White Papers

White Papers are organized into four sections:
For All Machinery Dealer Managers
For Dealer Sales Managers and Sales Professionals
For Dealer Aftermarket Service and Parts Managers
For Dealer Principals/Executives




For All Machinery Dealer Managers

Leadership – Building a Customer-Focused,
Process Driven Passionate Business

By Chris Holmes, President (ret.) Nortrax, a John Deere Company


Leadership – Building a Customer-Focused,Process Driven Passionate Business

Over my career, I've had the privilege of working with and learning from many great entrepreneurs and leaders. As I write this article, we are in the midst of trying to navigate our way through the COVID-19 virus and the impact it will have on family, friends and business. My hope is that many of the principles of leadership that I have learned will not only help guide any business through trying times, but also enable them to regroup, rebuild and succeed. I just can't think of a better time to write an article on leadership.


I have learned that leadership comes in many forms and there is really no one size fits all. What appears to be the common denominator between average and highly successful leaders is the ability to engage and motivate individuals and teams. If I learned anything from successful leaders is that most businesses are in the "people business". Peel back what you manufacture, sell or service and there is a customer (or employee) at the other end who usually has a choice whether to do business with you and whether it is at a premium or discounted level.


I'm an admirer of Richard Branson and all the success he has earned by simply placing immense focus on his own people. His belief that "If you look after your staff, they'll look after your customers" carries a powerful message for all leaders as we look to drive engagement, loyalty and profitability both with our teams and our customer base. It's really about trust – trust in your vision, trust in your actions and ultimately, do you as a leader care about me as an employee.

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How to Move Up to the Next Level in Your Personal Performance

Dragon joust

Why do so many dealer sales and operations managers appear to be stuck at the transaction level?  They may be caught up in a whirlwind of activities, chasing back orders, struggling with rework, running after low-margin sales. They may be constantly reacting to emergencies, never getting ahead of the curve. Every day is a frustrating firefight.

Successful completion of transactions is important to the dealership.  But in the midst of the fray, it is often extremely difficult to see how these problems can be solved more efficiently, at less cost and in a more customer-friendly manner.

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7 Tools to Build Dealer Market Share

 

Market Share is like mom's apple pie, the bigger your slice the better! McDonald Group - 7 Tools to Build Market Share

Market Share gains occur because we outsmart and outwit our competitors. But, to get a bigger slice, you must have the basics in place. Very surprising recent research shows that 95% of equipment sales are to current customers, buying Parts and Service NOW from their dealership.

This has huge implications for an equipment dealership’s entire sales and marketing strategy.

These amazing insights are derived from tracking 10 years of equipment dealer customer transactions in over 100 dealerships, managing 500,000 customer relationships, courtesy of Winsby, Inc.

Some dealer departments have been living in confined silos for five decades: sales are sales --- service is service --- parts are parts. These isolation silos are irrelevant and very harmful today.  Dealers must manage a holistic model of the dealer sales and marketing effort if they are to succeed. 

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Successful Branch Operations: How to Make a New Start-up Service Center Profitable

McDonald Group - How to Avoid Death by 10,000 Cuts - How to Protect Dealer Cash Flow

Equipment Dealer Principals tell me,

“Successfully setting up and managing a profitable remote start-up branch service and parts operation is one of the most difficult aspects of the equipment distribution business.”

What is the Overall Strategic Objective for a New Service and Parts Branch Operations? What does a highly successful start-up branch look like? What is the fundamental sales and marketing strategy necessary to quickly become profitable? What kinds of personnel are required to make it work? What type of headquarters support is essential?

Here is what is really working today in your equipment industry....

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How to Avoid Death by 10,000 Cuts

McDonald Group - How to Avoid Death by 10,000 Cuts - How to Protect Dealer Cash Flow A recent industry survey of Dealer Principals ranked Cash Flow as their #1 issue of concern. Everyone knows that “cash is king.”  But, how do you build the systems infrastructure to defend and optimize your cash flow?

The amount of money flowing through a dealership makes cash control critical. How do you avoid “cash leaks” that can cause “Death by 10,000 Cuts”?

There are three important steps to the process. Better Asset Management and Unfreezing Cash will accelerate cash flow. Optimizing Margins will build more robust and profitable cash flow.

Here are some practical suggestions in each area you might find helpful...

