDITOR Dave Kanicki (ext. 414) dkanicki@lesspub.com MANAGING EDITOR Lynn Marcinkowski Woolf (316/648-3717) lwoolf@lesspub.com ASSOCIATE EDITORS Kim Schmidt (ext. 431) kschmidt@lesspub.com John Dobberstein (ext. 425) jdobberstein@lesspub.com SENIOR WEB EDITOR Cole Vandermause (ext. 440) cvandermause@lesspub.com SENIOR ACCOUNT EXECUTIVE Alan Stenum (ext. 426) astenum@lesspub.com Darrell Bruggink (ext. 420) dbruggink@lesspub.com MEDIA ACCOUNT EXECUTIVE Darren Foster (765-714-6538) dfoster@lesspub.com D ealers have spoken and the numbers are in: Our 2014 Dealer Business Trends & Outlook survey forecasts that 2014 will be better than 2013. So, if your 2013 was already good, you’re again making solid gains. And, if your 2013 revenues were down, chin up. You have a good chance of gaining ground this year. This survey marks the 7th time Rural Lifestyle Dealer has polled dealers, giving our readers the most comprehensive analysis in the industry. A look back at our 2008 survey offers an ... for more view video above SENIOR MANAGER OF DATA AND ADVERTISING SERVICES Bree Greenawalt (ext. 408) breeg@lesspub.com MARKETING SPECIALIST Joanne Jones (ext. 442) jjones@lesspub.com AD SERVICES MANAGER Lynn Boesen-Burnside (ext. 430) lburnside@lesspub.com CONFERENCE MANAGER Alice Musser (ext. 413) mussera@lesspub.com MANAGER OF PRINT & MAGAZINE PRODUCTION Christopher Nielsen (ext. 418) nielsen@lesspub.com MANAGER OF CREATIVE & DESIGN SERVICES Jeff Lazewski (ext. 423) jlazewski@lesspub.com GRAPHIC DESIGNERS Lynn Marcinkowski Woolf, Managing Editor • lwoolf@lesspub.com @ We’re looking for your feedback on this issue. Click here to send your comments to Lynn Woolf Lewis Horn III (ext. 428) lhorn@lesspub.com James Kolterman (ext. 417) jkolterman@lesspub.com PRODUCTION MANAGER Amy Johnson (ext. 409) ajohnson@lesspub.com VICE PRESIDENT OF AUDIENCE DEVELOPMENT Patrick Sharpe (ext. 405) psharpe@lesspub.com E-MEDIA DIRECTOR Brad Hemze (ext. 436) bradh@lesspub.com CIRCULATION MANAGER Sue Ramstack (ext. 407) sramstack@lesspub.com CHAIRMAN & EDITORIAL DIRECTOR 6 RURAL LIFESTYLE DEALER n WINTER 2014 Frank Lessiter (ext. 402) lessitef@lesspub.com |
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| Rural Lifestyle Dealer Names Editorial Advisory Board Top dealers serve on magazine’s first-ever advisory board. R ural Lifestyle Dealer magazine is pleased to announce its first- ever editorial advisory board. The board is made up of leading deal- ers from across the country, including past winners of its Dealership of the Year awards program. “The rural lifestyle market continues to grow and offers significant revenue- generating opportunities for dealers. Our mission is to provide business strategies for dealers to win over this market and our new board will help ensure we continue to cover the topics that are most critical to success,” says Michael Ellis, publisher. The board members will serve for 2 years and will consult with the Rural Lifestyle Dealer editorial team regard- ing leading trends and provide insights from their own dealerships. (See “From the Field” on page 6 for some comments from the board on trends and strategies.) The following representatives are now serving on the board: • Rick Bailes is one of the family owners of Bill’s Tractor of San Antonio, Texas. The Mahindra, New Holland, Hustler and Gravely dealership has 2 locations in Texas and was featured in Rural Lifestyle Dealership’s fall 2012 issue. The dealership received Mahindra’s President’s Excellence Award in 2011. • Alan Foy is turf salesperson at AgriVision (the newly merged dealership of A&M Green Power Group and Barker Implement), Pacific Junction, Iowa. AgriVision is a John Deere dealership with 13 locations in Iowa. Rural Lifestyle Dealer recognized A&M Green Power as its 2013 Dealership of the Year. • Chris Frodel is vice president of Mid-State Equipment, Janesville, Wis. Mid-State is a John Deere deal- ership with 7 locations in Wisconsin and was Rural Lifestyle Dealer’s 2012 Dealership of the Year. • Summer King is owner of Kingline 8 Equipment, Cantonment, Fla. Kingline is a Mahindra and New Holland deal- ership with 2 locations in Florida and was Rural Lifestyle Dealer’s 2010 Dealership of the Year. King has served on New Holland’s dealer council. • James Little is president of Little Tractor, Metropolis, Ill. Little Tractor is a Kioti dealership and was Rural Lifestyle Dealer’s 2008 Dealership of the Year. He serves on Kioti’s dealer council. • Eric Roach is general manager for S&H Farm Supply of Joplin, Mo. S&H is a Kioti and New Holland dealership with 4 locations in Missouri. It was Rural Lifestyle Dealer’s 2011 Dealership of the Year. S&H is featured in this issue of Rural Lifestyle Dealer on page 35. • Gene Saville is sales coordinator for Lamb & Webster, Springville, N.Y. Lamb & Webster is a Case IH, Kioti, Kubota and New Holland dealer with 3 locations in New York and 1 location in Pennsylvania. Lamb & Webster is featured in this issue of Rural Lifestyle Dealer on page 30. Saville has served 2 terms on Kubota’s dealer council. • Jamie Trinchitella is turf salesper- son at AgriVision (the newly merged dealership of A&M Green Power Group and Barker Implement), Pacific Junction, Iowa. AgriVision is a John Deere dealership with 13 locations in Iowa. Rural Lifestyle Dealer recog- nized A&M Green Power as its 2013 Dealership of the Year. The board is just one way that Rural Lifestyle Dealer seeks input from our dealer community. All readers are encouraged to send ideas or comments about the stories we’re covering or should be covering. Write or call Lynn Woolf, managing editor, lwoolf@less- pub.com, 316-648-3717. Also, please follow us on social media and share your thoughts there as well. On Facebook, “like” our page, www.face- book.com/rurallifestyledealer. Follow us RLD on Twitter, @RLDEditors. RURAL LIFESTYLE DEALER n WINTER 2014 Rick Bailes Owner Bill’s Tractor Alan Foy Turf Salesperson AgriVision Chris Frodel Vice President Mid-State Equip. Summer King Owner Kingline Equip. James Little President Little Tractor Eric Roach General Manager S&H Farm Supply Gene Saville Sales Coordinator Lamb & Webster Jamie Trinchitella Turf Salesperson AgriVision |
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| Dealer Business Trends & Outlook Dealers Forecast Growth in 2014 Despite Lingering Concerns View previous Rural Lifestyle Dealer Business Trends & Outlook Surveys The upward trend for equipment and aftermarket revenues continues as the rural lifestyle market grows. Lynn Marcinkowski Woolf Managing Editor do what we have to do every day, no matter what the economy does.” E conomic indicators point to 2014 starting on a positive note and rural lifestyle equipment dealers are reflecting that good feel- ing, according to Rural Lifestyle Dealer’s 2014 Dealer Business Trends & Outlook survey. This is in spite of unresolved and perennial con- cerns, such as implementation of the Affordable Care Act and the unem- ployment rate. One Wisconsin dealer put it this way: “We’ve had good growth the last 2 years. If you don’t turn on the TV, the ‘doom and gloom’ is not there. We Industry Stats are Positive People with properties to care for and money to spend are key drivers for rural equipment sales. Compared with the past few years, recent house building and unemployment rates are positive. For instance, the National Assn. of Home Builders/Wells Fargo Housing Market Index shows that for much of the last half of 2013, more builders viewed market conditions as good than poor. The industry is not without its challenges, however. “Policy and economic uncertainty are undermining consumer confi- RL Dealers’ Change in Total Revenue 2013 vs. 2012 Plus 2 to 7% 39.2% Plus 8% or more Minus 8% 6.2% or more 2.1% For 2013, 45.4% of rural lifestyle dealers expected growth in the 2-8% or more range. 10 RL Dealers’ Change in Total Revenue 2014 vs. 2013 Plus 2 to 7% 52.3% Little or No Change 44.3% Minus 2 to 7% 8.2% dence,” says David Crowe, National Assn. of Home Builder’s chief economist. “The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline.” The unemployment rate has been on a slightly downward trend. Last year started with unemployment at 7.9% and it was down to 6.7% in December. Experts say the unem- ployment rate for a healthy economy should range from 5-6%. And, in its fourth quarter earnings statement, John Deere says it expects turf and utility equipment to be up about 5% in 2014 for the U.S. and Canada. Little or No Change 32.1% Plus 8% or more 7% Minus 8% or more 3.1% Minus 2 to 7% 5.5% For 2014, 59.3% of rural lifestyle dealers expect growth in the 2-8% or more range. RURAL LIFESTYLE DEALER n WINTER 2014 Revenue Forecast Trending Up Dealers may be influenced by these economic or industry stats — or they may just be seeing growth in their local markets. When asked what change they expect from rural lifestyle and landscape cus- tomers in 2014 vs. 2013, 91.4% of dealers expect revenues to be as good as or bet- ter than last year. That compares with 89.7% having the same senti- ment for 2013. The biggest change occurred in the seg- |
| ment of dealers who expected growth in the 2-7% range — 52.3% for this year compared with 39.2% for last year. The percentage of dealers who expect 2014 revenue to be worse is lower than those who were pessimistic about growth last year. Slightly more than 8% of dealers expect revenue declines of 2-8% or more in 2014, compared with 10.3% of dealers predicting similar declines for last year. On a weighted average basis, where forecasted increasing levels of busi- ness are compared directly with fore- casted decreasing levels of business, and the “about the same” or “flat” responses are not considered, the out- look for 2014 came in at 2.42%, better than the 1.72% for 2013. Dealers are also optimistic about growth in aftermarket sales. When asked about how much they expect aftermarket revenues from rural life- style customers to change, 93.7% of dealers expect revenues to be as good as or better than last year. That’s up slightly from the 2013 survey when 92.5% of dealers expected revenues to be as good as or better than 2012. (See chart on page 12.) Those who are very optimistic — expecting aftermarket revenues to increase by 8% or more — increased to 12.6% from 8.5% in the 2013 survey. Also, a lower percentage of dealers are expecting declining aftermarket revenues of 2-8% for 2014, 6.3% com- pared with 7.5% in the 2013 survey. The weighted average scale, looking at straight gains vs. losses, also bears out this positive tone, 2.79% for 2014 compared with 2.10% for 2013. The bottom line: Revenue forecasts continue their upward trend. The gains might not be huge, but dealers are see- ing incremental growth year to year. What’s Driving Growth? Manufacturers show off new products and trusted standbys at the Green Industry & Equipment Expo, held each October in Louisville, Ky., and zero-turn mowers continue to capture attention. Some say the mar- ket is saturated with zero turns, but a new manufacturer recently intro- Weighted Average Perspective Top 5 Categories with Most Potential for 2014 2014 Weighted Average 2013 Weighted Average 1. Zero-turn mowers 2.89% 2.57% 2. Tractors under 40 horsepower 2.41% 2.38% 3. Tractors 40-100 horsepower 2.26% 1.30% 4. Rotary Cutters 2.23% 1.92% 5. Utility vehicles 2.07% 1.68% 2014 Weighted Average 2013 Weighted Average 1. Manure spreaders 0.13% 0.09% 2. ATVs - 0.03% - 0.18% 3. Feed - 0.20% 0.31% 4. Fencing - 0.25% 0.12% 5. Backhoes - 0.26% 0.00% Bottom 5 Categories in Terms of Potential for 2014 duced its first model for the category. It’s the “give the people what they want” mentality: Rural lifestylers love to mow and zero turns are fun to use. In 2014, dealers gave zero turns the top spot for the most growth. About 65% of dealers project 2-8% growth for 2014 vs. 2013 and 26.5% of dealers expect sales to remain the same. (See the table on page 19.) Tractors under 40 horsepower, rotary cutters and tractors 40-100 horsepower ranked fairly close together in the second, third and fourth positions for the equipment with the most potential. About 60% of dealers expect tractors under 40 horsepower to have 2-8% or more rev- enue growth over 2013, with 28.7% expecting little or no change. About 58% of dealers expect rotary cutters to have 2-8% or more revenue growth over 2013, with 32.5% expecting lit- tle or no change. And about 56% of dealers expect tractors in the 40-100 horsepower range to have 2-8% or more revenue growth over 2013, with 33.9% expecting little to no change. Utility vehicles rounded out the top 5 products with the most potential. About 53% of dealers expect a 2-8% increase in revenue over 2013, with 36.4% expecting little to no change. These top 5 products for 2014 were the same as those projected for 2013, with some swapping of positions. Last year, tractors under 40 horse- power ranked first; zero-turn mowers, second; rotary cutters, third; utility vehicles, fourth; and tractors 40-100 horsepower, fifth. The weighted average perspective shows the top 5 products in terms of potential are all more positive than last year. (See table on this page.) The survey shows that 70-80% of dealers expect sales for the bottom 5 categories (ATVs, manure spread- ers, feed, backhoes and fencing) to have little or no change. The weighted average shows that ATVs and manure spreaders have better potential in 2014, however. Feed, fencing and backhoes are expected to be down from last year. Products Dealers will Add Dealers are acting on demand and adding to product lines that show the most potential for growth. Zero-turn mowers and tractors 40-100 horse- power share the top spot in the top 5 products dealers will add in 2014. (See table on page 21.) Slightly more than 40% of dealers will add zero turns and tractors in the 40-100 horsepower category to their lineups. Tractors under 40 horse- power, utility vehicles and skid steer loaders ranked third, fourth and fifth. Nearly 39% of dealers will add tractors under 40 horsepower; 28.4% of dealers RURAL LIFESTYLE DEALER n WINTER 2014 11 |
