June 2015

Table of Contents

Table of Contents

To The Point: Winners Want to Keep Score

By Mike Lessiter posted on June 11, 2015 | Posted in Best Practices, Operations & Finance

With big-ticket machinery sales down, there’s another challenge to watch … shell-shocked salespeople citing reasons NOT to press on.
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Special Report: Understanding Your Cost of Doing Business

June 11, 2015 | Posted in Operations & Finance, Department Management

“As dealers we need to know what we need to be doing today to be successful and figure out what our action plan is to achieve our goals,” says Ron Birkey, chairman of Birkey’s Farm Stores.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More

Cost of Doing Business: How to Use CODB Numbers to Up Your Dealership's Performance

Data collected by dealer associations for more than 50 years is another tool dealers can use to measure and monitor their business performance.

By Mike Wiles posted on June 11, 2015 | Posted in Operations & Finance, Department Management

The year 2015 may well be a trying one for many farm equipment dealerships. Recent record profits and tax incentives have allowed farmers to own a fleet of new or nearly new equipment. In the future, equipment purchases may be severely restricted if there are changes in earnings or tax rules.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More

Cost of Doing Business: What the Numbers Can Tell Us

Comparing Cost of Doing Business numbers to a hypothetical dealership demonstrates how to pinpoint trouble spots in our financials.

By Mike Wiles posted on June 11, 2015 | Posted in Operations & Finance, Department Management

In this part of the special report, the Western Equipment Dealers Assn. (WEDA) provided an analysis of finances and operations of a hypothetical dealership named Brookfield Farm Equipment, or BFE, using the 2014 Cost of Doing Business study for comparison purposes. This particular dealer would fall in the larger group of dealers with more than $75 million in annual sales.
Read More

Cost of Doing Business: How Far Have We Really Come?

Tracking financial and operational measures shows how dealers have or have not improved their business performance over the years.

By Dave Kanicki posted on June 11, 2015 | Posted in Operations & Finance, Department Management

Any farm equipment dealer who's been around more than a few years knows how dramatically this business has changed. For one thing, everything about agriculture seems to have gotten bigger: bigger dealers with bigger sales territories; bigger customers with bigger demands; bigger and more expensive equipment; bigger top and bottom lines.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More

Cost of Doing Business: Why Ag Parts Sales Differ from Other Industries

June 11, 2015 | Posted in Data & Forecasts, Department Management

While some farm equipment dealers have managed to attain 100%-plus parts and service absorption rates, the industry as a whole only achieves about a 62% rate, according to the 2014 Western Equipment Dealers Assn.’s Cost of Doing Business study. The industry’s benchmark for absorption is 80%-plus. At the same time, ag equipment dealers are often compared to construction equipment and other dealers who handle heavy equipment and typically achieve higher absorption rates.

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Web Exclusive

A Historical Perspective: Benchmarking Seven Decades of Dealer Data

June 11, 2015 | Posted in Data & Forecasts, Operations & Finance

While Farm Equipment’s special report on dealers cost of doing business, which appeared in its June 2015 issue, covers the period of 1970 through 2014 in 5-year increments, the data actually goes all the way back to 1947. The following charts track four of farm equipment dealers’ financial measurements for the 11 year period between 1947-1957.
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Business of Selling: Ensuring Territorial Coverage

By Dr. Jim Weber posted on June 11, 2015 | Posted in Department Management

Two of the most important responsibilities of an equipment salesperson are to maintain relationships with existing customers while simultaneously securing new customers. One of the primary responsibilities of the dealer/sales manager, therefore, is to see that those responsibilities are done efficiently and effectively. One way of accomplishing this is to establish meaningful territories for each salesperson and to periodically review how each salesperson is performing within that territory.
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Ahead of the Curve: VR Motors Finding Ag Applications

By Dan Crummett posted on June 11, 2015 | Posted in Precision Ag Sales & Service, Product Innovations & Introductions

The technology behind variable frequency drives (VFD) is nothing new in machine shops and various other industrial applications. But with the advent of faster and more precise switching capabilities of modern microprocessors, the mechanically simple, multi-speed, multi-voltage, variable reluctance motors used in VFDs are poised to make a move into agricultural applications.
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People and Profits: Professional Development — How to Be a Better Coach: Part 1 of 2

Discover how active coaching can be a vehicle that drives performance and accountability in your dealership.

By George Russell and Erik Thompson posted on June 11, 2015 | Posted in Department Management

A coach’s job is to foster one-to-one relationships that challenge people to rise to higher levels of competence and responsibility. This article will discuss three key characteristics of an effective coach.
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Industry Q&A: 2015 Farm Equipment Forecast Adjustments

By Kim Schmidt posted on June 11, 2015 | Posted in Data & Forecasts, Operations & Finance

Have you adjusted your 2015 forecast?
Read More
Featured Articles

Featured Articles

Cost of Doing Business: How to Use CODB Numbers to Up Your Dealership's Performance

Data collected by dealer associations for more than 50 years is another tool dealers can use to measure and monitor their business performance.

By Mike Wiles posted on June 11, 2015 | Posted in Operations & Finance, Department Management

The year 2015 may well be a trying one for many farm equipment dealerships. Recent record profits and tax incentives have allowed farmers to own a fleet of new or nearly new equipment. In the future, equipment purchases may be severely restricted if there are changes in earnings or tax rules.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More

Cost of Doing Business: What the Numbers Can Tell Us

Comparing Cost of Doing Business numbers to a hypothetical dealership demonstrates how to pinpoint trouble spots in our financials.

