Dealers shared what they see as the top concerns dealerships will face in 2019 in Rural Lifestyle Dealer’s 2019 Dealer Business Trends & Outlook survey.
Dealer Q&A: ‘What are your top concerns going into 2019 and how will you address them?’
“Keeping customers at a 90% approval rating for the dealership in total buying, parts and service experience.” ... “To try and continue the strong rural lifestyle purchasing through advertising on radio, direct mail. We need to sell service, belief in the dealership, provide valuable information other than the product advantages, sell quality product, parts and service and promote our local economy.” ... “Market share. Advertising using digital media and direct mailers. Retaining workforce using incentives.” ...
“1) Unstable ag market. Not much I can do about this. 2) Retaining good techs. Continue constant recruitment. Stay ahead of the pay curve. 3) Health care costs. Continue to monitor and shop for best program for our employees at a cost we can afford. 4) Staying healthy myself.” ...
“Free trade/tariff issues. We are being hit by increases in prices from most suppliers and will need to either pass those along, which could impact overall growth (and slow it/stop it), or cause us to cut margins, which will impact our profitability. To counteract this, we have invested in sales training and marketing.” ... “Over and above all are commodity prices and the tariff implications. Only then will farmers start buying again, and lawn and garden price increases might stop.” ... “Competition increase. We plan to increase our cyber presence.” ...
“Employees are the biggest concern. We are just entering our third year of business. Our business is exploding to the point that the principles are working 15-hour days almost every day. We need more space, particularly for service, but it doesn’t do any good if we cannot find qualified service techs. We offer higher pay, but it is still difficult to find help. We can train some help in the long-term view, but we need people with experience now.” ...
“Transitioning the ownership of the dealership is our primary concern going into 2019. We are working hard to position the next generation for success.” ... “Finding good employees. Partnering with either the college or tech high school to get techs out of school.” ... “Hire more well qualified technicians. Better cash controls. Stay on top of warranties.” ...
“1) Good help. Keep interviewing. Offer good pay. 2) Health insurance costs. 3) An improved supply of product. Ordered heavy on early order. 4) Inflation. Rising costs. Be careful on purchases.” ...
“Higher prices on tractors and equipment and higher finance interest rates, both of which I can’t control. Also, how the news media affects sales when they give positive or negative reports on the economy.”... “Employee retention, finding qualified workers. H2B Visa program.” ...
“Find a retail finance company dedicated to rural customers.” ... “Retail interest rates and rising tractor and machinery prices. Also, internet sales. Nothing we can do about the first two concerns, but we’re advertising more than ever on the internet trying to compete with the bad boys out there selling equipment in our territory. Manufacturers are not stepping up to stop the online selling out of territory”...
“Pressure by floor plan companies and cash flow. Keeping inventory lower than I normallly would.” ... “Finding service and parts personnel that are responsible and helpful in achieving the goals and standards set by the dealership.” ...
“Employee morale is too often overlooked and should be viewed as very important to success of serving the customer to each employee’s best ability..” .
“Health Insurance is going bonkers — up 32%. We will have to begin charging our employees more for their health insurance. Interest rates are also going up, which will cause less impulse buying than we have seen the past 4 years. More pressure from the manufacturers to sell the less popular units that no one can sell. ... “Big box stores are our biggest concern. The manufacturers do not care that the DEALER is who built their business and now they want the dealer to service the products that we did not retail. ... “Rising interest rates have slowed the market and government uncertainty. They are slowing the new acreage buyer.”
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