| RL Dealers’ Change in Aftermarket Revenues 2014 vs. 2013 the top 5 in products to add for 2014 as they ranked 11th in reve- nue potential. It could be related to the improved housing market and equipment needed for build- ing. It’s a category to watch. Also, ATVs and manure spreaders made the top 10 for equipment to add, even though they ranked at the bottom for revenue potential. This could be linked to dealers providing more options for working and play- ing on rural acreages as well as planning for future purchases. Plus 2 to 7% 47.2% Little or No Change 33.9% Plus 8% or more 12.6% Minus 2 to 7% 4.7% Minus 8% or more 1.6% Changes for Dealerships in 2014 Dealers are taking advan- tage of a good 2014 outlook by re-investing in their operations. More than 67% of dealers say they will modernize their shop or ser- vice departments this year. That’s up from last year, when 53.3% of dealers planned shop or service upgrades. These service improvements may help dealers battle big box stores. For now, dealers have the edge in terms of true service expertise, with technicians ready to counsel rural lifestylers on maintenance and operation. This level of investment also supports dealers’ Dealers are optimistic about growth in after- market parts sales, with 93.7% of dealers expecting revenues for 2014 to be as good as or better than 2013. will add utility vehicles and 25.4% of dealers will add skid steer loaders. The top 5 products for this year matched 2013, with some position switches. The top 5 list for products to add last year were: tractors under 40 horsepower; skid steer loaders; tractors 40-100 horsepower; utility vehicles; and zero-turn mowers. It’s interesting that skid steers made view on positive aftermarket revenues for 2014. Dealers are also trying to replicate a big box retail experience, with more than half (54.8%) planning improve- ments to their retail areas. That’s also up from 2013, when 43.2% expected to upgrade their retail space. For 2014, a slightly lower percentage of dealers are investing in business sys- tems. For 2013, 52.7% of dealers planned to invest in business systems, compared with 45% of dealers expecting to do so for 2014. However, this is a category that dealers don’t necessarily invest in every year, so the numbers are still impressive regarding business investments. What Dealers are Watching Economic and industry pressures can test even the most successful owner and dealers are staying in tune with the issues. The most pressing concern in 2013 and again for 2014 is affordable health care programs. Whether you call it the Affordable Care Act or “Obamacare,” the federal mandate regarding a busi- ness’s obligation for employee health- care coverage weighs on dealers’ minds. (See table on page 16.) Some parts of the Act have been Continued on p. 14 ‘Slow, But Positive’ Leads the Way The word on the street — rural Main Street — is for a slow growing, but positive economy, according to Ernie Goss, Ph.D., MacAllister Chair and professor of economics at Creighton Univ. He’s been taking the pulse of the rural economy each month since 2005 by polling community bank presidents and chief executive officers from Colorado, Illinois, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming. Their feedback is reflected in an index that measures from 0-100. An index below 50 is negative growth; 50 is neutral; and above 50 is positive growth. “The economy is moving for ward in rural areas. The growth is not as strong as it has been since ag commod- ity prices are down from what they were,” Goss says. The December index rose to 56.1 from 54.2 in November. Last year began with a 55.6 index for January. Goss says there are several positive signs. “I think we’re going to see unemployment rates lower than what they were a year ago,” he says. “Housing prices are running at a good pace. Farmland prices are not nearly what they were, but land prices had been growing at an unsustainable pace.” 12 RURAL LIFESTYLE DEALER n WINTER 2014 He says other economic factors could be better, such as inflation, which is about 1% for 12 months ended in October, and wage growth, which is about 2% annually. “There’s not enough inflationary pressure to cause indi- viduals to spend today to avoid higher prices tomorrow.” Other major influences for the rural economy are: • The status of the Farm Bill, specifically the uncertainty over federal suppor t of crop insurance. (A par tial extension was passed on January 1.) • The EPA’s changing requirements for the Renewable Fuels Standard, which affects the corn market and other com- modity markets. • The Federal Reserve tapering off its “quantitative eas- ing” bond buying program. This decision increases the value of the dollar. • The costs to large businesses for implementing the Affordable Care Act. Goss says interest rates are something dealers can use to their advantage right now. “With interest rates rising, it may be time to take advantage of long-term interest rates. Think about what financing you’ll need down the road and consider borrowing now, rather than waiting.” |
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| Continued from p. 12 Coping With Order Lag Times Dealers mention frequently that order lag time, the delay between when they place an order for inven- tory and when they have it on the lot, is a big issue for them. In Rural Lifestyle Dealer’s 2014 Dealer Business Trends & Outlook survey, dealers shared their strategies for getting the inventory they need to make sales. “We have many manufacturer options in our store for good rea- son. If one manufacturer doesn’t have enough inventory of a partic- ular size tractor or mower, we go on to the next one. We only offer high-end brands, so any way we steer the customer is toward a good piece of equipment,” says a dealer in Kentucky. Other dealers turn to their manu- facturers for help. “We get our man- ufacturers involved with discounts or a rental machine,” says a dealer in Montana. Many say their dealer network is their best way to get what they need. “We maintain good rela- tionships with dealers that sell like brands. They provide a good source to draw out their inventory. We normally stock excess, so we have inventory on the shelf. We will sell off some to other dealers that aren’t as likely to stock up,” says a dealer in New York. Another dealer in Virginia had a similar comment, “We have a strong network of other dealers that we have formed an alliance with. I refuse to bring in extra invento- ry and be loaded up or have slow inventory turns just because manu- facturers are turning to just-in-time methods to control their costs, but lack concern for the dealer.” Some say they offer discounts or even equipment on loan until the new equipment is available. Many say that dealers just have to be honest about the situation. “This has not been a big issue, but when it does come up, we are up front with customers and explain exactly what we know about any delays. We have found customers are very understanding when they are informed up front about delays and accept them. If they are told after a sale that there are going to be delays, they tend to be upset about not being informed,” says a dealer in Wisconsin. 14 remain a top concern for 2015? Another perennial concern is find- ing good employees, which ranks number 2. This is a concern for any business owner, but may be more so for dealers in rural areas. Some deal- ers have had success hiring from out- resolved, such as improvements to the sign-up website. And others have been delayed, such as the postponement to January 1, 2015 for large businesses to comply with the act. It remains to be seen how dealerships will be affected by the expected increases to their por- tion of insurance costs. Could this Continued on p. 16 Dealership Total Revenues by Market Segment — 2014 Hobby Farmers/ Large Property Owners 24.84% 43.65% Production Farmers 6.71% Municipalities/ Parks Turf/Lawn/ Landscape Contractors 10.28% Construction Contractors 7.41% 7.11% Other 0 10 20 30 40 50 Equipment for production agriculture continues to bring in the big dollars, but rural lifestyle equipment is a significant source of revenue. The 2014 survey shows hobby farmers and large property owners make up nearly 25% of dealer- ships’ total revenue. Percent of Customer Visits in Which Specific Brand/Unit is Requested 8.3% Almost Always 51.1% Most of the Time 36.8% Some of the Time 3.8% Hardly Ever 0 10 20 30 40 50 60 Customers continue their trend of knowing what they want when they enter a dealership. Internet research, manufacturer and dealer promotions and word-of- mouth recommendations all influence brand awareness. Nearly 60% of dealers say rural lifestylers have a brand in mind most or almost all of the time. RURAL LIFESTYLE DEALER n WINTER 2014 |
| Tackling Time Consuming Tasks Rural Lifestyle Dealer’s 2014 Dealer Business Trends & Outlook survey went beyond the forecast to learn about the challenges dealers face today and every day. We asked this question: What management task is the most time con- suming and what ways have you found to be more efficient? Inventory management was among the most time inten- sive. “We have a big problem getting the right parts,” says a dealer in West Virginia. A dealer in North Carolina says they’ve “added control procedures in all departments. Not just one person is responsible.” A Montana dealer shared this solution: “Ordering whole goods … We started giving them a stock number at the point of order and then including that as a P.O. number.” Another dealer in Ohio says the right timing builds effi- ciencies: “Following up on parts orders … I find it easier to do this first thing in the morning when the customer inter- ruptions are slowest.” Warranty paper work was another hassle dealers list- ed, especially when compared to the process at big box stores where it’s handled in just a few steps at the check- out counter. No real solutions were offered, other than this from a Kentucky dealer: “I have to do them myself, because if they are filed wrong, they could be rejected or we could lose money.” Accounting tasks were also mentioned. “Accounting and billing has become the most consuming task here at the dealership. To combat this issue, we have implemented worksheets for our mechanics to fill out for every job they do. They are required to ‘time clock-in and off’ to make it easier to do billing for customer repair work as well as monitor employee work performance,” says an Ohio dealer. A dealer in Virginia shared their improvements regarding accounting tasks. “We hired a payroll company to do it for us. Insurance audits are still a pain. We’re doing financial statements several times a year. I will make one and the different companies will accept it or we will do our own financing plan and retail financing.” Another dealer from New York mentioned hiring an out- side company to help with promotions. “It has been very time-consuming to manage and to maximize our budget to the fullest and to handle all the co-op dollars from our ven- dors. We were able to hire an independent consultant and that has worked very well. I feel like I’m making the most of my advertising budget.” Dealers also mentioned it takes time to manage other people’s time. Here’s a solution from a dealer in Indiana: “Call reporting/call scheduling is something I always strive to condense and make it more meaningful and less of a hassle and more of an asset to the sales staff. We’ve moved to a pipeline format where the salesmen categorize the customers, thus laying out his call schedule and report.” And, these time-wasters are always hard to avoid: “Customer relations (just wanting to chew the fat!) and visits from manufacturers’ reps. That takes over 50% of my time with the majority of that time being non-productive,” says a dealer in Indiana. Visit RuralLifestyleDealer.com/RS and indicate No. 111 RURAL LIFESTYLE DEALER n WINTER 2014 15 |
| Rural Lifestyle Dealers’ Most Pressing Concerns for 2014 (% of dealers) Rank Issue Most Concerned Concerned Not Concerned 1. Health Care Programs and Costs 66.20% 20.00% 13.80% 2. Finding Good Employees 58.00% 32.10% 9.90% 3. Low Sales Margins 41.20% 51.90% 6.90% 4. Competition from Big Box (Lowe’s, Home Depot etc.) or Mid-Box (Tractor Supply, Rural King, etc.) stores 25.20% 43.50% 31.30% 5. Unemployment Rate 24.40% 56.50% 19.10% 6. Customer Access to Credit 20.80% 47.70% 31.50% 7. Manufacturer Pressure for Dealer Purity 19.50% 49.20% 31.30% 8. Warranty Claims 18.50% 52.30% 29.20% 9. Equipment Shortages from Mainline Supplier 14.00% 40.30% 45.70% 10. Housing Market 12.40% 53.50% 34.10% Continued from p. 14 side the industry, such as for sales positions. However, they can’t do the same in the service department. Low sales margins ranked third this year, compared with second place last year. Second or third place is a matter of semantics — it continues to be a top concern for the industry. The investments in parts and service may help dealers cope, as that area brings in higher mar- gins than equipment sales. The big “mover” this year is competition from big box stores. It’s the fourth most pressing concern for 2014, com- Percent of Dealer Suggested Product Recommendations Accepted pared with ranking eighth last year. The growing numbers of home improvement box stores seems to have stabilized. Lowe’s opened 10 stores in 2013, about the same number for 2012. In a recent interview, Home Depot’s chief executive officer said, “We’ve pretty much built all the Home Depots we need to build.” However, there are plenty of other big box competitors. Tractor Supply Co., for instance, added 94 stores from September 2012 to September 2013 and continued its west- ward expansion. Cabela’s is also proving to be a competi- tor on the equipment front with its new wildlife and land management product line. Last August, Woods Equipment Co. announced a partnership to sup- ply attachments for the line and Cabela’s began selling tractors online and in six test markets. The company plans to add 16 new stores over Continued on p. 19 80 Percent of Purchases Where Financing is Requested 67.91% 70 60 50 40 30 26-50% of the time 23.0% 23.13% 51-75% of the time 43.7% 20 10 8.21% 0.75% 0 Almost Always Most of the Time Some of the Time 76-100% of the time 16.3% Hardly Ever Rural lifestylers may have a brand in mind when they enter the store, but many still look to the dealer to confirm their choice or recommend an alternative. Nearly 70% of rural lifestyle dealers say their product rec- ommendations are accepted most of the time. 16 0-25% of the time 17.0% RURAL LIFESTYLE DEALER n WINTER 2014 Attractive manufacturer financing offers could be influencing customer payment preferences. Sixty percent of dealers say customers seek financing from them more than half of the time. |
| NOW! Accepting Nominations for Annual Dealership of the Year Program For the past 7 years Rural Lifestyle Dealer has been recognizing North America’s best rural equipment dealers and we want to know who you think is deserving. The Dealership of the Year, as determined by an independent third-party panel: • Is profiled in a cover story in the FALL issue of the magazine and also featured in a video series on the website • Receives a commemorative plaque to proudly display in their showroom • Benefits from a special media campaign that lets customers and the local community know that they’re doing business with the nation’s finest • Shares an overwhelming sense of pride throughout the organization at being named one of the Best-of-the-Best All equipment dealerships in North America are eligible and nominations can come from manufacturers, customers or even the dealerships themselves – don’t be shy about nominating yourselves, dealers! 2014 To start the process, simply complete the nomination form below and return it to Rural Lifestyle Dealer. Send in your nominations TODAY for Rural Lifestyle Dealer’s 2014 Dealer of the Year! 2014 Rural Lifestyle Dealer Dealership of the Year Nomination Form Dealership name: __________________________________________________________________________________ Contact Person: ____________________________________________Email:__________________________________ City: _____________________________________________________State: __________________________________ Zip: _____________________________________________________________________________________________ Telephone: ________________________________________________Fax: ___________________________________ Why this dealer should be chosen as Rural Lifestyle Dealer’s Dealership of the Year: _____________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ (please continue on additional paper if required) Your name (if different from above): ____________________________________________________________________ Company name: ___________________________________________________________________________________ Telephone: ________________________________________________Fax: ___________________________________ Email: ___________________________________________________________________________________________ TO SUBMIT NOMINATIONS: MAIL: Dealership of the Year, Rural Lifestyle Dealer, PO Box 624 Brookfield WI 53008-0624 Attn: Lynn Woolf FAX: 262-782-1252 • EMAIL: lwoolf@lesspub.com • WEB SITE: www.rurallifestyledealer.com/ff/doy2014nom |
| Videos Sponsored By Basic Software Systems Dealership of the Year VIDEO SERIES The 2013 Dealership of the Year video series sponsored by Basic Software Systems features interviews with A&M Green Power Group’s management, sales and service team. Learn from the management team about their board of directors; how they set budgets and manage inventory; how and why they built a new store dedicated to rural lifestylers; and more. Hear how the sales team works with customers to understand their needs and budgets, which builds relationships with customers and revenues for the dealership. See how the dedicated turf service team increases their reach with its year-round mobile service unit and how they build efficiencies in the shop. WATCH THE COMPLETE VIDEO SERIES ON NEXT PAGE BONUS DIGITAL SUPPLEMENT >>> |