By Mike Wiles posted on June 11, 2015 | Posted in Operations & Finance, Department Management

In this part of the special report, the Western Equipment Dealers Assn. (WEDA) provided an analysis of finances and operations of a hypothetical dealership named Brookfield Farm Equipment, or BFE, using the 2014 Cost of Doing Business study for comparison purposes. This particular dealer would fall in the larger group of dealers with more than $75 million in annual sales.
Read More

Cost of Doing Business: How Far Have We Really Come?

Tracking financial and operational measures shows how dealers have or have not improved their business performance over the years.

By Dave Kanicki posted on June 11, 2015 | Posted in Operations & Finance, Department Management

Any farm equipment dealer who's been around more than a few years knows how dramatically this business has changed. For one thing, everything about agriculture seems to have gotten bigger: bigger dealers with bigger sales territories; bigger customers with bigger demands; bigger and more expensive equipment; bigger top and bottom lines.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More
Online Extras

Online Extras

Cost of Doing Business: Why Ag Parts Sales Differ from Other Industries

June 11, 2015 | Posted in Data & Forecasts, Department Management

While some farm equipment dealers have managed to attain 100%-plus parts and service absorption rates, the industry as a whole only achieves about a 62% rate, according to the 2014 Western Equipment Dealers Assn.’s Cost of Doing Business study. The industry’s benchmark for absorption is 80%-plus. At the same time, ag equipment dealers are often compared to construction equipment and other dealers who handle heavy equipment and typically achieve higher absorption rates.

Read More

Special Report: Understanding Your Cost of Doing Business

June 11, 2015 | Posted in Operations & Finance, Department Management

“As dealers we need to know what we need to be doing today to be successful and figure out what our action plan is to achieve our goals,” says Ron Birkey, chairman of Birkey’s Farm Stores.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More

Cost of Doing Business: How to Use CODB Numbers to Up Your Dealership's Performance

Data collected by dealer associations for more than 50 years is another tool dealers can use to measure and monitor their business performance.

By Mike Wiles posted on June 11, 2015 | Posted in Operations & Finance, Department Management

The year 2015 may well be a trying one for many farm equipment dealerships. Recent record profits and tax incentives have allowed farmers to own a fleet of new or nearly new equipment. In the future, equipment purchases may be severely restricted if there are changes in earnings or tax rules.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More

Cost of Doing Business: What the Numbers Can Tell Us

Comparing Cost of Doing Business numbers to a hypothetical dealership demonstrates how to pinpoint trouble spots in our financials.

By Mike Wiles posted on June 11, 2015 | Posted in Operations & Finance, Department Management

In this part of the special report, the Western Equipment Dealers Assn. (WEDA) provided an analysis of finances and operations of a hypothetical dealership named Brookfield Farm Equipment, or BFE, using the 2014 Cost of Doing Business study for comparison purposes. This particular dealer would fall in the larger group of dealers with more than $75 million in annual sales.
Read More

Cost of Doing Business: How Far Have We Really Come?

Tracking financial and operational measures shows how dealers have or have not improved their business performance over the years.

By Dave Kanicki posted on June 11, 2015 | Posted in Operations & Finance, Department Management

Any farm equipment dealer who's been around more than a few years knows how dramatically this business has changed. For one thing, everything about agriculture seems to have gotten bigger: bigger dealers with bigger sales territories; bigger customers with bigger demands; bigger and more expensive equipment; bigger top and bottom lines.

Jump to Part 1 Jump to Part 2 Jump to Part 3

Read More

Industry Q&A: 2015 Farm Equipment Forecast Adjustments

By Kim Schmidt posted on June 11, 2015 | Posted in Data & Forecasts, Operations & Finance

Have you adjusted your 2015 forecast?
Read More

Farm Equipment

View Archived Issues

June 2015

Table of Contents

To The Point: Winners Want to Keep Score

Special Report: Understanding Your Cost of Doing Business

Cost of Doing Business: How to Use CODB Numbers to Up Your Dealership's Performance

Cost of Doing Business: What the Numbers Can Tell Us

Cost of Doing Business: How Far Have We Really Come?

Cost of Doing Business: Why Ag Parts Sales Differ from Other Industries

A Historical Perspective: Benchmarking Seven Decades of Dealer Data

Business of Selling: Ensuring Territorial Coverage

Ahead of the Curve: VR Motors Finding Ag Applications

People and Profits: Professional Development — How to Be a Better Coach: Part 1 of 2

Industry Q&A: 2015 Farm Equipment Forecast Adjustments

Featured Articles

Cost of Doing Business: How to Use CODB Numbers to Up Your Dealership's Performance

Cost of Doing Business: What the Numbers Can Tell Us

Cost of Doing Business: How Far Have We Really Come?

Online Extras

Cost of Doing Business: Why Ag Parts Sales Differ from Other Industries

Special Report: Understanding Your Cost of Doing Business

Cost of Doing Business: How to Use CODB Numbers to Up Your Dealership's Performance

Cost of Doing Business: What the Numbers Can Tell Us

Cost of Doing Business: How Far Have We Really Come?

Industry Q&A: 2015 Farm Equipment Forecast Adjustments

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