According to the 2024 Dealer Business Outlook & Trends Report, 49.4% of dealers are forecasting their service revenue will increase at least 2% in 2024 vs. 2023.
65% of dealers expect losses in revenue of excess of 9% due to the inability to hire open tech positions, with 34.7% projecting losses in excess of 20%.
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.
Chad Stoline, corporate service manager for Van Wall Equipment, explains that a majority of the dealership's service revenue comes from preventative maintenance service specials. Large storage sheds on Van Wall's lot allow the service techs to stage equipment under a roof without taking up space in the shop, which is appealing to customers. Van Wall Equipment earned top honors in Farm Equipment's 2016 Dealership of the Year program.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take a look at how the flooding in Texas will impact the ag industry and check in with some dealers in the region.
Since 1980, A&I Products has become a leading manufacturer and wholesale distributor of aftermarket replacement parts for the agricultural, turf, and industrial equipment markets. A&I Products' experience and expertise has greatly contributed to the company's reputation as a top supplier of quality, reasonably priced parts. Founded with roots as a small machine shop and repair facility, the company made the transition by manufacturing new parts to replace those that were identified as commonly needing repair. Throughout the 1980s, the company quickly garnered a reputation for offering quality parts at a reasonable price.
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
At Machinery Scope, we believe you deserve the best risk management solutions for your investments in heavy equipment. Since 2013, we have been proud to offer extended warranty, appraisals, and inspections. Machinery Scope is a family-owned business built on our experience in farming and equipment dealerships. We understand your business and provide a personalized and professional level of customer service. Machinery Scope has built a strong warranty product with our customers in mind, offering the same professional level of service from the time you get a quote, through the processing of a claim.