| Videos Sponsored By Basic Software Systems Structuring a Dealership’s Board of Directors Setting Manageable Budgets and Goals at a Dealership Designing & Developing a New Rural Lifestyle-Focused Store Coping with Natural Disasters at a Dealership Sales Team Focused on Provid- ing Solutions to Rural Lifestylers Dividing Labor in a Turf-Only Service Shop Financial Metrics That Matter the Most Importance of Inventory Management Merchandising Strategy for Retail Products and Smaller Equipment Mobile Service Unit for Ready to Mow Technician Networking with a Dealer Group Pre-Selling Maintenance Contracts Selling to Fit a Budget Structuring a Turf-Only Service Shop with a Mobile Unit Turf-Only Service Shop Makes Rural Lifestyle Equipment a Priority Future Challenges for Rural Lifestyle Dealers Understanding a Customer’s Knowledge Level and Property Plans Separate Turf Division Makes Rural Lifestylers Feel Welcome Educating Rural Lifestylers About Resources to Help Salespeople at the Dealership Operating Equipment Safely Videos Sponsored By: Packaging Equipment to Fit a Customer’s Budget Rural Lifestyle Dealer Equipment Trends Top Sales Tips for the Rural Lifestyle Market |
| Facts & Figures About 2014 Survey Respondents The following information was provided by the dealers par- ticipating in Rural Lifestyle Dealer’s 2014 Dealer Business Trends & Outlook survey. It is compiled to provide our read- ers and other interested parties basic demographic data on the equipment dealer universe serving the hobby farm, large property owner and lawn and landscape segment. (Percentages = Dealer Responses) Growth/loss in rural lifestyle and lawn/landscape customer base since 2008: +20% or more 7.4% +5-19% 52.6% Little/No Change 32.6% -5-19% 5.2% -20% or more 2.2% Main compact/utility tractor brands represented in 2014 survey: Geographic breakdown of survey respondents Geographic breakdown of survey respondents: 1. Kubota 35.0% U.S. 89.7% 2. New Holland 29.9% Canada 10.3% 3. John Deere 23.1% 4. Massey Ferguson 19.7% Average employees per store: 1-20 76.7% 5. Case IH 17.9% 21-40 18.0% 6. Kioti 10.3% 41-60 4.5% 7. Cub Cadet 7.7% 61+ 0.8% 8. Mahindra 5.1% 9. McCormick 5.1% 10. Yanmar 5.1% Dealers with salespeople focused specifically on selling to rural lifestyle customers: Yes 75.2% Total exceeds 100% as many dealers carry more than one brand of compact/utility tractor. No 24.8% Main zero-turn mower brands represented in 2014 survey Full-time service techs employed by dealers: 1. Kubota 33.6% 1-5 57.9% 2. Cub Cadet 21.6% 6-10 28.6% 3. John Deere 19.8% 10+ 13.5% 4. Ferris 15.5% Years dedicated to serving rural lifestyle customers: 5. Simplicity 15.5% Less than 1 year 0.0% 6. Grasshopper 14.7% 1-4 years 13.3% 7. Husqvarna 12.9% 5-8 years 12.6% 8. Exmark 12.1% 11.2% 9-12 years 14.1% 9. Land Pride 13-16 years 3.7% 10. Snapper PRO +16 years 56.3% Total exceeds 100% as many dealers carry more than one brand of zero-turn mowers. Visit RuralLifestyleDealer.com/RS and indicate No 117 20 RURAL LIFESTYLE DEALER n WINTER 2014 8.6% |
| Continued from p. 16 the next 2 years to its current count of 44 stores. Rounding out the top 5 most pressing concerns is the unemployment rate, which ranked number 4 last year. The unemployment rate for 2013 was slightly down from 2012. However, this concern may always rank high. Dealer Continues Consultant Role When they’re ready to buy, a majority of consumers have a specific brand in mind. Rural lifestylers are often influ- enced by Internet research, manufacturer or dealership pro- motions and word-of-mouth recommendations. More than half (51.1%) of dealers say rural lifestyle customers arrive at the dealership with a specific brand or unit in mind most of the time. About 8% of dealers say customers have a specific brand or unit in mind almost always. That’s up just slightly from the 2013 survey, when 43.8% of dealers said “some of the time” and 6.3% of dealers said “all of the time” regarding branding preference. (See chart on page 14.) The good news is that dealers may have a head start in closing the sale. The clincher is building trust and dealers indicate customers are seeking their expertise. Nearly 70% of dealers say customers accept their recommendation for a specific product or brand most of the time and 8.2% say almost always. That “most of the time” percentage is also up from the 2013 survey figure of 58.3%, but the “almost always” is down slightly from 12.5%. (See chart on page 16.) Generally, the trend continues upward regarding brand- ing and dealer influence. Opportunities Ahead 1. Zero-Turn Mowers 64.9 26.5 2. Tractors (<40 HP) 59.9 28.7 Finally, rural lifestyle dealers indicate there are good opportunities ahead in terms of sheer numbers of cus- tomers who need rural lifestyle or property maintenance equipment. More than half of the dealers surveyed say the rural lifestyle market has grown 5-19% over the last 5 years. More than 7% say the 5-year growth has been in the 20% range. Think about it: For some dealerships, one out of every five customers is a rural lifestyler. That growth is stronger than was projected for 2013. The total for 2014 of 60% of dealers expecting growth of 5-20% or more compares with 56.3% of dealers expecting similar growth last year. 3. Rotary Cutters 57.5 32.5 Continued on p. 21 4. Tractors (40-100 HP) 56.2 33.9 5. Utility Vehicles 52.7 36.4 6. Front-End Loaders 48.7 44.4 7. Lawn Tractors 35.5 48.6 8. Chain Saws 35.1 57.7 9. Hay Tools/Balers 34.9 52.3 10. Finishing Mowers 33.6 54.6 11. Skid Steer Loaders 30.7 56.4 12. Tillers 30.4 61.6 13. Power Hand Tools 26.4 61.5 14. Snow Removal Equip. 23.3 69.9 15. Seeders/Drills 19.6 70.6 16. Generators 19.4 73.1 17. Scrapers/Graders 18.7 69.6 18. Fertilizer Spreaders 16.7 75.9 19. Spraying Equipment 16.2 77.8 20. Post Hole Diggers 15.7 75.9 21. Wood Handling Equip. 15.3 76.5 22. ATVs 15.0 72.5 23. Manure Spreaders 14.9 72.9 24. Feed 10.7 77.3 25. Backhoes 9.3 78.5 26. Fencing 8.9 79.7 Product Lines with Most Potential to Increase Revenues in 2014 (% of Dealers) Rank Equipment +2% to +8% Revenue Growth vs. 2013 Little or No Change Visit RuralLifestyleDealer.com/RS and indicate No. 118 RURAL LIFESTYLE DEALER n WINTER 2014 21 |
| Visit RuralLifestyleDealer.com/RS and indicate No. 123 |
| Continued from p. 19 Dealer Takeaways • Revenues from equipment and aftermarket sales are expected to be up from last year. Dealers rank zero-turn mowers as number 1 for revenue potential. • Zero-turn mowers and tractors in the 40-100 horsepower category share the number 1 spot for the products dealers plan to add to their lineup. • The rural lifestyle market continues its long- term pattern of growth. More than half of the dealers say their rural lifestyle customer base has grown 5-19% in the last 5 years. • Dealers are re-investing to improve their deal- ership performance. More than half expect to make improvements in their service and retail departments and just less than half expect to invest in business systems. Long term, dealers may want to watch a land development trend called megaregions. By 2050, there are expected to be 11 megaregions across the U.S., says the Regional Plan Assn. The Great Lakes megaregion, for example, will include the cities of Chicago, Cleveland, Detroit, Indianapolis, Minneapolis, Milwaukee, Pittsburgh and St. Louis. This megaregion is expected to experience a 28.3% growth in population by 2050. The Texas Triangle is another megaregion and includes the cities of Austin, Dallas/Fort Worth, Houston and San Antonio. About 70% of the Texas population is expected to live in this region by 2050. (See chart, “Developing Population Megaregions in the U.S.,” below.) Developing Population Megaregions in the U.S. Product Lines Dealers are Likely to Add in 2014 (% of dealers) Rank Equipment % 1. Zero-Turn Mowers 40.30% 2. Tractors (40-100 HP) 40.30% 3. Tractors (< 40 HP) 38.80% 4. Utility Vehicles 28.40% 5. Skid Steer Loaders 25.40% 6. Hay Tools/Balers 22.40% 7. Rotary Cutters 22.40% 8. Lawn Tractors 16.40% 9. Manure Spreaders 14.90% 10. ATVs 11.90% What to Leverage Now 11. Front-End Loaders 10.40% 12. Generators 10.40% 13. Seeders/Drills 10.40% 14. Chain Saws 9.00% 15. Finishing Mowers 9.00% 16. Tillers 9.00% 17. Power Hand Tools 7.50% 18. Snow Removal Equip. 7.50% 19. Backhoes 6.00% 20. Feed 4.50% 21. Post Hole Diggers 4.50% 22. Scrapers/Graders 4.50% 23. Spraying Equipment 4.50% 24. Wood Handling Equipment 4.50% 25. Fencing 3.00% 26. Fertilizer Spreaders 1.50% Manufacturers are continuing their rapid pace of introducing new models. It may give dealers administrative hassles, but it does give customers more reasons to buy new or upgrade. And, they’re turning to dealers to help them finance their purchases. The num- bers are slightly up from 2013 regarding the percentage of pur- chases where customers seek financing. In this year’s survey, 60% of dealers say customers request financing more than half of the time. That’s an increase from the 2013 survey when 57.9% of deal- ers said customers requested financing more than half of the time. (See chart on page 16.) This increase could be linked to customers taking advantage of compelling manufacturer finance offers. The “buy now and pay much later” offers like 0% for 84 months make it easier to budget for larger purchases. What else should you do now? Make a big deal about upgrades in your retail and service departments and push your new or exist- ing business systems to give you data. Make every part of your dealership do more. With back-to-back years of growth and a sta- ble to slightly positive economy, it’s a good time to be in the rural lifestyle equipment market. R LD By 2050, there are expected to be 11 megaregions across the U.S., says the Regional Plan Assn. Source: Regional Plan Assn. RURAL LIFESTYLE DEALER n WINTER 2014 23 |
| Season to Facing the SEASON Challenges of a Seasonal Business Part 1 of 3 Rigg’s Outdoor Power Equipment shares its best practices for dealing with the seasonality of cashflow and employee productivity in Rural Lifestyle Dealer’s year-long ‘Season-to-Season’ series. Kim Schmidt, Associate Editor T here’s no question that the outdoor power equipment industry is a seasonal one. However, you always have to be ready for the next thing, says Tom Rigg, founder and co-owner of Rigg’s Outdoor Power Equipment. “You have to be ready for the next season and you have to keep something going year round; you can’t take the winter off. You need to know how to make equipment work year round. It’ll do more for you than just a one- season job,” he says. The biggest seasonal challenge can come in the winter. During the worst winters — in this case meaning no snow — Rigg says the service department is doing 30 hours of service work a week instead of 40 or 50. “We had a lot of corners cleaned and a lot of painting got done,” he says. “But, you can’t just clean and fix things because that means you’re spending money. You have to keep some revenue coming, so what we did was chase customers basically. You just have to get on the phones and just chase the customers.” Managing cashflow and finding the right mix of employ- ees to run efficiently during the slower seasons is a common challenge among rural lifestyle dealers. The steep drop off in cashflow during the winter months is one of the biggest sea- sonal challenges the Indiana-based dealership faces. Winning the Cashflow Battle Managing the company’s finances is a full-time job for office manager Sherry Pullins, but cashflow can become particularly challenging during the winter months. All the paperwork from all 4 locations flows through Pullins’ desk. She handles accounts payable and receivable, registrations, insurance, payroll, inventory audits for finance companies and retail financing. “You go from a cash glutton in-season where keeping up with bills is easy to really having to be smart about the way you manage cash in the winter. The season makes a big dif- ference in how we approach managing our cash,” Pullins Rigg’s Outdoor Power Equipment Valparaiso, Ind. Founded: 1981, with stores in Valparaiso, Mishawaka, La Porte and Lafayette, Ind. Location: The Valparaiso store is located a few miles off of I-65 on Highway 30 at the intersection of rural and suburban markets. Each location serves a variety of customer types including, residential, municipal, agricultural and commercial. Lines: Kubota, Hustler Tur f, Cub Cadet, Stihl, Dixie Chopper, Western, Land Pride, Toro Consumer, Honda Power Equipment and Western Snow Equipment Challenge & Solution: Rigg’s Outdoor Power Equipment works to find the right balance of employees to manage through the slower winter months, but still maximize the high volume of business in spring and summer. Managing cashflow is a year-round challenge. 24 RURAL LIFESTYLE DEALER n WINTER 2014 Rigg’s Outdoor Power Equipment has 4 locations in northwestern Indiana. Its headquarters is in Valparaiso. |
| “You have to be ready for the next season and you have to keep something going year round; you can’t take the winter off…” says about the financial challenge of the off season. As Rigg’s was preparing for this winter, the dealership was hit with what co-owner Geoff Blanco refers to as the perfect storm of cash management challenges. In the course of 2 or 3 days, all of the vendor floorplan companies showed up to do floor check audits. “We had to reconcile for all of the sold inventory for multiple vendors at the same time. So, you pay out all of that and you have to take care of your regular monthly statements that are due as well. That is a big challenge,” Pullins says. In addition to the surprise inventory visits, third quar- ter taxes were due. “Property taxes, income taxes, sales taxes, regular monthly bills and then all those vendors at one time put a strain on cashflow in a hurry,” Pullins says. “Meanwhile, standard operational expenses continue to roll in as well as some that are budgeted and some that are not. However, at the end of the year, it has to balance to a profit that keeps the business on track for growth. ” Pullins tries to balance the due dates as best she can, but that’s not always possible. “It’s a balancing act when it comes to paying. You try to space them out as best you can. When we get a little tight, I try and space out some of the large orders from week to week just to see what comes in, what goes out,” she says. Pullins has yet to discover the per- Outside Experience Adds Different Perspective Geoff Blanco spent 15 years in the IT consulting industry as a sales and marketing executive prior to becoming an owner at Rigg’s. “One may ask how the experience from being a vice president of sales and marketing working with Fortune 500 companies translates into the outdoor power equipment industry,” says Blanco “The answer is that it doesn’t in some areas of the business. For instance, I couldn’t tell you the difference between a clutch and a flywheel,” he says. “But the value that experience does provide is in growing the business and seeing it reach its potential. Business planning, sound financial practices and organizational development are critical to growing a small business into a mid-sized business.” Blanco adds, “I was a customer here at Rigg’s before becoming an owner and experienced first-hand the fantas- tic people that work here and the potential they represent- ed. I take great pride in working with these people, our accomplishments and the future that is out there for us.” Nick Stergos is vice president of parts and service of Rigg’s Outdoor Power Equipment. RURAL LIFESTYLE DEALER n WINTER 2014 25 |
