EDITOR'S BLOG
OUTLOOK TOUGH FOR COMMERCIAL SALES
Professional sector under pressure
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

On our video conference call with dealers this week we were joined by management of BIGGA and GMA to gain insight on the current situation for their professional end-user members - and the dealers that serve them.

 


How's everyone holding up? As best as they can be I hope. I realise that this is bit unusual being with you on a Thursday, but this is due to tomorrow's bank holiday commemorating VE Day.

 

Service Dealer held another call with a panel of dealers from across the UK again this week to take the temperature of how business had been these past 10 days or so.

 

Also on the call, we were pleased to be joined by representatives BAGMA and the AEA once again - plus this time we also welcomed management of the two main trade bodies for the professional turf care sectors. Speaking to these guys gave some fascinating details into how life has been for their commercial end-user members - which should give dealers of commercial groundscare machinery some useful insight.

 

Service Dealer owner, Duncan Murray-Clarke, said after the call, "I would particularly like to thank Jim from BIGGA and Geoff from the GMA for taking the time to join our call this week. This area of professional and amateur sport facilities seem to have been hit the hardest and even with restrictions being lifted it is going to be a long road ahead for dealers and manufacturers of commercial grasscare machinery.

 

"What is key for the dealer network is to be ready if Sunday’s announcement provides more trading flexibility."

 

 

Before we get to the complications around the sporting sector though, let's start with some positive news that we heard from dealers.

 

Firstly, nothing too dramatic appears to have changed since we last spoke. Dealers who have settled into safe trading methods which are working for their company, reported business carrying on fairly well.

 

New ways of working are having to be embraced. We heard how dealers who might have dabbled a bit in online trading before all this kicked off, would have perhaps preferred to have eased their way into this form of commerce - however circumstances have dictated a leap in at the deep end!

 

Those who are offering click & collect or delivery options, obeying the distancing measures, have been busy on the domestic front. We heard everything from battery products to ride-ons are selling to the home user market. And keeping in touch with these customers via all the social media channels which are available to dealers, has been helping matters greatly.

 

One dealer told us they had been so busy and their staff working so hard they are making sure they reward those individuals in their business who are going above and beyond.

 

Thoughts are obviously turning to what happens when lockdown measures begin to be eased. One of the larger dealer groups we spoke to told us about how they are starting to implement the practical changes which will need to be in place for any form of reopening of the showrooms. Items like signage, protective screens, 2-metre markings on the floor - that kind of thing. Protective measures like these will need to be in place for the safety of customers and staff alike, so it makes sense to start getting prepared now.

 

An area of concern which had cropped up for a dealer in the ag sector who we heard from, was regarding customers starting to query what they were being charged for service work. It seemed because those who work in agriculture are finding circumstances challenging at the moment (similar to everyone), they were trying to put pressure on their dealer to drop their charge-out per-hour rates. 

 

Through discussion it was felt that bowing to pressure and dropping prices wouldn't be an ideal course of action as raising them again would prove problematic. With the national UK average rate apparently being in the £65-£70 per hour vicinity, this particular dealer found themselves well under the national average anyway and was advised to stand their ground. We'd be interested to know if this has also been an issue which other readers have faced? Are your customers using the current situation to dispute over pricing? Let us know in the comments below.

 

One other word of advice which was given by a couple of dealers was it might be worth the while of others around the country looking into the small business grants being offered via local councils. Some on the call this week had been pleasantly surprised how easy the application process was and how speedily the grant money had arrived in their bank accounts. It was felt there is an allocation of budget which the government wants to distribute - so it makes sense for dealers to make enquiries.

 

Moving on to the commercial groundscare sector, we were joined on the call by Geoff Webb, CEO of the newly renamed Grounds Management Association, formally the IOG, and Jim Croxton, CEO of the British and International Golf Greenkeeping Association. From these guys we heard of the complicated picture which both the professional and grassroots sporting sectors are facing currently.

 

And I'm afraid it won't really come as much of a surprise for dealers of commercial grasscare machinery that the assumption this year is sales of new machinery will be few and far between. There will of course be work from maintenance and spare parts for existing kit when sport does get up and running again - but the budgets just will not be there for much new investment.

