It's a depressing count, but it has now been four out of the last five issues of our Weekly Update where we've reported on the failure of another independent outdoor powered machinery dealer.

And the truth of the matter is there are at least a further two companies that we have been hearing strong rumours about, regarding their ability to also continue trading.

So at the risk of repeating myself I feel I need to ask you once again, our expert dealer readers, what is it with the start of this year that is leading to these closures? Is there a particular factor, or perhaps more likely, combination of factors that you are concerned about so far in 2024 that may be at play here? Or is it simply the normal progression of the season, which will unfortunately always see a number of casualties? 

Significantly I feel, what we must bear in mind is that these haven't been brand-new start-ups, finding their feet in their local communities and the wider industry. No, these have all been established companies, presumably with customer-bases and a known reputation. This arguably makes what has happened to these dealerships all the more concerning.

Hearing today from owner of Ayre Mowers, Andy Brew, who we thank for his openness, he cites various pressures that impacted his business including manufacturer winter stocking commitments, a post-pandemic lack of footfall with customers relying ever more on the internet and increased costs of both importing to the Isle of Man as well as rent. A perfect storm of financial difficulties.

This ties in to what some have been saying as to why we have been seeing dealerships go under this spring. It's an element that is fundamental to any business, regardless of industry - cashflow. This school of thought says it's the nature of competitive businesses that some companies will always find themselves struggling due to their financial commitments, shrinking margins and a poor return on investment. There will inevitably be a churn of businesses impacted by cashflow issues meaning, sadly, each season some will succumb. 

Thinking about other trends in the sector that may have a bearing on these events in general, some will attest that moves by certain major manufacturers to consolidate their networks into fewer, larger dealer groups must shoulder some blame. Dealers who find themselves without a major brand to represent, now selling a lesser-known, smaller marque, might struggle to convince customers that they want to change the machinery-make they use - therefore they lose trade to the so-called super-dealer up the road. Some customers will simply be loyal to their favoured brand rather than their nearest dealer. This theory could apply equally to farmers, commercial end-users or discerning homeowners.

Listening to grass machinery dealers, we will often hear the cheapest-end of the marketplace come in for criticism. The frequent race to the bottom on prices seen online, with particular retailers offering crazy discounts, skews the average customer's perception of what goods are actually worth, adversely affecting the sector as a whole. Even though we have a real-life case study to reference, proving that this approach is unsustainable (hello FR Jones) it does unfortunately still appear to be taking place. And presumably taking business away from legitimate dealers.

The other bête noire for some grass machinery dealers of course is warranty rates - where feelings can run high regarding what's seen as inadequate compensation for work undertaken.

Regarding customers, reader John Sandys posted a comment on here a few weeks back, with another interesting theory as to why some dealers are struggling. His thought was that there are actually too many dealers for the available customer base. He wrote, "Unfortunately, in agriculture, there are less and less customers, so less custom to go round for the dealers." Similar to how we now find ourselves with mega dealer groups, we're also in an age of mega farming groups. John explained, "Where the minor brands are losing out, is that it is the smaller farmers, that might have been more loyal to a local dealer, who are disappearing." If there's no one to sell to locally, what hope does an independent dealer have?!

So what are we putting this spate (I think we can use the word spate now) of closures down to? It is a blip or something more? As well as feeling sympathy for those who have lost their jobs, have these events shaken your confidence? What are you doing to make sure it doesn't happen to your dealership?

We'd love to hear your thoughts today, because let's face it, no one will know more about the circumstances out there so far this year, than our dealer readers at the sharp end.

Please leave your comments below or feel free to drop me line if you'd prefer to remain anonymous.