DEALERSHIP SALES

One dealership, two very different customers

By Brian Ethridge

Photo courtesy of Carl ' s Mower & Saw

A homeowner may be focused on ease of use, comfort and finding a machine that fits the property. For a professional, equipment is a business investment that needs to withstand daily use, minimize downtime and ultimately make money.

Nate Day, owner of A Plus OPE in Leander, Texas, said the difference comes down to what each customer is trying to accomplish.

“ The incentives are different: a homeowner has a specific lawn he is showing off. He is thinking about how his lawn will look and how he’ ll look riding his mower. He’ s not thinking about resale value. He’ s not thinking about all the abuse his employees are going to put the machine through. He’ s not thinking about how much downtime he’ s going to have to endure over the life of the machine,” Day said.

“ The homeowner wants to know: is this machine a good fit for who I am? Professionals want to know: how much money is this machine going to make me and am I OK with everyone knowing what I run?”

That distinction can influence everything from the equipment itself to the sales process and the level of service customers expect after the sale.

Photo courtesy of Carl ' s Mower & Saw

Josh Flynn, CEO of Power Equipment Plus in East Hampton, New York, said homeowners and professionals often approach equipment purchases from fundamentally different perspectives.

“ Power and ease of use is the biggest difference homeowners and professionals look for when purchasing equipment, which subsequently can translate a bit into price,” Flynn said.“ Homeowners typically need something that will be infrequently used( less than once a week), whereas professionals often need something that can stand up to everyday use under any conditions.” Those differences also influence which features matter.“ Homeowners often are looking for a simpler machine with maybe some basic frills like a nicer seat, whereas professionals are keen on weight, tire width, hydros, suspension, etc.,” Flynn said.“ These two thought processes often translate into price as well. To homeowners this purchase is a‘ cost,’ whereas to professionals this purchase can generate a profit.”

Josh Levien, general manager of Carl’ s Mower & Saw in Ferndale, Washington, takes a similar approach, regardless of the customer type.

“ We listen to both and help them solve their problems and meet their needs,” Levien said.“ For homeowners it could be time, ease of use, etc. For commercial customers, it could be quality, time and ease of maintenance. We listen and solve.”

For dealers, that means the sales process starts with asking questions rather than simply showing customers the most expensive or most popular machine.

Photo courtesy of A Plus Outdoor Power Equipment

Homeowner sales can put independent dealers up against big-box retailers, particularly on price, convenience and operating hours. But Flynn said he doesn ' t necessarily see the competition as a direct comparison.

“ We’ re playing two different games when you really look at it,” Flynn said.“ The only advantage a big-box retailer should have over a power equipment store is operating hours and marketing dollars.”

He said independent dealers have advantages when it comes to expertise, product selection and service.

“ Everything else, we have the advantage: more SKUs by manufacturer, higher levels of expertise, mechanics on staff, more time for customer engagement, etc.,” Flynn said.

He said that can be particularly valuable when a homeowner needs help determining what equipment actually fits their needs.

“ Big-box retailers service a segment of homeowners that we don’ t necessarily target but are keen to win over with tremendous customer service if they do walk in the door,” Flynn said.“ Homeowners may make their first mower / saw / trimmer purchase at a large retailer, but when they come in our doors we try and make it their last.”

Levien said his dealership has spent 35 years building its business around equipment quality and customer support.

“ We have been at this now for 35 years and have been very intentional on providing high-quality equipment, unmatched customer service, a quick turnaround service shop and a fully stock parts department,” Levien said. That approach has helped generate referrals from existing customers, he said.“ This intentionality has created a customer base that sends in friends, neighbors, family,” Levien said.“ Do we get every sale? No. But we get the sales to the customers who want the best.” Day also sees an opportunity for independent dealers located near big-box stores.“ I love operating within a mile of a box store,” Day said.“ If a customer doesn’ t fit their

‘ box,’ their floor staff send them our way just to get them out of the queue.” He said some customers need time to adjust to the more consultative experience at an independent dealership.