 

Both golf and the wider sporting sector's grassed surfaces have been kept maintained during this lockdown period by an absolute skeleton staff of turf professionals. There's a mixed picture with some facilities having chosen to furlough more staff than others. Once the industry does get moving again, in whatever format is allowed, even then a full roster of staff might not return.

 

For golf clubs and sporting facilities, as with every business, working leaner will be the order of the day for the rest of 2020 and beyond.

 

There is speculation ongoing as to when exactly the different sports will recommence - and indeed under what provisos. Until an official announcement is made by government it's fairly moot taking a guess at dates. It does seem fair to say though that certain activities will be easier to restart than others. Golf for example, would be way ahead of rugby in the list of openings.

 

Both Geoff and Jim had nothing but praise for their professional members out in the field. Turf professionals, similar to specialist dealers, have been trying to find safe, effective means of working, with much reduced staffing and less than crystal clear guidelines from government regarding what is permissible and essential. Sound familiar?!

 

It was felt that sadly, some golf clubs who may have been on a knife-edge financially before all of this kicked off, may not emerge on the other side. Or perhaps they may be able to get through whatever good playing months of the summer are left, but then due to lack of any ancillary income from clubhouses and bars, may not be able to continue in the long term. Not good news for those clubs and their members - or indeed the dealerships that serve them.

 

I wish there was some more positive news to report for dealers whose customer base is these professional and grassroots sporting facilities - but this is the reality we're faced with.

 

Of course sport will start up again and the grass will need cutting. The pro users will require their machinery to be maintained and serviced - probably more so than ever before.

 

It is however likely to be a tough road ahead for sales of new professional equipment.

VIEWPOINT
LESS IS MORE?
Creative showroom design will be vital
by Chris Biddle, Service Dealer Founder
 
Chris Biddle

In this week's WEB ONLY story, Chris Biddle says it is inevitable that dealer showrooms will have to be re-imagined if we are to demonstrate and communicate safety to customers.

 


NEWS
SIMON HOLMES JOINS T H WHITE
As group service manager
 
Simon Holmes

Ex CNHi man joins dealership as group service manager for agriculture and construction reporting to operations director, Adrian Lovegrove.

 


Simon Holmes has joined T H White as group service manager for agriculture and construction reporting to operations director, Adrian Lovegrove.

 

 

Based at Marlborough, Simon has worked with agricultural machinery ever since completing his education and brings more than 30 years of career experience to his new role.

 

Throughout his working life Simon has had strong links with the CNHi franchise, starting with a Leicestershire Case IH dealer in 1989, followed by more than a decade with New Holland dealer Platts Harris - punctuated by a sabbatical in Australia where he worked on a number of farms, at one point being responsible for 1,000 sheep!

 

In 2002 Simon joined CNHi UK in Basildon providing technical training and support on harvester products. From 2012 he worked at the CNHi combine plant in Belgium where he became global product quality specialist for New Holland rotary combines built in Zedelgem.

 

Adrian Lovegrove welcomed Simon to the business saying, “Simon’s technical product knowledge makes him an experienced and valuable addition to our team”.

 

Off duty, Simon enjoys hill walking challenges, health and fitness and is learning to play the bass guitar. He has a keen interest in old farm machinery and is researching a book on New Holland combines.

FORMER TORO CEO DIES AT 79
Ken Melrose
 
Ken Melrose

Kendrick “Ken” B. Melrose, former chairman and chief executive officer of The Toro Company, passed away Sunday, May, 3, 2020, at the age of 79.

 


Kendrick “Ken” B. Melrose, former chairman and chief executive officer of The Toro Company, passed away Sunday, May, 3, 2020, at the age of 79.

 

“Ken was a great man, and the epitome of an exceptional leader,” said Rick Olson, current chairman and chief executive officer of The Toro Company.

 

“The culture he instilled continues as a positive influence and will guide The Toro Company long into the future. Ken was passionate about supporting the industries we serve and helping our customers succeed. The impact of his generous philanthropic initiatives will continue to positively affect many in our industry and our communities.”