| When winter begins to wind down, the parts and service department employees will start calling customers to create pre-season service for the spring. Rigg’s Outdoor Power Equipment’s Valparaiso location was previously a car dealership. With floor to ceiling windows on three walls, the showroom extends to the lot outside. fect solution to managing the cash flow with so many vari- ables and timing that she cannot always control. She says she is working with the store managers to space out big orders so that payments aren’t coming due around the same time in the winter. She believes part of the solution is good communica- tion and planning. When the season slows and Pullins gets a break in the action, she and Nick Stergos, vice president of parts and ser- vice, work together to tackle another dealership challenge: managing employee hours and payroll. work coming in slows with the winter season. The question then becomes what are we doing with our time if it’s not directly attributed to a customer interaction? We found we did not always have a good answer to that question.” To help manage cashflow, Pullins and Stergos work to balance the number of hours employees work with the amount of work coming in. “For technicians, we are looking much more closely at billed hours vs. clock hours and have a minimum ratio of 85% for mechanics. We are also using tactics like rotational days off for hourly employees to match staffing resources to customer demand,” Stergos says. As a benchmark, Stergos figures a good service tech should generate $12,000 of the dealership’s typical service business a month on average. “A good tech will do more than that and a tech that’s not as productive will do less, so we use $12,000 as an average,” he explains. “If the service department is only doing $12,000 in service revenue a month, and you have 2 techs in that store, we have a problem in that we’re not gener- ating enough revenue to cover our operating costs and can’t contribute to the dealership’s growth expectations.” And that’s where the seasonality of the business is tough. “On top of that, if you let a technician go when times are slow, when business picks back up, you’re down a tech when you need them most. With the techs, we may have to carry them through the slow months so that when we hit the in-season peak we’ve got the resources to get it done. Even in winter we are very critical of that 85% minimum billable requirement for them,” he says. Another way to manage payroll expenses is to make employees as multi-functional as possible, Blanco says. “The challenge is finding the right balance of employees to power through the busy times yet be lean enough in the winter to reach acceptable net profit levels and still provide excellent customer service. I think the days of being stove-piped where Balancing Employee Work Time With labor costs being among Rigg’s biggest expenses, managing employee hours during the slower times is also a challenge. “We haven’t always done a very good job, but we’re much better than we used to be,” Blanco says. “Employee hours would go up quickly with the spring season and then trail off a lot slower than they should when the amount of BONUS DIGITAL CONTENT Rigg Gets an Early Start in the Equipment Industry Tom Rigg began his career in the equipment industry during high school. His high school had a program that allowed students to leave at noon to work at an agriculture related business for credit and pay. “As a senior in high school, that was a no-brainer,” he says. C lick to read more Visit RuralLifestyleDealer.com/RS and indicate No. 106 26 RURAL LIFESTYLE DEALER n WINTER 2014 |
| a mechanic is only a mechanic, a parts guy is only a parts guy and a sales guy is only a sales guy no longer works as margins get slimmer and competition increases,” Blanco says. “We have to be able to apply resources to the part of the business where the demand is at the time. You have to have a sales- person who can sell at the parts counter if that is where the customers are at that time. You have to have a driver that can do setup, a mechanic who can come to the service counter if necessary to cover for a few hours, and a store manager that can do it all. That lets you balance your workforce to meet not only seasonal demands but daily retail demands as well. “What we don’t want to do is pay out all our profits acquired in-season to cover payroll during the winter months. By hav- ing talented employees capable of func- tioning in multiple parts of the business, we are able to keep a smaller number of people busy most of the time vs. too many people busy just some of the time. Then you can use that profit to reinvest in other ways in the business.” Blanco adds, “With that said, our staff all have their primary jobs and spend the majority of their time doing those jobs. When the need is there, we can shift people which maximizes our resources in the slow months.” set-up and equipment drivers. For example, in early March, Rigg’s hires drivers and starts training them so they are ready when things really pick up in the spring and summer. By the middle of September, Stergos says, they are to the point where things start to slow up and they no longer need drivers for 40 hours a week. “By the beginning of October, we really don’t need a driver in some stores so we use the available bandwidth of the other employees to do that function. This also lets us make sure our core employees get in the hours they need for their own paychecks so we can retain them long- term. We have a lot invested in these people and want to make Leveraging Seasonal Employees Rigg’s has found a way to incorpo- rate seasonal employees to help balance the workload throughout the year. These seasonal employees include office help, Dealer Takeaways • Don’t get fooled into a false sense of success in the summer when it looks like you have more cash than you know what to do with. Stick to your budget. A poor winter and an uncertain economy can force you to burn through that cash quickly. • Cross-train employees so they can fill in at various roles through- out the dealership. This can help keep your total number of employees at a level year round that makes your payroll expenses more manageable and helps you be more efficient with staffing. • Set an average benchmark for how much billable service you expect your service techs to be doing. If they are not meeting it, redirect to tasks that benefit the company. Visit RuralLifestyleDealer.com/RS and indicate No. 102 RURAL LIFESTYLE DEALER n WINTER 2014 27 |
| Learning About the Customer by Being the Customer Tom Rigg, co-owner of Rigg’s Outdoor Power Equipment, has an inside scoop on the seasonal needs of his customers. A few years into opening the dealership, a customer came in and was looking for someone to do landscape work. So, Rigg put his 14-year-old son to work. “Within a few years it turned into a very huge operation,” he says. Rigg ran the landscape business out of a separate loca- tion and was doing about $1 million in snowplowing and landscaping. “I’d always been in the snowplowing business, even before I got in the equipment business. We did both for a long time until it just made me nuts,” he says. Rigg sold off the landscape business in the late 1990s, but the lessons he learned from running the business continue to influence how he runs Rigg’s Outdoor Power Equipment. sure we keep them but also be a good company to work for,” he explains. Right now, Stergos says the ideal situation is to hire retired people with experience for seasonal drivers. In the fall, the drivers are down to working 2 or 3 days a week, but under- stand that by the winter months they may not be coming in at all. “But often they are here next spring when we will need them full time again.” The dealership may also use a junior tech to cover some of the driver responsibilities when things begin to slow. “He might work 3 days in the shop and then fill in the other couple of days driving. So, we don’t have two guys filling one spot on the payroll.” While the argument could be made to hire seasonal techs, that concept hasn’t worked out for Rigg’s. “Techs are difficult “It taught me what the landscaper needs and what his prob- lems are and what he has to deal with on a daily basis. It helped me understand his equipment needs better, what works and what doesn’t work, things like that. I know what he is dealing with on a daily basis. I understand it really well,” Rigg says. “You have to be ready for the next season and you have to keep something going year round; you can’t take the winter off. And you have to actually make equipment work year round. It’ll do more for you than just a one-season job, things like that.” Rigg says tractors are a good example of equipment that landscapers can make work year round. “When I first bought a Kubota tractor years ago for the landscaping business, I justified it by doing ‘bush hog’ work in the summer. I also jus- tified it with a cab and a snowplow for the winter,” Rigg says. to find, so when we find a good one, we’ll find a way to keep him and this is where the cross training is important so he can add value to other parts of the organization. For example, when the shop is slow and the regular parts counter person is on their rotational day off, he can fill in at the counter that day. The ‘win-win’ is that the company reduces its overall head count costs, gives a well-deserved day off and still pro- vides good customer service.” “Our guys are younger, they’ve got families or want to have families and need to work regularly, so when we have a good tech we hold onto him. Thankfully, we’ve been busy enough that we’ve never had to cut back on the number of techs and have found creative ways to keep them earning money for the com- pany and themselves when the shops get slow,” Stergos says. Preparing for Spring When winter draws to an end, Rigg’s is starting to build Kubota tractors, construction and lawn and garden equipment in preparation for the spring. “Equipment is rolling in here by the truckload by the end of February and we’re setting it all up. It’s no fun because you can’t get outside. It’s just not a great time of the year, but at least we’re keeping busy. Also, if there’s not snow on the ground, the parts and service guys are on the phone trying to get service work in,” Rigg says. The weather will play a huge role in how successful the dealership is in getting early spring service work. “If there’s no snow and the sun is shining, even if it’s cold out, you can get the customer in to do service. If it’s ugly and wintery looking, you won’t,” he says. R LD View Video Interviews with Rigg’s Outdoor Power Equipment Visit RuralLifestyleDealer.com/RS and indicate No. 107 28 RURAL LIFESTYLE DEALER n WINTER 2014 View videos with Rigg’s Outdoor Power Equipment by scan- ning the QR code or visiting www.rurallifestyledealer.com. • Nick Stergos, Rigg’s Outdoor Power Equipment’s vice president of parts and service, discusses setting expectations in the service department and how he projects parts and service revenue for the next year. • Sherry Pullins, Rigg’s Outdoor Power Equipment’s office manager, shares how she man- aged the large increase in paperwork and cashflow that came with growing from a 1-store dealership to a 4-store dealership. |
| PRODUCTS IN ACTION Land Pride Land Pride 1525 E. North Street Salina, KS 67401 Phone: 785-823-2261 Fax: 785-822-5601 Email: dee.warren@landpride.com Website: www.landpride.com Key Contacts President - John Quinley VP of Sales - Eric Haas Marketing Mgr. - Dee Warren Since its inception in 1986, Land Pride, a Division of Great Plains Mfg., has been a leader in grounds mainte- nance equipment throughout North America. Land Pride is now a leading manufacturer of tractor mounted and skid steer mounted implements including Rotary Tillers, Seeders, Rotary Cutters, Rear Blades, Box Scrapers and Zero-Turn Mowers. Land Pride has grown to be a large, reputable supplier with over 1,600 dealers across North America, as well as participating in a growing export market. With over 280 tractor attachment products ranging from 15-250 horse- power, Land Pride’s dedication to continuous product line expansion has allowed it to grow and compete as a top- of-the line manufacturer and supplier. With three plant locations, 28 product groups and hun- dreds of models, Land Pride continues to expand and grow to meet the challenges of aggressive competition and a fast moving industry. Call us today toll free (800) 255-0132 or email us at dee.warren@landpride.com. Visit us online at www.landpride.com |
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| PRODUCTS IN ACTION A Word From Our President... Since 1986, Land Pride has provided quality farm and landscape imple- ments, as well as a full line of skid-steer attachments and zero-turn mowers. As a division of Great Plains Manufacturing, our company took root 10 years earlier, when Founder Roy Applequist first showed his innovative seeder design to dealers and farmers throughout Kansas. While we’ve since grown to be one of the largest and most diversi- fied independent implement manufacturers today, our small company values remain — but with “big-company” product development and resources. And not only do we remember the how’s and why’s of what grew us from those humble beginnings, but especially the “who” — the dealers who stood behind our products and actively promoted them to their customers. As a privately-owned company that is still guided by its founder, you can rest assured that our compass is set on the best long-term interest of all stakeholders; not the short-term gains of investors. Our in-house diversified and experienced management committee can respond and make decisions quickly while still staying personally connected to the dealer network. Our progressive marketing alliance with Kubota Tractor Corp. has brought a new level of performance-matched implements for its deal- ers and customers. It’s a great relationship that has resulted in more, and better, products to market. Our commitments to you are simple. We want to get to know you. Our people are accessible so you can get the answers you need. We’ll adjust our flexible manufacturing process to respond to customer demands. Our own trucks will deliver equipment on a timely basis. And from your local territory manager to the folks at our Kansas-based offices and plants, you’ll join a team that’ll go to bat for you to give you every opportunity to win. We’ll be a partner you can count on. For our next chapter, we intend to continue to lead in new product development and to pursue addi- tional groups of products. Come join us! What Users Say... “I own a 6-foot Land Pride Disc Harrow and a Land Pride Box Scraper. Your products are built better than any of the other implements on the market. Keep the good work up... Thanks.” Keith M -- Louisiana “I have been running Land Pride finish mowers since the 80’s. They are nearly as tough as I am. I started with a 60” (I think) then moved to a 72” then an 84” now a 90”. They have all been great. Your rear-discharge mowers are excellent.” Stevan W. -- Alabama — John Quinley, President Website: www.landpride.com |
| GET MORE ONLINE WITH Industry news and updates – as they happen – for free! WWW.RURALLIFESTYLEDEALER.COM Web-only exclusives including videos, blogs, product info and feature stories. Plus access to issue archives and the all-new Digital Editions. RLD eBRIEF Electronic newsletter delivered twice monthly via email. Rural market trends and analysis, dealer news and educational videos. 2013 Page Views UP 4 4% over 2012 DAILY EMAIL UPDATE The latest news and reader commentary delivered to your inbox each morning, keeping you up-to-date and informed – something new every single day. Visit www.rurallifestyledealer.com/ff/email to sign up for the eBrief and the Daily Email Update – it’s FREE! HR0214RLDR |
| THE RIGHT MACHINE FOR THE JOB Rural Lifesty lers What Want F rom Yo u Vegetable grower Jeff Hurtgam produces 23 different crops on 35 acres. He boosts efficiencies by matching tractors to the tasks. Lynn Marcinkowski Woolf Managing Editor T hird-generation vegetable grower Jeff Hurtgam raises 23 different crops on 35 acres in Ransomville, N.Y. More than 13 tractors and attachments — and the support of several area equipment dealers — help him cope with time constraints and keep up with the dif- ferent growing seasons. “The reason why I have so many tractors is that I don’t want to switch attachments. We don’t do a lot of acres all at once, but a little bit here and a little bit there. In the spring we are so busy in the greenhouse that when I get a few minutes, I hop on a tractor and away I go. I also have 34 people working for me, so I can do one job and they can do another,” Hurtgam says. The operation’s high quality pro- duce and customer service have helped the Hurtgam family maintain long-term relationships with com- mercial accounts and area consum- ers. It has supplied one area grocery store chain for more than 40 years and a restaurant for more than 17 years. They sell other produce at area farmers markets, up to 6 days a week during the busy season. Equipment at the Ready The farm’s main crops are sweet corn, potatoes, cabbage and pep- pers. Others include beets, broccoli, Brussels sprouts, cantaloupe, car- RURAL LIFESTYLE DEALER n WINTER 2014 Meet Vegetable Grower Jeff Hurtgam Occupation: Third-generation veg- etable grower Proper ty: 35 acres in Ransomville, N.Y., used to pro- duce 23 different crops, some in the field and others in the 7,000 square feet of greenhouses on the property. Equipment: Tractors include: Case IH 1070C and JX60; Kioti RX6010; Kubota 4900, 4610 and 4200; International 140 and International Cub; New Holland Tl70. Other equipment includes an Athens disc; 2 John Deere Gator utility vehicles; John Deere 4-bottom plow; Brillion cultipack- er; Kongskilde field cultivator; and specialized vegetable planting and harvesting equipment. |
