How dealers serving the hobby farmer, large property owner and lawn and landscape contractor segments view their prospects for increasing sales revenues in 2013 varies significantly depending upon which major brand of equipment the dealership carries.
In this section of Rural Lifestyle Dealer’s 2013 Business Trends & Outlook report, dealer responses are broken out by their mainline equipment supplier.
Overall, the most optimistic dealers in terms of enhancing sales revenues are those carrying John Deere branded equipment. Nearly 58% of these dealers see total revenues growing by 2% or more in 2013; 52.6% expect sales revenues to rise by 2-7% and 5.3% by 8% or more. Overall, only 5.3% anticipate revenues coming in lower than the previous year.
Deere dealers are easily the most optimistic when it comes to aftermarket revenues, as well, with 68.4% forecasting increased revenues from sales of parts and service.
Following Deere dealers as the most optimistic for 2013 are Kubota dealers. Slightly over half of the dealers carrying Kubota equipment see sales growing by 2% or more, with 33.3% forecasting increases of 2-7% and 16.8% by 8% or more. As for parts and service sales, 58.4% of Kubota dealers see good potential for increasing revenues in the year ahead.
Case IH dealers ranked number three in terms of optimism for the improving revenues in the year ahead. Some 40% of Case IH dealers expect increased sales in 2013, while another 40% are projecting sales to be flat.
When it comes to aftermarket sales, 60% of Case IH dealers see sales rising by 2-7% and the remaining 40% are expecting little or no change from revenue levels seen in 2012.
New Holland came in fourth on the list with 37.6% of its dealers forecasting increases in total revenue for 2013 compared with 2012. Slightly more than 35.4% of New Holland dealers are expecting revenue increases from the sale of parts and service.
AGCO dealers carrying Massey Ferguson branded equipment are the least optimistic group of equipment retailer for 2013 with slightly less than one-third (32.4%) projecting revenue increases for the year ahead. Of all the AGCO dealers responding this year, 44.4% anticipate a revenue increase in the sale of parts and service in the year ahead.