 

Ken joined The Toro Company in 1970, and over the course of the following decade served in a number of leadership roles with increasing responsibility. In 1981, as the company faced extremely challenging times, Ken was named president. Toro say that Ken’s belief in and ability to connect with people, his fortitude while making tough decisions, and his commitment to quality and innovation, all helped lead the organisation through financial difficulty to record results at the time. 

 

Ken outlined his business philosophy in his book published in 1995, Making the Grass Greener on Your Side: A CEO’s Journey to Leading by Serving. As Ken wrote, “Everyone has the potential to contribute to achieving the goals of the company. If you unleash that potential, market leadership and financial success will be natural by-products.”

 

After leading the company for 24 years, Ken retired as CEO in March of 2005. During his tenure, Ken oversaw a number of acquisitions including Wheel Horse, Exmark, Lawn-Boy and Hayter, and company sales grew from $247 million to $1.7 billion.

 

“We owe much to Ken’s principled leadership, and his legacy cannot be overstated,” added Rick Olson. “He was a rare transformational leader who saw the best in people and knew how to inspire them to work together and exceed their own expectations in order to achieve great things.”

NEWS
GENERATIONAL CHANGE AT HEAD OF CLAAS
Cathrina Claas-Mühlhäuser takes over from her father
 
Cathrina Claas-Mühlhäuser and Helmut Claas

Helmut Claas becomes Honorary Chairman of the Shareholders' Committee.

 


Claas has announced the election of Cathrina Claas-Mühlhäuser as Chairwoman of the CLAAS Shareholders' Committee, so completing the transition to the third generation of the Claas family.

 

Cathrina Claas-Mühlhäuser and Helmut Claas

 

She takes over the role from her father, Helmut Claas, who held the position for 25 years and who has now been named Honorary Chairman.

 

During Helmut Claas's tenure, the company intensified its international presence in countries beyond Europe. New production and sales locations were opened in India, the USA, Russia, China, South America and elsewhere. An important strategic milestone was reached in 2003 with the acquisition of the French tractor manufacturer Renault Agriculture.

 

The Shareholders Committee which Cathrina Claas-Mühlhäuser is now Chairwoman of, sets the strategic direction of the family business and works closely with the Group Executive Board.

 

KRONE APPOINTS TWO NEW DEALERS
To strengthen distribution & support network
 
Tim Adcock of newly appointed Adcock Agri Ltd

Krone UK has appointed Lancashire-based Metcalf Ag Engineers and Essex-based Adcock Agri Ltd as main dealers.

 


Krone UK has appointed Lancashire-based Metcalf Ag Engineers and Essex-based Adcock Agri Ltd as main dealers, to strengthened its distribution and support network.

 

Managing director of Metcalf Ag Engineers, Raymond Metcalf, said “This opportunity represents a new chapter for our family business, and to improve our service we have appointed well respected local contractor John Forrest (Fez) to boost our existing sales team.

 

L-R: John Forrest, Susan Metcalf, Raymond Metcalf and Dave Bennet

 

“We were Lely dealers until the company was bought by AGCO, which left a gap in our portfolio,” he says. “We are very excited by the Krone appointment and proud to represent such a quality brand in the area.”

 

Adcock Agri Ltd managing director Tim Adcock said, “We are very pleased to be covering Essex as Krone’s new dealer. The brand fits well within our existing franchise portfolio, which includes McCormick, Dieci, NC Trailers and Bomford Turner.

 

Tim Adcock

 

"The Krone brand is well established in our area, but there is a great opportunity to build market share with new and our existing customers.”

NORTHERN IRELAND DEALER APPOINTED BY ETESIA
RD Mechanical Services
 
RD Mechanical Services

Dealership will be distributing the full product range throughout various areas in Northern Ireland.

 


Etesia UK has announced the appointment of RD Mechanical Services, who will be distributing the full product range throughout various areas in Northern Ireland.

 

 

RD Mechanical Services, based in Belfast, was established in 1998 and specialise in equipment related to the waste industry. In 2019 the company opened a dedicated division for grass and grounds equipment. Since then, the company has been building its portfolio to offer a complete service to its groundcare customers.

