EDITOR'S BLOG
DEBT AND JIGSAWS
Another busy week!
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

With the news this week that companies across the UK are owed billions for work performed and not paid, we look at debt management - and there's another piece moved in the franchise jigsaw.

 


As well as flocking to the beaches this week, I hope the warm weather has brought trade in through your doors - or at least to your covid-secure car park area!

 

I've been reading reports that the garden centre sector has been doing very well, despite the rest of the high street opening up now too. Perhaps this domestic upturn really is related to the many workers still being at home on furlough with some money to spend on garden improvements?  Whether this will dramatically change as furlough is phased out and the sad, yet seemingly inevitable, redundancies start kicking in, we shall see.

 

One slightly disturbing trend I did read about this week is the level of money that UK businesses are apparently owed. According to research carried out by business loan company, MarketFinance, there's an almost unbelievable £133b owed to British firms since lockdown. Based on their survey of 2000 companies, they say nine in ten businesses are waiting to be paid an average of £148,917 for work done pre-lockdown.

 

They also report that the vast majority of businesses (81%) are also expecting to wait longer to be paid for the goods they provide and work they do from now on. Apparently half anticipate waiting anywhere between 14-30 days beyond normal terms (45 days).

 

We all know the pressures that slow payments place on a small business's cashflow are significant. The company who carried out that research are of course biased and would advise that firms should look beyond banks and government for funding sources to get them through tight times - but there are options.

 

We actually have an article today from our SME Digest editor, Adam Bernstein, offering advice on different methods SMEs might want to consider to pull themselves through periods of financial hardships. Adam looks at how a business might find solutions by looking at areas such as using your accounts and available software, speaking to HMRC, speaking to the bank and speaking to creditors.

 

As ever, with all Adam's pieces, it's written in clear, jargon-free language so it's certainly worth a read. And indeed, as with all his other recent articles which can be found on Service Dealer's website, you might want to consider printing them off and keeping them together to form an information pack.

 

Elsewhere, business life in our sector is doing its utmost to continue as close to normal as possible. It's encouraging today to hear that Walker Mowers are in a position to appoint five new dealers across England. Signs that style of ride-on machine is finding increasing favour in the UK perhaps?

 

Also today we carry the news that Netherton Tractors in Scotland is building a new depot to accommodate an expanded John Deere territory. Undoubtedly good news for them and another example of the ever-changing franchise jigsaw at play - as one piece is added another is removed. Come October HRN Tractors will no longer hold the marque at their Balbeggie branch - with the manufacturer not commenting on other depots in the area.

 

These developments coincidentally tie in with a major feature in the latest edition of Service Dealer magazine, which I believe should be landing on your desks this coming week. Written by founder Chris Biddle, his superb article discusses the notion of the rise of the super-dealer and what place brand loyalty plays with customers.

 

Which comes first, Chris asks, the product or the dealer?

 

 

Chris looks at recent examples, talking to dealers C&O Tractors and Sharmans, both of whom have changed the colour of the machines on their forecourts. He also speaks to David Hart, md of Kubota UK about their dealer strategy and he considers research suggesting that brand loyalty isn't as prevalent amongst consumers as it once was.

 

It's a fascinating read so do look out for your copy of the magazine arriving this week. In the meantime, please feel free to leave any thoughts you have regarding where you believe customer loyalties lie - is it with you or your suppliers?

NEWS
NETHERTON TRACTORS SET TO EXPAND WITH NEW BRANCH
With HRN Tractor's Balbeggie outlet to lose John Deere franchise
 
Managing director Harry Barclay (left) and general manager Garry Smith of John Deere dealership Netherton Tractors.

This week's WEB ONLY story is the plan announced this week to establish a new dealership outlet in the Perth and Kinross area of Scotland - with confirmation of a current dealer's outlet ceasing to hold the marque.

 


NEW RESEARCH REVEALS GARDEN TRADER SUCCESS FOR DEALERS
Despite lockdown, consumers looking to purchase
 
Garden Trader

New research from gardentrader.co.uk has found that consumers are looking for new equipment from their local dealership.

 


New research from gardentrader.co.uk has found that despite lockdown, consumers have been looking to purchase new equipment from their local dealership.

 


Garden Trader found that 80.5% of users were either extremely likely or likely to visit the independent dealer they had found through the site, in research conducted between February and May this year. These results are also reflected in the 100,000 page views the site received during lockdown.


