“This year we are not adding equipment lines and are shoring up the ones we have.”
Gary Grollmus, Al-Joe’s, Hamilton, Ohio
We plan to add additional staff in our parts and service departments as well as trim back inventories of parts and whole goods. Our turn ratios are not what they should be, so we will be highly focused on changing those numbers. We are also expecting several people on our team to be retiring this coming year and things to tighten up, so there will be a ‘change of guard’ there as well.
“What we will not be doing is taking the bait from manufactures to load up on additional equipment to qualify for price incentives. We did that last year and we are still sitting on some inventory we hoped had been sold by now. We will also not be doing any lease residual guarantees, which is being asked for. The deals need to stand on their own or they are not smart deals for us to being doing. Lease guarantees are just delaying the inevitable loss that is being booked in a bad deal with a customer.”
Jarrod Hunt, Intermountain New Holland, Heyburn, Idaho
- Reduce our marketing budget.
- Increase non-revenue producing positions.
- Increase governmental sales to replace lost revenue and margin dollars
- Increase shortline inventory.
- Increase discounts.
- Increase wages for marginal performers (will replace or reduce these strategically).
- Automatically give wage increases (cost of living).
- Decrease capital expenditure budget.
Name Withheld Upon Request
“We will not be adding any non-revenue type staff. At this time, the only staff we would consider adding is additional technicians. We will not be increasing advertising budget or making any additional donations.”
Pat McCrabb, J.J. Nichting Co., Pilot Grove, Iowa
“We will lower total dollars in inventory in 2017.”
Bob Patrick, Patrick Tractor, Tifton, Ga.
“We are trying to reduce costs as much as possible. Reduction in all expense categories will be necessary. Our overhead, especially health care, is costing us too much.”
Alvin Kaddatz, Kaddatz Equipment, Hillsboro, Texas
“We will stock less inventory to save on interest expense. The margins are low enough to not cover the interest carrying cost for units that are not pre-sold.”
James Sommer, Service Motor, Fond du Lac, Wis.
“We will not have an impersonal approach to dealing with customers. We want to take the time to get to know them.”
Chris Schmidt, Pennyrile Power Equipment, Crofton, Ky.
“We will not put as much money in trades.”
Bill Levers, McFarlane’s, Sauk City, Wis.
“I will not be adding staff. I will maybe do a select amount of small advertising, but no large increase. I will not stock as many parts or equipment. I will not do any capital improvements. I was very optimistic last year and, up until this month, we did have a better year. There seems to be a larger push by manufactures to increase our in-stock machines. I don’t see Wells Fargo or Synchrony bank being very agreeable or workable with dealers over financing options.”
Stan Di Guiseppi, Easy Wheels, Hernando, Fla.
"In 2017, Southeastern Equipment Co. Inc. will not accept being an ‘OK’ equipment supplier for our new and loyal customer base. We will be celebrating 60 years of providing great equipment, supported by some of the BEST people in the industry. We want our customer base to understand that we have a highly trained staff of people willing to help them succeed in 2017 and beyond. I feel we (dealerships) get stuck in the ‘just doing business’ mode and we forget how important it is to say ‘please’ and ‘thank you’ more often to our customers. 2017 will be a great year if we continue to reach out to more customers and do business with a confident ‘hand shake,’ reassuring them we are in this together."
Heath Watton, Southeastern Equipment Co. Inc., Cambridge, Ohio
"Attempting not to pay any more floor plan interest than possible"
James Bishop, Flint New Holland, Richmond, Mich.
“I think the one thing that we will NOT do in 2017 is continue in the same conservative, survival mindset that has essentially framed our decision-making for the last 8 years. 2017 is the year to breakout and be daring.”
Roger Zerkle, Zerkle Diversified Enterprises, Flat Rock, Ill.