| (PHOTO LEFT) Jeff Hurtgam is a third- generation vegetable producer in Ransomville, N.Y. He matches tractors to particular jobs and has attachments ready to go. This helps him get field- work done during times when he’s also busy in his greenhouses. rots, eggplant, kale, lettuce, pump- kins, squash, tomatoes and water- melon. They have 6 greenhouses that total about 7,000 square feet. Hurtgam starts some plants, such as tomatoes and peppers in the green- houses, as well as starter plants for other smaller growers. They also raise vegetable plants in 6-pack con- tainers to sell at farmers markets. Hurtgam begins fieldwork in early April. “I use a 4-bottom John Deere plow and because the ground is so light and sandy I use a cultipacker (Brillion). I then use a Kongskilde field cultivator to finish the soil prep- aration.” Based on soil condition, he also may use a 10-foot Athens disc. His plowing tractor is a New Holland Tl70 that he bought used from Niagara Frontier Equipment Sales in nearby Lockport, N.Y. “My dad bought that tractor. It was a ‘town’ tractor that was used for mow- ing. It was almost brand new and had very low hours.” He turns to a Case IH JX1070C for field cultivator work, which he bought new in 2007 from Lamb & Webster. The dealership has 3 locations in New York and 1 in Pennsylvania. His other main tractor is a Kioti RX6010 that he bought in 2012 from Niagara Frontier. “I had been using an old Massey Ferguson for spraying insecticide and fungicide and it didn’t have a cab. I knew Justin and he said I should give Kioti tractors a try,” Hurtgam says referring to sales- person Justin Adams from Niagara Frontier. “He brought it out and I tried it and the price was good.” He was able to add a loader, thanks to a Kioti promotion. He also uses the Kioti to pull a specialized piece of equipment that rolls out plastic (for a weed barrier) and drip irrigation tape and shapes beds. Hurtgam uses another tractor, a Kubota 4900, for planting starter peppers and zuc- chini plants. He purchased that tractor from Lamb “There’s no one dealer that has everything I need…” & Webster in 2004 and uses it with another specialized piece of equip- ment that pokes a hole in the plastic and adds starter fertilizer. Hurtgam or an employee sits on the equipment to place the plants. He has two other older Kubota tractors, a 4610 and 4200, which he bought from Niagara Implement, which has locations in Newfane and East Amherst, N.Y. He uses those to pull the potato harvester, for miscel- laneous farm jobs and for pumping water from the farm’s pond to the overhead sprinkler and pipe irriga- tion systems. He uses a Case IH JX60 Jeff Hurtgam purchased his Kioti RX6010 in 2012 from Niagara Frontier Equipment, Lockport, N.Y. He says the tractor is quiet, easy to use and was affordable. The deal was made after salesperson Justin Adams let him test the tractor on his farm. RURAL LIFESTYLE DEALER n WINTER 2014 35 |
| A Case IH JX1070C is used for field cultivator work on Hurtgam Farms. Jeff Hurtgam worked with Jim Miller of Lamb & Webster, a dealership with 3 locations in New York and 1 in Pennsylvania. The relationship dates back a generation as Miller worked with Hurtgam’s dad, Jerry. Hurtgam also owns a Case IH JX60 that he uses for miscellaneous farm jobs. that he bought in 2008 from Lamb & Webster for miscellaneous farm jobs. “A lot of our main tractors were bought within the last 15 years because we wanted to update equip- ment. I like to work with good equip- Hurtgam bought this New Holland Tl70 used from Niagara Frontier Equipment Sales and uses it for plowing fields ahead of planting corn, cabbage and potatoes. ment because I can’t afford not to. It’s nice to have equipment to use if a tractor does go down,” Hurtgam says. He’s happy with his current equip- ment and doesn’t expect to purchase tractors for about 4 years or so. “I’m very specific with what I buy and not any tractor will do. It has to meet a need. It has to do what I need it to do — and then some.” He also has several older trac- tors like an International 140 and Sell On Your Strengths Jim Miller and Justin Adams both sell equipment to vegetable grower Jeff Hurtgam — and both have earned his respect for their honesty and customer commitment. Miller and Adams share why they think they’ve been successful working with rural lifestylers. “I try to be ‘up front.’ That’s probably the biggest part of my success,” Miller says. He’s a salesperson with Lamb & Webster, which has 3 locations in New York and 1 in Pennsylvania. “If someone asks, I give them the honest answer and I give them the time they need. “It’s just a communication issue. I was successful with Jeff’s father, Jerry, and now with Jeff, and I have also worked with his mother. I communicate with the whole family and learned the whole operation. I don’t push things and we work hand in hand.” Miller also relies on basic sales practices, such as cold calling, frequent visits and returning messages. “I started visiting with Jerry and would stop there 3, 4 or 5 times a year. When he would call and leave a message, I would call back quickly or stop to see them within the next day or two. I didn’t need to sell them every time I visited,” Miller says. “So many younger people don’t return phone calls or text messages. If you don’t do that, you’re going to lose cus- tomers. I get multiple sales because people call me time after time and I take the time to recognize what they’re looking for.” Adams of Niagara Frontier Equipment Sales, Lockport, N.Y., says his success is based on doing more than is expected. “It’s not just about meeting needs, but exceeding expectations as well. I meet their needs by recommending the right equip- ment and I deliver it personally. That means a lot to them. I try to spruce up the deal by throwing something in, like hats, a full tank of fuel or discounts on parts. I then go back out and fol- low up with them. “Another thing I do that means a lot to a client is I send 36 RURAL LIFESTYLE DEALER n WINTER 2014 them a thank you letter after the sale. This shows them that I really did appreciate the deal and it also makes a difference as far as them coming back to me for future busi- ness. This is considered an ‘old school’ practice. However, people still like old school handshakes on Justin Adams is a sales- a deal and, therefore, it warrants person with Niagara an old school thank you letter,” Frontier Equipment. Adams says. Adams follows unconventional practices, too, when it comes to serving customers. For instance, Hur tgam had a question about whether a disc he was considering buying was sturdy enough. Adams answered his questions and went a step further. “Jeff asked me, ‘Do you mind if I talk to them directly?’ I said, Jim Miller is a sales- ‘Here’s the phone number and person with Lamb & here’s who you can talk to.’” The Webster. manufacturer answered his ques- tions and Adams earned the sale. As a newer salesman, Adams had to find ways to build his customer base. “Social media has been a big help to me. I do posts when I have a gap between things, like when I’m waiting on an appointment.” He shares details about promotions; posts photos of new equipment on the lot; and photos of customers taking delivery of equipment. “I’m getting leads from Facebook. It’s a growing thing for our industry and for us as a company,” Adams says. |
| an International Cub tractor that he plans to keep, despite being close to 40 years old. Hurtgam uses the International 140 to plant potatoes with a one-row planter and he uses the Cub to cultivate potatoes, corn and cabbage. The two tractors also pull trailers. He also owns two 2007 Gator utility vehicles he uses every day for traveling around the farm or pulling trailers. One he bought used and one new from Drake Lawn & Garden in Wheatfield, N.Y. “I don’t want a $12,000 UTV. I’d rather spend closer to $6,000 and swap them out every few years,” Hurtgam says. ship and started a relationship with Adams. Hurtgam says Adams was new to the sales team at the time, but always followed up if there was something he couldn’t answer. He says the loader promotion in 2012 persuaded him to take a look at Kioti. “With the Kioti, price had a lot to do with my decision to buy, but Justin told me, ‘I’m telling you. You’re going to like this tractor.’ “There were a couple of things I did like. It was really quiet and easy to operate. The controls all seemed to be where they should be. A lot of thought seemed to be behind how they engineered the tractor and it has done everything I wanted it to do.” Working with Dealers Hurtgam says this about why he works with several dealers: “There’s no one dealer that has everything I need. That’s very obvious. There’s a pool that I draw from.” He adds, “I’m not brand specific. I have one neighbor who won’t buy anything unless it’s red (Case IH) and another neighbor who won’t buy unless it’s green (John Deere). Each to their own.” His dad, Jerry, who passed away in 2012, established many of his current relationships with dealers. For instance, his dad had been working with Niagara Frontier since the early 1990s. When it was time to purchase a new disc, Hurtgam returned to the dealer- Dealer Takeaways • Be ready to demonstrate equip- ment on-site to prove that it’s the right choice. • Dig deep into the kinds of jobs being done on the farm or prop- erty. A good match encourages follow-on sales. • A rural lifestyler may buy equip- ment from multiple dealers. Continue to offer ideas and solu- tions and be ready to support them when they are ready to buy. • Nurture business relationships with multiple generations of property owners. Visit RuralLifestyleDealer.com/RS and indicate No. 120 RURAL LIFESTYLE DEALER n WINTER 2014 37 |
| Hurtgam Farms has been growing vegetables, such as cab- bage, corn and potatoes, for three generations. The family recently upgraded tractors and other equipment and is now rebuilding the farm’s original barn. Hurtgam says he doesn’t remember how he began working with Jim Miller from Lamb & Webster, but his first purchase was based on the dealership beating a competitor’s price. “I like Jim because he’s a straight shooter and he’s Jeff Hurtgam relies on numerous traditional and special pur- pose attachments to grow vegetables that he sells to grocery stores, a restaurant and at farmers markets. honest. I told him that I was looking for a tractor with 70 horsepower, front-wheel assist and a cab. I told him, ‘If you ever get something that’s used but still in good condition, call me.’ ” That was how he bought the Case IH 1070C. Hurtgam says he needs to be sure that the tractors will work with his specialized vegetable equipment. “I’m at the point now where I would sel- dom buy a tractor unless I try it out on my farm first.” Hurtgam does most of the basic servicing on his tractors, but occa- sionally turns to a dealership’s service team. “Niagara Frontier has a good mechanic they put on the road. That means a lot to me.” Staying on the Farm Visit RuralLifestyleDealer.com/RS and indicate No. 116 38 RURAL LIFESTYLE DEALER n WINTER 2014 Hurtgam graduated from Cornell Univ. in 1994 and immediately came back to work on the farm his grandfa- ther started in 1921. Today, he and his wife, Harmony, and their two children, Abigail and Nathan, live in the house he grew up in. His mother, Brenda, lives next door. He serves as a trustee for his church, is on the town plan- ning board and was just elected to the town council. “I had opportunities elsewhere. I had a job offer with a seed company in California. I turned it down and came back to the farm,” Hurtgam says. “My heart has always been on the farm. I do enjoy it. Most days I don’t think of it as work. It’s just my lifestyle.” RLD |
| Visit RuralLifestyleDealer.com/RS and indicate No. 114 |
| HOW TO SELL ROTARY CUTTERS Boost Rotary Cutter Sales with Basic, Yet Strategic, Tactics Selling this basic implement should be simple, but don’t let the sale end there. Use this necessity purchase to build customer relationships. Cat Poland, Contributing Writer R otary cutter, brush mower, brush cutter or rotary mower — whatever you call it, this basic property maintenance imple- ment is an important tool for many rural lifestylers. While its use remains the same for many landowners, regional and weather trends can affect sales and new technologies are spurring interest among rural lifestylers. Cutters don’t necessarily sell them- selves, but the process shouldn’t be complicated. A good product line, attention to weather and local trends, knowledgeable sales staff and atten- tion to customer needs, especially those who are new land owners, can help ensure rotary cutter sales success. 40 Transitional Sales are Key Great Plains Kubota has been selling rotary cutters for approxi- mately 10 years and carries the Land Pride and Woods Equipment lines. “If you’ve got land and you need it cleared, you need a rotary cutter,” says Bill Clark, general manager of Great Plains Kubota, which has loca- tions in Ada, Duncan and Shawnee, Okla. “Rural lifestylers are our num- ber 1 customer, people whose dream is to live out in the country.” For this dealership, selling rotary cutters is just part of selling tractors and mowers. They’ve also found that selling rotary cutters is a stepping stone on the path to long-term cus- tomer relationships. “Most first-time buyers will pur- chase a cutter when they purchase RURAL LIFESTYLE DEALER n WINTER 2014 Dealer Takeaways • Package rotary cutters with trac- tor sales for maximum value and work with finance compa- nies that offer competitive inter- est rates. • Use cutter sales as a spring- board for finish mower sales. • Don’t assume a customer doesn’t need a larger cut- ter. Their acreage may have increased or they may use the cutter on neighboring property, for example. • Promote larger cutters during wet seasons when frequency of use may be high. Continue promoting smaller cutters during dry times. • Help customers understand the features of higher end cutters. |
