One of the subjects that comes up in conversations with you, our valued dealer readers, regularly and one that many of our expert speakers have touched upon over the years at our Conference, is the question of brand representation.
It's a discussion that takes place amongst dealers themselves whenever there is an opportunity to get together and judging by what we’re hearing with dealers around the country, it’s one that shows no sign of going away anytime soon.
There is clearly a continuing appetite among dealers to refresh or expand their showroom offering when opportunities arise - or when changes to a manufacturer’s distribution strategy leave them with little choice. Just look at the news stories we run each week in this Update. It will be an unusual edition where we do not run at least one article about a dealer somewhere joining a new network. Today it’s Ark ATV becoming a dealer for Aodes, while both FH & J Alviti and Vincents have added TP Chippers to their portfolios. Announcements of this kind are far from unusual.
The attraction of new brands is clear enough. Each fresh marque potentially opens the door to new customers, new market segments and additional revenue streams. A dealer serving a broad and diverse customer base may understandably want to offer a broad and diverse range of products. Not every customer walks through your doors looking for the same solution.
However, there is another school of thought, and it is one we have heard articulated passionately by some highly successful dealers over the years. Their view is that fewer can often mean more.
Rather than representing a long list of manufacturers, there are those dealers who prefer to focus on a carefully selected group of brands. The reasoning is straightforward. Sales staff become experts. Workshop technicians can concentrate on a more manageable range of machinery. Parts inventory becomes simpler to control. Marketing messages become clearer. And perhaps most importantly, customers are presented with a more focused proposition.
There is certainly a logic to that approach. Walk into a showroom displaying dozens of brands and product lines and there is a risk that choice can become overwhelming. We’ve heard the phrase many times, usually used in a disparaging way, of certain businesses ‘collecting brands’. Customers may appreciate options, but too many choices can sometimes create confusion rather than confidence.
However, the counterargument to this is also compelling.
The events of recent years demonstrated just how vulnerable supply chains can be. During the Covid years especially, dealers heavily reliant on one or two manufacturers occasionally found themselves exposed when stock availability became an issue. Those with a broader portfolio often had alternatives available, allowing them to continue meeting customer demand.
Equally, customer preferences evolve. New entrants arrive. Technologies change. Product categories that barely existed a few years ago can suddenly become major sales opportunities. Dealers who are willing to add carefully selected brands may be better positioned to respond to those shifts.
As with most debates, perhaps a safe option lies somewhere in the middle. Is a fair argument that a dealership needs enough brands to offer genuine choice and protect itself from market fluctuations, but not so many that it loses focus, expertise or a clear identity?
The only people who can answer that with any authority, is you, the dealer. How many brands do you represent today compared with five or ten years ago? Have you deliberately reduced the number, or are you continuing to expand? Is there such a thing as too much choice, or is a broad portfolio now essential in today's market?
It's a perennial debate within the industry, and we'd be interested to hear where you stand. Please leave your comments below, or feel free to drop me a line.
