Issue link: http://read.dmtmag.com/i/236097
Parts and Service greater. Dealers have information available online, and, as we all know, the Internet has no boundaries. Manufacturers have also provided a great deal of information through their Intranet and Internet portals. This will continue. Buyers will be much more discerning and savvy purchasers in the future. Dealerships, as well, must become more skilled at evaluating market opportunities and matching these opportunities with appropriate and necessary products and services. You simply cannot make good decisions on what is required in the marketplace without good market intelligence and proper marketing information. Market intelligence is typically obtained through customer surveys and information obtained from the field sales force. Marketing information is obtained from facts regarding the customers in the territory. The key element in any business is the working machine population. There is an old saying, "If you don't know your working machine population, you don't know your business." This has always been true in the parts and service business. Now more than ever, it is a critical component in the success of your dealership. The working machine population needs to be obtained and maintained – not just brands the dealership sells but all of the competitive brands. During the past 10 years, there has been more effort on the part of many manufacturers and dealers to sell parts and service to more than just their brand of equipment. This has been very true for undercarriage, ground-engaging tools (GET) and maintenance services. This trend will continue. Specialty manufacturers have always sold products such as bearings, hardware, seals, packings, etc., across brands. As parts manufacturers continue to consolidate, this trend also will continue and accelerate. The working machine population needs to be obtained by make, model and serial number. This is the basic information. We should also know the number of hours that each machine works in a year. We could refine this by making a determination of the type of work that is done and the working conditions, but we will leave that to a later time and document. If we know how many hours a machine works per year we can make good estimates as to the parts and labor the machine consumes in a year. This handbook provides you with tools and models you can use to make a determination of the overall size of the parts and labor market in which you compete. Armed with these tools and good information, you'll be able to determine where the opportunities exist and what you want to do about them. 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 RON SLEE (ron@rjslee.com) operates a consulting firm that specializes in dealership operations (R.J. Slee & Associates, est. 1983) and a management and operational training business (Quest, Learning Centers, est. 1994). You can find more specifics at www.rjslee.com, or follow him on Twitter: @RonSlee or his Blog: learningwithoutscars.com. B4 Consulting, Inc. +1 877 777 9480 www.b4-consulting.com January 2014 | Construction Equipment Distribution | www.cedmag.com | 57