Dealers shared these ideas in Rural Lifestyle Dealer's 2018 Dealer Business Trends & Outlook survey when asked this question: What are you doing to help maintain strong margins throughout your dealership? Read the complete feature.
“Standard minimum margins expected on deals, need approval for low margin deals.” … “Trying to keep trade values correct.”… “Sell more attachments and wholegoods parts. Give discounts to customers who buy more because that increases profits and you’re already making the sale, so why not make more out of it!” ... “Trying to better our appearance and expand our knowledge base on equipment.” … “Open communication. Sales staff know the margins we want to make, but depending on the customer and the circumstances we may reduce our margins to get the sale. This is done after communication between staff and owners.”
“Utilizing our software system, monitoring margins and turns regularly. Spot checking to internet pricing.” … “No hassle pricing. We would rather lose the sale than lose margin. If they can sell it cheaper for the same quality & product and survive best of luck. I don’t sell cheap. I sell quality. That’s why I am a one-brand dealer. I sell only the best.” … “Differentiating our product compared to our competitors so the initial price is accepted as a good solid price.” … “Selling value packages, such as bucket hooks and rear work lights and including delivery (but price our equipment so as to include the cost of these value-added aspects). Also, provide subsidized, first routine service and free transportation on warranty related repair issues. Again, we include an average internal expense into cost calculations to take this level of service into account.”
“Looking at being very specific for the equipment offered by each manufacturer and select models that give us the highest return. Using special offers and larger buys on higher margin units.” … “Sales team pay is dependent on their margins! To maintain good margins, you can’t give the iron away. When selling new, if you make nothing, it will affect your used prices as well as potential margins.” … “Ordering quantity with pre-season discounts and terms. Paying invoices to gain term discounts. Managing pricing percentages through software.”
“Taking advantage of purchase deals such as end of line, volume or clearance. Volume ordering and free freight deals. Promote the brands and the dealership and not focus on the price.” … “Give periodic pep talks. Review financials with key people. Ask for ideas from employees.” … “We have started adding the cost of retail financing to the price of mowers and my accountant says we should add a credit card fee across the board.” … “Reducing inventory levels, improving turns, thus reducing interest. Pushing parts and service sales.”