The ability to capture recurring revenue is essential to growing a precision business. But moving from a free to fee mentality with service requires more than simply putting a price tag on support and expecting customers to open their checkbooks.
Establishing a foundation for consistently billing out precision service time is an ongoing goal for many dealers. However, gains are being made as more retailers target this area as a driver of business growth. The 2016 Precision Farming Dealer Benchmark study revealed a 4 year high for the overall percentage of dealers citing independent service revenue as their primary precision business objective. Some 15% of dealers identified this as their number one precision priority, topping the totals from 2015 (10.9%), 2014 (14.2%) and 2013 (7.7%).
During a dealer-to-dealer panel discussion at the 2017 Precision Farming Dealer Summit on Jan. 9, three precision farming managers will share their experience-based advice for turning specialists’ time in the field into a recurring revenue stream for your dealership.
Speakers for this panel include:
Twan van Ham
Twan van Ham, Integrated Solutions Manager at Western Tractor Co., based in Lethbridge, Alberta. Selling and servicing ag technology since the mid 1990s, van Ham spearheaded formal development of the 4-store, phase 4 dealership’s precision farming department 5 years ago. In the last 2 years alone, precision revenues have grown more than 500%, thanks in part to development of the dealership’s data management service and support plan. Managing the highest percentage of engaged acres in MyJohnDeere.com’s operations center among his peers, van Ham will share how Western Tractor’s suite of support plans, technology network support, product offerings and training has evolved into a profitable recipe.
Colin Hlavinka, precision farming manager at Hlavinka Equipment Co., in El Campo, Texas. After nearly 3 years as an equipment salesperson, Hlavinka transitioned into his current role of managing a team of 3 precision specialists covering 8 stores. Leveraging service agreements as “partnerships” with customers, Hlavinka follows the proven retail format of add-on selling — usually doubling service visit costs with additional parts or support. He will detail how the dealership has gone from no precision service program to a 30% customer adoption rate in 3 years and the value of taking a “you want fries with that?” mentality to create additional precision service revenue.
Nathan Zimmerman, precision farming manager at A.C. McCartney in Mount Sterling, Ill. A product technology specialist for 5 years, Zimmerman became the manager of the Mount Sterling store, while overseeing precision farming operations of the 4-location group. As the primary contact for precision service, he helped develop and launch an unlimited phone support plan to include a 10% discount on labor and technology parts, 2 training sessions and free loaner equipment. Zimmerman will share tips and experience-based advice for billing out phone support and how the dealership achieved a 30% take-rate on its service plan in the first year.
Co-located with the 25th Annual National No-Tillage Conference, the 2017 Summit will be held Jan. 9-10 at the Hilton St. Louis at the Ballpark. Among the Title Sponsors making the learning and networking opportunities possible for dealers are CDK Global, Charter Software Inc., Equip IQ, Farmers Edge, LaForge Systems, Montag Manufacturing, MZB, Reichhardt, Western Equipment Dealers Assn. and Yetter Farm Equipment.
View the complete 8 page program here. For more information and to register for the Summit (discounted for dealers who register prior to Oct. 14), click here or visit www.PrecisionSummit.com. Stay tuned for more updates and speaker announcements. We’ll see you in St. Louis!