market data

Staff Report

We use our quarterly dealer surveys to study a specific time period – Q3 2023 this time – and to identify trends over time . Thank you to all who contribute to our information gathering . When comparing to our Q2 survey data , we see what could be contradictory information . More likely , it is just that dealers experienced different results depending on region , market , and other factors . Hence the title , “ On the Other Hand .”

We source our data from a nationwide group of OPE dealers .

Here ’ s a look at who they are : 24 % claim annual revenue below $ 500,000 . 54 % bring in more than $ 4 million in annual revenue . 88 % are “ owners ” of an independent power-equipment sales and service business . 82 % have one location . 7 % have 4 or more locations .

( This data has remained mostly consistent across this year ’ s quarterly surveys .)

What products do these businesses carry ? A wide mix , but more than two-thirds carry all of these products : battery-powered equipment , blowers , brushcutters , chain saws , edgers , engines , fuel additives , generators , hedge trimmers , mowers ( riding , stand on , zero turn , walk behind ), pressure washers , string trimmers , tillers .

A small number ( less than 10 percent ) carry these items : apparel , ATVs , boats , trailers , excavators , go-karts , grills , motorcycles , robotic mowers , rakes , scrapers , skid-steers , snowmobiles , top dressers , trenchers , golf carts .

Let ’ s get into Q3 business conditions , trends , and analysis .

Satisfied ? A Declining Middle

We ask : Rate your satisfaction with being an OPE dealer at the current time , on a scale of 1 to 10 , with 1 being “ not at all satisfied ” and 10 being “ extremely satisfied .”

In Q2 survey reporting , we saw a shift to the middle on the “ satisfaction ” question . At that time , in the height of the selling season , nearly three-quarters ( 73 %) of dealers scored this from 5 through 8 . Many dealers were dealing with a drought . Today , we see in the Q3 reporting an increase in satisfaction over Q2 . More dealers , 57 % of them , scored this between 7 and 10 , leaning toward extremely satisfied . In Q2 , just 50 % of dealers scored from 7 to 10 .

30 %

25 %

20 %

15 %

10 %

5 %

0 %

SATISFIED : RATE YOUR SATISFACTION WITH BEING AN OPE DEALER AT THE CURRENT TIME ( 1-NOT AT ALL SATISFIED AND 10-EXTREMELY SATISFIED )

2.9 %

4.3 %

7.1 % 4.3 %

12.9 % 11 . 4 %

28.6 %

14.3 %

10.0 %

1 2 3 4 5 6 7 8 9 10

4.3 %

Source for all charts on pages 16-17 : OPE Business

On the other hand , nearly 20 % of dealers in Q3 reporting said they were less satisfied , scoring this between 1 and 4 on the satisfaction scale . The middle is fading . Some dealers are certainly feeling the impacts of that summer drought , which added to already growing inventory issues .

Conditions by Department ? Service Strength

We ask : Please rate the following , from Very Strong to Very Weak . FYI , a low score on the chart is good here !

We ask about the state of five separate business segments , plus “ Overall Business Conditions ” and , compared to Q2 survey results , overall business conditions are better – or much worse . As with the previous question about “ satisfaction ,” the middle is declining when it comes to “ business conditions .” More than 7 % scored overall business as Very Strong ; that ’ s a big increase from the 2 % who said the same in Q2 . More dealers scored both New and Used Unit Sales as Very Strong in Q3 compared to Q2 . On the other hand , more than 18 % scored overall business conditions as Poor or Very Weak , a noted increase from the 13 % scoring the same in Q2 .

The Service Department remains the strong point for dealers . More than two-thirds of dealers scored Service as Good or Very

16 OPE Business December 2023 www . OPEBusiness . com