 

With immediate effect, RD Mechanical Services will now supply the full range of Etesia grounds care equipment.

 

Sales director Alastair Calderwood, said: “We are delighted to have recently been appointed as distributors for the widely respected Etesia range of grass and grounds maintenance equipment. We look forward to a long and successful relationship together.”

GREENMECH STRENGTHEN COVERAGE IN SOUTH WALES
New dealer appointment
 
Phoenix Hire & Sales Ltd

Operating out of five depots across South Wales, Phoenix Hire & Sales Ltd have taken on GreenMech's range of pedestrian, road-tow and tracked chippers.

 


Strengthening their representation in Wales, GreenMech Ltd have announced the appointment of plant and tool dealers, Phoenix Hire & Sales Ltd.

 

 

Operating out of five depots across South Wales, the range of pedestrian, road-tow and tracked chippers becomes the latest franchise in their specialist Arb and Grounds division.


Phoenix sales director, Jason Derraven, said, “The GreenMech range complements our plant hire fleet which also means we can now fully support our customers including those in the rail sector, with a complete range of de-veg equipment and woodchippers for hire or sale.”


GreenMech sales director, Martin Lucas added, “We are fortunate to work with a fantastic network of dealers - renowned for providing second-to-none service and support - and Phoenix Hire & Sales becomes the latest addition to that ever-growing list. We look forward to working together with them to share our extensive woodchipper range with the Arb specialists in their area.”

DEERE EXTEND STARFIRE UPGRADE OFFER
Due to current situation
 
John Deere StarFire receiver

Due to the coronavirus outbreak, John Deere has extended their upgrade campaign until the end of June, to allow more time for customers to take advantage of the offer.

 


John Deere has announced that due to the coronavirus situation, they have extended their StarFire iTC satellite receivers upgrade campaign.

 

The manufacturer has said that customers who want to upgrade their receivers for the latest SF6000 guidance technology at a specially reduced price, can now do so up to the end of June 2020, to allow more time for anyone who still wishes to take advantage of the offer (which was initially due to end at the end of April).

 

 

The StarFire iTC receiver, which was established in 2004, established John Deere's credentials in automatic machine guidance. However, from January 2021 these units will no longer be able to receive SF1 and SF2 correction signals.

 

After this date AutoTrac automatic steering will only work with the more accurate RTK signal, although applications such as Section Control, documentation and parallel tracking will still be possible using older 2630 or 1800 GreenStar displays.

 

To benefit from the more advanced satellite receiver technology now available, owners are able to trade in any current iTC receiver for the latest, fourth generation StarFire 6000 model with their local dealer. The offer includes the receiver and also the more accurate SF3 correction signal, as well as an advanced Gen 4 4240 or 4640 GreenStar display.

 

Most customers use a satellite receiver for the AutoTrac guidance system, but the technology has developed much further over the last two decades and additional functions such as Section Control on sprayers and fertiliser spreaders have been introduced. Just as smartphones rely on increasingly powerful hardware to function more efficiently, so John Deere’s latest receivers now feature a similar technology boost.

 

Once they’ve upgraded, customers will benefit from faster signal acquisition and the displays’ ISOBUS compatibility, as well as wireless software updates and the PIN code locking system to help prevent theft.

KIOTI INTRODUCE ENHANCED WARRANTY TERMS
For tractors and Mechron K9 utility vehicles
 
Kioti tractor

Kioti have enhanced the terms of their warranty cover for tractors to 5 years, 3000 hours cover and 2 years and unlimited hours for the K9 utility vehicles.

 


Kioti UK have announced that all new Kioti tractors sold after 1st April 2020 are now covered by a 5 year, 3000 hours warranty.

 

 

The first 2 years covers the tractors for an unlimited amount of hours.

 

To give assurances to the smaller professional or private users the tractors have an engine and transmission parts and labour warranty extending to include years 3-5. This cover is up to a maximum of 3000 hours, whichever comes first.

