DIS 2023 Agriculture Industry Trends Report

Historically, the high season for farm equipment dealers was the summer. But with farms covering more acreage and using more specialized equipment—equipment that needs skilled teams to service it— seasonality for dealers has become a year-round endeavor . To maintain strong, long-lasting partnerships with customers, dealers need to look beyond the sale and understand that after a unit has been sold, service becomes their main offering. Here are some ways you can keep revenue flowing year-round: EVERY SEASON IS HIGH SEASON Look for Additions Service Revenue (ASR): The farm equipment industry still hasn’t fully embraced the concept of planned maintenance. But one of the best ways to upsell service and reinforce customer trust is with a planned maintenance program. Create Inspection Lists: This is another area where the Ag industry is lagging. Checklists drive more business by identifying areas where service is needed, and higher customer satisfaction by demonstrating your dealership’s care and expertise when it comes to equipment maintenance. Enable Digital Approvals: Many dealerships are still sending paper quotes—or relying on verbal quotes. That leaves room for miscommunications and missed opportunities. But you can keep a reliable record of quotes, speed up the approval process, and create a more convenient experience by offering customers a digital quote for approval.

DEALERSHIPS ARE CONSOLIDATING According to Farm Equipment’s 2022 Big Dealer Report , big dealers owned 38% of total Ag stores in North America in 2022—an increase from 35% in 2021. There are a few forces at play here. For one, dealership owners who wanted to sell in 2020 may have postponed it until after pandemic restrictions loosened and are acting now. Another reason is that many dealership owners are aging and looking to sell. Kubota’s initiative to have additional stores that solely carry their brand has also led to a surge in major Kubota dealers (those who have five or more Ag sites).

3

Powered by