WARRANTY WOES Are you being paid enough? by Service Dealer Editor, Steve Gibbs
A dealer has voiced their concerns that warranty rates paid by some manufacturers are simply far too low, making the undertaking of certain work economically unviable.
It has been a chance for us to catch our breath at Service Dealer this week, following on from all the excitement of our Conference & Awards last Thursday.
Immediately following the event, myself and Service Dealer owner Duncan Murray-Clarke, travelled into London on Friday lunchtime to attend the PPA Independent Publisher Awards - where our magazine was shortlisted for the Business Publication of the Year. Always a tough category as we were up against some well established titles, unfortunately Duncan and I had to perfect our best magnanimous faces when it transpired that we hadn't won!
The prize went to a medical industry publication called Pulse, but as they say it was a honour to simply be in the running for such a prestigious award. The whole team feel proud that our magazine was even recognised amongst such illustrious company. Who knows though, maybe next year?!
Also following the Awards, our very own Jenni Green has been visiting our nominated charity, Farms For City Children, to present them with a rather large cheque. It was amazing on the night to witness the generosity of the dealers and manufacturers in the room, who deemed the charity worthy of donating almost three and a half grand to!
Service Dealer was absolutely delighted with the response and we know the money will be put to such great use, giving disadvantaged inner-city kids the opportunity to experience life on a country farm. Everyone who helped towards the cause at the event, should feel immensely proud of themselves.
Warranty work
Thinking about the Conference, as well as the benefits gained from the formal presentations and seminars, there was another element to the day that one had almost forgotten was integral to its DNA. That being the interpersonal interactions that a gathering such as this affords. The one-on-one conversations held with colleagues and peers, many of whom we won't have seen in person for nigh-on two years, are invaluable and have been much missed.
Discussions like these, face to face and in small groups, gives the conference its heartbeat and a unique place in the industry's calendar. People come together from across the sector, to share ideas, experiences and knowledge in a friendly setting, with the only agenda being to help and to learn from each other.
One conversation of note I had with a dealer, who wishes to remain anonymous, was regarding concerns they had over warranty work - specifically the discrepancies as they saw it, within the industry on the rates paid by different manufacturers.
This dealer's point was that some of the rates offered were quite simply far too low, making the undertaking of work economically unviable.
As they put it, "As the online industry continues to grow, the resentment or reluctance of some dealers to carry out warranty repairs on machinery they haven’t supplied can be understood."
They continued, "If the manufacturers paid a better rate, then the non-supplying dealer may welcome the extra work with open arms. However, that said, some of the rates are laughable even if you have supplied the product."
As a measure, they told me their standard in-store labour rate was between £60-£70 for service / repair. They then went on to describe their various suppliers' hourly rates they offer for warranty. Without naming names here, some were as low as £35 or £38 per hour.
The dealer concluded, "I understand the reluctance perhaps, of allowing us to make a ‘profit’ on the parts and labour - but I feel we are being penalised for something that is not our doing."
Your views?
I thought it would be helpful to open this up to you, our dealer readers today, for some feedback. Are the views of this dealer something you recognise from your own dealership and can empathise with? Or do you have a different take on warranty rates?
We're running a short survey today and it would be great to hear from as many dealers as possible with your views on this subject. There are a few quick questions and the space for you to share your opinions. The survey is anonymous, so no one will know what you've said.
As ever we shall publish the results and a selection of your comments in the next issue of Service Dealer magazine. Thanks in advance for your help.
Service Dealer spoke with James Buchanan, sales director of Ibcos / Catalystat, at the Service Dealer Conference & Awards about Smart Working and how his company's new partnership is going.
Service Dealer spoke with James Buchanan, sales director of Ibcos / Catalystat, at the Service Dealer Conference & Awards about Smart Working and how his company's new partnership is going.
In our WEB ONLY story, from 1st January 2022 Echo and Shindaiwa products will have a new distributor in the UK, following a change announced this week.
Service Dealer is proud to announce that this week a cheque for £3428.50 was presented to the charity that enables children from disadvantaged communities to experience life on a farm.
Service Dealer is proud to announce that this week we have presented a cheque for £3428.50 to Farms For City Children.
Service Dealer's Jenni Green (left) presented the cheque to Lisa Long, regional corporate fundraising manager of Farms For City Children this week
The money was raised for the charity that enables children from disadvantaged communities to experience life on a farm in the heart of the British countryside, at the Service Dealer Awards dinner last Thursday (November 25th).
The money was raised through a raffle that was won by Charlie Turner of dealership Sam Turner and Sons. His prize is a box of treats from the kitchen garden at Farms for City Children’s Devon farm. These winter vegetables, fruits and herbs have been grown by visiting children as they learn about sowing, growing, harvesting and cooking with fresh produce. The prize will also include a bottle of Bollinger, a half dozen free range eggs, and a set of eleven books written and signed by the charity’s founder and beloved children’s author Sir Michael Morpurgo.
