Dealership Consolidation to Continue
Dealership consolidation isn't taking a breather. According to Ag Equipment Intelligence’s 2023 Big Dealer Report , big dealer numbers dipped from 214 in 2022 to 206 in 2023. However, the total number of stores owned by big dealers increased from 2,589 in 2022 to 2,632 in 2023, an increase of about 1%. In 2023, large dealers owned 39% of total ag stores in North America compared to 37% in 2022. If the trend continues, we could see over 40% of stores under big dealers by the end of 2024.
No one cares about customers like an owner who has his life invested in the dealership as opposed to hired managers. The customer is also short-changed by big conglomerates that don't care about the needs of the customers. They are now charging much higher labor rates, and overall, the cost of business has gone up for the customers.
PHILIP BROOKS Brooks Sales Inc.
What This Means For Dealers:
• Smaller dealerships need to focus on niche markets, personalized service, or unique selling propositions to remain competitive. • The increased consolidation implies an emphasis on efficiency. For those in the midst of this consolidation wave, streamlining should be a top priority . • Building and maintaining strong community and customer relationships will be a protective armor.
Optimizing Inventory Management Adaptability remains the centerpiece of a successful 2024 inventory strategy. According to a survey from the Association of Equipment Manufacturers , over two-thirds of ag equipment manufacturers say supply chain issues are improving. As we transition into a phase of supply chain improvements, dealers might find themselves in a more favorable position, but it also brings forth new considerations. Leveraging digital tools, such as DIS Analytics , to monitor and manage inventory can ensure real-time tracking, better inventory control, and data-driven, timely actions.
How does DIS Analytics help with inventory management?
With DIS Analytics, dealers get real-time tracking of their inventory. This means no more guessing games or time-consuming stock takes. With a few clicks, dealers access a comprehensive view of what they have on hand – be it at a specific branch or within a particular class.
And for each part, detailed analytics shed light on sales history, various price points, and stock distribution.
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