| (PHOTO LEFT) Land Pride’s RCR1860 is a 5-foot cutter that appeals to entry-level rural lifestylers for its ability to handle smaller tasks. Rural lifestyle dealers have had success selling Land Pride implements due to a financing partnership with Kubota. a tractor. That’s why we’re always running package deals, especially for 5-6 foot cutters with 30-40 horse- power tractors. Sometimes, they’ve owned a cutter and may not have needed one, but it depends on what they’ll do with it. We really try to work with the customer to deter- mine their needs.” Not only does Great Plains Kubota use new tractor sales as an opportu- nity to move cutters, they also focus on the next transition in this custom- er’s rural lifestyle journey. “More and more people want to do finish mowing rather than rotary or brush mowing. People get their land cleared out and then they want it to look nice. A rotary cutter won’t give as pretty a cut if they want their place to look landscaped. So, they clean up with a rotary cutter at first and then come back with a finish mower,” says Clark. And where do customers turn when they’re ready for that bigger finish mower? They go right back to Great Plains Kubota. “We want to be a resource for our customers. There are no dumb questions here. You’d be surprised at how many customers don’t know what a PTO or a 3-point hitch is. We want customers to feel comfortable enough to ask our sales people any- thing. They’re trained to listen to the customers. We think it’s a big deal. A lot of our customers are first- time buyers. Consequently, we have sequential sales after helping them with a first purchase.” Another important factor when making transitional sales with poten- tial long-term customers is financ- ing. “For us, the alliance between Kubota and Land Pride is crucial. If Kubota is doing a 0% financing spe- cial, for example, they’ll roll a Land Pride implement in with it, with no additional interest charged. That’s huge for us and makes a big impact on rotary cutter sales.” For Great Plains Kubota, being in the large-scale and rural lifestyle dealer markets has increased sales of cutters during the drought sea- son. “The good thing about being in the 5-6 foot cutter market is that it’s Eric Schnelle, president of S&H Farm Supply, says the rural lifestyle custom- ers they’ve served over the years are now trading up for larger rotary cutters. However, they are still looking for equip- ment that is easy to maintain. S&H was Rural Lifestyle Dealer’s 2011 Dealership of the Year. fairly resistant to drought. In other words, customers will still buy, but they’ll only cut several times. We couldn’t give away a 15-foot cutter during drought season.” When It Rains, It Sells Unlike his neighbor to the north, Jim Dietert, sales manager for Ewald Tractor, has to keep an eye to the skies when it comes to cutter sales. Ewald Tractor has locations in Boerne, Floresville and Sequin, Texas. They carry the Rhino and Land Pride lines of cutters. “Around here, when it rains is when we sell cutters. Spring is our busiest time. If we have a dry spring, we won’t have very good sales. But if we get some rain in October, sales will start picking up again in November,” says Dietert. Lack of moisture doesn’t neces- sarily mean that rotary cutter sales come to a grinding halt, however. “We still sell some cutters during dry times, but it’s usually with a package, when they know they will need one in the future.” Contrary to what Clark found with new landowner education, Dietert finds that his Texas customer base is knowledgeable about what they want and need. They come in to the dealer- ship prepared with research they’ve found online. “Generally, customers know what size of cutter they want, but they want to know everything that’s available to them. They want to know what they’re going to get for their dollar. Everyone sells a cheap cutter and then there are better ones. They usually know what size of cutter they want, but they’ll won- der why one is twice as much as Hunters Turning to Rotary Cutters An increased interest in hunting has led to increased rotary cutter sales in many parts of the country. Rural lifestyle dealers shared their thoughts on the impor- tance of staying up-to-date with hunting trends and needs in their local areas. “A big deal in our area for rural lifestylers is planting food plots for wildlife. We’ve got a lot of customers starting to clear out areas with rotary cutters,” says Bill Clark, general manager of Great Plains Kubota, which has 3 locations in Oklahoma. “Food plots are gaining in popularity. The really nice food plot seeders are fairly expensive, so we’re seeing people purchase the cutters, a seeder and a harrow vs. an all-in-one machine,” says Eric Schnelle, president of S&H Farm Supply, which has 4 locations in Missouri. “We sell quite a few cutters to people with what we call hunting pastures. These are usually the 15-foot models,” says Jim Dietert, sales manager of Ewald Tractor, which has 3 locations in Texas. RURAL LIFESTYLE DEALER n WINTER 2014 41 |
| t SCHULTE FX-318 ROTARY CUTTER • For mowing crop residue, pastures, weeds, orchards and roadsides; ultra narrow transport width makes mov- ing safe and simple • 18 ft. — runs with same hp tractor as most 15 ft. flex wings but gains extra 3 ft. cutting width • Deep side skirts provide additional room under deck for better flow of material • Single 7 gauge domed deck sheds water and debris t BUSH HOG 3815 15 FT. FLEX WING CUTTER • 3 in. dia. gearbox output shaft on all cutting gearboxes • Steel reinforced blade pan • Heavy-duty axles and axle arms • Enhanced independent wheel sus- pension system • Oil sight gauge allows operator to visually “see” oil level in gearboxes in 10 sec. or less n Indicate No.202 on inquiry card or visit www.rurallifestyledealer.com/rs n Indicate No.201 on inquiry card or visit www.rurallifestyledealer.com/rs another. Many times, they’re open to a higher price point if you can explain the advantages. But some- times, they’re not. You just have to be ready for an informed customer t CEATTACHMENTS INC. EDGE 3-PT. ROTARY BRUSH CUTTER • Beavertail style rear deck panel constructed of heavy-duty 11-gauge steel deflects cut material downward as it cuts • Two heavy-duty, 0.5 in. thick x 4 in. wide blades • Rear wheel assembly features three height adjustment settings to cut grass and brush 1-11 in. from ground • Rotary cutters feature shear-bolt driveline protection, side skid shoes and front and rear chain shielding n Indicate No.203 on inquiry card or visit www.rurallifestyledealer.com/rs base, especially if they’ve done their research.” Research is important for the deal- er to do as well to understand local trends and how they might affect rotary cutter sales. “Our most popular sizes are our 5-, 6- and 7-foot cutters,” says Dietert. “But we’ve got customers clearing ‘senderos,’ or trails, who are purchas- ing the 15-foot models, especially those who are working with land used for hunting purposes.” (See the sidebar “Hunters Turning to Rotary Cutters” on page 35.) In addition to knowing how local weather and lifestyle trends will affect sales, it’s also important to stick to the basics. “My best piece of advice? Sell a good product at a good price, followed up with good service,” Dietert says. Keep it Clean, Keep it Simple Don’t assume that rural lifestylers only purchase smaller models of rotary cut- ters. Rhino’s TS12 model has gained popularity with those customers who need the versatility of a flex wing cutter, but may not have a tractor large enough to pull 15-foot units. 42 RURAL LIFESTYLE DEALER n WINTER 2014 Eric Schnelle, president of S&H Farm Supply, knows a thing or two about rotary cutters. The dealership carries Woods, Rhino, Bush Hog and Schulte Industries cutters and has been selling the implements since the 1980s. S&H has locations in Joplin, Lockwood, Mountain Grove and Rogersville, Mo. This longevity and expertise means repeat business among rural lifestylers, especially as their acreage |
| ask more questions one-on-one than or usage expands. they would feel comfortable doing in a “They keep trending up. First it was group setting.” 10 and 15 acres, and now it’s 20 or Schnelle says his rural lifestyle cus- more acres to cover. So we’re see- tomers sometimes have sophisticated ing customers trade in every 3-5 years needs and they also have an increas- with an upward trend in cutter size,” ing preference for easier-to-maintain says Schnelle. equipment. In addition to increasing the size However, he says it’s best to keep of their cutters, customers also the sales process simple. “Don’t over desire a cleaner, easier product to complicate it. Keep it to the basics. maintain. “Cutters now are lower mainte- Jim Dietert, sales manager for Ewald Keep plenty of stock, display it well, Tractor, says his rural lifestyle custom- nance, with smooth decks that make ers have done research regarding rotary roll it in with package deals, promote cleaning easier and bigger gear boxes cutters, but are still interested in learn- it, etc. Just do the basics and you’ll that provide more durability. An easier ing about all the options, including the have no problems selling cutters.” to clean dome deck is pretty popular. advantages of higher-priced models. Paths to Sales Success It has a nicer fit and finish. “To meet this demand, Rhino, in A rotary cutter isn’t a piece of particular, is coming out with a new line of 15-foot cut- equipment that can perform a variety of tasks. Its mis- ters with new features that improve both serviceability sion is simple: clear and maintain the land. However, and durability. It’s as if they started with a blank slate and this doesn’t mean sales have to remain flat or stagnant. designed something different that consumers will want to There are many potential customers for this one-pur- buy,” says Schnelle. pose implement. Pay attention to local trends and This appreciation for rotary cutter detail is reflected in weather and your customer’s increasing needs as they S&H’s customer base, which is knowledgeable about their expand their land. Also, bundle deals or finance packag- implement needs and is looking for equipment with more es can increase your chance of success when selling size and power. rotary cutters. RLD “The rural lifestyle customers we saw years ago bought fairly small, simple tractors and implements. But now, they’re buying higher horsepower tractors, putting up hay on their own and are trending to larger implements,” Schnelle says. “We used to sell mostly 6-foot models and we’re now seeing increased popularity with our 12-15- foot hydraulic fold models. These have flexibility for pond banks, ditches, etc., that you couldn’t do with a 6- or 10-foot straight model.” “Just do the basics and you’ll have no problems selling cutters…” Another aspect of selling rotary cutters is ensuring customer safety. These implements can throw rocks and debris long distances and operators need to be careful when using them on steep surfaces. “Even though nobody really inquires about the safety of this product, we always make sure to perform a little safety training with new customers. We do a ‘walk around’ and give them filters for their 50-hour service. Sometimes, it’s a really new product to them. We also make sure to point out the safety portions of the manuals. Some have considered doing safety seminars, but we feel that people Visit RuralLifestyleDealer.com/RS and indicate No. 105 RURAL LIFESTYLE DEALER n WINTER 2014 43 |
| THINKING BIG INDUSTRY VIEW POINT Ag and commercial landscaper markets drive new product developments for Kubota. Lynn Marcinkowski Woolf, Managing Editor K ubota helped define the rural lifestyle-sized trac- tor when it introduced its 21 horsepower tractor way back in 1969. Today, the company offers more than 80 tractor models in the 18-135 horsepower range. The company is now targeting production farmers and commercial landscapers with its new Kubota hay tools line and Z700 series of zero-turn mowers. On the horizon: tractors with higher horsepower to capture more of the production farming segment. “Our dealers have been on the edge of the farm market. Some have been active, but have carried another line. We’re now beginning to equip our dealers to compete in this mar- ket with Kubota products,” says Greg Embury, senior vice president of marketing and dealer development. Embury and Todd Stucke, vice president of the agri- 44 RURAL LIFESTYLE DEALER n WINTER 2014 Kubota’s new line of hay tools is part of its entry into pro- duction agriculture. The first phase of implements will be available at Kubota dealerships early this year and will include disc mowers, rotary rakes and tedders. culture and turf division, share with Rural Lifestyle Dealer where Kubota is headed and how it plans to get there, including the introduction of new dealer support programs. Capitalizing on Market Growth Embury provides this overview of the rural lifestyle market: “The American dream is still 10 acres and a horse. Rural lifestylers are getting a little older, but we are see- ing new people coming to the land. The recession slowed |
| things down a bit, but there’s a sense that the economy is coming back. As we add innovative new products, we can gain market share and grow faster than the industry.” Stucke adds, “We’re seeing the market as flat to slightly up and the positive news is that tractor sales are up 10% for all colors. As we grow the business into higher horsepower segments, we have to develop deal- ers who can sell those higher horse- power tractors. A way to do that is with the introduction of hay tools. A customer who comes in to buy a 120 or 130 horsepower tractor now has the hay tools to go with it.” Kubota introduced its hay tools series to its dealers at its national meeting last fall. The first phase of implements will be available at Kubota dealerships early this year and will include the DM series of disc mowers (working widths of 5 feet 6 inches up to 10 feet 5 inches); the RA series of rotary rakes (working width of 13 feet 9 inches) and the TE series of rotary tedders (working width of 17 feet 1 inch). The hay implements will be pro- duced by the Kverneland Group, which Kubota acquired in May 2012, including its factories in Norway, Denmark, Germany, France, the Netherlands, Italy, Russia and China. Stucke says his priority is the inte- gration of the hay tools within the Kubota dealer network. “This is a completely different product for us and a different segment. We need to be able to launch it correctly in terms of training, product support and deal- er support. We want to make sure that we can create the same reward- ing customer experience when buy- ing a Kubota hay tool as when buying a Kubota tractor,” Stucke says. Embury provides additional expla- nation about the entry into the mar- ket: “The history of Kubota’s product development has been evolutionary as we have entered new markets care- fully and proceeded to expand our product line in those markets. Zero- turn mowers are a good example. “The history of Kubota has been to earn dealer share more than market share…” Now, with our move into production ag, we are taking the same approach. Tractor size is steadily increasing and we have added a hay line in our recent phase one introduction. The world population is growing and must be fed, so the long-term outlook for pro- duction ag is positive as is the market for rural lifestyle products as the U.S. Greg Embury is Kubota’s senior vice president of marketing and dealer development. continues to recover from the great recession,” Embury says. “Kubota is committed to grow in both markets.” Targeting Commercial Zero-Turn Mowers Kubota first entered the residential zero-turn mower market in 2001 and has continued to expand its product line with the introduction of its con- sumer zero turn, the Kommander. “The Kommander exceeded every one of our retail, market and perfor- mance goals,” Stucke says. “It’s a well- engineered product with a modern design. Bearing the quality Kubota name and backed by Kubota warranty and Kubota financing options, it has really been a hit with customers.” For 2014, Kubota is leveraging the success of the Kommander by intro- ducing its first dedicated commercial zero-turn mower. “The Z700 introduced last October is our first commercial zero-turn model designed specifically to meet the rigorous demands of the commer- cial landscaper. With the Z700, the Kubota zero-turn lineup now includes 20 models of gasoline, diesel and propane powered units ranging from $4,900 to $16,900,” Embury says. Building on UTV Segment Kubota’s other big push for 2014 is its new RTV X-Series of work utility vehicles. These all new vehicles offer improvements in styling, ergonomics and durability. New styling elements feature a front-end design based on the look of pick-up trucks with front bumper guard and blue halogen tint- ed lights. New ergonomic features include tilt wheel, a new dashboard and adjustable seats. The RTV X1100C model also features a fully enclosed uni-body cab with standard heating and air conditioning. The X-series has Kubota-built diesel engines, 21.6 or 24.8 horsepower. “Kubota takes pride in listening to its customers and dealers when it comes to product innovation,” Stucke says. Hundreds of customer surveys, dealer surveys and focus groups led to the features that are offered in the new series. “When you have had the only air- conditioned cab on the market uncon- tested for more than 6 years, it’s a sig- nificant advantage. There are a couple of competitors sneaking up on us now with air-conditioned cabs, so we’re remaining vigilant,” Embury says. “Like anything, you have to stay competitive. Kubota has a solid reputation for quality and durabil- ity, but we also need performance features for us to continue growing in the UTV market. We’re a work utility vehicle, but there’s the cross over segment to consider, too. In the future, we want to offer a larger array of products,” Stucke says. RURAL LIFESTYLE DEALER n WINTER 2014 45 |