Kate Godber, site manager for Garden Trader said, “Garden Trader has consistently shown strong traffic and lockdown has been no exception. We conducted the research to clarify what customers’ perceptions of the site were and importantly what their intentions were. We were really encouraged that people were taking advantage of the extra time at home and wanting to find their local dealership.


“For dealers, the results highlight the importance of having a presence online through the likes of Garden Trader. With 85.4% of users finding the site extremely helpful or helpful, we are confident that it’s a useful resource for consumers looking to purchase and dealers looking to sell. It is more important than ever that digital budgets are spent wisely and this research shows that Garden Trader is real value and generates footfall.”


Garden Trader is now in its fourth year and continues its success thanks to sustained support from dealers and manufacturers. The Garden Trader Forum, for dealers only, also recently launched, allowing dealers to share experiences in confidence.


Dealers not already listed on the site can set their account up, for as little as £96 +VAT per year, by clicking here.

REPORTS IN U.S SAY B&S SKIPPED $6.7M INTEREST PAYMENT
But awards $5m to executives
 
Briggs & Stratton

According to a filing with regulators, reported by the Milwaukee Journal Sentinel, Briggs & Stratton Corp. has chosen not to make a $6.7 million interest payment.

 


According to a filing with regulators, reported by the Milwaukee Journal Sentinel, Briggs & Stratton Corp. has chosen not to make a $6.7 million interest payment, but the company’s board of directors has voted to give executives and other key employees more than $5 million in cash retention awards.

 

The report in the Milwaukee newspaper said that the filing with the Securities and Exchange Commission, stated that the board also restored the base salaries of executives and managers, effective July 1, from previously reduced levels in effect since April.

 

The article goes on to say that the choice not to make the interest payment due on June 15th, resulted in the triggering of a 30-day grace period before it constitutes a default on a credit agreement.

 

A quote from the Milwaukee Journal Sential reads, "The cash retention awards for certain executive officers and other key employees included $1.2 million for Todd Teske, chairman, president and CEO; $600,000 for Mark Schwertfeger, senior vice president and chief financial officer; $425,000 for David Rodgers, senior vice president and president of the engines and power division; and $425,000 for Harold Redman, senior vice president and president of the turf and consumer products division."

 

A statement given to the paper from spokesperson Rick Carpenter said, "Within this COVID environment and as part of a series of actions to increase our financial flexibility, we elected to take advantage of the contractual 30-day grace period with respect to the interest payment owed to our Note holders. Our decision to take advantage of the month grace period does not affect compliance with our Revolving Credit Agreement as this is a contractually-allowed step for us to take. Finally, the retention awards, within this COVID environment, are to ensure that the company retains the commitment, experience and expertise as a group to help align the company in these tough economic times."

 

You can read the whole article here - which states that Todd Taske could not be reached to answer the paper's questions.

GGM TO START SECOND HALF OF CHARITY CYCLE / WALK TODAY
Possibly getting wet on the way home!
 
The GGM cycle team arrive at work on Wednesday this week

100 mile round trip for charity by GGM started on Wednesday with a cycle and the second half of a long walk is kicking off today - already raising double their target!

 


Members of the team at GGM, including md Chris Gibson, have this week undertaken a 100 mile round trip cycle and walk for their chosen charities, Greenfingers, St John’s Hospice in Lancaster and Pendleside Hospice in Burnley.

 

Chris told Service Dealer yesterday, (Thursday 25th), "On Wednesday we completed our cycle to work, starting from St Johns Hospice in Lancaster and finishing in the office at Colne on what was certainly one of the hottest days of the year.

 

The GGM cycle team arrive at work on Wednesday this week

 

"I was, at the start of the ride, fortunate enough to meet the CEO of the hospice who briefly highlighted both the additional costs and the battles they are having to fight to get patients the treatment they need from the NHS as the local trusts continue to focus on Covid-19. From what she said it was very clear it is not just the virus that is sadly taking loved ones away from us early. Her few brief words certainly spurred us all on to complete our challenge and to attempt to raise as much money as we can.

 

"On Friday (June 26th) we start the long walk back via the Witches Walk and if the forecast is to be believed, we face rather different, if equally challenging, weather conditions!

