Manufacturers Want New Dealers . But Are Dealers Swiping Right ?
By Glenn Hansen
istribution is the difference between a good company and a great company ,” said John Sloan , director of sales for Kress ’ s OPE division . And to be great , manufacturers need to increase the quantity and quality of their distribution . They can sell more to current customers , and they try to , and they can gain new customers . That ’ s you , the OPE dealer .
Of the 15 manufacturers I spoke with for this story , 15 said they are recruiting new dealers . 100 percent . Some said “ actively .” Others said “ always .” A few indicated a more targeted approach .
“ The pursuit of new dealers never slows down ,” said Jeremy Krueger , Stihl ’ s director of business development .
Here ’ s another voice . “ Husqvarna is actively pursuing the right market partnerships ,” said Richard Bennett , senior director , dealer sales for Husqvarna Group . “ We regard OPE dealers as the key to growth for our brand and we are committed to increasing our presence across the U . S . and Canada .”
On the other side of this business relationship , I surveyed a few dozen dealers , and 53 percent of them said they were not currently interested in adding a new brand . Why not ? Their answers fell into a few groups of responses . First , “ too many brands now ,” or that they “ want to focus on current products .” Second , “ I ’ m not interested in expanding ,” or they are “ thinking of retiring .” And third , one dealer summed up the “ tough sales environment ” mindset by saying , “ Sales aren ’ t strong enough to support what I currently have so why would I add more ?” Still , 47 percent of dealers we surveyed said they are considering adding a brand . We ’ ll get to that .
While I surveyed and interviewed dozens of people – dealers and manufacturers – for this story , the output is not scientifically valid . But the research , in words and numbers , does tell a story . And when you mix in the changing marketplace , with the rise of battery-powered equipment , the evolution of retailing , and need for business support , the tale gets even more interesting . Manufacturers need a continually growing
18 OPE Business October 2023 www . OPEBusiness . com