Selling Shortlines Requires a 'Champion'

Despite the challenges, dealers say carrying a variety of lines is part of their strategy to best serve their customers and improve profitability.

By Dave Kanicki, Managing Editor

Farm equipment dealers are glad to have shortline equipment around. Shortlines fill in the product niches that are too narrow for the major equipment makers to bother with. In some cases, dealers feel that the specialty products offered by the shortliners are superior in quality, design and engineering to those offered by the majors. For some dealers who are either unable or unwilling to take on a major equipment line, shortlines are their lifeblood. For the most part, retailers say they carry shortlines because they meet customer needs and, in most cases, are very profitable.

But because of their "specialized" nature, successfully selling shortlines requires "specialized selling." Dealers acknowledge that, more often than not, it comes down to having a product "champion" assigned to focus his efforts on marketing a particular line. Nearly two-thirds (60.7%) of dealers polled say that success in retailing specialty products or developing a new market segment requires a "lead person" or "go-to guy."

When it comes to innovation, nearly half (46%) of ag equipment dealers polled by Farm Equipment in April believe it's the shortline manufacturers who are the "real innovators" when it comes to early equipment development and product breakthroughs. This compares with 37% that recognize the majors for innovation. The rest (17%) rely on both - shortline and major equipment makers - for coming up with creative solutions to customer wants and demands.

At the same time, machinery retailers acknowledge that there are a host of challenges - both internal and external - that comes with handling shortline equipment that they don't necessarily face in selling their major brands.

With Farm Equipment's Mid-Year Business Report this year, we take a look at what it takes to succeed in selling shortline products. In a survey of U.S. and Canadian ag equipment dealers, we asked about new products or niche markets where they've seen the most sales growth during the past 3 years as well as what new products offer the best potential for profitability during the next 3 years.

It should come as no surprise that many dealers, who have exclusively served professional growers, are finding themselves needing to learn new sales and marketing skills as rural lifestyle customers begin to find their way into their dealerships.

Also in this series

Selling Shortlines Requires a 'Champion'

Dealers are 'Sold' on Shortlines

How Dealers Add Shortlines

Profitably Selling Specialty Products Requires a Product 'Champion'

Changing Markets: Where the Money Is, Where It's Going

Posted October 5, 2009

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