 

"So far we have managed nearly double our original target of £1000 and have raised almost £2000 for the charities."

 

But GGM say they would like to try to raise another £1000 if they can. Service Dealer this week contributed £100 to the cause and donations can still be made by clicking here.

 

Below is a brief video of the cycle ride.

 

GGM '100 Mile Journey' Charity Fundraiser - Part 1 Cycle Ride

GET YOUR WEBSITE RIGHT
And increase its traffic
 
Get your website right

The seventh module in the Service Dealer Digital Toolkit is released today, covering how to get your website right and how to increase traffic to it.

 


One thing that has been clear about the last few months is that those dealers with a blended approach to sales  have benefited.  Many dealers have adopted a "click & bricks" approach through their website whilst retaining the local service and support element via click and collect.  The seventh module in the Service Dealer Digital Toolkit is released today, covering how to get your website right and how to increase traffic to it.

 

 

If you haven’t already registered you can do so by visiting: https://www.servicedealer.co.uk/dealer-digital-toolkit

 

Or if you previously registered you can access the toolkit by logging in with the details you received via email.

 

Account manager at TAP, Kate Godber, said, "We advise our dealers to check their junk folder in case of any issues, as the email could arrive in there. Please add us to your safe sender’s list so that you receive the email next time."

 

Don’t forget to follow us on social media too - @ServiceDealer

WALKER APPOINT FIVE
New dealers join network
 
Sims Garden Machinery are one of five new Walker dealers

Company has announced dealerships across England as new suppliers of their machinery.

 


Walker Mowers UK have announced the appointment of five new dealerships to their network.

 

Established in 1833 and based in Williton, Somerset, J.Gliddon & Sons are a family business supplying the local community with a wide range of professional, estate and garden machinery.

 

 

Located in the heart of Leek, Staffordshire, PJS Machinery’s busy store offers a variety of equipment from a large portfolio of suppliers including all major brands.

 

 

Situated close to the centre of the city, Arb & Grounds Equipment are a specialist independent retailer that offers the largest selection of power equipment in Derby.

 

 

Sims Garden Machinery offer machinery to suit any garden, big or small, from a great selection of suppliers from their large Stratford-Upon-Avon store.

 

 

Established in 1971, E Buckland have been servicing and supplying garden machinery for almost 50 years from their base in Tibberton, just west of Gloucester.

 

 

Steve Egerton, country manager Walker Mowers UK told Service Dealer, "We are excited and proud to welcome all these dealers on-board."

20 ACRE DEMO SITE AT GIE+EXPO GETS AN UPGRADE
$1.3m renovations taking place
 
During a recent site visit, GIE+EXPO show director Warren Sellers reviewed progress on the improvement project

Organisers of this year's trade show in Louisville, say the Kentucky Exposition Center has an improvement project underway that will positively impact the event.

 


Organisers of this year's GIE+EXPO trade show in Louisville, say the Kentucky Exposition Center has an improvement project underway that will positively impact the event.

 

During a recent site visit, GIE+EXPO show director Warren Sellers reviewed progress on the improvement project with Kevin Moore, general manager of the Kentucky Exposition Center, and Kevin McCoy, executive director of Facility Planning and Management

 

Lot C, which becomes the show's 20-acre Outdoor Demonstration Area each year in October, is undergoing a $1.3 million overhaul, that will enhance the space's function for GIE+EXPO and many other events in the future. The project is expected to be complete by the end of July. You can watch live progress here.


More than 126,000 cubic yards of dirt, the equivalent of 63 football fields (or over 1 million wheelbarrows full), is being relocated to Lot C and steps are being taken to improve drainage and irrigation. Once the green space is complete, the new irrigation systems will provide the ability to cover the entire field with an inch of rainwater in two days.


In addition, permanent driving lanes will be added to Lot C, as well as sidewalks that extend from Phillips Lane, where several hotels are located, to a new main gate, improving pedestrian access.

 

Kris Kiser, managing partner of GIE+EXPO and OPEI President, said, "We've called Louisville home for 38 years, and have always enjoyed a strong partnership with the city and state of Kentucky. The renovations at the Kentucky Expo Center are really a big 'backyard renovation' for GIE+EXPO and the industry. These 20 acres of outdoor demonstration area are a purposeful, living landscape that our attendees and exhibitors use each fall to showcase and try out the latest equipment and technologies. We're excited to show off the new grounds this October."