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21 Gorilla Marketing Ideas for Equipment Dealers

21 Gorilla Marketing Ideas for Equipment Dealers

We’re in an economic battle for survival! The equipment and machinery dealer who gets and keeps the most profitable customers wins.  But, how does he win?  Fortunately, there is an elusive but highly-effective strategy available.

I have spent the last three decades personally interviewing dealer customers.  I have seen how aftermarket product support can either bring prosperity or disaster.  Clearly, aftermarket product support is the essential driving force behind Customer ACQUISITION as well as Customer RETENTION.  Product support will determine the success or failure of many dealer organizations.

These “21 Gorilla Marketing Ideas” will surely help contribute to your Aftermarket success.

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The 6 Basics You Need for Successful Marketing


From initial planning to analyzing the results
Marketing seems simple: you're just spreading the word about your company, right? That doesn't take much skill, right? Wrong and wrong.

Marketing requires more than just putting together an email or writing an ad. Marketing is a nuanced, multifaceted process that can overwhelm even the most successful business operators.

Here are 6 basics that every business needs for successful marketing, plus how Winsby can help you succeed with each!

1. Why You Need a Marketing Plan
You don't run your business without a plan, and you shouldn't run your marketing without a strategy. That means laying out your approaches, outlets, and allies who can help you spread your message. And, no, you won't be alone: The Content Marketing Institute shows that the industry's leading marketers are more likely to have a clearly documented strategy than their less successful peers.

If you need help formulating that plan, Winsby's expert team can do it for you! Together we can take your marketing to the next level, resulting in more prospects. All your sales team needs to do is close them!

2. Why You Need Email Marketing
Emails remind your customers to purchase from you and remind your prospects that you are there, just waiting for their current provider to make a mistake. They need to talk about everything you offer; sometimes a customer won't know that you sell something they are buying from someone else … and they'd prefer to buy it from you! Tell everyone what you have available.


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Need help with anything? Contact Winsby!

The Problem Solving Process

By Walter J. McDonald


If you are facing a promotion or additional responsibilities as a Machinery Dealer Department or Branch Manager or even a Division Executive, congratulations! You are anxious to get started and do the best job you can.

However, in many circumstances the challenges in this new position can be formidable. And, at first glance, the magnitude of problems in all directions can appear nearly impossible to overcome.

Here's a field proven approach that can help guide you, assist you in establishing priorities, achieve success, and enable you to build and maintain a strong, positive relationship with your manager. The key to success in this new and challenging adventure is to make certain you and your boss are always on the same wavelength. That is, you and he/she are in total agreement on your priorities and action plans. This approach will foster and ensure their support for your efforts. Unless you build this bond, really bad things can happen.

One of the main reasons that your new responsibilities can be so exciting is because a dealership is a very complex combination of five separate businesses, loosely connected by internal relationships. The fundamental strategy for managing this type of highly complex system was developed several decades ago by organizing the dealership into Revenue Centers with separate monthly financial statements. Fortunately, today, there are well established performance benchmarks for the profit drivers in each machinery dealer revenue center. And, these can be invaluable tools in your problem diagnostics and problem solving efforts.


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Manufacturing Better Service Operations

By Richard Golden, Director of Operations, Material Handling Distributor


Introduction
Back in 1990 manufacturing was dramatically transformed with the development of what is commonly referred to as Lean or Continuous Improvement. The result of a manufacturer adopting this system was that they could produce widgets faster, safer and at a lower cost while improving quality. As the success of manufacturers continued, the ideas also caught on with service providers. The successful adopters achieved a competitive advantage by giving their customers what they wanted, at a fair price, while making greater profit. The thinking behind all of these lean or continuous improvement systems is similar, and manufacturers and service providers choose to implement one over the other based on which one fits their culture best. The main ideas behind these practices are:

  1. Adherence to a long-term philosophy of generating value for customers, society and the economy
  2. Providing customers the value they are looking for through efficient processes
  3. An unrelenting quest to eliminate waste and continuously improve processes
  4. An intense focus on continuously learning and the development of employees and business partners

The same thought processes can also be successfully applied to equipment service operations. Instead of manufacturing widgets, an equipment dealer is manufacturing equipment uptime.


