Any business leader knows that a good idea can come from anywhere. Linda Ellens, co-owner and controller at Ellens Equipment, understands this and impresses upon her employees that no money saving idea is too small as they strive to improve their parts and service absorption rate. The employees are further incentivized as Linda provides examples of how expense savings come back to benefit the employees in a big way.

In this video sponsored by IRON Solutions, Tom and Steve Janson of the 2011 Dealership of the Year award-winner Janson Equipment Company share their thoughts on recovery rates and their company's goals.

In this video sponsored by IRON Solutions, Tom and Steve Janson of the 2011 Dealership of the Year award-winner Janson Equipment Company discuss absorption rates and what they mean to their business.

Tom Janson has been selling farm equipment for the dealership founded by his grandfather for more than 30 years. After a 6-year sabbatical, his cousin, Steve Janson, came back into the business in 1993. As much as the farm machinery business has changed during the last decade alone, the influence their grandfather and fathers have had on the way they do business is obvious.

Birkey’s Farm Stores believes that rewarding performance should go beyond the sales department and should also go beyond being just another way to get paid. At least that’s the way Mark Foster, Ag Division manager sees it.

Absorption is the most important financial measure for successful farm equipment dealerships. Some may argue with “most important,” but all will agree that higher absorption rates are a good thing and that 100% absorption should be the objective.

Improve farm equipment dealer service department results by developing a service scoreboard.

The Link Between Sales & Absorption