Project leaders at KEC have sought input from GIE+EXPO organizers throughout the project. "We have a great working relationship with KEC and have been pleased with their collaborative approach as they undertake major projects," said Warren Sellers, show director. "With the current renovations wrapping up in July, we'll certainly see a difference in the demo area this October and anticipate even bigger improvements by 2021."


GIE+EXPO is set for October 21-23, 2020.

REESINK ANNOUNCE NEW MAINTENANCE PLANS
To be rolled out across their three turfcare branches
 
Reesink Turfcare has developed three plans for machinery maintenance and servicing for its Toro customers

Company say the plans are designed to reassure customers that there’s a range of maintenance plans available, to suit all needs.

 


Reesink Turfcare say they have developed three new maintenance plans which will be rolled out over the coming weeks through its three turfcare branches in Scotland, South East and East Anglia.

 

 

According to the company, the plans - rated Gold, Silver and Bronze - are designed to reassure customers that there’s a range of maintenance plan to suit all needs.

 

David Jackman, operations manager at Reesink Turfcare, said, “As a distributor, we are focussed on the way we deal with customer support and achieving the best solution possible. Machinery maintenance is an absolute given; it’s a non-negotiable in terms of getting the best out of your machinery and we wanted to create a service that made sure customers have the option to safeguard their investment.”

 

In all three plans the cost is fixed for the period of the contract and there is the choice of monthly or quarterly payments. Only genuine Toro parts are used, disposal fees are included, and every machine gets a free annual health check. In all plans, all scheduled servicing is covered.

 

David continued, “When we talk to our customers regarding new machinery we are constantly asked for extended warranty programmes and guarantees, so we have developed the Gold Plan that covers all servicing work, breakdowns, replacement spare parts and acts like a warranty programme over the duration of the contract at a fixed price.”

 

The company say these plans further reinforce support for their commercial turf customers with high standards for servicing, repairs and warranty, and the spare parts supply process. Especially when placed alongside the back-up and support of Reesink’s service centres and network of Authorised Service and Dealer Locations, and initiatives such as the Service Level Agreement.

 

David says: “It means that buying Toro comes with buying into a support network like no other. The parts backup is second-to-none and as a Toro customer you are never more than a maximum 72-hours away from the part you need and minimum downtime and maximum productivity.”

FUTURE EXPECTATIONS 'LESS NEGATIVE'
Says CEMA Business Barometer
 
CEMA Business Barometer

The general business climate index for the agricultural machinery industry in Europe has further improved but continues deeply negative.

 


The general business climate index for the agricultural machinery industry in Europe has further improved but continues deeply negative at -47 points (on a scale of -100 to +100) after having dropped as sharply and deeply as it had not since the financial crisis of 2008/09.

 

 

According to the European Agricultural Machinery Association (CEMA), the current improvement of the business climate is primarily the result of less negative future expectations. Last month, 75% of the industry representatives were expecting a decreasing turnover, whereas in the meantime “only” 56% of the industry representatives expect a decreasing turnover within the coming six months.

 

Restrictions in the course of COVID-19 are still in place, but have been further reduced along the way to the end customer: on average of all companies participating in the survey, the production capacity utilisation is meanwhile at 83% of the level before COVID-19. The conditions on the distribution side have improved the most compared to last month. Overall, however, the distribution side is still causing slightly more problems than the supplier side, which is now again able to supply at 88% of the level before COVID-19.

 

With regards to the European market, the expectations of the survey participants have also improved, but there is still a clear majority of participants expecting turnover decreases from all regions except Scandinavia.

 

The entire CEMA Business Barometer report can be found here.

JOBS
ADVERTISE YOUR JOBS HERE
Amazing success rates!
 
Advertise your jobs on Service Dealer Weekly Update

Advertise your recruitment needs on Serivce Dealer Weekly Update and reach our targeted audience of recipients every week.

Contact Nikki Harrison for details - 01491 837117


Sponsored Product Announcements
MODEL R FROM WALKER MOWERS
Perfect for residential properties
 
Walker Mowers' Model R

The belt-driven mower blades make operation smooth and quiet without compromising on the Walker Mower’s distinct advantages. The Model R provides a premium Walker experience so you can bring home fast, easy, beautiful mowing.

