In addition to those metrics identified in previous articles, this column will address additional metrics that should be on the radar screen for any dealer/sales manager interested in getting the most out of their sales department.
In addition to monitoring their sales mix, their new and used inventory turnovers, and their gross margins for new and used equipment, dealers interested in optimally managing their sales department should also continually monitor their sales personnel compensation.
In addition to monitoring the department sales mix, the equipment sales mix, and the new and used equipment turnover, dealers and sales managers should also vigorously monitor their new and used equipment gross margin.
Once the dealer and sales manager acknowledge the importance of monitoring their departmental sales mix as well as the sales mix between their new and used equipment sales, as outlined in the previous two columns, then it would behoove them to turn their attention to the subject of turnover.
After monitoring the overall wholegoods sales mix as a percent of total dealership sales, the next wholegoods metric that should be continually measured, monitored and managed is the new and used wholegoods sales mix as a percent of total wholegood sales.
Dealers and sales managers planning for the long haul would be prudent to continuously monitor a series of metrics that could portend success or failure for their sales department. The Oxford dictionary defines a metric as “a set of figures or statistics that measure results.”
Rather than waiting for a potential customer to get a flat tire in front of the dealership or chasing low margin roll-over customers to amp up the dealership's volume bonus, dealers and sales managers, together with their salesforce, would be far better served developing meaningful and lasting relationships with the overwhelming number of customers that are seeking such a partnership.
Fifteen years ago during a series of speeches I delivered to various equipment dealer associations throughout North America, I predicted that the agricultural equipment industry would lose between 25-40% of its dealers during the first decade of the third millennium.
Unprecedented commodity prices that have led to a sustained demand for agricultural equipment over the past 4 years have resulted in two types of regrettable sales techniques. First, because many end-users are flush with cash, many sales people in turn believe they can be successful by just sitting in the dealership and waiting for their next victim to waltz through the door.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take a look at the preliminary results of the 2024 Ag Equipment Intelligence Outlook & Trends report.
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
Montag is the industry’s innovative leader for precise, accurate metering of fertilizer, seed and other nutrients. The Montag system has become the standard for deep banding of fertilizer. Montag is also pioneering the technology for cover crop seed application. The new Cover Crop+ is able to meter the smallest seed, and can be mounted to tillage implements, combines, plus Hagie sprayers and detasselers.
Finance Scope is able to provide the best financing opportunities for equipment dealers and customers through a diverse mix of lending companies under one single platform. Our large group of lenders, allows for competitive rates regardless of credit scores. Additionally, dealers and customers have access to the industry’s best expertise surrounding finance and lease structures, for all purposes, within the agricultural and construction industries. We provide all of this into one online platform to provide our customers with the best available tailored finance solution for their equipment.