Proudly serving the industry for which it was named for more than 50 years, Outdoor Power Equipment provides dealers who sell and service outdoor power equipment with valuable information to succeed in a competitive market.
Issue link: https://read.dmtmag.com/i/443279
Outdoor Power Equipment recently surveyed several executives about the state of the OPE industry heading into 2015. Specifically, we asked the following thought-provoking questions: 1. What should OPE dealers know about your company's plans for 2015? 2. What were the OPE industry's top stories in 2014, and what do you predict they will be in 2015? 3. What will be the OPE industry's hottest trends in 2015? 4. What advice do you have for OPE dealers in 2015? 5. What is your overall outlook for the OPE industry in 2015? OPE received the following written responses, in order, Nov. 17-Dec. 4, 2014: JOHN HEDGES DIRECTOR OF SALES & MARKETING CENTRAL POWER DISTRIBUTORS, INC. (CPD) (ANOKA, MINN.) 1. What should OPE dealers know about your company's plans for 2015? John Hedges: Even though this question lends itself better to the manufacturers, Central Power Distributors, Inc. (CPD) will continue to find product and parts lines that will benefit our customers. We believe the majority of our lines offer our customers one-stop shopping with one check to write at the end of the month. For 2015, we will be offering Columbia from MTD. This is a dealer-only line, which is what dealers who compete against the mass merchants need. They will be able to control their own destiny without outside interference from the mass merchants. We have also aligned ourselves with DR Power Equipment for 2015. This will give our customers an opportunity to offer parts and equipment with a nationally recognized leader of prosumer power equipment. We are reorganizing our sales staff 's priorities to allow for maximum dealer assistance. In today's market, it isn't about going to see a dealer just to go see the dealer. It is about training, selling, teaching, and maximizing profits for their business. We plan to offer more assistance that way in 2015. Kohler has added more sophisticated engines to its engine lineup, and CPD will need to educate the servicing dealers through live updates, online training and testing. Many more OEMs are using Kohler power, and we will help keep them trained. 2. What were the OPE industry's top stories in 2014, and what do you predict they will be in 2015? John Hedges: Why do we always get back to weather-related stories? Usually, we as an industry, are complaining about the dry weather. But 2014 was just the opposite. It was a banner year in our territory for sales, thanks to the cooperation of Mother Nature. Yes, we experienced unusually colder temperatures last winter (53 days below 0), and yes, we saw more rain in the territory all summer, but most of our dealers benefitted from it. Thanks to an early November 2014 snow, we may see much of the same this winter as we head into 2015. There is a restructure with a major engine supplier that will go into 2015. Time will tell if it is a success, but this particular company has made bold decisions over the years. I believe the GIE+EXPO was a huge success, and the founding fathers would be proud. Having attended this show for the last 29 years (without a miss), I think it's fair to say this is the best in the last 15 years. The show is our industry showcase, and I don't think many were disappointed with what they saw. The Internet will eventually play a major role in the destruction of some weaker dealers. Will 2015 be the year we see more of that? Time will tell. With that in mind, I would remind dealers that the Internet doesn't have to be your enemy. Make it your friend and companion for sales. If you aren't going to be open weekends (when the mass merchants are), find ways to be open 24/7 with a Monday morning delivery service. Challenge your people to be brilliant with new ways to go to business. Empowerment is a wonderful thing, and you can have great ideas coming from the least-expected places. 3. What will be the OPE industry's hottest trends in 2015? John Hedges: a) Whether it is good or bad, weather will be a topic of high discussion. b) Many of our industry technicians will begin to retire, leaving a real void in tribal knowledge. c) Internet sales grow; dealer network shrinks. d) Fuel prices dip. Saudis fear pipeline deal in U.S. e) Obamacare hard to change for new Senate. f) Hillary decides to run for President. What impact will that have on the 2016 OPE industry? 4. What advice do you have for OPE dealers in 2015? John Hedges: I would like to have advice from the dealers. Too many times, we are the ones giving advice and not listening to the ones in the trenches. So, my first item of advice is to let me know what you need! CPD does a monthly newsletter poll. The hottest topics over the years have been freight charges and how they affect the bottom line, servicing the off-shore products making their way into the mass merchants, aftermarket vs. OEM parts, and understanding who is really the dealer's competition. If that is the case around the country, my advice to the dealer is to look for more training. If you can't find it, talk to your suppliers and ask for assistance. If the mass merchants are your biggest competitor, first understand why. Is it because they are offer cheaper prices? You can overcome 10 JANUARY 2015 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com COvER STORy What can expect to be seen in 2015? The following is the first of a two-part series: Industry Forecasts