 

The warranty for new Kioti Mechron K9 utility vehicles sold after 1st April 2020 is also enhanced as this is now a full 2 years with unlimited hours.

 

Kioti UK general manager, Patrick Desmond, said, "The purpose of these new terms is to give our dealers additional support and the end-user customers extra confidence during the buying process.

 

"We emphasise that this is a manufacturer's warranty with no additional fees."

MR SALTEX SAYS HE STILL GETS BUTTERFLIES!
Derek Walder looks back on his career
 
Derek Walder, SALTEX operations manager

SALTEX operations manager Derek Walder, provides an insight into his illustrious career, his passion for SALTEX and his adventurous days with the Crazy Gang…

 


SALTEX operations manager Derek Walder, has provided an insight into his illustrious career, his passion for SALTEX and his adventurous days with the Crazy Gang…

 

Derek Walder with the GMA's Geoff Webb

 

Derek Walder has rightfully earned the nickname Mr SALTEX. At 83 years old he has overseen the operations of the show for five decades and he is, unsurprisingly, the longest serving member of the SALTEX team.

 

During this difficult and uncertain period, Derek revealed that he is staying positive and is continuing to do what he does best - helping to organise the groundscare industry’s largest event.

 

“SALTEX 2020 will mean more than any other previous event that we’ve ever put on,” he said. “I am hugely confident that it will be the best one yet. In my mind it’s all about getting that show on the road because the trade will need it, the people in the profession will need it - everybody will need it. After this awful period, SALTEX 2020 will be a much-needed boost for everyone.”

 

SALTEX 2020 will be the show’s 75th anniversary but it all started for Derek back in 1969 when he attended the show, which was held at Motspur Park in London, as a visitor. A year later Derek moved just 20 minutes away from Motspur Park and it was at this point that the aspiring young groundsman began working as a volunteer on the show.

 

“I felt at home straight away,” he said. “I found myself doing lots of things such as putting up marquees, helping both exhibitors and visitors and I was even parking cars. Back in the 60’s and early 70’s the show never had more than 30 trade stands but I can still remember the machinery that was on display, I remember the educational talks that took place and I remember the demonstrations on how to prepare cricket wickets.

 

“The show suddenly grew and grew over the years and it wasn’t long before approximately 8,000 visitors were attending. The formula then is still what it is now – to bring the industry together, to talk and to discuss, to educate and learn, and to see all of the latest products.”

 

After volunteering on the show for eight years he eventually took over the position of operations manager when the show moved from Motspur Park to Windsor Racecourse in 1979. 36 years later and SALTEX was relocated to the NEC, Birmingham, and it is safe to say that Derek was pleased with the new indoor venue.

 

“I remember the outdoor shows when we used to have bad weather – it was a nightmare,” he said. “There used to be lorries getting stuck and it was pouring down with rain. There was mud everywhere and exhibitors used to complain about puddles outside their stands. We used to have a ground crew permanently on stand-by to go and help the exhibitors. We also had to lay metal tracking across the racecourse – which was a huge job. If an exhibitor a mile across the racecourse wanted an electric socket, it had to be dug into the ground. However, since moving to the NEC, it is a totally different ball game.”

 

The build-up, which used to take eight days outdoors, now takes just two days at the NEC, and while Derek admits that the move indoors has made his life slightly easier, it is still not without its challenges.

 

“The major change was that we only had two days to build the show in what is a tighter area. It’s putting all the little things together which is difficult - like the furniture supply and the electrics for example. Fortunately, I’ve got a great team around me, with lots of experience, and everything has run incredibly smoothly to date. It’s important to remember that this team is largely made up of volunteers - GMA members who give up their own time because they are passionate about SALTEX and the industry.”

 

Derek and his team are religiously onsite at 1 am in the morning on build-up day and are also the last to leave in the evening. Their commitment to SALTEX is unquestionable. They know that this is a show which hugely benefits the industry. In fact, not many people know that any profits created by the running of the exhibition is reinvested back into the varied work GMA does to support the groundscare industry.

