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Issue link: https://read.dmtmag.com/i/35721
Dealers’ Domain Question: 2011has been a challenging year, so far. Our season got off to a late start, due to unusually cold and wet weather. February and March yielded very few mower sales. We had a break in the weather pattern in April, and sales were good. It was appar- ent early on that the banks had loosened credit. Some loan approvals were for credit scores ranking in the low 30-percent range. We were on track to equal, or even sur- pass, last year’s numbers. But, in May, the weather smacked us down again with more rain, floods and tor- nadoes. Generator sales were good, but we lost all momentum on mower sales. Even repair work languished, as customers scrambled to deal with one weather- related crisis after another. Historically, the bulk of our new mower sales happens from February through May; after June 1, sales drop to a trickle for the rest of the summer months. But this year, June brought hot temperatures, and the rain settled into something more seasonal. We have been able to recoup some of the sales lost in May. However, in order to keep momentum going, we have become very aggressive in our pricing. Machines are moving out the door, but our margins are low. In summary, the first half of 2011, though erratic, has been slightly better than last year. Customers are in the mood to buy, and financing has become less of an issue. I would like to think that this trend will continue through the summer and into the fall. I would like to think that. Unfortu- nately, I expect sales to go flat mid- summer and stay that way until the end of the election cycle in 2012. There is just too much uncertainty and bad news out there to keep this consumer buying surge going 26 indefinitely, and when it goes flat, it’s going to stay flat until some event gives consumers the confidence to buy again. I’m reminded of the old adage, “Make hay while the sun shines.” The sun is shin- ing now, but I see clouds on the horizon. — Roger Zerkle, owner ZDE, LLC, Flat Rock, Ill. My service business in 2011 exceeded all expectations in the winter because we had almost eight months of unrelenting snow, ice and cold. Our little shop repaired over 175 snow blowers, and surprisingly, they’re still coming in June. Service work on summer equipment is nearly triple former years. Much of our new business results from the WEBsites and Google searches. — Flute Snyder Hudson Mower Doctor, Hudson, Wis. We were pacing a little behind budget for first quarter, but caught up in May. June has been promising so far, but weather has been working against us all year. But, it looks like summer has finally come. I ‘beefed’ up my inventory when most of my local competitors were slim- ming theirs down — I have been getting a bit more sales due to that, but our store has always been perceived by mainte- nance contractors to have better customer service and fair pricing. — Ben Chisholm, sales center manager Horizon Distributors Inc. #520 Lakewood, Wash. After a great 2009 and 2010, this year has really “hit the skids.” It’s been like someone turned the switch off! We are doing all the things that have kept us growing, maybe even a little better, but gross revenue is off almost 50 percent. We OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com Image above ©istockphoto.com/bubaone have met income projections only four weeks this year as of 6-11-2011, and I’m living off of my income-tax refund and taking zero home! Just wish I knew why. — Dean Davis Dogwood Fireplace & Lawn Carbondale, Ill. We are 14-percent up in sales for 2011. Cost of goods (COG) is 19.5-percent higher in 2011. Our net gross profit is 5.64-percent lower in 2011 from the same time frame in 2010. Products have cost more this year than last, and we can’t charge as much for them because of the economy. Expenses are up 9.8 percent in 2011. Everything is more expensive in 2011 So we are still showing a profit, but 54- percent less than last year. — Anonymous This has been our best first half in three years. The cold, snowy winter helped. The cool, rainy spring weekends hurt. However, consumer interest seems to be up. In our shop, we are getting fewer requests to “Just get me through the season.” We are still seeing quite a few mowers retrieved from storage as homeowners continue to drop lawn-cutting services. On the rental side, the equipment needed to build patios and decks has been busy, a sure sign that homeowners have extra money to spend. — Rob Leiser Leiser’s Rental & Sales, Easton, Pa. A snowy winter brought lots of snow- blower sales and service work, helping the first half of the year. I am ahead of last year and hope to remain that way for the entire year. Compact utility tractors have been selling much better than the previ- ous couple of years because of some huge rebates. I need the manufacturers to keep up the rebates and financing plans in order to keep the customers coming in. — Daniel D’Arcy, president Allpower, Granby, Mass. How has your business fared in the first half of 2011?