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11 Dynamite Tools to Help Improve Dealer Market Knowledge

by Walter J. McDonald


Machinery dealers are taking data analytics more and more seriously. Enterprise software vendors are offering amazing color graphics, pie charts, graphs, bar charts. But behind all this is the question, "What do you really need to know?" What information will provide you the most helpful and useful insights into pursuing your very best opportunities? Do you want to improve profitability? Increase aftermarket sales penetration? Expand your business into new areas?


Listed below are 11 of the most useful and insightful assessment tools machinery dealers are utilizing today to improve profitable operations across the board. These 11 tools include applications in Corporate Strategy, Machinery Sales and Rentals and Aftermarket Parts and Service.


A few cutting-edge dealers have appointed a Marketing Insights Manager to help identify and exploit this information. They are tasked with assisting owners/ executives, machinery sales and aftermarket management teams identify and pursue their most attractive opportunities.

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Status Calls

by Debbie Frakes, Managing Director, Winsby Inc.


Status calls occur when a customer calls asking for an update about a promised or expected delivery of parts, service or equipment. For most customers of equipment dealers, the expected turnaround time for a parts delivery, completion of a service request, or delivery of in stock equipment is 24 to 48 hours. If the delivery date will be longer than this timeframe, it's important to advise the customer of the expected date for delivery. Proactively contact customers to keep them informed of progress as often as possible to avoid status calls.


Any status call is extremely costly*

  • They take 3 to 5 times longer to address than the time required to update customers proactively.
  • They occur most often at peak times, blocking time better spent on new orders and service opportunities.
  • They also generate negative feelings from the customer. The result is that one-third of these customers are lost over the next 12 months. An average customer for most dealers generates over $5,000 to $10,000 in annual revenue, so the cost of losing one is high.
  • The average equipment dealer loses 51% of their customers over a rolling 12 month period. The number one reason for a lost customer is mismanaged expectations—not keeping the customer informed.

*Note: Data is derived from over a 10-year period by Winsby, Inc., tracking dealer customer transactions (parts, service, rentals, machinery sales) from the experiences of over 100 machinery dealers managing more than 500,000 customer relationships.

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How to Develop and Mentor Product Support Leaders

By Chris Holmes, President (ret.) Nortrax, a John Deere Company


Show me a company with a group of strong leaders, and you'll see a group of satisfied customers, business owners and employees. Identifying, attracting, developing and retaining leaders is a common challenge faced by most businesses. As challenging as it may seem, there are solutions once you commit to make them a priority. Tools such as McDonald Group training and their Dealer Excellence book series, dealer supplier courses and the sharing of best practices are very good places to engage in leadership development.


Identifying future leaders - promoting from within

Future product support leaders are often a diamond in the rough and may be right under your nose. By being in front of the techs or parts teams on a regular basis it gives insight into who potentially has leadership traits that just need to be honed. Key initiatives such as performance-based compensation plans that actively engage the product support teams in the development, subsequent rollout and ongoing execution really gives insight into potential leaders. "Being there" (interacting regularly with all employees at all levels of the organization) as a manager or senior leader enables you to spot a future leader quickly through direct interaction.

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Secret to Shop Floor Productivity

You're Throwing 25% of Hard-Earned Shop Output Away Today
by Failing "to Explain" to Your Technicians

By Cuyler Callahan, Heavy Equipment Shop Technician


Do you want to know a secret to increased production on the shop floor…?


And not just increased production, but an energetic shop full of happy technicians. Technicians who complete jobs on or under time, and shoot profits up and up…


I thought so.


As a technician myself, I'll give you the wrench-in-hand, boots-on-concrete experience.


But before I spout off my in-the-trenches advice (and as a soldier technician I have spent time in trenches) let me give you some stats to mull over…


According to the McKinsey Global Institute, productivity can increase by 20 to 25% in a workplace where employees experience good communication and feel connected.


Source: www.mckinsey.com

(Download Full Article)

80 Secrets of Highly Successful Dealers

By Walter McDonald


This article is presented on the occasion of my 80th birthday and after nearly 50 years of helping equipment dealers achieve higher levels of performance. These are 80 of the more than 600 documented "success secrets" I have seen practiced by highly successful machinery dealers around the world. These "best practices" guide dealers to higher profitability, market share, cash flow and customer retention. Many will apply to your business. Use what you can and prosper! Buy and utilize my books for full "how to" details. I'll even include a free Self-Study Course and private coaching to help you with your self-development effort. So, Happy Birthday!


