Service Dealer hosted a video conference call this week, once again with senior representatives of manufacturers, suppliers, business service providers and trade associations.

We haven't run one of these for six weeks or so, having conducted them regularly throughout the stricter lockdown period. So it was interesting to catch up with everyone, to find out how business had been progressing and whether things had settled down somewhat.

Following the discussion, owner of Service Dealer Duncan Murray-Clarke said, "I think there is now a general consensus that the way we all work has changed forever. Homeworking flexibility has proven to be achievable for many and there is a saving to be had on the balance sheet with downsizing or removing the office.

“I believe that we are facing a similar shift with events. Many will return but will include a greater virtual element. There may well be fewer events, but those that do come back will offer exhibitors and sponsors wider audiences in total - both in the flesh and online”.

Sales

If one thinks back to how things were at the end March and into April, there was so much turmoil and confusion, the business world was in flux, constantly trying to keep up with guidance and regulations.

What we heard from the manufacturers and trade associations we spoke to this week, was that of course sales figures have been negatively affected this year - but seemingly nowhere near as bad as had been initially feared. The month of April was a big hit, but after that, it appeared that the ship was steadied. The consensus we heard was that many would be just behind, or in some cases, in front of where they were last year.

Just how well companies have fared, is of course dependent on what sectors they serve. As we’ve heard throughout this year, ag and garden machinery suppliers have managed pretty well, but it’s those providing machinery solutions for the commercial grounsdcare market who have faced a real struggle. As we’ve moved through the past few months, it has also become clearer that different areas of the commercial market are responding differently.

We heard that commercial manufacturers are finding that golf course and local authority customers’ spend is right down this year – but areas like wealthy homeowners, estates and schools are still choosing to invest in new equipment.

An interesting point raised, which many dealers might be experiencing, is with the rise in online selling which the past months have necessitated, upselling to customers is proving increasingly difficult.

Yes, there has been a surge in sales, certainly on the domestic side, with plenty of entry-level products flying off the virtual shelves. But without that in-person dealer-to-customer interaction, there hasn’t been those higher-ticket machines being sold in quite the numbers that the industry would hope.

Consumers are buying online in ever increasing numbers, with lockdown bringing into focus the convenience of these transactions. Dealers who were able, switched on to this trend quickly – but going forward, the key will be how do we turn these online entry-level sales into more expensive items that offer greater margins?

We heard more than one manufacturer saying that their focus for the foreseeable future will be investment in helping dealers with online sales resources, such as video content, to enable these up-sales.

Investment in business

It’s not just the manufacturers who are investing in the future of their businesses though – we were hearing from the providers of specialist software for dealerships on the call, that many dealers have been investing in their products in recent months.

The representatives of Ibcos, Catalyst and Evopos all seem to have had similar experiences with their dealer customers. They were telling us that the conversation lately has not been along the lines of ‘what will this cost me?’ – moreso ‘how will this investment benefit my business?’

Dealers are taking the opportunity to reengage with their customer base, we were told. Innovative marketing initiatives to let their local communities know about all the services that they can provide have been proving invaluable. One key message which is being spread is that the dealer is not just there for breakdowns. They should always be in the minds of customers who own expensive kit, that they want to keep performing at its peak.

For some dealers there has been a real change in mindset over this period, with many taking the opportunity to invest in the business to push it forward and hopefully future proof it.

Brexit and shows

A couple of other subjects were raised during the call this week. Firstly, everybody’s favourite discussion pre-March, Brexit!

Talk of this has obviously been on the backburner for a while – we had other things on our minds! But with the date looming, manufacturers are having to spend time considering its effects once again.

Although that’s the major problem at the moment – no one knows exactly what it is. Government is spending time and money telling business to prepare for Brexit, but as it stands, how can a company prepare if they don’t know what the trade deal actually is?

Also, it is still unclear what the impact of Brexit will be on the markets which our industry serves. Until that becomes known, everyone is in the dark somewhat.

What was agreed though, is that dealerships themselves are pretty much a step away from any Brexit effects. It is more their suppliers who will feel its impact. Dealers don’t seem to be talking about Brexit much and are waiting to see how the companies they deal with react.

And finally, shows.

With the news last week that AGCO were pulling out of a major European show and choosing to do their own virtual thing, we gauged the thoughts of the manufacturers on the call about shows in the early part of next year.

From what I could gather, there is still in theory the desire to physically exhibit in front of customers at shows. There is a genuine benefit to most manufacturers in doing that. However, the sense I get is that these companies are conflicted over whether the early part of 2021 is the right time to be doing so?

What will have changed by then, was a question posed? Because the biggest concern all these guys have is keeping their staff and their customers safe.

Also, similar to Brexit, the uncertainty surrounding all events at the moment, simply isn’t helpful. The 'will they, won't they cancel' question hanging over every show means these exhibitors are forced into an awkward position of hedging their bets. Do they commission stand builders? Do they book hotels? These matters, plus all the other logistics surrounding attending a show, are up in the air.

