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  #1  
Unread 10-22-2006, 01:58 PM
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dante dante is offline
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Location: Warren,Ohio
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Default Margins

The single most talked about subject between dealers is the declining margins on equipment. Everyones cost of doing business increases yearly, from payroll,health insurance,utilities,fuel and on and on. Why do some manufacturers continue to lower dealer margins? These lower margins are having a disasterous effect on dealers. Why are the margins so low in the ope industry? Jewelery and clothing companies make huge margins, often marking their goods up 200 and 300%. It is so ironic ,their costs of doing business is so much lower than ours! OPE dealers need highly skilled workers from technicians,parts,service,sales and others to have a viable dealership. Not to mention that our business is seasonal and weather driven! OPE dealers are the ones that should make the larger margins! I almost forgot trucks,towmotors,shop lifts and warehouse faclities. How do we do it making only 15 and 20%? Equipment is cheaper today than 10 years ago. Have automobiles gone up in price? Of course they have, what is wrong with our industry? WE NEED TO MAKE HIGHER MARGINS TO SURVIVE AND GROW OUR DEALERSHIPS! It is really that simple,raise prices and margins.
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  #2  
Unread 11-09-2006, 06:06 PM
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dchd1130 dchd1130 is offline
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The only lines I make ok margin on and get treated like a valued customer are the lines that are mfg. direct. Distributers take up margin and will sell direct if they think they can get away with it or if its a big enough deal (so will some mfg. ie. Stihl)
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  #3  
Unread 11-10-2006, 08:42 PM
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cruiser56 cruiser56 is offline
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Default

I know what you mean, Stihl is a great line, for a lot of obvious reasons, but I still get upset whenever the Nelson Tree service trucks drive by my store without stopping.
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  #4  
Unread 11-22-2006, 05:04 PM
ScottM ScottM is offline
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Location: O'fallon, IL just outside St. Louis
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Default margins

Manufacturers Will Continue To Eat Into Our Profits As Long As We Allow Them To Do This. If They Continue To Sell Equipment And Make Their Margins They Could Really Care Less About Us, Until We Say Enough Is Enough. I Mean, If We Keep Buying Their Product Either Direct Or Through A Distributor At Low Margins, Then Shame On Us.

The Difference In What A Munfacturer Makes Direct Verses Selling Through A Distributor Is Only A Couple Percent. The Manufacturer Just Lets The Distributor Make Less Money Also.

Distributors Don't Make What They Used To Either. But The Manufacturers Margins Aren't Being Squeezed As Much As The Front Line Dealer Or Distributor.

We Are Aligning Ourselves With Manufacturers That Allow Us To Make A Decent Living And There Are Still A Few Out There.

We Deal In Mainly Commercial Equipment So We Are A Little Different Than Many Dealers.

We Have Made It Our Policy To Not Handle Equipment Sold In Box Stores. We Have Dropped Lines Were We Cannot Make Any Money On Them Or Competitors Continue To Whore Out The Market. We Have Dropped Lines That We Were The No 1 Seller In Our Market Because They Couldn't Get A Dealer In Line. We Can't Afford To Look Bad To Our Customer.

We Have Lost Three Such Dealers In The Last 2 Years Who Sold At Cheap Prices And Did Not Stock Parts And Provided Poor Service. They Are No Longer Around Today.

These Dealers Were Typically 200-500 Cheaper Than Us On Like Equipment, But We Continued To Outsell Them Until They Folded.
Anytime I Lose A Sale I Get Angry, But We Just Kept Plugging Along And Stuck To Our Guns.

I Was Reading In One Of The Other Forums That Your Business Is Worth Something. I Believe Your Business And The Way You Treat Customers Is The Only Thing That Sets You Apart From The Rest.

We Need To Get Some ----- And Stand Up To The Manufacturers That Continually Erode Our Margins. Move On And Find The Ones You Can Make Money With. The Ones That Care About You As A Dealer. The Ones That Believe They Wouldn't Be Here Without The Servicing Dealer. There Aren't As Many Of Those Around As There Used To Be.
Remember When You Find A Good Manufacturer You Must Do Everyghing In Your Power To Promote Them And Treat Them The Way We Want To Be Treated. It Does Go Both Ways.

The Next Few Years Will Set Everything Apart. You Are Going To See The Manufacturers Consolidate Also. There Will Be 6-10 Companies That Control All The Different Product Lines.

Then It Will Be Really Tough To Be On Our Side Of The Fence.

Sorry For Going On And On.
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  #5  
Unread 11-24-2006, 07:38 PM
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Default Tecumseh's future uncertain

Watch for some big financial news from Tecumseh, once a very successful engine producer in the US. Moving production out of our country has not been the answer. How could a company like Tecumseh, a company with several major accounts be struggling to survive. I have been in this industry for over 30 years, I have watched manufacturer's egos keep them from making sound business decisions. Listen to your dealers! We are not a bunch of dumb people! We want to make money just like you do, why would we give you bad information? Tecumseh needed to invest more in R&D. There is no free lunch in any business. I remember when we began selling Honda eguipment, their engines were far superior to any US makers. What were the US manufacturers thinking? Does this sound familiar? I'll give you a hint [autos]. I always said we were 10-15 years behind the auto industry. Just so there are no more secrets, the CHINESE are coming!
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  #6  
Unread 11-24-2006, 08:29 PM
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dchd1130 dchd1130 is offline
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coming soon they have been here. They will be a bigger part of our industrie in the future too. MTD is allreadu using there engines it wont be long before more mfg's. are.
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  #7  
Unread 11-25-2006, 10:51 AM
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bsrse bsrse is offline
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Default Engine MTD

According to MTD Tech they are coming with an engine that will have a MTD Brand, which will be backed by MTD that is made overseas. Where does it STOP!!!!! If our country does not put an import fee on all of this outside merchandise coming in to this country, we are going to see all production plants is this country disappear.
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  #8  
Unread 11-25-2006, 10:17 PM
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dchd1130 dchd1130 is offline
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I bet it wont be too long before americas production is all over seas and all we do here is sell info.
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  #9  
Unread 11-28-2006, 12:40 PM
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lisadocut lisadocut is offline
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Default It's not rocket science

How many of you live in an area where the big boxes have taken over? I'm sure alot of us do. Why can't the consumer see the massive changes that have happened in their towns since their arrival...Successful communities with strong schools, strong local governments, etc, reduced to towns that can't pass school levies, or important issues supporting police, fire, etc. WHY? Hey, here's a realization; Wal-mart, and the others have forced the small businesses who built these towns to close, therefore completely erroding the tax base because they give the boxes tax abatements. If the big boxes would simply implode, and our government would impose import taxes on the stuff coming over the pond, and China would re-evaluate the Yen things would shift. I know I'm preaching to the choir, but man, every chance I get I tell friends, etc about this. I really think it makes them stop and think. Now, whether or not they stop shopping there is another thing...Oh well, had to get that off my chest. Hope you all are having a rip roaring day!!!!!!!!!!!!!!!!
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  #10  
Unread 12-07-2006, 04:37 PM
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bluestar bluestar is offline
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the manufacturers need to realize if they offered some better margins and advertised it they would have a lot more dealers begging them for the dealership intern making there product more popular and selling a whole lot more across the board, whichever manufacturer comes to this realization first is going to be the one with the most dealers and highest sales. they don't understand that they need to make their line more appealing to the dealer not just the end user harry homeowner.
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