Following a couple of relatively quiet weeks for news, there are several stories in our Weekly Update today that make for significant industry talking points.
Acquisition
Aside from two high profile departures (here and here), there's the dealer news, the likes of which we have become familiar with these past few years, of a larger, multi-branched concern acquiring a smaller, local dealership to add to their fold. With Tuckwells purchasing Tominlinsons, we're told today that all employees and the existing branch location at Buxhall, near Stowmarket, are being retained.
I'm sure some of our readers have their own views on these kinds of developments, but hearing that a dealership is staying open and that skilled individuals are not being lost to the industry, must be seen as good news? Certainly compared to that spate of closures we saw earlier this season.
It's an area of discussion that I can tell you our colleague, Keith Christian, takes up in a major, upcoming article in the next edition of Service Dealer magazine, which is soon to head to the printers.
I won't spoil what Keith has to say in the full course of his piece, but as a tease and perhaps to get readers thinking, I will just pull out a quote which is pertinent to this subject area of dealers taking over fellow dealers. Keith says, "This is not a sign of a shrinking industry but one of a changing industry where consolidation, merger and acquisition are playing the part of what may be considered succession."
Fascinating food for thought there from Keith, and one that hopefully will lead to further discussion and debate amongst members of the network.
Distribution developments
Elsewhere today, we have three stories regarding new product distribution options for dealers. On the agricultural side of the industry we hear about Maschio Gaspardo UK becoming the official UK importer and distributor of Gregoire Besson products and Carr’s Billington becoming a central distribution hub for Harvest Tec's applicator range. Whilst at the domestic end, Mower Magic tell us they are now one of the first companies to distribute the new robotic mowers from Mammotion Tech.
Developments such as these are always interesting to report, as they add to the options available to independent dealers for what they might choose to stock in their stores. With options ever increasing - for those dealers who want to - hopefully there are enough choices on offer these days, meaning all eggs don't have to be placed in one basket.
We have often heard industry experts advocating diversification in the dealership, for many reasons, but a major one is to help avoid getting into difficulties with stocking levels.
As all dealers reading this today will remember only too clearly, stock levels were pretty much the sole subject of discussion as we moved through, and out the other side of the pandemic years. Obviously the scarcity of product was an issue that impacted everybody involved in the outdoor power machinery trade. Recently though, we've been hearing dealers speaking about stocking again, albeit from the opposite end of the spectrum.
There are dealers who have spoken to us quite openly about being over-burdened with stock by particular suppliers. With the pendulum having perhaps swung too far in the opposite direction from the days of empty shelves and deserted storerooms, the impression we've picked up on is that some dealers would like to stock more lightly. Almost adopting a just-in-time policy perhaps, when it comes to taking hold of goods.
Is this something you do, or indeed aspire to do, in your dealership? Is it a feasible way of working? Or is it something that's simply not possible with the commitments you have with your supplying manufacturers?
I did recently hear of a dealer who felt obliged to defend themselves against allegations that they were going out of business - allegations that were brought about because their yard wasn't overflowing with stock. Despite it being a deliberate choice made to decrease stocking levels in order to reduce costs, false rumours had started that they were facing hard times and potential closure!
Anyway, is this a situation you can relate to? If you have any thoughts on these subjects today, please do leave a comment below - or drop me a line in confidence if you'd prefer.