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Issue link: https://read.dmtmag.com/i/55310
Dealers' Domain Image above ©istockphoto.com/The-Tor. Question: overall increase in our gross numbers and opened our second location in March. One stumbling block we had this year is when Lowe's decided to employ Altaquip as its vendor of choice. However, on a local basis the Lowe's associates were not happy with the move because of the great service and response time that we provided, not to mention that we are a stone's throw away so we stay in contact with the local store people. Losing this amount of work is a hardship that requires employee levels being adjusted accordingly. I don't think the big box stores realize what kind of impact it has on their local customers (no local contact, longer repair time, etc.) or the impact on the local economy since the repairs and parts are sourced elsewhere. We have had a great relationship with the major retailers and hope that Lowe's will re-consider at some time. To offset this loss of work, we decided to pursue more commercial accounts and offer a wider range of products. We really find it extremely difficult to compete with the national chain stores sometimes; however, we have found a way to be competitive by offering something they can't — and that is my question — besides being a local servicing dealer, I would like to know if anyone has come up with a benefit that sets us apart, that most dealers miss? — Carl Johnson, co-owner MGM Mower and A to Z Mowers Port Charlotte, Fla. 2011 The spring and summer selling season in 2011 was unusual, to say the least. More akin to a cranky roller coaster was a fairly good year in that we posted an Our farmers have had several good How did your business fare in 2011, and what are your expectations for 2012? ride…up…then down…then stop… then up again. It was hard to get any momentum going, but the season did extend a good 30 days beyond our norm. In the end, our numbers were good, and we entered the summer doldrums with just about the right mix of leftovers. Fall sales came early. Alternative heating appliances sold well, in anticipation of a cold winter and high gas prices. However, when the cold winter failed to materialize, stove sales sputtered to a halt. With above-normal fall temperatures, we began to sell mowers again. In fact, by the end of November, I had to adjust our budget to accommodate the unexpected late-year sales. We enjoyed an 8-percent increase in our gross sales for 2011. Even though we are still considerably below our sales level before the economic downturn, this is the first year since 2008 that sales have actually increased from the year before. It's really nice to stop the downward slide and see some improvement. Even though we have a long climb to get back to the numbers of 2007 and 2008, I'm optimistic that 2012 will continue the upward trend of 2011. Here's why. We are located in a rural, small- market environment where agriculture and oil production form the base of our economy. Obviously, oil prices are good, and there is no expectation for that to change any time soon. So our oil customers, whether they are involved with drilling, production or refining, have a secure revenue stream. years in a row. At first, their money found its way to banks and Ag equipment dealerships, but after a couple years of making major purchases, their spending has become more consumptive in nature. Now their purchases are less specific and more dispersed. Directly or indirectly, that flood of local spending is trickling into our store. Although it has been a difficult and painful process, we have finally worked our way through the surplus (and dusty) inventory left on our floor when the music stopped in 2007. During the economic slump, some of our forward-thinking manufacturers have been busy designing fresh, innovative products, with attractive price points. We have been busy, as well, honing our core product lines and seeking out new retail opportunities. With our credit lines at lower levels of utilization than we have seen for years and interest rates still attractive, we are in a buying mode. Spring will see our showroom packed with new and exciting merchandise to stimulate buyer's interest and create sales opportunities. And finally, it's an election year. As a country, we are optimistic. Everybody with tickets to a baseball game thinks that his team is going to win. Optimism creates a good sales environment. 2012 is going to be…better. — Roger Zerkle ZDE, LLC Flat Rock, Ill. 2011 turned out to be our best year since 2007. I attribute most of our positive results to a snowy winter of 2010- 11, and a warm wet growing season. A series of damaging tropical storms ending with a freak snowstorm in October kept our rentals and repairs of storm-related equipment very busy. Unfortunately, other then the October snow that caused more tree damage than snow equipment interest, we have had 20 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com