| Kubota’s new RTV X-Series of work utility vehicles features improvements in styling, ergonomics and durability. Models have 21.6 or 24.8 horsepower Kubota-built diesel engines. “The UTV market is huge. The motorcycle guys build fast UTVs and guys like us build workhorses. We’re now meeting in the middle,” says Embury, referring to UTVs from power sports manufacturers. Enhancing Dealer Support Embury says several programs are in place or being developed to help dealers capture these new markets. For instance, Kubota will be doing Todd Stucke is Kubota’s vice president of the agriculture and turf division. more regional and national adver- tising, in addition to the local coop advertising dollars it provides dealers. “We will have more of a focus on marketing than in the past. When you market a great product, you get results,” Embury says. 46 They are also boosting dealer sup- port — and asking more from dealers, too. The Kubota Univ. online training program was introduced last summer. Enhancements are planned through a partnership with the dealer busi- ness consulting firm Bob Clements International. The company has also hired a new dealer development direc- tor and training manager. “Dealers have been asking for it and we’ve stepped up,” says Embury. “We are adding new online modules to the Kubota Univ. every month as we expand this training delivery site. Our recent partnership with Bob Clements International and the Southwestern Dealers Assn. has given us a great source of relevant content to help our dealers learn how to improve their operations and cus- tomer service.” Kubota is also asking something of its dealers in return, including pur- suit of a dealer certification based on a set of best practices. “The Kubota Premier Award of Excellence program was introduced at our national dealer meeting in Memphis, Tenn., this past October and will begin with the recognition of dealers for their results in 2013. We will measure dealers on the elements of best business practices that focus RURAL LIFESTYLE DEALER n WINTER 2014 on the most important things a dealer can do to support their customers and be successful.” Meeting those standards will help dealers cope with competition from big box stores, Stucke says. “It all goes back to customer demand. The customer is going to the big box store for a reason and that’s because they sell at a lower price point. But if you look at that price point and add the Kubota name, warranty and financing, our dealers can get a premium over box store pricing,” he says. Embury adds that capturing box store customers means capturing a new customer segment. “We’re marketing the Kubota name to get more first-time buyers to know about us. In our experience, Dealer Takeaways • Dealers may need to adjust sales and marketing strategies to capture both ag and rural life- style segments. • Check out new online training offerings from your manufactur- ers to improve operations and uncover best practices. • Are your manufacturers as loyal to you as you are to them? If there’s a gap, find out why. |
| once a customer tries Kubota, they’re hooked,” Embury says. Promise to Dealers Embury says the Kubota dealer network has remained stable. “Our network hasn’t changed much in the last 20 years. We have 1,100 dealers in all 50 states. We do have fewer owners now, but the number of locations hasn’t changed much in 20 years. As we move into farming, we may need more dealers in the ag areas.” One direction they aren’t head- ed is toward selling in box stores. “We’re committed to the indepen- dent dealer network,” Embury says. Part of that commitment is allowing dealers flexibility in which lines they carry and how their stores look. “The history of Kubota has been to earn dealer share more than mar- ket share. There was a time when Kubota’s Z700 is the company’s first dedicated zero-turn mower offering for the commercial land- scape market. It follows the introduction in 2012 of the Kommander, its first consumer zero turn. many of our dealers had other lines. As we expand our products, we’ll gain more dealer share from those who prefer selling our products. “We don’t prohibit dealers from car- rying other lines. The dealer is our cus- tomer. We want to earn more of their business. If it results in them dropping a competitive line, that’s success in my opinion,” Embury says. RLD Visit RuralLifestyleDealer.com/RS and indicate No. 103 RURAL LIFESTYLE DEALER n WINTER 2014 47 |
| Industry Q&A Q What is one thing you’ve done recently that has helped you be more efficient, productive and profitable? A. “Two things come to mind: #1. We have tried to do a bet- ter job with pictures and descriptions on our website for used equipment. #2. While working with a customer a while ago (during hay season when she was pressed for time), I asked if she needed to get going and continue the conversation later. She answered, ‘Let’s get this done now. I do not have time to do it later.’ ” — Gene Saville, Lamb &Webster, Springville, N.Y. A. “Putting profits back into the business by updating our facil- ity and assets. The excitement of doing updates in the store gives customers a ‘warm and fuzzy’ feeling that we are going to be around in the future. This creates more sales which, in turn, is creating more jobs. Most compa- nies today are not putting any money in their infrastructures or into their employees. Instead, they are putting it in their execs’ pockets. What short- term thinking!” — Melanie Leckler, Leckler’s, LaSalle, Mich. A. “The one thing I did to be more efficient, productive and profit- able was to take the opportunity to fur- ther my business education by enroll- ing in the Goldman Sachs 10,000 Small Businesses program. Taking the time to work on my business by developing a ‘doable’ 5-year forecast and detailed business plan will allow us to tighten up what is good, fix what is broken and explore new opportunities. Using the guidance and resources of this program, we have already made a critical change to the way we take in and write up service orders, which will contribute to greater efficiency, more 48 production and increased profit. We do what we do well and the addition of for- mal business training will be the vehicle to drive our growth going forward.” — Laura Toro, Toro’s Lawnmower, Garden & Chain Saw Center, La Crescenta, Calif. A. “Analyzing all sales history from the past 6 years to study growth, purchasing pattern, and prof- it margins has given me an accurate guide as to where we’ve been, where we stand, and where we need to be going. This helps when making all pre- season orders and planning for 2014.” — Jas Wilkes, Louisburg Tractor, Louisburg, N.C. A. “Learning and starting to utilize our CRM program, Handle by CustomerTRAX. It is amazing what you can do with it, including accessing it away from the office via my iPad or Android phone.” — Jamie Trinchitella, Jr., AgriVision, Glenwood, Iowa A. “We replaced our indoor light- ing under the Small Business Energy Savings program. The program (now expired in our area) gives credit toward the conversion of standard T12 florescent bulbs to the high-efficiency T8 bulbs. Additionally, we were able to cut all of our fixtures down from 4 bulbs to 2 bulbs, with very little change in light output. That makes for some real energy savings that has already paid for our conversion.” — Bill Anderson, A.A. Anderson, Harvard, Ill. A. “The most important thing we’ve done is to add the LS Tractor brand. We have also installed R U R A L L I F E S T Y L E D E A L E R n W I N T E R 2 014 a completely new accounting sys- tem with new software. It has made a major change in what we are doing.” — James Dietz, Dietz Tractor, Seguin, Texas A. “I cleaned up my office area; organized my customer files (somewhat); worked 7 days a week trying to get on top of things. We are a small dealership with limited employ- ees, so I have to do multiple tasks to keep going.” — David Mills, Mills International, Kinston, N.C A. “The one thing we have imple- mented lately that helps profit and productivity is the role of a PSSR, a product support sales representa- tive. This role helps smooth out ser- vice flow and keep shop work steady. It also helps us keep a close connec- tion with the customer regarding their service needs. With the service shop running steady, the highs and lows are reduced, which creates service tech productivity and better cash flow.” — Mark Macko, Delta Power, Seaforth, Ontario A. “The one thing that we have done as a sales team is to become more focused on using a program called Handle by CustomerTRAX. This program helps all departments know what may be happening to their customer in another department. It helps departments work as a team and actually helps a sales- man better manage himself. Handle can be used to schedule follow-up calls as well as for daily, weekly and long- range planning, budgets and quotes.” — Alan Foy, AgriVision, Glenwood, Iowa |
| Dealer Business Operations PFW ID MOBILEACCESS 1.0 • Allows dealers using IntelliDealer Dealer Management System to view information in system on smartphones and tablet devices • Allows user to search parts and equipment information, displaying details such as availability by location, price and descriptions • Live feed of information allows dealers to provide customers accurate information even when away from dealership Visit rurallifestyledealer.com/rs and indicate No. 301 BASIC SOFTWARE SYSTEMS HBS SYSTEMS NETVIEW RENTAL SYSTEM • Reserves, rents and returns multiple items on single contract with each item using unique rates and options • Fully integrated availability calendar allows user to visually identify which item is best to reserve or rent • Customizes rates, supplemental rates and rate periods to fit business model and operations • Business management software solutions that make it easy for dealerships to communicate to each other • Real-time accounting provides constant access to user’s business management software solution • Converts existing data electronically when switching from another business system vendor • Online data backup and recovery Visit rurallifestyledealer.com/rs and indicate No. 302 Visit rurallifestyledealer.com/rs and indicate No. 303 ARI SEARCHENGINESMART • Pay-per-click advertising solution designed to create and manage local, regional and national PPC campaigns • Dedicated account manager optimizes campaign to increase traffic and eCommerce sales conversion rates • Ability to change strategy anytime to take advantage of seasonality, specials or events • Integrates easily with WebsiteSmart or any third-party website Visit rurallifestyledealer.com/rs and indicate No. 305 DEALER SALES CHANNEL TV DIGITAL DISPLAY MARKETING SYSTEM • Based on Google TV and any HDMI TV/monitor • Promotes, engages and connects with customers while they wait in dealerships • High definition presentation customized and geared specifically for dealer’s marketing plan • Easy to set up and use Visit rurallifestyledealer.com/rs and indicate No. 304 Business Management Solutions for Growing Equipment Dealerships Simple l Powerful l Affordable ASPEN’s dashboard and mobile tools help me stay connected when I’m away from my dealership! chartersoftware.com 303-932-6875 Visit RuralLifestyleDealer.com/RS and indicate No. 124 R U R A L L I F E S T Y L E D E A L E R n W I N T E R 2 014 49 |
| Dealer Business Operations NIZEX LIZZY VERSION 3.0 WEB-BASED DEALER MANAGEMENT SYSTEM • Revamped rental module, enhanced webstore integration, streamlined invoicing, menu sell and better inventory management for multi- location companies • Can be used on any browser and device with Internet connection, allowing access to data at all times Visit rurallifestyledealer.com/rs and indicate No. 306 Lawn Tractor & Zero-Turn Mowers ALTOZ XC S ZT MOWER • Deep deck design with unrestrictive interior surface produces maximum airflow • Trio of Gator Mulcher G6 blades with electrofusion technology provides superior lift, cut, mulching and discharge • Heavy gauge steel C-channel frame rails; clutch produces 200 ft.-lb. of torque • Heavy-duty deck and deck spindles, belt idlers, rugged front forks, sealed fork castors and watertight electrical connections WORLDLAWN VIPER RIDING MOWER • 46, 50 and 60 in. deck options • Fabricated steel deck with front reinforcement • Hydro Gear EZT transmission on 46 in.; Hydro Gear ZT 2800 on 50 and 60 in. • 1.5-4.5 in. cutting heights Visit rurallifestyledealer.com/rs and indicate No. 309 Visit rurallifestyledealer.com/rs and indicate No. 308 ENCORE EQUIPMENT FUZION RIDING MOWER • Side discharge, bag or mulch capabilities • Long-life, maintenance-free spindles • Zero turning radius trimming ability • Wide track rear wheel base CHARTER SOFTWARE ASPEN SYSTEM ADVANCED RENTAL MANAGEMENT • Helps users make timely decisions such as when to expand or transfer units out of fleet • Tracks rental income by market segment, equipment type and other configurable categories; records lost sales directly from rental calendar • Additional capacity feature allows rental of non-rental units if needed • Integrated CRM component alleviates need for separate CRM software Visit rurallifestyledealer.com/rs and indicate No. 307 Visit rurallifestyledealer.com/rs and indicate No. 310 EXMARK LAZER Z X-SERIES MOWER • RED on-board intelligence technology increases fuel efficiency of Kohler EFI powerplant engine while delivering improved responsiveness and performance in wide variety of cutting conditions • Operates in lower rpm range without sacrifice to blade tip speed or cut quality • Clutch saver feature and monitoring of vital engine parameters such as engine temperature and oil pressure Visit rurallifestyledealer.com/rs and indicate No. 311 TORO Z MASTER 5000 SERIES EFI PROPANE MOWER • Closed-loop, electronic fuel injection Kohler Command Pro engine • Turbo Force cutting deck in 60 and 72 in. widths • 7-gauge steel, robust cast iron spindle housings and high- strength steel blades • Deluxe suspension seat and 3-D isolation mounts for maximum comfort; available with rear discharge deck Visit rurallifestyledealer.com/rs and indicate No. 312 50 R U R A L L I F E S T Y L E D E A L E R n FA L L 2 0 1 3 |
| Lawn Tractor & Zero-Turn Mowers WOODS EQUIPMENT CO. FZ22K FRONT-MOUNT ZERO-TURN FINISH MOWER • Choice of three mower decks and five attachments: mulching kit, grass collection system, dozer blade, sweeper and snow thrower • 22 hp, gas powered, commercial- grade Kawasaki V-Twin OHV engine • 8.5 gal. fuel capacity RHINO TWISTER ZERO-TURN MOWER • Durable enough for any homeowner and small enough to fit in garage • Ground speed up to 8 mph • 44 or 52 in. mowing widths • 20 or 25 hp Kohler engine Visit rurallifestyledealer.com/rs and indicate No. 314 Visit rurallifestyledealer.com/rs and indicate No. 313 COUNTRY CLIPPER DEFENDER ZT MOWER • Available in 60 or 72 in. cut widths with engine options of 25.5 hp Kawasaki, 27 hp Kohler Command, or 35 hp Kawasaki • Stand-up deck for easy maintenance • 26 in. rear tires; fuel tank placed under seat creates low center of gravity • Deluxe suspension seat, mounted on vibration isolators with 3 in. travel suspension; adjustable lumbar support, back and seat cushion angle Visit rurallifestyledealer.com/rs and indicate No. 315 BUSH HOG PZ ZT MOWER • 27 or 30 hp Kohler OHV engine; variable speeds from 0-14 mph • 61 and 73 in. cutting widths with 7 gauge welded decks • Pivoting front axle reduces scalping and deck wear; deck suspended from front axle provides better contour • Deluxe high-back, full-suspension seat with arm rests and operator weight, lumbar and fore and aft adjustments Visit rurallifestyledealer.com/rs and indicate No. 316 HUSQVARNA M-ZT SERIES ENTRY-LEVEL COMMERCIAL ZERO-TURN MOWER • Rugged, fabricated decks with cast iron blade spindles, premium seats, commercial duty 12cc integrated transmissions and high hp engines • 810cc Endurance commercial engines feature cyclonic air filtration to reduce service intervals and increase engine life • Available in 52 and 61 in. variants Visit rurallifestyledealer.com/rs and indicate No. 317 JOHN DEERE Z925M FLEX FUEL ZTRAK MOWER • Compatible with ethanol blends up to E85 • 24.6 hp electronic fuel injected engine; top speed of 10 mph • Available in 54 and 60 in. widths • Isolation seat or fully-adjustable, suspension seat and integrated material collection system optional Visit rurallifestyledealer.com/rs and indicate No. 318 GRASSHOPPER 226V MOWER • 26 hp professional series v-twin engine, advanced debris management system and 12 gal. fuel capacity • Commercial-grade Parker pump and wheel motor drive system • Robotically-welded fabricated 5.5 in. deep cutting decks with optional down discharge mulching and PowerVac capability • Contoured cushioned seat with coil- spring suspension, foldable armrests and HydraSmooth dampened dual steering levers that adjust to operator’s reach Visit rurallifestyledealer.com/rs and indicate No. 319 R U R A L L I F E S T Y L E D E A L E R n FA L L 2 0 1 3 51 |
