market data
When given an openended “ tell us anything you wish to add ” cue , dealers offered a lot of input and opinions .
Inventory levels are sure to cause a buyer ’ s market shortly . Don ’ t understand how inflation being as high as it is hasn ’ t slowed sales . Surely will see a slower market this spring .
We have seen shortages in all aspects of the industry . This has enabled everyone to sell our products at full margin , and pass on any fees incurred ( example : financing fees ) to the customer . Let ’ s all learn from this and continue to keep our margins high even when inventory levels get back to pre-pandemic levels !
The high from Covid remains , but it is diminishing . We are unsure how long these above-average numbers will continue , so we ’ re looking for alternatives to supplement .
Our industry , at least in the southeastern U . S ., is facing the influx of “ mega stores ,” huge dealerships owned by investors . Manufacturers and distributors tend to be very attentive to these stores . Inventory shortages do not affect these guys as they do the smaller dealers . I guess this is simply an evolution in the industry such as when the “ big box ” stores entered into lawn equipment sales . Our business is a smaller shop though we have a huge customer base . Many of them buy from the larger dealers because their pricing is lower . The customer will come back for service , but loyalty is not what it was . I believe we will see the “ mom & pop ” dealerships being phased out .
I think the COVID curve will flatten for us this coming year . Sales will be very good , however rising interest rates and financing costs will need to be addressed as we simply cannot absorb them .
Engines still seem to be the biggest issue . Also , companies are pushing hard on battery to the detriment of their gas equipment .
The lack of new product to sell – equipment mostly and very slow parts delivery – has really hurt this business . Finding qualified staff and service techs is still difficult . Suppliers are becoming more demanding , which will result in higher costs for dealers . Smaller dealers continue to be squeezed out by lack of competitiveness .
Biggest concerns going forward are consumer demand and margin contraction from our suppliers .
We could not get turf products in 2022 . Hoping 2023 will be better for equipment availability
The manufacturers believe they know better how to run an independent OPE dealership than the team of people that have actually done it for the past 50 years .
30 %
25 %
20 %
15 %
10 %
5 %
0 %
HOW SATISFIED ARE YOU CURRENTLY WITH BEING A OPE DEALER ?
1.2 % 1.2 % 2 . 4 %
HOW MANY LOCATIONS DO YOU HAVE ?
10.7 % 2-3 locations
6.0 %
2.4 %
4-5 locations
15.5 %
86.9 %
1 location
HOW WOULD YOU CHARACTERIZE YOUR CALENDAR Q4 RELATIVE TO PLAN ?
45.8 %
Below plan
10.8 %
Above plan
11.9 %
43.4 %
On plan
25.0 %
17.9 %
8.3 %
10.7 %
1 2 3 4 5 6 7 8 9 10 Source : OPE Business
www . OPEBusiness . com April 2023 OPE Business 23