Service Dealer owner Duncan Murray-Clarke said, "Raising almost £3,500 for such a worthwhile charity is awesome! I'd like to thank everyone who contributed so generously at our Awards dinner - and congratulations to Charlie of course!"
Farms For City Children say that many of the children who visit the farms have never left their city or experienced life on a working farm. Growing such beautiful vegetables helps them to grow confidence and, alongside the other activities they enjoy at the farm, broaden their horizons too.
Kubota has announced another company acquisition, that they say will speed up the development of automated technologies.
Kubota Corporation have now announced that they will acquire, through Kubota Canada Ltd, all shares of AgJunction Inc, making AgJunction a company of the Kubota Group.
AgJunction is specialist in advanced guidance and auto-steering, developing and selling hardware and software required for automated machine control applications. Primarily, this has been for agricultural and construction machines in North America.
AgJunction has numerous patents related to automatic operation control systems and says it has particular strengths in technologies for automated machine control and path planning. By making AgJunction a company of the Kubota Group, Kubota say they aim to strengthen its development structure for technologies related to connectivity, data, automation and autonomy.
Through this acquisition, Kubota say they will combine AgJunction’s technologies with their products, to speed up the development of automated technologies aimed at North American markets.
In a statement the company said, "Kubota has formulated its long-term vision ‘GMB2030’ and has been carrying forward smart farming initiatives with the aim of providing solutions that improve productivity and food security. Agricultural machine automation is one of the key pillars of these initiatives."
According to figures released by the AEA, bottlenecks in global supply chains are increasingly affecting the farm equipment sector.
According to figures released by the AEA, bottlenecks in global supply chains are increasingly affecting the farm equipment sector.
In November, only 543 agricultural tractors were registered, 16% fewer than in the same month last year and 14% below the average for the time of year.
Stephen Howarth, agricultural economist at the AEA said, "This is only the second time in the last 12 months that registrations have fallen below the level of a year before and comes despite all reports suggesting demand remains very strong.
"Even with the recent slowdown, registrations for the year to date are still 16% up on the equivalent period of 2020 and, indeed, they are already 7% higher than the total for the whole of last year."
The company claims the purchases makes them the fastest growing provider of cordless electric outdoor power equipment.
Stanley Black & Decker announced this week that it has successfully completed the acquisition of two outdoor power equipment companies.
The moves include purchasing the remaining 80 percent ownership stake in MTD Holdings Inc and the acquisition of Excel Industries. These transactions, say Stanley Black & Decker, means they have positioned themselves as the " . .fastest growing provider of cordless electric outdoor power equipment."
Cub Cadet is part of the MTD family of brands
Stanley Black & Decker's CEO, James M. Loree said, "The combination of these two high-quality, complementary businesses with our existing outdoor business creates a powerful growth engine with approximately $4 billion in annual revenue across the $25 billion-plus outdoor power equipment industry.
"These transactions will be accretive to our 2022 earnings and have the potential of further margin expansion as we integrate these great businesses. Combined, this is a platform well positioned for growth and to lead the electrification of outdoor products with a strong portfolio of iconic brands, industry-leading innovation and extensive engineering and manufacturing capabilities. In addition, the acquisitions add deep customer relationships in retail and more than 2,500 independent equipment dealer outlets serving the professional category.
"We welcome the 8,100 associates from MTD and Excel to Stanley Black & Decker and look forward to a seamless integration process."
The purchase price for the two transactions totaled $1.9 billion inclusive of standard purchase price adjustments.
SALTEX have published figures for their recent return to the Birmingham NEC.
After a year’s absence, SALTEX recently returned to the Birmingham NEC to celebrate its 75th anniversary.
In an official statement, organisers the GMA have now given an indication of the show's attendance, saying, "The buzz was certainly back on the show floor as SALTEX 2021 reunited the industry and brought together almost 7,500 attendees across two days."
Geoff Webb, the Grounds Management Association's CEO, added, “On behalf of all of us at the GMA we really want to extend our thanks to all our exhibitors and visitors that have showed their support for SALTEX this year. It has been a turbulent period for us all and we are delighted that we got the opportunity to celebrate the 75th edition with so many of you.
“I believe SALTEX 2021 has brought hope for the future and has showcased what our industry is capable of overcoming.”
Manufacturer says over the long term, their offering in forage technology for professional farmers and contractors will be expanded.
AGCO/Fendt has announced the relocation of the production and development of the Fendt loading wagons within Germany from the Waldstetten site to the Wolfenbüttel production site.
The company says over the long term, their offering in forage technology for professional farmers and contractors will be expanded.
Christoph Gröblinhoff, vice president & managing director of AGCO/Fendt explained the move, saying "The decision to bundle production of the Fendt loading wagons at the Wolfenbüttel site is an entrepreneurial decision to continue to make our machines for green fodder collection more professional. We want to ensure outstanding quality of the Fendt Tigos in design and workmanship over the long term.