| Tillers DEGELMAN PRO-TILL TILLAGE TOOL • Shreds residue at over 10 mph; ensures uniform distribution of residue • Independent disc arms, small diameter shallow discs, motion dampening rubber suspension, sturdy frame and consolidating rollers • For field finishing, leveling and filling ruts and tracks in spring or fall • Corrugated rollers break down straw and encourage seeds to germinate and grow in shortest possible time TAR RIVER ROTARY TILLER • DLT sub-compact series consists of 42 and 50 in. models • TXG compact series has gear drive system typically found on heavier duty tillers; available in working widths of 41, 50 and 59 in. • YCT medium-duty series available in 58, 66, 72 and 81 in. working widths • Slip-clutch PTO protection Visit rurallifestyledealer.com/rs and indicate No. 321 MASCHIO GASPARDO DIABLO TILLAGE TOOL • Primary and secondary tillage operations in one shot • Deep soil tillage; hard pan breaking; water drainage/soil aeration; soil cultivation with residue incorporation • Builds up organic matter in superficial layers improving soil structure and capillarity as incorporated residue breaks down Visit rurallifestyledealer.com/rs and indicate No. 320 Visit rurallifestyledealer.com/rs and indicate No. 322 HCC SMART-TILL ROTARY MODULE • Harrows can be varied up to 30 degrees at either standard or aggressive angles • Increases potential to optimize fields’ finish • Tines create variable amounts of loosened soil depending on setting chosen — sets depth of penetration, allowing for changes according to field conditions and crops • Adjustable harrow angle and reversibility provide full range of tillage options Visit rurallifestyledealer.com/rs and indicate No. 323 K-LINE SPEEDTILLER • Transforms fields with high residues into level seedbeds, finished and ready to seed • Effective residue management and incorporation builds humus levels in soil • Adjustable individual rubber torsion disc mounting system, combined with heavy duty roller, for excellent soil mixing and maximum cut out • For use in corn stalks, cereal crops and pastures Visit rurallifestyledealer.com/rs and indicate No. 324 Visit RuralLifestyleDealer.com/RS and indicate No. 115 52 R U R A L L I F E S T Y L E D E A L E R n W I N T E R 2 014 |
| Tractor & Skid Steer Attachments & Implements AUTOTECH TX SERIES ROTARY TILLER • Single piece structure top hitch and double torque tube • Heavy-duty 16A side chain drive or gear drive Visit rurallifestyledealer.com/rs and indicate No. 325 CEATTACHMENTS SALT, SEED & FERTILIZER SPREADER SWEEPEX MEGA 600 SWEEPER • 60 in. long mainframe; eight rows of reversible brush sections • Durable polypropylene bristles • Built with no moving parts • Minimizes dust and flying debris Visit rurallifestyledealer.com/rs and indicate No. 328 • Available in skid steer and 3-pt. mount • Minimal moving parts; low profile design • Optional gate assembly controls flow of light materials • Heavy-duty 12V DC motor in weather-tight enclosure Visit rurallifestyledealer.com/rs and indicate No. 329 LAND PRIDE SGR15 SERIES ROCK GRAPPLE SEPPI M. MIDIFORST FRESA SOIL TILLER • Grinds, tills and eliminates harvest residues; 11 cm working depth • Cat. 2, central fixed, ISO 3-pt. linkage • 1,000 rpm gearbox with freewheel; double drive • 10 belts, double chains and hood with grader blade Visit rurallifestyledealer.com/rs and indicate No. 326 • Dual hydraulic cylinders to grasp uneven loads • 3 in. spacing between teeth to sift smaller debris • Available in 66, 72 and 78 in. widths Visit rurallifestyledealer.com/rs and indicate No. 330 Questions? Need Help? Call 888-337-8999 www.heavyhitch.com Sub-compact And Compact Tractor Attachments Made In The USA With American Made Steel. BUSH HOG RTC50G TILLER • Gear-driven • For tractors from 15-25 hp • Six tines per flange provide maximum mulching of material • Clutch-equipped driveline and adjustable rear tailgate for leveling cut material Visit rurallifestyledealer.com/rs and indicate No. 327 Improved Function And Ease Of Use Adds To The Value Of Our Compact Tractor Attachments And Tractor Hitches. Visit RuralLifestyleDealer.com/RS and indicate No. 110 R U R A L L I F E S T Y L E D E A L E R n W I N T E R 2 014 53 |
| Tractor & Skid Steer Attachments & Implements WORKSAVER ADAPTER BRACKET PREMIER DOWN PRESSURE MOUNTING BRACKET • For skid steer loaders • Solid steel • Weighs 500 lb. — additional 100 lb. cast weights added, with capacity for 12 total weights Visit rurallifestyledealer.com/rs and indicate No. 331 • Increases tractor productivity by converting loader to universal skid steer quick attachment system • Designed for select John Deere, Kubota, Massey Ferguson, New Holland and Case IH loaders • Also available for compact and standard pin-on loaders • All welded frame, plated handles and springs; allows user to easily switch attachments between skid steer loader and tractor loader Visit rurallifestyledealer.com/rs and indicate No. 332 WESTENDORF BC-8800 BRUSH CRUSHER • Interchangeable quick attach works with loaders and skid steers • Heavy-duty, independent teeth conform tightly around unruly and uneven loads • Elimination of bucket allows penetration to center of load • Removable center teeth quickly dismount on built-in stand for working with bulky material • Dual cylinders hidden inside power teeth to stay protected from debris and damage Visit rurallifestyledealer.com/rs and indicate No. 333 Tractor Weights Made in America! ART’S WAY REAR STEER LAND GRADER Tractor Weights Made OF America! Taylor Foundry Company Wichita Falls, Texas sales@taylorfoundry.com 800-272-3456 Tractor Weights That CREATE JOBS in AMERICA! www.TractorWeights.com Visit RuralLifestyleDealer.com/RS and indicate No. 119 54 R U R A L L I F E S T Y L E D E A L E R n W I N T E R 2 014 • Offset grader blade up to 5 ft. with rear steer option to maneuver around tight areas • 15 in. ground clearance and 30 in. blade that tilts up to 15 degrees for slope cuts • 43 degrees of angle • 9, 12, 14 and 16 ft. models Visit rurallifestyledealer.com/rs and indicate No. 334 AVANT COLLECTING LAWNMOWER 1500 ATTACHMENT • 59 in. cutting width and 210 gal. collector box • High suction power collects tree leaves and rounded edge design reduces damage to trees, buildings, etc. • Cuts grass and leaves to fine mulch that packs tightly into collector box • Mulch emptied from driver’s seat with flip of switch Visit rurallifestyledealer.com/rs and indicate No. 335 |
| Tractor & Skid Steer Attachments & Implements AVANT PALLET FORK • Compatible with 400, 500, 600 and 700 series Avant loaders • Available in 30, 36, 42, 45 and 48 in. • Lightweight, open design provides good visibility and adjustable fork spacing • Quick attach mount and bolt on back guard Visit rurallifestyledealer.com/rs and indicate No. 336 TIMBERWOLF MFG. TW-3SSR CONVERTIBLE SKID STEER SPLITTER • Easily switches from normal position to inverted position in one minute • Optional 4-way wedge and table grate • Allows operator to easily flip machine over to split logs right onto woodpile Visit rurallifestyledealer.com/rs and indicate No. 339 DANUSER EM40 HAMMER POST DRIVER • No springs, cylinders or return lines • Full stroke with every cycle for maximum impact energy • Grapple option picks up post from ground without additional hydraulics or controls; tilts up to 20 degrees, left or right • Drives anything from t-posts to railroad ties; attaches to skid steer and front-end loaders with skid steer or euro/global quick attach Visit rurallifestyledealer.com/rs and indicate No. 340 ADVERTISERS INDEX Alamo Group Inc – Rhino.......................................... 5 Art’s Way Manufacturing Co Inc.............................. 27 DIRT DOG 91 SERIES BLADE • 7 and 8 ft. widths • Tilt, angle and offset manual or hydraulic • Cat. 1 and 2 quick hitch compatible • 5/16 in. reinforced moldboard; 0.5 x 6 in. reversible cutting edge Visit rurallifestyledealer.com/rs and indicate No. 337 HEAVY HITCH TRACTOR HITCH Basic Software..............................................18-19, 47 • Workability of 2 in. receiver hitch; increased load handling with front end loader and better stability • Add up to 600 lb. of weight; take sub-compact, compact and standard tractor to the next level with better traction, improved load handling and greater stability Charter Software Inc................................................ 49 Visit rurallifestyledealer.com/rs and indicate No. 341 Bush Hog ................................................................ 58 Camera Source ...................................................... 43 Cross Manufacturing Inc.......................................... 26 Dutton - Lainson Co................................................. 28 Exmark Manufacturing Co Inc................................... 3 Farm King.................................................................. 9 Heavy Hitch............................................................. 53 Hotsy Cleaning Systems......................................... 15 Kawasaki Engines and Power Products.................. 57 KIOTI Tractor............................................................. 2 Land Pride....................................................29-32, 39 LS Tractor USA ...................................................... 22 Maschio Gaspardo SpA........................................... 52 Premier Augers........................................................ 38 Rural Lifestyle Dealer.............................................. 33 SPEECO MANURE SPREADER • Attaches to garden tractor or ATV • Corrosion-resistant aluminum construction • Industrial grade locking hubs and chain driven agitator • 8 cu. ft. capacity Visit rurallifestyledealer.com/rs and indicate No. 338 Rural Lifestyle Dealer Dealership of the Year........ 17 SI Distributing Inc.................................................... 20 SEPPI M SpA.......................................................... 21 Taylor Foundry Co................................................... 54 Tonutti USA............................................................. 37 Toro Company The.................................................... 7 TYM USA................................................................. 13 Every effort has been made to ensure that this advertisers index is accurate. However, the publisher cannot be held responsible for errors or omissions. R U R A L L I F E S T Y L E D E A L E R n W I N T E R 2 014 55 |
| Take the Lead Set a Clear Plan for 2014 To start your year off right, you must know where you want the year to end. A winning year begins with a winning plan. A winning plan should balance long-term directives and short-term actions. To achieve your winning plan, you must include strategic thinking and execu- tion planning. Strategic thinking is looking at the “big picture” and answering the key questions facing your company. For instance, who is your core customer? Your core customers are the set of individuals that you want to attract and spend most of your time with. Write down the wants, needs and prob- lems of your core customer, so you can clearly address and solve them. Also, know exactly how your prod- uct or service benefits them. You may even want to think of specific custom- er names to help you identify what your core customer looks like. Once you have a clear understanding of your core customer, make sure that you dedicate your marketing and sales resources to serve and engage them. Another key question during the strategic thinking process is what do you promise your core customer? The strategic term I use here is brand promise. A brand promise is the two or three things that you will fulfill for your customers. These promises should set you apart from your com- petition and give you guidance when making decisions for your company. Make sure your promises clearly address your core customers’ wants, needs and problems. A great starting point is to write down the first thing that comes to mind. Other strategic thinking topics include setting 3-year goals and pri- orities; defining your product/service offerings and pricing; and determin- 56 ing what staffing is needed to fulfill the 3-year plan. Involve your team in answering these questions. Once you have your core strategy nailed down, the execution planning process will be more systematic and sequential. Now, on to execution planning. Execution planning is identifying and then focusing on the most important priorities that will move the company forward in the next 3-12 months. It starts with the senior team set- ting annual revenue and profit targets based on sales forecasts from the sales team. Define appropriate targets, his- tory, industry trends, competitive cli- mate, market opportunities and team skills and abilities. And, certainly include the challenges you are fac- ing. Once your goals are agreed upon, share them with the entire team. Goals motivate and guide your team. To start your year off right, you must know where you want the year to end. The next step for the senior team is to establish a handful of overarch- ing priorities for the coming year. You should not have any more than 3-5 pri- orities that your company should focus on at a time. A priority is the item that you must get right in order to achieve the desired results. For example, if you have a goal to grow revenue 10%, what is the most important item that must be done to achieve that? It could be a clear marketing message that will attract new customers; a new focus for the sales team; new product launch; or even all three of these. The priorities that you determine will guide everyone’s actions, plans and focus. Selecting the right priori- ties is critical to achieving your goals. Select the wrong priorities and you will have distractions and will not RURAL LIFESTYLE DEALER n WINTER 2014 Monte Wyatt, Contributing Writer achieve your desired results. Your managers should then select their annual priorities for their respec- tive departments. The priorities they select should support the company’s defined priorities and will be more spe- cific in nature. Now that you have identified your annual priorities, move into quarterly thinking. What will you focus on in the upcoming quarter that needs to be accomplished to achieve the annual goals? All team members should have quarterly priorities and an action plan that contains the winning moves with specific dates, items to complete and benchmarks that will guide them to success. If you develop that, everyone in the company is now driving execu- tion planning. Without a strategy that differenti- ates your company from the competi- tion, you will quickly find you are just executing a mess. Take the time for strategic thinking and execution plan- ning to ensure that everyone on your team is aligned for success. Great lead- ers take organizations places they never thought possible. R LD As one of the top coaches for the ActionCOACH Business Coaching firm, Monte Wyatt brings more than 20 years of leadership and personal development experience to executives and business owners. Wyatt coaches executives and business owners one-on-one and con- ducts public and private workshops and seminars. He is a keynote speaker and a results-oriented business coach. He is also a trainer and coach for other busi- ness coaches around the world. Wyatt’s goal is to help business owners and executives reach their full potential with clarity. To learn more, visit his website, www.montewyatt.com. |
| Visit RuralLifestyleDealer.com/RS and indicate No. 112 |
| Visit RuralLifestyleDealer.com/RS and indicate No. 104 |
