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How Dealers Will Stimulate Rural Lifestyle Sales in 2008

Dealers continue to rely most heavily on newspaper advertising as their main marketing tool, but the Internet is gaining momentum for reaching new customers.

In addition to discerning how farm equipment dealers are forecasting their sales levels to rural lifestyle customers during 2008, the survey also queried their efforts to stimulate sales to hobby farmers and large property owners this year.

Initiatives range from increased and more focused advertising to improving their web presence to developing programs to help educate novice equipment buyers on everything from the basics of farming to maintaining their new equipment.

Tailoring their parts and service programs to the rural lifestyle customer will also be major thrust for some dealers. For example, Mike Wiles of S&H Farm Supply of Rogersville, Mo., says he's promoting "after hours service."

Target Advertising. Advertising remains dealers' most potent form of promotion, with newspaper ads, in particular, the preferred vehicle for delivering their sales message.

When asked what "specific actions" they'll be taking to improve unit sales to hobby farmers and other rural lifestyle customers this year, a large majority says they're increasing their advertising and direct mail efforts. But, more pointedly, they're "segmenting" their print and broadcast promotions to specifically reach out to this audience.

To target the rural lifestyle customer, Hugh Joyce of Farmway Machinery, High River, Alberta, says that he's "advertising specific models rather than running general ads."

Roger Landig, Landig Tractor Co., Tampa, Fla., explains that this year he's "advertising monthly payments instead of retail price."

Showing Them How. In addition to increasing and targeting their advertising expenditures, dealers are participating in more public events, from home and garden and home improvement shows to sponsoring ride-and-drive demonstrations. One dealer is even planning a display at a local shopping mall.

Increasingly, dealers are recognizing the need to build relationships with rural lifestyle customers. For many, that means "showing them how" and teaching them, sometimes starting at square one.

"This spring we are focusing on leasing as well as educating our customers on how to farm and use equipment," says Merle Dietz, Dietz Tractor Co., Seguin, Texas.

Ray DeLong, Triple D Equipment, Deland, Fla., is planning to push demonstrations and training sessions for his customers. "We will demonstrate additional equipment at shows around the county and plan on having ride-and-drive classes at our dealership to teach hobby farmers about equipment and what they might need for their applications."

Investing Time. Other dealer programs underscore the realization that developing an ongoing rural lifestyle customer base requires an investment in time, service and, in many cases, patience.

"We're working with [our new customers] to provide better service," adds Curtis Hanson, Mid-State Equipment, Columbus, Wis. "We'll be putting on special service schools and offering extra service for our hobby customers,"

Bob Dinsmore, president of Ceresville New Holland in Frederick, Md., has several programs aimed at establishing his dealership as a resource for hobby farmers.

Among these is a "Customer Appreciation Day" with a free breakfast and a special parts discount on that day only.

To keep them coming through the door, he's also planning other programs throughout the year, including bringing veterinarians in to make pertinent presentations and answer questions customers have about caring for their livestock. He's planning the same with his equipment suppliers to address machine applications.

Increasing Their Web Presence. Noting the influence of the worldwide web, William Allen, Jr. of Top Flight in Conroe, Texas, says that he's finding that his salespeople must be on their toes more than ever when it comes to the hobby farm customer. "With the Internet, most customers know the product when they come to our yard to look."

Roger Zerkle, ZDE, LLC of Flat Rock, Ill., is planning a new web site and increased web site promotion.

Ted Corriher, Corriher Implement Co., Newton, N.C., is taking his approach to the web several steps further by establishing an entirely new store on the Internet called "everythingattachments.com."

On its new web site, the 60-year old dealership, which handles Montana Tractors and Bad Boy mowers, says, "Our purpose is all about value. That means you spend less time driving around burning gas. The skid-steer and tractor attachments you will find on our site are delivered in a timely manner in new condition, without rust or faded paint. With our experienced staff we can help you get the right attachment the first time — saving you time and money."

Improving Their Facilities. Several dealers are making major improvements to their stores to make them friendlier for their rural lifestyle clientele.

In fact, Jill Lowell, The Tractor Guy Sales of Flagstaff, Ariz., explains they're moving the whole store to a higher traffic area for more visibility. "We're also increasing our marketing toward women consumers and creating a more customer-friendly store to make it as comfortable as possible and as easy as possible for the tractor consumer."

Back to Basics. Some dealers say they are getting back to basics and paying more attention to the operating details of running a successful dealership.

Robert Dickinson, Jr., Dickinson Equipment, Fredericksburg, Va., says he is "constantly monitoring pricing and better utilizing financing, rebates and other manufacturer programs." He adds that the dealership has also initiated improved training of staff regarding this type of customer's needs.

One dealer says he's promoting a program to encourage hobby farmers and similar customers to buy local from someone that has a long and good history and offers complete maintenance and repair service, including pickup and delivery. "We're telling them, 'Not to worry. We can handle any problem that comes up with your equipment,'" says Eric Wilson, president/owner, Moon Tractor Co., Hillsboro, Ohio.

Ronald Janzen of Janzen Equipment Ltd., Leamington, Ontario, offers that word of mouth advertising is what he's after by paying careful attention to these customer needs. "Happy customers are our best sales tools. One very satisfied customer will typically result in 2 to 3 solid referrals."

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