Issue link: http://read.dmtmag.com/i/280096
Inside AED 8 | www.cedmag.com | Construction Equipment Distribution | March 2014 Bringing together similar, noncompeting dealers to exchange best practices, experiences, ideas and strategies is one of the best ways AED can improve the profitability of its members. But after having experienced limited participation in its first "Dealer 20" effort, AED is revamping its existing program. "High-Profit Dealer Groups" is a new initiative that offers dealers more for less, with groups moderated by AED's own financial guru, Garry Bartecki. Bartecki is vice president of Finance for AED, and he knows dealer challenges better than anyone. And as CFO for Illini Hi-Reach, a rental company based in Lemont, Ill., he's also an ace on the rental side of the dealer business. "Participants will get more than they ever have from a 'Dealer 20' group," said Bartecki. "It's going to be cost-effective and action-oriented." AED will track progress toward objectives during the year, and Bartecki will be available for member consultation between meetings. Each group will choose their own leadership team, who will decide on the topics for discussion at each meeting. To help make the groups more cost effective for members, AED is talking to OEM partners about providing assistance. Manufacturers have a vested interest in improving the financial health of their dealers. "The bottom line is that with OEM support we will be able to offer a program to all AED members for significantly less than in years prior," said Bartecki. ADP Performance Inc., which currently has more than 1,500 dealer members from various industries involved in their groups, will create composite financial reports and provide easy access to participants on a Web portal. Dealers can conveniently compare their results with their peers and check on the group's activities. Each group's composite data will drive discussions about where dealers can improve profitability. According to Bartecki, the financial data that members use to evaluate themselves is more comprehensive and timely than what is available from other sources. That means dealers participating will be the first to be able to identify significant industry trends. At meetings held three to four times per year, the moderator and attendees will discuss methods of operation, track progress toward objectives, exchange ideas and solve problems. Between meetings, each member uses the composite to make operational comparisons within his or her organization. Data collected by ADP Performance Group among thousands of dealers suggests that participants in the group perform better than those who aren't in the groups. "Other industries have taken advan- tage of these groups for years," said Bartecki. "It's time for construction equipment dealers to get on board." "AED exists to enhance the sustainability of the distributor business model," said AED Executive Vice President and COO Bob Henderson. "This new program helps drive this mission. A profitable dealer means a profitable distribution model for manufacturers." AED is targeting Spring 2014 for its first High-Profit Dealer Group meeting. Interested dealers should call Garry Bartecki at 630-574-0650, ext. 323. AED rolls out new High- Profit Dealer Groups; OEM partnerships will reduce costs for dealers Time to Nail 3URÀWDELOLW\ Proposed New Members This list is published each month as required by AED bylaws. Comments on the applicants should be directed to AED President and CEO Brian McGuire 800-388-0650, ext. 326. Lashley Tractor Sales Lithonia, Ga. Scania USA Inc. San Antonio, Texas Ironman Parts & Sales Corona, Calif. Finn Corp. - Fairfield, Ohio Barco Pump - Wylie, Texas Eagle Power & Equipment Montgomeryville, Pa. Human Resource Techniques, Inc. Algonquin, Ill. Do This and Prosper $('·VQHZ+LJK3URÀW'HDOHU*URXSVDUHWKH PRVWFRVWHIIHFWLYHPHWKRGLQWKHLQGXVWU\WR UDLVHWKHEDURQGHDOHUSURÀWDELOLW\ Who: Top management of noncompeting dealers Group size: 10-20 dealerships each Commitments: Composite data quarterly; meetings held 3-4 times per year When: Beginning Spring 2014 Where: Determined by group members Moderator: Garry Bartecki, AED Vice President of Finance