By Garry Bartecki
Last month, I suggested that dealers compare their 24 results against their peers’ accounting and cash flow budgets. I also stated that the month’s topic would be free cash flow, which we will discuss after a few additional topics that need to be on your radar for ’25.
- Take a look at the markets that are used for your product line. How are the Fair Market Value (FMV) and Forced Liquidation Value (FLV) stats coming along? In some categories, they are sharply up and some sharply down. Some even show a surge in FLV as customers continue to purchase used equipment. Performing this exercise will assist with your pricing policies for 25. And what I hear on the street is there are deals to be had with the OEMs, which dealers will need as the used market pricing is softening up.
- Walter McDonald produced a 60-question form to help dealers review how they compare to Industry Dealer Fundamentals. These are questions for owners as well as department heads. And I would share it at department meetings and include all the employees who work in that department to help them understand the dealers’ game plan for 25.