A few weeks ago, prompted by a discussion with a dealer who believed that holding multiple robotic mowing solutions was less than ideal, we spoke about how many franchises was too many (or too few) to stock in the showroom?
An interesting comment we received in response read, "From my experience working for several service dealers as a sales & parts manager, I would say multi-brands make more sense for fuel powered tools, machinery & equipment because the average Joe understands how they work.
"For robotics, however, it's a different case entirely because the technology, software, installation and programming is completely new to most end users and can be too overbearing, overcomplicated and confusing - especially to the elderly end users who are a large percentage of the robotic tool marketplace."
An interesting take, and perhaps reasoning that has occurred to other dealers when decisions have had to be made regarding what to feature in the dealership?
With this in mind, we're interested today to hear about what factors do influence our dealer readers when it comes to either adding or dropping a franchise in the business? We're running a short survey on the subject, which it would be fantastic to have your help with.
As the machinery landscape continues to evolve, with shifting market demands, tightening margins, and a constant influx of innovation (not to mention the occasional product shortage or policy change from manufacturers), your choices about which franchises to represent are more important than ever. I assume alongside choosing to employ someone, it must be one of the trickiest decisions that a dealer must make.
Over the years, dealers have given us a variety of reasons for adding a new marque to the showroom floor. Sometimes it’s driven by gaps in the current product range. Other times, it may be about price positioning - adding a second or third brand at a more entry-level or premium point to meet customer demand. Also, of course, this notion of keeping up with the latest technical innovations. Perhaps a new player to the market offers something that your current suppliers do not?
There are also the human factors: maybe a new area manager builds a stronger relationship, or a brand’s service policies feel better aligned with how you like to do business? Perhaps you’ve spotted a local opportunity that’s just crying out for something different to your existing offering.
Alongside these reasons for adding brands, with limited space in the showroom there will be those moments when a potentially difficult decision has to be made to drop one (or more).
Maybe a franchise isn’t performing well commercially, or maybe warranty costs are rising? It might be that the manufacturer has changed its dealer terms or coverage area, or perhaps the relationship just isn’t what it used to be. Or simply the make is just no longer appropriate for you - it is, of course, your name above the door.
When we asked you, our valued dealer readers, last year for some reasons as to why you might choose to drop a franchise, some answers we received included:
- "If a brand I support through a supplier ends up in a local DIY / garden centre / online then I will probably drop the product as it takes away the fact it was unique to a dealer."
- "If the supplier is too demanding and has difficult levels of discount to achieve, I may drop."
- "Margin and after sales service are key."
With technology, customer demands and manufacturers' routes to market ever shifting, we're interested today to hear as many of your voices as possible, regarding why you may choose to take on or drop a brand in 2025.
As ever the survey is anonymous and we shall publish the findings alongside as many of your comments as we can in the upcoming edition of Service Dealer magazine.
Thank you advance for your help.
TAKE THE SURVEY
