Issue link: http://read.dmtmag.com/i/205815
Margins have lower internal labor rates are subsidizing the margin on new equipment." The panelists agreed that if you are losing money or not making much, the focus should be internal, but the longterm goals would be to make the organization become more customer focused. "In the last three or four years, we [as an industry] have spent so much time internally; now is the time to be focused on the customer," advised Wilmot. "If your salesmen aren't adding value you need to re-train them." The importance of getting employee involvement was seen as a key part of the turnaround process. "You have to focus on your employees and engage them and get them excited about the opportunity, because they are the ones that face your customer," said Phenicie. "Once you get the right people in the right places you can focus on what your customers want." Sharing financials with employees was a common practice among the high-profit dealers, yet this is not a common practice in an industry where the majority of businesses are family owned and privately held. "It's incredible when you turn an employee into an owner," said Phenicie. "Transparency builds trust," said Wilmot. "If you are trying to take a low-performing group and make them a high-performing team, you have to be willing to open yourself up to get results." Final Take-Aways from the Panelists Wilmot: "The profit we make in the transaction is the value the customer puts on our relationship. Now, more than any other time, there is a need for professional problem-solving, value-creating salesmen." Phenicie: "Focus on employee engagement. Get good information. Get it right before you expand and go everywhere else." Wilder: "Make sure you are participating in all the profit streams available to you and make sure you have good communication both internally and with the manufacturer." *Material Handling Equipment Distributors Association (MHEDA), Heating, Air Conditioning, Refrigeration Distributors International, the National Association of Electrical Distributors, Fluid Power Distributors Association and the National Association of Wholesaler-Distributors. JOANNE COSTIN is a freelance writer and marketing consultant focusing on the construction industry. She can be reached at (847) 358-1413 or jcostin@costincustom.com. Be the #1 Dealer with the World's #1 Business Analytics #1 Mobility Solution #1 Business Management Software All on a Single, Fully-integrated Dealer Management System B4 Consulting helps you lay the foundation for success with SAP software. Integrating and optimizing all your business operations, SAP gives you access to real-time information – anytime, anywhere, and on any device. Be the #1 Dealer with B4 Consulting For a Free Consultation, Email: hem@b4-consulting.com B4 Consulting, Inc. +1 877 777 9480 www.b4-consulting.com November 2013 | Construction Equipment Distribution | www.cedmag.com | 31