“In the coming years we will invest in the development of forage technology as well as in the production of the Fendt products. Our location in Wolfenbüttel is perfect in size and structure for further expansion of the production capacities. In the future, we expect even stronger synergies that will arise through the collaboration of the development specialists for balers and loading wagons.”
The first use of the new environmentally friendly sprayers to be delivered to a non-golf customer in the UK came as part of a package agreement.
Based at Leicester City Football Club’s new state-of-the-art training facility in Seagrave, north Leicestershire, the club’s Sports Turf Academy is now being maintained by a new fleet of 32 John Deere sprayers, mowers, compact tractors and Gator utility vehicles supplied by local dealer Farol Ltd at Hinckley. Support will also come from the dealership’s brand new outlet at Newark.
Leicester City FC’s head of sports turf & grounds, John Ledwidge
Machines include two GPS PrecisionSprayers based on the ProGator utility vehicle, 8000E and 2750E hybrid electric ride-on cylinder mowers, 7700A PrecisionCut cylinder and 7400A TerrainCut rotary ride-on mowers with TechControl display, a 1600T wide-area rotary mower, X950R rear-collect lawn tractor and Z997R zero-turn rotaries, 2036R and 3038R compacts, and TE electric and XUV 855 plus 855 S4 Gators.
Leicester City FC bought the first of the new sprayers to be delivered to a non-golf customer in the UK, as part of the package agreement.
“The Sports Turf Academy is designed to be a hub of innovation and professional development,” says John Ledwidge, Leicester City FC’s head of sports turf & grounds. “Our aim is to be world leaders in the training and education of the current and next generation of sports turf and grounds staff, while applying that learning to live working environments. As well as creating a world-class facility at our new training ground, we aspire to be world-class in the way we operate.
“Adopting this new precision technology from John Deere will help in our aim to be as efficient and environmentally sustainable as possible in everything we do. There were many reasons for choosing the sprayer, the chief one being accuracy. It means we can apply exactly what is required without overspraying or overspending.”
Leicester City Football Club, John Deere and Farol staff with the new machinery fleet
John continued, “Knowing that we needed to make a significant investment in new equipment, we went through a robust, rigorous and transparent tender process. We invited all the key players to demonstrate their latest, greatest and best machines, and the whole process ended up taking almost a year to complete - it was extremely thorough.
“Aside from the basic transaction, it was just as important for us to be able to establish a long-term relationship with the chosen supplier. It became clear after visiting John Deere’s UK HQ at Langar, where we were given a very comprehensive presentation by the company and the dealership, that their values and aspirations aligned very much with ours.
“The final choice was then presented to and approved by all the club’s Board of directors, including communications, finance, operations and the procurement team. All involved were impressed by the efforts and lengths that John Deere and Farol went to before the deal was signed – ultimately the decision was a very easy one for us to make.”
JOBS
E P BARRUS LTD A fantastic opportunity to join our Lawn & Garden Technical Team
We are recruiting a Workshop Technician for Robotic Mowers within our Lawn & Garden Division.
We are recruiting a Workshop Technician for Robotic Mowers within our Lawn & Garden Division.
Barrus’ Lawn & Garden Division has a comprehensive range of premium quality lawnmowers and powered garden equipment from leading brands. The latest Cub Cadet robotic mowers raise the bar for automated lawn mowing.
We are currently looking for a Robotic Workshop Technician to offer technical support to dealers and consumers on Robotic mowers. Responsibilities to also include liaising with manufacturers for fault finding and training, providing training to our dealer network and to assist dealers with robotic installations.
A full UK driving licence is essential as some on site dealer technical support will be required.
Within the organization of Emak UK Ltd. based in Birmingham, part of Emak Group, We are looking to recruit a Commercial Sales Office Manager will directly report to the UK General Manager.
Job purpose
Emak Group is one of the leading players at world level, offering innovative solutions for gardening, agriculture, forestry and industry. We manufacture and distribute machines, components and accessories of high technological value, designed to render the activity of our customers easier and more efficient.
Within the organization of Emak UK Ltd. based in Birmingham, part of Emak Group, We are looking to recruit a Commercial Sales Office Manager will directly report to the UK General Manager.
Duties and responsibilities
Manage the ordering process of Spare parts and Machinery accordingly to sales planning and manufacturing plant in order to guarantee a proper level of stock.
Organising shipments inbound with manufacturers and suppliers.
Liaising with customers to manage any possible claim.
Managing technical conditions for all the product line.
Supporting dealer network.
Managing machine stock in the warehouse.
Preparing weekly commercial reports.
Supplying technical information to dealers and clients.
Managing indirect product support with dealer network.
Requirements
Excellent communication skills.
Excellent organizational and time management skills. Ability to work well in a team-based environment. Proactive approach, verbal and written communication skills. Availability to move within UK territory for short business trips. Must be self motivated and able to work autonomously.
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