Sequence:

Strategy, Customer Retention, Parts, Service, Rentals, Used Machinery and New Machinery

Strategy

  1. Carefully evaluate which products match what markets. Most dealers have far more business opportunities available than they can adequately support or effectively manage. This is the most strategic assessment you can make and the resulting decisions will have life or death impact on your future prosperity. Which opportunities should you pursue with vigor? Which should you abandon because they just drain your resources?
  2. Properly define leadership roles. At some point in every dealership's growth, the founder/owner focuses on and leverages his/her skills and decides to develop a highly competent team of revenue center managers. This decision to delegate authority and responsibility is not an easy one. But, by effectively managing your leadership role, owners/founders can nurture the growth of your management team and greatly improve the odds and prospects for your ultimate success.

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Treat Triumph and Tragedy the Same…
They are Both Imposters.

Focusing on Winning and Losing Distract from Focusing on Great Performance
By Tim J. Murphy


My daughter had the honor of serving on the "Old Masters" host committee while she attended Purdue University. This was an annual program where Purdue brought back to campus alumni who had achieved great success in their chosen field. As parents of committee members, my wife and I were invited to the event and were able to mix and mingle with the former alumni. I recall meeting the President of McDonald's USA (who later became McDonald's CEO), the Business Manager for the "Red Hot Chili Peppers," (supposedly a big deal, but Fleetwood Mac or Steely Dan and I would have been impressed), and the then Chairman and CEO of UPS, by the name of Michael Eskew.


Over a beer with Eskew, I asked him the very simple question. What advise could a guy like him, the CEO of an organization that at the time had over 400,000 employees worldwide, give to a guy like me, a manager in charge of a small little region in the Midwest with 150 employees? He simply said, "Treat triumph and tragedy the same, they are both imposters." In his explanation he further explained that too many times people get focused on the end result. While keeping focus on the goals was important, simply executing and giving your best every day was more important. Markets change, and while they always won't be great, they always won't be bleak. But great managers must manage in both environments and unless you are managing to or beyond your potential daily, long term success will be tough. I thought his advice was pretty good and I placed in my personal "Leadership Lessons" for future filing.


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How to Avoid 7 Deadly Sins in Used Equipment

By Walter McDonald


Your Used Equipment Business Can Be Profitable
If you have been losing money or just breaking even when you sell your used equipment now is the time to audit your operations. Selling trade-ins or former rentals can be a big profit challenge.


If you have more than fifteen rental units that have either a poor rental utilization rate or total monthly cost (depreciation + maintenance + interest) that exceeds monthly revenue, then you should pay close attention to the "Seven Deadly Sins." You are in the Used Equipment business whether you want to be or not. And, used equipment can be a very profitable opportunity for your dealership.


For many years we have been working with dealers across North America on issues related to running a profitable used equipment business. The following guidelines are the principles and best practices of some of the most successful used equipment dealers we've met in the U.S. and Canada.


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Make Sure the Story of the Solution is Better Than the Story of the Problem

By Tim J. Murphy


In our business, the customer is on the other end of the counter. When getting employees aligned on customer service, its important to get them to think of themselves on the other side of the counter as well. It's easy to do by simply reminding them of their own personal situation where they didn't feel valued as a customer. I know every one of you has made the statement at one time in your life, "I will never do business with "XYZ "again. I have…and I won't! After all, we all have choices as to where we spend our money. So do our customers. So, the biggest mistake a company can make is not making the customer feel valued for making the choice to spend their dollars with them.


How many times have you ever had to take a problem as a consumer to "customer service?" In those experiences, how times did your problem get resolved to your satisfaction…without a hassle? Its amazing how many great companies there are who invest millions in product quality, logistics, market research and all other facets of a business, but invest very little in training their employees…or empowering their employees to resolve customer problems quickly and painlessly.


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The Magnificent Seven

By Walter J. McDonald


As you continue to layout your plans for this New Year, here seven Magnificent Management Actions you can take to leap ahead of competition.


1. Improve Parts Fill Rate

Off-Shelf Parts Fill Rate is the single most important performance metric in your machinery dealership. If you have a strong off-shelf parts fill rate, your labor productivity is higher, your customers are happier and your management team has greatly reduced heartburn. If you have low Off-Shelf Parts Fill Rate, all kinds of bad things happen: constant fire drills, expensive emergency parts orders, frustrated technicians, disappointed customers, plus, a huge negative impact on your Aftermarket Product Support reputation, greater strife between service-parts-sales in your dealership and a disappointing bottom line. The number one reason for losing customers is not meeting and not managing expectations for parts deliveries.


