How many is too many? Or too few? What's just the right amount?
It is a question that dealers will no doubt be asking themselves when it comes to choosing the number of manufacturers and brands to represent in their stores.
It's also an area we're interested in hearing our dealer readers' thoughts on today, hence running a short survey on the subject that we'd appreciate your help with.
It is of course, a tricky one - and presumably a conundrum that's become even more of a headache due to the stocking problems of recent times. On multiple occasions when Service Dealer has held our panel discussion calls with both dealers and manufacturers during the past couple of years, we've heard a similar view expressed from both sides of the fence - a concern for dealerships who are single franchise holders.
The opinion held by some is that if a dealership were to have all their eggs in one basket, and those eggs were then impossible to get hold of, well . . . you'd have no eggs. Or lawnmowers. You get my point. Solus dealers are vulnerable when machinery and parts are hard to come by.
We have therefore heard that spreading that risk by having multiple supply channels, gives dealers options of alternative machines to offer customers. There's also the ability to up-sell if all that's currently held is a higher-priced item than the customer had initially intended on purchasing.
We've been told as well that in the current climate some dealers are chopping and changing suppliers to a degree. Acquiring what they can, from where they can, in order to satisfy their customers' demand for product.
However this said, the idea of having a potpourri of suppliers, does go against another commonly held belief that dealers should think about rationalising the colours of the machines displayed in their showroom. There's a school of thought that believes holding just a small number of carefully selected marques, is a much better option than collecting brands.
We have an interview with a dealer in the upcoming issue of Service Dealer magazine who tells us they have actually reduced their range recently. They say, "We’ve cut down the franchises in the last 12 months. . . We want to be the masters in our field and have the reputation that we are good at what we do."
In our current issue, Craig Hoare in his advice to dealers, recommends that businesses shouldn't try chasing every single customer out there. He writes, "Too many dealers try to have every brand and be all things to all people, with multiple options in multiple brands, instead of focussing on a group of quality and profitable brands which add value to the dealership."
And I also recently read U.S dealer advisor Bob Clements, answering a question regarding the number of manufacturers a dealership should carry in American trade magazine Rural Lifestyle Dealer. You can read the whole answer here, but Bob sums up his thoughts saying, "The thing I find too many dealers doing is carrying products from different manufacturers that are similar and end up just simply cannibalising sales that would have happened anyway."
So the 'less is more' philosophy certainly has its fair share of advocates.
But what do you our dealer readers think? Is just a small number of suppliers the best for your business? Or do you like to offer your customers a wide selection of brands?
Please let us know by answering our survey. There are just a few brief questions and a space for you to leave your thoughts on the subject.
As ever, all contributions are anonymous and we'll publish the findings and a selection of your comments in the next issue of Service Dealer magazine. Thanks in advance for your help.
TAKE THE SURVEY
