PROFIT FROM PARTS DIARY OF A SEASON - LONGHAM MOWERS FACE TO FACE - KUBOTA'S DAVE ROBERTS TRAINING & EDUCATION LAUNCH OF BUSINESS MONITOR INDUSTRY AWARDS INFO BTME & LAMMA REVIEWS PRODUCT NEWS JIM GREEN
EU EXCUSES? Are suppliers hiding behind competition laws?
THE EU law makers are blamed for many things, from straight bananas to a directive that every pair of rubber boots must be sold with a users manual in 12 languages.
Close to home, the industry is banned from issuing market share statistics for another 12 months after the year ends.
Wierd laws can raise a laugh or create a slow newsday headline, but there is a fast growing feeling amongst dealers - and a number of manufacturers - that they are being used by some as an excuse for throwing open the doors for uncontrolled trading.
Let’s be clear, competition rules do exist. It’s the way they are applied that is the issue.
Why is it that you can find not an ‘apporth’ of difference in the price of an I-Pad or I-Phone anywhere? Why are virtually all camera models sold at virtually the same price no matter where you look?
Yet, in our industry, some manufacturers seem to think it OK to turn a blind-eye to those who sell their products prices at a crazy price, often to a faraway customer - and then, oh yes, insist that another dealer drops everything to fix any problem that might arise.
I tell you, the natives are getting restless.
That much is clear from the many comments we have received for the first of our Business Monitor quarterly dealer surveys summarised in the next issue of Service Dealer (out on 1 May).
Forget the commercial considerations of selling products at zero-margin. We are not selling yo-yos or back-scratchers, we are selling products born of many years of research and development costing millions.
You could also say that having invested so much in time, resources and money. that manufacturers then lose their marbles by passing it on to someone to sell for them
And by giving away 20%, 25%, 30% and more, that product is then being seriously devalued by the seller.
Rules are rules. It is how they are applied that is at the crux of the matter. And it should all be very simple. If a manufacturer or supplier believes that a dealer is devaluing his product, then he should call time.
For the dealer, many are now saying that they are seriously considering ditching those franchises on which they can no longer make an acceptable margin because of knock-down prices being offered elsewhere - or which give them too much hassle.
You sense the tide is turning - and not before time
