By Jake Bryce, Machinery Scope A dealer friend recently commented, “It’s been too easy, and we have developed some bad habits in our sales department over two years.” It’s understandable how it can happen, but let’s address this sooner rather than later. The 15 years I spent in an ag equipment dealer sales department were full of challenges and opportunities. However, the most satisfaction was derived from when sales opportunities were not easy every sales opportunity needed our best effort and the details mattered. While the margin wasn’t always the best, we found victory in converting sales opportunities. It may be worthwhile to review what it is that differentiates your dealership and its products versus the competition. Merely having the right piece of equipment is not going to be enough. We need to renew our for better or worse vows and be prepared for a set of challenges that we haven’t seen for a while, nor have many (like me) experienced in our time in the dealership.
Interest Rate Implications
It might feel like we are experiencing one of those warm, humid, summer days where the weather is enjoyable, but we aren’t certain if a storm could brew up. We don’t know exactly what might happen, but we have some factors that should put us on alert. While still historically low, we haven’t had these kind of interest rates since late 2006 and early 2007. The spike in interest rates that occurred then was very short term. We are likely to see more sustained rates. A lot of industry professionals on dealer management teams, have never had the challenge of interest rates on financing equipment being sustained over 6%. My unofficial dealer poll finds floor plan interest rates ranging from 6.5% to 7%. DOWNLOAD FULL ARTICLE >>