Service Dealer took the opportunity to catch up with our panel of dealers from businesses around the country this week.

We hadn't spoken together for over a month or thereabouts, so it was a superb opportunity for us as a journal to be brought up to speed regarding how those at the coal face have been faring recently. Once again we pass on our gratitude to those who joined us, for giving up their valuable time and for being so honest and open, letting us know what issues they've faced these past weeks.

Weather high on the agenda

Putting aside any Covid-related problems for one moment, including the on-going supply issues, it was heartening in a way to hear that old perennial the weather being discussed with such importance! Dealers talking about too much or not enough rain, frosty mornings and the growth or lack thereof of the grass, gave a sense of normality to the conversation. A normality that has been sorely lacking these past 14-months.

The recent weather conditions appeared to have caused several of the garden machinery dealers at least, to have experienced a very busy March - which was then followed by quite a distinct drop-off in April. There were patterns like this felt around the country it seemed. It was hoped that as we move into May, grass would grow, the season would kick back into gear and indeed would last deep into the year.

That pause in April however, may have actually been a bit of a welcome breather for some, because as alluded to, stocking is still a problem. On both wholegoods and parts. Even those that had ordered larger winter stock levels are seeing those depleted. And restocking is bumpy to say the least. We heard for example, that trying to source any ATV at all from various manufacturers is dire, if not impossible right now.

Increasing prices

An interesting development that has arisen out of this scarcity of stock though, that we heard several dealers remark upon, is to do with pricing.

We are being told that dealers are feeling confident enough to actually put their prices up this season, perhaps for the first time in some while. And at the same time, not feel under pressure to offer any discount. 

We heard dealers say that they hope this will be a trend that is seen across the network and indeed one that will remain even when we get beyond the current crisis. It's arguable that any situation that allows dealers to make greater margin across everything they sell should be grasped with enthusiasm. 

When there are lower stock levels across the whole industry, it does of course mean there's also less there for the online-only discounters to sell. Therefore dealers are happy in telling customers, this is what a product costs, and not fear that they can go home and be massively undercut online.

It's simple old school economics - supply and demand. If you've got something that a customer wants at the moment, you should be able sell it for what it is truly worth. Dealers are telling customers, if they desire a product, they should buy it today at that price, because it simply might not be there if they wait until next week. It's a similar situation with second-hand equipment also. Prices in this market, for machinery across the board, are being seen higher than ever.

Our panel was telling us that they believe all dealers shouldn't be shy in having conversations with customers, letting them know that prices must increase this year. It is something that is happening across all other sectors. It certainly isn't unique to outdoor powered machinery.

Servicing and parts

All this said, it is of course hard to sell something that you don't have in stock. Therefore managing expectations is something else that dealers have to juggle this year.

What this might mean for many customers who can't buy new, is keeping current machines going - leading to busy workshops around the country. The idea of extending the life of products and not simply scrapping and buying new, seems to be a bigger societal trend than simply a current fad of necessity. People are getting the idea that a disposable culture is not sustainable. Messages reinforcing this sentiment are everywhere across many product sectors. To look for examples in other settings, Levis for instance recently launched a high-profile 'Buy Better, Wear Longer' advertising campaign targeting younger people.

Dealers should be able to lean into this trend both via their specialism of repairing and maintaining machinery and with the sale of their built-to-last, quality wholegoods. 

However, the vicious circle of 2021 means of course, that as well as not getting hold of new machines, sourcing spare parts for the workshop is also a problem. The difficulties surrounding this generated some discussion on our call, regarding the use of non-genuine parts in the dealership.

Through conversations, we're hearing that potentially lengthy delays are occurring in service departments, waiting on manufacturer-supplied parts. This is of course far from ideal. Experts such as Bob Clements, will always say that it is the workshop that should be the dealership's money-making machine. All the time jobs are delayed, that's profits not being generated. 

If dealers are facing long-delays on branded parts, should they then turn to suppliers of non-genuine parts if they can deliver quicker (as we've heard might well be the case)? It's an interesting question and one which individual dealers will be asking themselves. Or at least asking their customers if they have any strong views on. One might presume if it means getting their machine back significantly quicker, it might not be that difficult a decision to make?

Self promotion

Other than looking at pricing, the other area that we heard some dealers have been looking at differently recently, is that of marketing. We heard talk of a shift in emphasis of promotional activities, away from concentrating on specific products, more to the selling of their own brand.

The advantages to this, we were told, is dealers don't get into difficulties advertising a specific machine that they then can't get their hands on right now. Perhaps more importantly though, it's all about raising awareness locally of who you are and what you stand for as a company in your own right. This might be particularly important this summer if a dealership isn't attending a local show due to it either not taking place or individual firms not feeling comfortable exhibiting. 

A superb example of this self-promotion of the dealership's own brand can be seen today with the launch of Jenkins Garden Machinery's superb new TV advert. 

I'm sure what Emyr and the team have produced here will generate a genuine buzz and an increased level of awareness around their dealership within their community - and who knows, it may inspire other dealers to consider something similar?