SWAPPING SUPPLIERS
A nervy time for dealers
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

This week I've been beavering away, working on getting the copy up together for the next issue of Service Dealer magazine.

 

I feel like I may be repeating myself here, but I believe it's an absolutely cracking issue we've got coming up for you. It's packed full of dealer-centric stories, both in the news pages and within our feature sections. In this upcoming edition we include in-depth focus on seven separate dealerships from all around the country.

 

One story for example, that I think readers will find particularly fascinating and relatable comes from my colleague, our agricultural machinery editor, Martin Rickatson. Entitled Handling the challenges of changing franchises, Martin speaks at length to a dealer whose business has made the transition from one major brand to another. The interview covers what this change has meant for their business and, crucially, what it's meant for their relationship with their customers.

 

As Martin astutely puts it in his article, "Customer loyalty is one of the hardest-earned assets any dealership can possess."

 

I won't spoil today who the dealer is that Martin spent time with - I'll leave that as a surprise for when the mag drops on to your mat - but I will say they offer great insight into how getting certain customers to change their machinery make isn’t easy. They explain to Martin how they have found that demonstrations are essential. "Get someone in the seat, show them how good the machine is and let them operate it for a while," they describe as key. 

 

They go on to sum up their philosophy, explaining, "Then give them a competitive price and the personal support of a family dealership, and deals can be done."

 

Mixing it up - whilst maintaining loyalty

 

Dealers shuffle their machinery offerings all the time, of course. Sometimes the choice is entirely of their making, deciding to drop or to add a franchise as part of a strategic move. Just last week for example in this Weekly Update, we included four separate news items of dealers taking on ranges new to their businesses.

 

Other times the move can be forced upon dealerships. As we've seen with increased frequency, manufacturers can at any time make choices to redraw their territory boundaries or to rationalise their networks into fewer, larger dealer groups. 

 

What is vital when changing up franchises for any reason, is maintaining that customer loyalty. The ideal scenario that businesses will be striving for is that their customer base will return to their premises regardless of what colour the machinery parked on their forecourt, or on display in their showroom, might be.

 

But what are effective methods to engender that customer loyalty? How can dealers guarantee to bring their community with them as they evolve marques? I suppose nothing is guaranteed, however as the dealer Martin spoke with alluded to, fair pricing and that level of personal service that only independent specialists can offer, must be top of any list.

 

Doing a bit of research into what business experts would recommend to retailers who are mixing up their key franchises, other advice includes maintaining consistency in after-sales support; continuing to offer comprehensive product knowledge and engaging in relationship building. All sound tips, although arguably fairly standard practice for any dealer worth their salt. 

 

One tip I did read that I thought was quite interesting, and perhaps one that might not spring to mind immediately, is for dealers who are changing up their offering to communicate with transparency to their customers during the franchise transitions about the changes taking place.

 

The advice given was to notify customers well in advance and explain the reasons for the change. Emphasise how the new franchise will benefit them and assure them of continued support and service. By proactively addressing any concerns or uncertainties, it was argued a dealer can maintain customer loyalty and head-off any potential dissatisfaction during the transitional period.

 

By doing what independent dealers have always done best, and by being open and honest with customers, hopefully dealerships should be able to create an enduring loyalty that transcends any specific machinery brand.

In this issue
EDITOR'S BLOG
SWAPPING SUPPLIERS
NEWS
60 YEARS OF DEALERSHIP SERVICE
TORO UK RETURN AS A GOLD SPONSOR
HANDY TO LAUNCH NEW PARTNERSHIP
CAMPEY TAKE ON NEW MACHINERY RANGE
APPOINTMENT TO RAISE SHOW'S PROFILE
ATV SAFETY CAMPAIGN KICKS OFF
ELECTRIC TRAINING COURSE LAUNCHED
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