Service Dealer held another group video call with a selection of dealers from around the country on Wednesday. Those on the call represented large, multi-branch dealerships as well as smaller, single depot businesses. Between them they sold the range of machinery from domestic equipment to professional grasscare, ATVs and agricultural machinery.

As ever it was incredibly helpful for us as a trade journal, to hear directly from those at the sharp end, to learn exactly what issues have been affecting their dealerships in recent weeks. 

Supply problems continue

It probably doesn't come as much of a surprise to learn that the problems surrounding stock levels and supply dominated the conversation.

There's no doubt that all dealers are feeling this pinch, regardless of what machinery area they specialise in. And it isn't just wholegoods that are experiencing delays, it's parts too that are causing increased wait times for customers.

We were told by our dealer panel that some suppliers are faring worse than others when it comes to supplying stock right now. Patchy was the word used by several to describe the situation. Lead times for certain items are stretching further and further onwards and some items which were ordered by dealers back in November and December still have not yet been delivered.

It was also said that, as certain machines and vehicles are so scarce at the moment, dealers are being prevented by their suppliers buying this kit in for stock. They are only allowed to place orders for things they already have a guaranteed customer sale for. It was mused that for a solus dealer, relying totally on a single brand of products, this must be a serious problem. Dealers who represent multiple companies are only just scraping by.

For some currently, it's simply a case of grab what you can get. It was felt that this will be the year where dealers will be able to sell whatever they are able to get their hands on!

There was a general acceptance that this would continue for some months - perhaps until consumer demand drops down enough to allow factories to catch-up with production. It was felt that since the worldwide Covid shutdowns, this ability for the production process to get back fully in the swing of things and on top of backorders, had never really been allowed to happen. As a consequence everyone is behind the curve.

Dealers are well aware that this less-than-ideal situation has been exacerbated by a perfect storm of factors, including also the results of Brexit and the well-documented logistics crisis. There is an accpetance that there are genuine reasons for the delays.

Communication concerns

However, where we sensed a dissatisfaction amongst our panel, is where communication by some manufacturers and suppliers over these delays is not being imparted clearly and openly. Again it was felt there's a mixed bag within suppliers, some of whom are keeping their dealers informed considerably better than others. Some are being great we heard, others horrendous.

It appeared to come down to what sort of system manufacturers are using to relay stock info to their dealers. Some had real-time, online systems which were praised for their helpfulness. Others were forcing dealers to sit on the phone, having calls go unanswered for days on end. This caused particular frustration - especially if the phone wasn't being picked up because the manufacturer still had staff on furlough. At a time when the industry was busier than ever, this was particularly galling. 

Perhaps some suppliers are being found out for using antiquated, out-of-date systems, it was suggested. Opinions were expressed that serious investment in a top-notch system is required by some, which would be of considerable benefit to their dealer network.

Hearing this from our panel, that certain suppliers are lacking in their ability to message their dealers effectively and in a real-time fashion, is both disappointing and surprising. Especially when you consider how we've spent a large part of the past year hearing how dealers need to be constantly in touch with their customer base, through all modern means available to them, if they are to be considered a progressive business.

End-user messaging

It wasn't just in manufacturers' messaging to the dealers themselves, that we heard concerns expressed this week though. It's the messaging that's getting through to the end-user which can also be frustrating.

At the moment dealers are having to manage customers' expectations on a scale perhaps never experienced before. Several of our panel talked about just how embarrassing it is to stand in a nearly empty showroom and tell customers they simply cannot provide them with what they want to buy. 

Like dealers, customers are well aware of the world we're living in, and how production chains have been disrupted. But what's not helping, we were told, is when these customers see major advertising campaigns from manufacturers, promoting equipment that the dealers quite simply cannot get their hands on.

We heard that dealers themselves are not promoting to their customers anything which they can't guarantee. The same isn't happening by their suppliers though, with social media and traditional advertising campaigns continuing apace - sometimes, frustratingly, teasing customers with unavailable merchandise.

If the dealers don't have it, the manufacturers should not be advertising it was a view expressed to us. In fact some would like to see the manufacturers go further than that even. A message from them direct to consumers, being up-front and explaining that production has been disrupted and not everything is on-stream at the moment would help. It could go some way to alleviating dealer reputational damage.

I must admit, it would be a bold manufacturer that made any proclamations of this sort publicly. Showing signs that anything is less than perfect is not how corporations tend to function. However, we're in exceptional times. Exceptional messaging might be required and respected.

Whilst it doesn't help a dealer staring at an empty shelf with an irate customer nearby, it's a fact that these delays are not exclusive to our sector. It will be felt by all industries. When the non-essential retailers are allowed to re-open for example, we will surely hear more news reports of other types of retailers lacking the supplies required to satisfy consumer demand.

This is clearly going to be the biggest challenge for dealers in 2021.