gross margins

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Dealers Report Record Aftermarket Revenue, Wholegoods Margins

Dealers reported record aftermarket revenue, as well as record wholegoods gross margins and returns on their assets and equity in the 2022 Cost of Doing Business study.

By Ben Thorpe posted on December 22, 2022 | Posted in Data & Forecasts, Operations & Finance

North American dealers reported strong financial results for 2021, according to the results of the 2022 Cost of Doing Business study from the North American Equipment Dealers Assn. (NAEDA).

Cost of Doing Business

Dealers Report Strong Revenue, Gross Margins & Profits

The latest Cost of Doing Business study reported increased revenue and profit, as well as improving gross margins dollars on parts, service and wholegoods in 2020.

By Ben Thorpe posted on January 24, 2022 | Posted in Data & Forecasts, Operations & Finance

North American dealers reported strong financial results for 2020, according to the results of the latest Cost of Doing Business study from the Western Equipment Dealers Assn. On average per location, revenue, profit and gross margin dollars were all up.

Cost of Doing Business

Dealer Financials Holding Steady

Dealers responding to the latest Cost of Doing Business survey reported improvements in their aftermarket business, but struggled to improve their profits and revenues.

By Ben Thorpe posted on January 25, 2021 | Posted in Data & Forecasts, Operations & Finance

According to the results of the 2020 Cost of Doing Business study from the Western Equipment Dealers Assn., dealers are doing well according to several key financial metrics, including increased aftermarket gross margins and increased revenue per employee.

Margin or Volume: Both Require Discipline

By Dave Kanicki posted on March 25, 2019

Two years ago in this space, the discussion centered on “Margin or Volume?” It appears this may deserve some more attention as dealers continue to confront this age-old retail battle.

Back-Loaded Commission Structure to Change Equipment Sales Behavior

By Trent Hummel posted on October 14, 2017 | Posted in Used Equipment Remarketing, Operations & Finance, Department Management

What I’ve got is a kitchen table education. I come from a long line of wholegoods managers. A lot of you know my dad, Roy. I presented the following ideas to him in 2005 when things were a mess.

Comparing Compensation Programs: Focus on What You Want

AgriVision (John Deere) and Livingston Machinery (AGCO) detail the compensation programs they’ve developed to keep attention on used equipment — and the actions they most want to drive.

By Mike Lessiter posted on October 14, 2017 | Posted in Best Practices, Used Equipment Remarketing, Operations & Finance, Department Management

Used equipment experts agree that there’s no silver bullet when it comes to a compensation plan. There are numerous variables, personalities and ways of doing business and no single program is a panacea. But like most things, as a manager, you get to choose which behaviors you most want to drive, and also the set of challenges that go along with them.

Special Report

Are Dealers’ Parts Operations Improving?

Three years ago farm equipment dealers said they would make a major push to improve the performance of their parts business and bolster their bottom lines. So, how far have they come?

By Dave Kanicki posted on June 10, 2017 | Posted in Best Practices, Data & Forecasts, Department Management

While visiting a Case IH dealer several years ago a farmer walked into the dealership. As he joined in on our conversation it was clear he was a loyal John Deere customer, but he was also a good friend of the owner of the Case IH dealership. He said, “I just came from my dealer down the road and you know what? They don’t have a quart of green paint in that store. They told me they could have it for me by tomorrow. Can you believe that?”

How Dealers are Measuring Up

The 2016 Cost of Doing Business study reveals areas where dealers must up their performance to get back to being profitable.

By Dave Kanicki posted on February 11, 2017 | Posted in Best Practices, Data & Forecasts, Operations & Finance

When it comes to unit sales of farm machinery, in the past 5 years North American farm equipment dealers have seen the highest highs and the lowest lows they’ve experienced in the past 3 decades. As sales rose in 2012 and 2013, so did many of the industry’s operational and financial measures. Likewise, as sales began dipping in 2014, these same indicators reflected the industry’s downturn.

Sponsored Content: Success in Shortline Machinery

Surveys Gauge Dealers' Approach Toward Shortline Products

By Charlie Glass posted on June 13, 2016 | Posted in Niche Equipment Markets

The recent article "What Consultants Say About Shortline-Only Farm Equipment Dealerships" brought to mind the dealer surveys that Farm Equipment Manufacturers Assn. (FEMA) conducted during the early 2000s.

Glossary of Farm Equipment Industry Terms

December 1, 2015

This is a growing list of industry terminology relevant to farm equipment dealers and manufacturers.

Items Tagged with 'gross margins'

ARTICLES

Dealers Report Record Aftermarket Revenue, Wholegoods Margins

Dealers Report Strong Revenue, Gross Margins & Profits

Dealer Financials Holding Steady

Margin or Volume: Both Require Discipline

Back-Loaded Commission Structure to Change Equipment Sales Behavior

Comparing Compensation Programs: Focus on What You Want

Are Dealers’ Parts Operations Improving?

How Dealers are Measuring Up

Surveys Gauge Dealers' Approach Toward Shortline Products

Glossary of Farm Equipment Industry Terms

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