“ There is a learning curve for new customers who expect the big box experience, where everything has already been tailored on the front end,” Day said.“ For some customers, big box is the right choice. But if a customer is ready for a custom fit, we’ re their shop.”

Photo courtesy of Carl ' s Mower & Saw

Battery equipment continues to be an important part of the conversation, although dealers are seeing different levels of adoption between homeowners and professionals.

“ Battery continues to grow in the handheld category,” Levien said.“ Battery mowers are not selling great because people are finding they don’ t have the performance needed.”

Flynn has seen a stronger push toward battery among homeowners and gradual adoption among professional landscapers.

“ There is obviously a bit of a focus on battery right now, particularly for homeowners,” Flynn said.“ Professionals are slowly transitioning their handheld units to battery once they get started.”

He said the initial setup can be an inconvenience for professionals, particularly when it comes to keeping batteries charged, although he sees potential advantages in lifetime cost and performance.

Day, meanwhile, said he has seen some hesitation toward battery and broader skepticism about recent industry developments.

“ Overall, I’ ve seen some pull back over the past two years,” Day said.“ More denied repairs, fewer handhelds and smaller decks. Standoffish curiosity regarding battery.”

He also said customers have expressed frustration with some of the changes coming from manufacturers.

“ From both homeowners and professionals, there’ s discontent with what they see as experiments from the manufacturers,” Day said.“ The industry shifts aren’ t seen as true innovation to many of my customers.”

Photo courtesy of Carl ' s Mower & Saw

The differences between homeowners and professionals become particularly apparent after the sale.

For professional customers, downtime can mean lost revenue, making parts availability, repairs and communication critical.

Levien said his professional customers want parts on hand and machines repaired quickly. His dealership offers zero-down loaners and aims to turn around repairs for commercial cutters in less than 24 hours in most cases.

Day said his professional customers also place a premium on keeping equipment working.

“ Our professional customers know we treat warranty and rechecks as top of priority,” Day said.“ If there’ s a concern, we bend over backward to help get them get back to cutting.”

He said some customers value having replacement parts in stock while others appreciate communication and transparency.“ It’ s not about anticipating everything, but keeping them in the driver seat,” Day said. Flynn said his dealership offers a free preventative maintenance labor plan for larger machine purchases. Customers can bring those machines to any of the dealership ' s locations for preventative maintenance with no labor charge; paying only for parts. The dealership also offers pickup and delivery as well as a loaner program it hopes to expand.

While homeowners represent an important customer base, the dealers said professional customers can have an outsized impact on dealership revenue and profitability.

Levien said his business is approximately 60 % homeowners and 40 % commercial customers by dollars, while traffic is closer to 80 % homeowners and 20 % commercial.

“ Years ago, our commercial percentage was higher, the consumers want to shop

where the pros shop, so our commercial business has continued to grow,” Levien said.“ But the consumer side has grown faster.”

Flynn ' s dealership sees approximately 75 % of revenue from professional customers, with total tickets closer to 60 % from pros.

“ I would think it’ s hard for any business like ours to survive on homeowners alone,” Flynn said.“ The margin dollars generated from either a homeowner machine sale or work order are typically a lot lower than professionals, leading to a significantly higher quantity for the same result.”

Day said professional landscapers and municipalities can be particularly important to an independent dealership.

“ An independent shop’ s bread and butter needs to be its professional landscapers and municipalities if you can land them,” Day said.“ Those are the guys you’ re going to see on a regular basis, especially if they don’ t have their own maintenance guy on staff.”

He said professional customers also help spread business throughout the season and are generally more familiar with the value of dealership service.

The takeaway isn ' t necessarily that dealers should focus exclusively on homeowners or professionals. Instead, dealers need to understand the different value each customer brings and tailor their approach accordingly. Day puts that strategy in terms of the Pareto Principle.“ If you think about it, the top 20 % of your customers are going to represent 80 % of your base( Pareto Principle.) Those are the guys to invest in and spend your time on,” Day said.

Flynn ' s advice is similarly direct:“ Manage homeowner expectations, exceed professionals’.”

Levien ' s philosophy is even simpler: Listen and solve.

Photo courtesy of Carl ' s Mower & Saw