CED

April 2014

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On the Numbers April 2014 | Construction Equipment Distribution | www.cedmag.com | 39 So what are the three points we didn't get to last month? No. 3: Use systems that allow increased efficiency (lower payroll). Today's systems are offer- ing more data and efficiencies, most are now cloud based, which in itself offers a host of benefits, with many providing portals and services for customers, as well. I think we have to face the fact that customers want to deal with vendors who make shop- ping and execution of the transactions as simple as possible. No. 4: Training, training, training. Continuous training is a must – for just about everyone in the place. Staff has to know how the system operates and how to use it for maximum benefits. Training to use the latest technology, which will better help communicate with customers, is also a priority. Telematics related to logistics, equipment maintenance and location are now common practice. Sure, these changes will cost a few bucks to get going, but the returns should more than offset the cost. No. 5: Develop a process to develop and hire techs. The 800-pound gorilla in the room, which we all realize, is the need to develop a continuous stream of techs to work on customer units as well as rental units. With units becoming more technically complex, a dealer needs to hire a number of technicians each year so they'll eventually wind up with enough senior techs to get the job done. We all know how it goes – you hire 10 and five years later you have three, and so on. I am sure you are all aware of The AED Foundation's work with college programs to train and recruit techni- cians. You may find it beneficial to find out about these programs, because you could use this process in your own location to help train and hire qualified applicants. In the end, the dealership that can communicate and deliver the goods in a stress-free manner is going to move to the top of a customer's call list. Being that dealer is certainly the way to make more to keep! And For My Next Act There's a big change happening here at AED – to describe it, I was remem- bering an old Barbara Lewis song, "Baby, I'm Yours," but maybe I'm dating myself! The point is, I am now yours! Yours for coaching, consulting, rental management, tax planning and overall dealer performance objectives. Good news for you – and me. One thing you can count on: I know rental and dealer operations, and I know how to make money with both. On ABC's "Shark Tank," they say, "show me the money!" I have the same passion when it comes to dealer cash flow. After 20 years of affiliation with AED and having served as both CFO and vice president of Finance (plus 30 years working with dealers), I am now going to turn over the reins to a new CFO – but I will continue as an independent contractor to produce this column, the Financial Symposium (formerly called the CFO Conference) and the annual CODB report. In addition to these projects, I am going to do what I love, which is working with dealers to improve the value of their investment in any number of ways. To that end, I have formed Dealer-Rental Success LLC (DRS), a company independent from AED that provides industry-specific services and products geared to improve financial performance and thus shareholder value. More details will follow when my new website is launched in April – but I will say that AED members will get special terms from DRS. From this point forward, please contact me at 708-347-9109, at gbartecki@comcast.com, or gbartecki@DR-Success.com. So whether you are a dealer, rental company or OEM, I welcome your suggestions and inquiries. OEMs may want to have us help underperforming dealers. Rental companies may need some coaching to improve margins. Dealers may have questions about the rental phenomenon before it eats up all the cash flow. I assure you I am not interested in making your project a full-time job. We'll get in there, analyze the situation, offer up solutions, and then follow up to see that you received the results that were discussed. I've been working in this industry long enough to know there are some new wheels I don't need to reinvent. I thank Brian McGuire for this solution that is sure to be a win for all parties involved. Please call me to discuss your issues. Build Your Wealth – Part 2 Last month I launched a commentary about building and protecting your wealth. I had five points to get across, but we ran out of space after No. 2 – let's finish them here. By Garry bartecki Garry bartecki (gbartecki@ aednet.org) is founder of Dealer-Rental Success LLC, is a financial consultant to the equipment industry. He can be reached at 708-347-9109. 39_On_the_Numbers_KP.indd 39 3/27/14 4:38 PM

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