Shows are no doubt important - but are they vital in 2021?

AriensCo has announced the appointment of Brad Stiles as director of sales and marketing EMEAA, reporting to vice president Darren Spencer.

“The appointment reflects the strategic importance of growing the EMEAA business," said Darren Spencer. "Brad’s priority will be on building upon the existing footprint and successes.” Massimo Caner, European sales manager, Matt Wilson, UK sales manager and Jef O’Riley, marketing manager EMEAA, will report to Brad.

Brad grew up in the industry, with a father at AriensCo for 25 years. Brad himself has been with the business for 9 years and started in 2011 with Stens, which was owned by AriensCo at the time. He specialised in parts programmes and strategies with dealers to grow their overall parts business.

In 2014 Brad was promoted to a district manager representing a territory in Indiana, where he specialised in creating plans to grow dealer business, regional marketing programs, commercial product sales, and new dealer acquisition and growth. He was subsequently promoted in August 2020.

“We’re very pleased to welcome Brad to our team," added Darren Spencer. “We very much look forward to working together on this new stage in the development of the company. Brad brings a wealth of experience with a fresh view of our marketing future and he will be out to meet customers as soon as possible.”

Brad says he is exceptionally pleased to have this opportunity. His wife, Hannah, is from the UK and they have a 3-year-old daughter, Madeline, both of whom are already in the UK awaiting his arrival.

“While these are challenging times, ahead of us are very exciting developments for AriensCo and the Outdoor Power Equipment industry alike. We have many innovations coming in the next twelve months which will shape the way our business grows, to the ultimate benefit of our relationships with our dealers and customers. My family and I are very appreciative of this opportunity from the Ariens family and look forward to making the United Kingdom our home.”

Brad’s full-time move to the UK is planned for autumn 2020.

Organisers of the SALTEX exhibition, the GMA, have released a statement saying they are confident they will be able to stage a safe and successful event next spring.

Geoff Webb, CEO of the Grounds Management Association, says he believes that the exhibition will be a huge first step towards the industry’s recovery.

“We believe that there comes a point where we lay the foundations for recovery and we of course want SALTEX in March to be a catalyst for this to showcase products, demonstrate the innovation this industry possesses, engage, network, renew acquaintances and generate new business for our exhibitors," he said. "In fact, we are making every provision to build assurance for a positive ‘return on investment’ for our exhibitors.”

In an official statement the GMA recognised that there may be "potential protocols" in place as a direct result of Covid-19. They went on to say how they believe that SALTEX is in the "safest and most professional of hands".

Geoff Webb explained, "The National Exhibition Centre is one of the foremost venues in the UK and as such is at the heart of discussions as to how to run events safely and securely. The GMA has also taken advantage of its membership with the Association of Exhibition Organisers, who are closely working with the Events Owners Association, the Association of Event Venues, and the Event Suppliers and Services Association – which covers almost every facet of the events industry, looking at the impact of the pandemic globally, as well as the UK from an events management perspective. We’re very proud to have established these excellent working relationships and it has allowed us to learn from others, network, and input into the guidance now issued and being supported and used by Government.

“The events sector is holding some pilot exhibitions over the coming weeks to detail the best procedures to ensure exhibitions are the best possible environments for staff, exhibitors, and visitors alike. Learning from these pilots will be addressed. In the meantime, we are currently mapping out several scenarios based on restrictions that may be in place in Spring 2021, so the event runs safely and efficiently, while creating a positive experience for both visitors and exhibitors.

“We have a very experienced team, who with the NEC, I am confident can stage a safe and successful event in the Spring next year.”

Kubota are celebrating Michael Keniry who has just retired from one of their leading dealerships in Ireland, Atkins Farm Machinery.

Michael Keniry, left

Michael worked at the dealership in Cork for 44 years, with 30 of those years selling Kubota machinery.

Michael began his journey as a sales representative at Atkins in 1976. At the time the dealership looked after 26 counties across Ireland for agricultural machinery. In 1980, Michael opened a new branch depot where he stayed until 1990 - at which point he specialised in machinery used to meet the requirements of the golf community.

When asked what advice he would give to other dealerships looking for longevity, Michael said, “Good advice and support is very important. We also provide excellent back up to our customers. Quality is remembered long after price is forgotten - and this has always been our motto at Atkins.

“The Kubota sales management team in Ireland have also been very good. We’ve found them to be helpful and supportive and this is important. If you’re looking for advice or for help or support, they will be there for every step of the way. They will come out to meet the customer and really go the extra mile to ensure both Atkins and the customer have everything they need, including being able to give competitive pricing, which in turn, has helped us retain customers. This has made all the difference.”

Looking back at his career highlights, Michael reminisces back to 2005. “It was the first time we sold over 100 machines and we threw a big party to celebrate this. Every year since we have been selling over 100 machines a year”.

