Items Tagged with 'Absorption Rates'


Improving Efficiency & Costs in the Parts & Service Departments

As Ellens Equipment — Farm Equipment’s 2017 Dealership of the Year in the under $75 million in revenues category — has grown in recent years, it became clear changes in the service and parts departments were needed to help improve efficiency, reduce costs and ultimately improve the dealership’s absorption rate.

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Valley Truck & Tractor: Planning Service Operations for the Long Term

In 2016, Valley Truck & Tractor achieved a parts and service absorption rate of 106%. According to the Western Equipment Dealers Assn.’s (WEDA) 2016 Cost of Doing Business study, the farm equipment industry average absorption rate was 64%, with an industry benchmark target of 80%-plus.
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Dealership of the Year 2017: Ellens Equipment, McBain, Mich.

What do you get when the son of the local New Holland dealer marries the daughter of the local Case IH dealer? While this sounds like the start to a bad joke, it’s actually the foundation of the Ellens Equipment ownership team, a couple who knows a thing or two about running a successful dealership and who treats the business like another one of their children (including knowing when it’s time to let them spread their wings).
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Dealership of the Year 2015: Salem Farm Supply Inc. Salem, N.Y.

Category: Under $75 Million in Revenues
Carole Lewis, president of Salem Farm Supply, didn’t plan on making her living as a farm equipment dealer, but life had different plans for her. Her father, Philip Lewis, purchased Salem Farm Supply in 1988 from the original owner. Philip was an investment banker from New York City who had moved to the area intending to buy a business. One day, he came in to Salem Farm Supply looking to buy a tractor, and he ended up buying the dealership, Lewis says.
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