Burr is well known in country music circles for writing amazing songs that have topped the charts. This particular song did not make it to the top, but is an interesting one nonetheless. It laments how this man knew all the vital statistics about his girlfriend but never paid attention to what matters most (hence the title) to her real needs. He knew the color of her hair and eyes, the books she read, etc., but he never took time to know her as a person or to learn her dreams, goals and aspirations. As with most country songs, it tells a story and uses a “hook” to get the point across. This song reminded me that unless NAEDA and your association knows what matters most to those we serve, we will suffer the same fate as the guy in the song when his girlfriend leaves him.
So, what matters most to dealers?
Strong manufacturer relations. Talk with a dealer and it doesn’t take long for the conversation to turn to concerns about the dealer-manufacturer relationship. Manufacturer relations has been the number one priority for our organization since it was formed in 1900! In the past 15 months, we’ve reviewed nearly one new dealer contract or finance agreement each month. Our objective in these reviews is to ensure dealers are represented fairly and that these contracts and agreements meet the test for commercially fair and acceptable practices.
Warranty issues are also on the mind of dealers. Responding to a growing number of calls from dealers, NAEDA and affiliates conducted a survey to determine the depth and breadth of such concerns. We assembled the findings by manufacturer, met with most of them and had open, frank discussions about issues raised by North American dealers. We also monitored progress to make certain dealers were being heard and problems addressed. When necessary, we followed up with manufacturers.
Our warranty efforts are critically important. Slow or improper handling of warranty submissions costs dealers and manufacturers unnecessary time and money so it is essential to get things right the first time.
Market share, especially in light of the increasing economic incentives tied to that number, continues to stimulate discussion among dealers. It is no small matter when tens of thousands of dollars are tied to a dealer achieving market share objectives, but misses out due to inaccurate information. NAEDA and affiliates continue to focus the spotlight on this important metric and seek ways to improve market share reliability. Ongoing discussions with manufacturers and trade organizations responsible for assembling the numbers are an important step toward the goal of fixing problems associated with market share.
Regulatory demands are a growing concern for dealers. Recently, I met with a group of dealers about a variety of issues. Once the conversation turned to increasing regulatory burdens, the conversation went on for two hours and could have gone longer! Whether it is from EPA, OSHA, the Department of Transportation, or other agencies, dealers are mired in a deluge of paperwork and are concerned about how to stay in compliance. NAEDA and affiliates continue to address these concerns, especially in Ottawa and Washington, D.C., by submitting comments on regulations before they are even adopted. Once adopted, our attention turns to compliance and preparing dealers to protect their interests and avoid large fines.
Legislation at the state/provincial and federal level is also being addressed. For example, the hard-wrought approval for extending accelerated depreciation was a major effort in which we worked tirelessly with the entire equipment industry. Lowering depreciation on agricultural equipment from seven to five years is good for customers, dealers and our industry. Now, the focus is to make that reduction permanent. We are also working to protect the rights of dealers to use the LIFO method of accounting and keep government from collecting taxes on reserve accounts, which could put some dealers out of business.
These are but a few examples of what NAEDA and your affiliated association do to help our member dealers succeed. As I stated early on, it is a matter of listening and reacting when called to action. We want dealers to know that we understand what matters most!
PAUL KINDINGER is president/CEO of the North American Equipment Dealers Association. The association provides educational, legal, legislative, and financial services to approximately 5,500 retail agricultural, construction, large property/rural lifestyle, and outdoor power equipment dealers in the United States and Canada.