 


The Model R is the perfect Walker Mower for residential properties.

 

The belt-driven mower blades make operation smooth and quiet without compromising on the Walker Mower’s distinct advantages. The Model R provides a premium Walker experience so you can bring home fast, easy, beautiful mowing.

 

The Model R has been specifically designed to meet the high standards of residential owners. It delivers essential attributes like ease of use, high quality of cut (especially on complex, difficult properties), operator comfort, reliability, and easy maintenance. The Model R features an integrated deck design available in 42 and 48 inch cutting widths. The deck rests on independent articulating deck arms, allowing it to freely flex up and down, minimizing scalping and uncut areas of grass.

 

 

The torsion-flex carrier frame also allows the deck to flex side-to-side, so no matter the terrain, the Model R delivers a smooth premium cut. The Model R can be fitted with an optional mulching kit that includes bolt-in baffles and serrated mulching blades. A side-mounted grass catcher is also available for the Model R. The Model R is priced for residential owners thanks to its simplified design and components. It is a premium Walker Mower designed to provide fast, easy, beautiful mowing for years to come.

 

 

R21 Features

  • 21 HP Kohler KT620 with Smart-Choke® technology for easy starts in hot and cold weather
  • Hydro-Gear EZT transmissions
  • Ogura electric blade clutch and brake with easy pull/push switch operation
  • Tilt-up deck and tilt-open seat
  • 3.0 gallon custom molded, low profile fuel tank with integrated fuel level gauge
  • Flexible deck carrier frame
  • Precision steering lever control

R21 Popular Add-ons

  • Comfort Seat
  • Tow Hitch
  • Mulching Kit including bolt-in baffles and serrated mulching blades
  • Accelerator® side-mount grass catcher
  • LED Light Kit

Introducing The All New Walker Model R

 

01482 534470
www.walkermowers.co.uk
sales@walkermowers.co.uk

TAKE ADVANTAGE OF THE DIGITAL SURGE
Targeted Digital Searches Just 26p Per Day

 

Linking customers with dealers online is now more important than ever.  Garden Trader is showing larger than usual traffic in these times and we want dealers to be taking advantage of this unique network. Don't forget, the site is designed to specifically identify and catch customers when they are researching a product online and helping them locate their local dealer. If you do wish to re-subscribe or indeed register it is easy and takes just a few minutes. 


Garden Trader is helping send quality leads to specialist garden machinery dealers in the UK.  It has been designed to  promote our dealer industry to consumers who are specifically searching for garden machinery products and services.

 

It is easy and quick to register and costs just £96 + VAT per year to be listed and all revenues in 2020 will be reinvested into promoting the site online.

 

Garden Trader

 

Join the country’s only independent specialist website, created by the team that bring you Service Dealer. Join our subscribed Garden Trader dealers now by clicking on “Register Dealership” and let's fight back against the zero value retailers.

 

Map of dealerships registered with Garden Trader

 

FIND OUT MORE

Events
LATEST SHOWS & EXHIBITIONS
Sponsored by STIHL GB


Side Advert Image
SIDE ADVERT

PARTNERS
AGCO
 
AGCO
Bagma
 
BAGMA
Briggs & Stratton
 
Briggs & Stratton
Catalyst Computer Systems
 
Catalyst Computer Systems
EGO
 
EGO
Evopos
 
Evopos
GardenCare
 
Gardencare
Garden Trader
 
Garden Trader
Hayter
 
Hayter
Henton & Chattell
 
Henton & Chattell
Husqvarna
 
Husqvarna
Ibcos
 
Ibcos
Kramp
 
Kramp
Kress Robotik
 
Kress Robotik
Kubota
 
Kubota (UK) Limited
Stiga
 
Stiga
STIHL GB
 
STIHL GB
uni-power
 
uni-power
TurfPro
 
TurfPro
CURRENT ISSUE
May / June 2020
 
Service Dealer May / June 2020
PRODUCED BY THE AD PLAIN
 
BUSINESS SUPPORT
DIG YOURSELF OUT OF DEBT
Running a business comes with risk
by Adam Bernstein, Service Dealer's SME Digest Editor
 
SME Digest Special Feature

In the 15th of our special series, designed for you to download, print and keep, Service Dealer's SME Digest editor, Adam Bernstein says that if debt becomes a problem, there are steps which can be taken.