In many respects, precision farming has become an increasingly specialized business, as dealers seek to differentiate themselves from the competition with customized services.
But carving out a profitable precision niche requires a disciplined approach to identifying the need, filling the void and then capitalizing on growth potential.
During a dealer-to-dealer panel discussion at the 2019 Precision Farming Dealer Summit on Jan. 7-8, you will hear 3 precision farming specialists share their secrets for meeting their respective customer markets with specialized technology solutions that have provided recurring revenue streams and set them apart from the competition.
Speakers for this panel include:
Matt Miller, product specialist, Butler Ag Equipment, Fremont, Neb. Working with customers across a wide service area can present both benefits and drawbacks. Miller has taken an opportunistic approach to providing customized precision services, that can be broadly applied across the dealership’s 18 locations in Nebraska, South Dakota and North Dakota.
In his 5 years as a precision product specialist, he has helped develop and broaden the dealership’s RTK subscription network, increasing revenue each year, and also led the launch of Butler’s test plot tour in 2018.
“In just our first year, we’ve already seen the early benefits in aftermarket planter technology sales and services,” Miller says. “But it’s also been a learning experience and I know there are longer-term revenue opportunities we’ll be able to capture.”
Miller discusses the dealership’s recent investments and implementation of targeted precision product and service programs, from marketing and management to mapping out growth strategies.
Jason Leary, ag technology lead, Crystal Valley Co-op in Madelia, Minn. With dealers and retailers making precision service more of a revenue priority, there is increasing opportunity to provide specific pieces of support that combine for a comprehensive package. This is the approach Leary has taken during his 8 years with the 1,800-member co-op’s 3 interconnected precision departments — soil fertility, data analytics and hardware sales and service.
“A key focus of our fertility and seed prescriptive services is quality data,” he says. “While data collection methods vary across the industry, we set ourselves apart by performing most, if not all, of our measurements in-house.”
Leary shares how the co-op is leveraging its internal investment in specialization to achieve nearly 50% of precision revenue coming from service, including variable-rate recommendations, replicated research and product performance information.
P.J. McCullough, precision farming sales, McCullough Implement, in Watseka, Ill. It’s no secret that most precision farming dealers make their money selling technology and services to farm customers with large farming operations.
But McCullough has found continued success, and need serving smaller-acre customers in their area, creating entry points for recruiting and retaining new precision business. As the primary precision salesperson at the single-store dealership, McCullough has seen an increase in the 400-600 acre customers who are incorporating more technology into their operations.
“There’s a lot of loyalty with this customer base. They aren’t going to shop us with 14 other stores and nickel and dime us,” McCullough says. “It may take a little more time on my part, but these sales tend to generate more dollars per deal.”
McCullough shares his strategy for attracting, converting and retaining smaller operators with introductory technology and how that can translate to recurring revenue.
3 Things You Will Learn From this Session
- How to put test plots to work as an low-cost entry point to attracting equipment and service sales
- Which niche data services can contribute to broader customer buy in for agronomic support
- The value and opportunity of servicing small-acre customers as recurring revenue sources
Co-located with the 27th Annual National No-Tillage Conference, the 2019 Precision Farming Dealer Summit will be held Jan. 7-8 at the Indianapolis Marriott Downtown. Among the Title Sponsors making the learning and networking opportunities possible for dealers are Charter Software Inc., DigiFarm VBN, Laforge Systems, Montag Mfg., Reichhardt, Topcon, AgDNA, AeroVironment, Praxidyn and Yetter Farm Equipment.
For more information and to register for the Precision Farming Dealer Summit click here or visit www.PrecisionSummit.com. Stay tuned for more updates and speaker announcements. We’ll see you in Indianapolis!