MATCHMAKER
MATCHMAKER
Another , “ We are in the process of adding Kress battery tools . And we ’ re looking at utility tractors and construction equipment to diversify our commercial offerings .”
That can present an opportunity for a brand like Bobcat . “ The breadth of our product bundle is greater than other OEMs ,” said Steve Ross , Bobcat Company senior director grounds maintenance equipment , commercial business . “ This provides our dealers with more opportunities to serve their existing customers and reach new customer bases to grow their business .” And he adds that the recognition of “ the Bobcat brand and the quality of its products can help draw new customers to their business .”
Equipment manufacturers with well-known brand names like to talk about the brand reputation as a draw for customers . That can be true , with limits . “ The allure is that a dealer will get more business because of an additional brand ,” said Ed Wright , CEO of Wright Manufacturing . “ But if the dealer is established in the market , [ an additional brand is ] unlikely to add more business . Demand is generated by a dealer ’ s clientele and product offering . It ’ s like plowing with two oxen , you can only go as fast as the weaker one ... and the dealer ends up frustrated with more overhead .”
Business Support New manufacturer Yakta knows it ’ s entering a competitive marketplace where dealers have inventory and established relationships . CEO Firth points to his company ’ s two focus areas .
With Yakta ’ s launch at Equip Expo , he ’ ll tell dealers , “ First , we stand behind you and back you up for success . And second , it ’ s a partnership .” Yakta hopes to prove that to OPE dealers .
Ed Wright sees the business side as a vital component , and “ a good reason to change brands . You can diversify supplier dependency while realigning with a brand that has a greater commitment to dealer exclusivity , product segment , and better product execution , like parts , warranty policy , tech support .”
Support for a dealer ’ s business goes well beyond a manufacturer providing POP materials and brochures . “ We are here for the long run to support dealers ,” said Chris Vogtman , managing director in Toro ’ s residential and landscape contractor division . “ We can support them in any season . And we ’ re trying to help dealers with other business needs like succession planning . If a Toro dealer wants to get out , and some are having a hard time selling , we connect our distributors and make sure they have a growth plan . There are things I can ’ t talk about with you . But I ’ m excited about where we ’ re headed .”
I will follow up with Vogtman on that , and dealers need to press manufacturers hard on this “ business support ” question . From product floor planning to parts delivery to preferred partner programs , support and the requisite communication is key to success for a dealer-brand relationship .
“ We have dedicated inside and outside sales teams ,” said David Piercy , marketing director at Landmaster , an American manufacturer focused on UTVs and looking closely at power equipment and ag industries . “ They ’ ll help onboard dealers and are very hands-on to help with marketing , sales , service , and other aspects of their business . It ’ s one person that comes along side with them as their business partner .”
Talk to manufacturers specifically about product ordering processes . Landmaster has a unique made-to-order retail system where customers customize UTVs for their needs . On the handheld side , Makita tools often encourages its dealer customers to “ keep a light inventory of our products to encourage inventory turns ,” according to Dennis Stauch , V . P . and GM of Makita ’ s OPE group . “ Much different than with gas product , battery product innovations result in step changes in technology very fast . If a dealer has big inventory of last year ’ s products it may take the dealer one or two seasons to sell old inventory to make room for new .”
From the topic of online sales to big-box stores , dealers should vet their manufacturers as strictly as those OEMs scope them out . Clear communication and proven policies are great , but both sides need to be adaptable , today more than ever .
“ We have not decided on a particular brand ,” said one dealer through our survey . “ Just started looking and trying to decide what would be a good fit for my market .”
www . OPEBusiness . com October 2023 OPE Business 21