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.

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.

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.

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.

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?”

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.

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.