 

“As soon as the doors close to the exhibition we start again immediately,” he continued. “It really is a year-long project. We have 15 different contractors and suppliers to source - everything from carpet on the floor to electricity and accommodation. We draw up specifications, tenders go out for quotes, we agree on a budget and then identify the best partners to work with. On top of that there are things like signage, the design of the show entrance, health and safety forms – let’s just say that there is more than enough to keep me busy!”

 

Fortunately, Derek is accustomed to keeping active. As well as helping to organise SALTEX for an incredible 51 years, he still had his own career to focus on.

 

Derek presenting an award

 

In the early 60’s he started his journey in horticulture by working as an under gardener at a large private estate. He quickly progressed, moving up to become head gardener, and it was then that he discovered that he really enjoyed looking after the lawns. From there he moved into golf, becoming a greenkeeper, before ending up at the playing fields at Wimbledon Common, which was the home of Wimbledon FC – aka the Crazy Gang.

 

The Crazy Gang was a nickname used by the English media to describe Wimbledon FC during the 1980s and 90s, due to the frequent cheeky and boisterously macho behaviour of the players. Derek spent 30 years there and was often witness to the outrageous practical jokes they would play on each other and on the club's manager Dave Bassett. Those who know Derek best would have no doubt heard many of the side-splitting tales, including the famous night he found himself safeguarding the FA Cup trophy following Wimbledon’s astonishing victory over Liverpool FC in 1988.

 

“After the celebrations the kit man came back to the training ground and as well as all the kit – he had the FA Cup trophy with him. Nobody quite knows how the kit man had it, but the consensus was that most of the players and staff were slightly inebriated after the celebrations and they left the trophy behind. Anyway, the kit man was panicking about being in possession of one of the world’s most famous trophy’s and he handed it to me. I took it home with me to keep it overnight until it would be needed for the parade the next day. Admittedly I didn’t sleep well that night!

 

“I remember my son waking up in the morning and seeing the FA Cup just sitting there on top of the television. Well, shortly after that I had about 40 kids in my living room! It certainly was an experience and my family still trade on that story to this day.

 

“That bizarre experience summed up my time at Wimbledon - it was an adventure from start to finish. You never knew what was going to happen and to be honest I miss the days when Vinnie Jones used to come into my office in the morning, nick my newspaper, make himself a cup of tea and use my loo.”

Derek took early retirement in 2000 when the club disbanded but he was adamant he wanted to continue working on SALTEX. Throughout his long and illustrious career, he has witnessed phenomenal developments in groundscare – technology that a young Derek Walder could only have dreamed of when he first entered the industry.

 

“The machinery, the chemicals and the technical knowledge has changed beyond what someone my age could ever imagine. The profession has changed, and people have got to be more like technicians than ever before. They need to be more aware of biology and physics to keep these top stadiums going.

 

“I think the industry is in a strong position currently – which pleases me immensely. It is also great to see younger people coming into the industry although I would like to see even more. When you look around you will find that many people have been involved in the industry throughout their whole career and there is a good reason for that. Trust me – you will never look back.

 

“My only disappointment is the deterioration of public parks and local authority sports pitches. I think it’s quite simply because the money just isn’t there anymore. Unfortunately, people are more interested in bin collection and potholes.”

 

Derek is more than content when he reflects upon his successful career but make no qualms about it, he’s not planning on hanging his boots up just yet.
“I’ve got so much out of working in this industry,” he said. “I’ve gained many lifelong friends – so many great, genuine people that you don’t tend to meet outside of this industry.

 

“I’m looking forward to the future and my priority is to focus on the continuing success of SALTEX. It’s played a huge part in my life for so long.

 

“At nine o’clock when the show opens, and everyone comes streaming in I still get butterflies. That’s the buzz for me.”

 

SALTEX 2020 will take place at the NEC, Birmingham on 4 and 5 November.

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BEWARE OF CORONAVIRUS FRAUDSTERS
Another opportunity for criminals
by Adam Bernstein, Service Dealer's SME Digest Editor
 
SME Digest Special Feature

In the 8th of our special series, designed for you to download, print and keep, Service Dealer's SME Digest editor, Adam Bernstein offers warnings and guidance regarding the increased fraud attempts seen lately.