Michael Keniry, left

Michael’s commitment to the trade also won him a trip to Japan, one of his greatest career moments. “Kubota gave us targets and if you met them, you’d win a trip - which was always fantastic. It helped us feel motivated and rewarded for the hard work we’ve been doing.”

The trips also provided an opportunity for Michael to meet other dealers from around the world and a chance to see the product assembly lines.
As for retirement plans, Michael is taking a rest from over four decades of working at the dealership, spending time with the grandchildren and enjoying his lifetime connection with golf.

Tim Yates, Kubota’s business development manager, Groundcare said, “We would like to thank Michael for his service as a partner to Kubota UK. It is not every day that we get to celebrate such achievements, but in some ways, both Michael and Atkins really represent some of the values that customers have come to expect from Kubota.

“We wish Michael a happy retirement and many years of good health.”

Scamblers have appointed David Evens Agricultural as their latest Grasshopper dealer covering the Vale of Glamorgan and southern Wales.

L-R: Joe Flanagan, David Evens and Tony Scambler

Tony Scambler said, "We are pleased to have David Evens on board as they are looking to expand and push harder into the commercial groundcare market.

"After a comprehensive demonstration of the versatility and quality of the Grasshopper product, they too could see the value of the range to compliment their business.

"Their groundcare department is headed up by Joe Flanagan who has a wealth of knowledge within the commercial sector."

John Deere have announced that worldwide net sales and revenues decreased 11%, to $8.925 billion, for the third quarter of 2020 and declined 12%, to $25.809 billion, for nine months.

Net sales of the equipment operations were $7.859 billion for the quarter and $22.612 billion for nine months. This compares with $8.969 billion and $26.182 billion last year.

John C. May, chairman and chief executive officer said, "With outstanding support from our dedicated global workforce and dealer organisation, John Deere delivered a strong performance in the third quarter in the face of a serious global pandemic and uncertain market conditions.

"As we manage through the pandemic, Deere's number-one priority continues to be safeguarding the health and well-being of its employees. Thanks to aggressive measures taken early in the crisis, we have had success keeping our employees safe, our factories and parts centres functioning, and our customers served."

Deere said in an official statement that they are forecasting that net income attributable to Deere & Company this year will be about $2.25 billion for the full year. However, they say many uncertainties remain regarding the effects of the global pandemic that could negatively affect the company's results and financial position in the future.

In addition, the company has announced broad "employee-separation programs" that will be completed during the fourth quarter in support of its strategy to create what they describe as a "leaner, more agile organisation". The programs' total pretax expense included in the forecast is about $175 million with estimated annual savings of $175 million.

"Although unsettled market conditions and related customer uncertainty are expected to have a moderating effect on key markets in the near term, we believe Deere is well-positioned to help make our customers more profitable and sustainable," John C. May said.

"In addition, we are encouraged by the early benefits we are experiencing from the company's recently launched smart-industrial operating model. We're confident it will help accelerate our ability to deliver differentiated solutions to our customers, while contributing to improved efficiencies across the company."

To read a fuller breakdown of Deere's recently announced financial information, click here.

Opico Ltd has announced the appointment of Brian Robinson Machinery (BRM Ltd) to their HE-VA and Sky dealer network.

Brian Robinson, managing director of Brian Robinson Machinery Ltd and Mike Burley, territory manager, Opico Ltd

Established in 1982 and based in East Cowton, near Northallerton, the business will represent the franchises in North Yorkshire and the North East.

Commenting, Charles Bedforth, Opico's sales manager said, “BRM’s philosophy is grounded in great service. Brian and his team have decades of experience and are hugely knowledgeable, meaning they are able to provide sound advice and have a good understanding of the many challenges being faced today.”

Brian Robinson added, “By understanding our customers’ needs and end-goals we are able to supply the best machine for the job at a price that suits. We work hard to provide our customers with the best quality brands available and couldn’t be more delighted to add the HE-VA and Sky franchises to our range of machines.”

Dealer group Fairways GM, whose head office is based just outside Glasgow, have launched a used equipment division online.

Called Fairways Wearhouse, the new division retails commercial groundscare machinery across the following categories - golf mowers; sports mowers; commercial and slope mowers; tractors; utility vehicles; aeration, implements and attachments; and golf cars.

Fairways say the website is like an online warehouse, intended to allow customers to gain a sense of the machine that they are interested in. For each piece of equipment, the site gives numerous details and photographs, in order to ensure transparency and to convey the good condition of the machinery being sold.

Prior to listing, the dealership says all machinery sold through Fairways Warehouse passes their Warehouse inspection.

Those purchasing Fairways Warehouse machinery can choose optional service packages, subject to geographical limits.

In the same Garden Trader user research conducted over the Spring/Summer (February to July) of 2020, 79% of users found the site helpful or extremely helpful.  This is the best proof yet that people want to buy from people and this highly targeted website is delivering quality leads to subscribed dealers for just 26p per day.

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.

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.

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