How do you check your current Fill Rate performance? If your information system does not track Fill Rate now, review the set of service workorders from last month just for your primary line units. These are the machines that should be receiving the highest level of Product Support and Parts Fill Rate.


To calculate Parts Fill Rate, total up the number of parts line items on all of these Repair Orders last month for your primary line units. Then, count the parts line items that were 100% filled immediately out of stock at this location. (Partial fill is no fill.)


Divide number of line items with 100% fill by total parts line items in this batch. This percent is your Off-Shelf Parts Fill Rate. Your target performance rate is Over 95% for Primary Line Units.*


Parts Fill Rate is the life blood of your sales and service machinery business. A competent Parts Manager, utilizing the right information technology, can consistently deliver over 95% Parts Fill Rate for your primary line units, while controlling obsolete and excess stock and maintaining acceptable inventory turns.


The real question is why do you have a low part fill rate, especially for your primary line?


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CASE STUDY: How Better Data Analytics Helped A Machinery Dealer Double Sales in Four Years

This is the Case Study Report on how Heavy Machines, Inc. doubled their sales with guidance on growth from Winsby, Inc.


Diversification has been a key strategy for Heavy Machines, Inc. (heavymachinesinc.com) since it was founded in 1971 as a specialty equipment dealer in the forest products industry. Over the years, they added and dropped product lines, opened and closed branch locations from Maine to Nevada, and expanded their customer base into mining, construction, waste/landfill, scrap/recycling, and inland ports. Today, Heavy Machines, Inc. operates nine branches in five states, in the Southeast and Northeast. And, the dealership represents Link-Belt Excavators, Hitachi, and Liebherr, as well as other specialized brands.


In 2015, even though their business was doing well, they decided to take a look at a new program Link-Belt was sponsoring through Winsby, Inc., to help gain insight into their business. "Because we had diversified, we were running in many different directions. We wanted to make sure we weren't losing control over our customers," says Steve Northcross, Senior Vice President of Sales and Marketing at Heavy Machines, Inc.


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Are You Looking to Grow Your Business?

Here's what works
By Debbie Frakes


Winsby has been growing dealerships for over ten years. They have identified a group of services that are bulletproof for growth. And they make it easy. Winsby can be your marketing department. All you need to do is review, suggest changes, and edit what they develop. Here are their essential services for growth.


Key Metrics Reports
The key metrics reports are based on Artificial Intelligence to determine customers at risk of being lost and what actions you need to take to grow your dealership. The reports make sure you are growing, and all your employees know why.


Build Your List
People change jobs. Companies go out of business. New companies are founded. You need to monitor your market area constantly in your target SIC codes. Winsby identifies the codes that are most prevalent in your previous transactions, suggests others for your review, and pulls companies in your market area. Then, they look up emails and call to confirm and add more emails for decision makers. Without this effort, 20% of your list becomes inaccurate each year.


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Are You Really Answering the Phone?

By Debbie Frakes, Guest Contributor

It's hard to believe that some Equipment Dealers are burning as much as 30% or more of customer calls by not answering the phone or letting them go to voice mail. If the dealership is busy and doesn't answer the phone, and is dumping calls into voice mail, less than 4% will leave voice mail message. If your potential customer has another vendor number to call, he will more likely call that next vendor. This is a big, big problem. In one dealer case, a 30% drop rate represented $2.4 million in lost annual parts sales for this dealer's parts department. This was soon recovered when an AI monitoring software system was launched.


Also, if customers did not have a VIN (Vehicle Identification Number), 70% of these customer calls were rejected by parts counter personnel! Instead of helping the customer with their order, the customer was sent away by the parts counter personnel. This rejection represented $1mm parts sales per month not sold. They were turning away more than half of their parts business. Unbelievable but common.


Equipment Dealers need to track if employees answer the phone. Calls come in during two peak periods. Dealers are often not staffed to answer calls during these peak times, dropping them into voicemail. Most dealers are lucky to answer 80% of their calls. They swear they answer 100%. But when checked, this is not true.*


At the same time the customer is on the phone, the parts people should be reinforcing "do you need service?" They should be presenting service, rentals and parts available at every opportunity. This is how and where you improve your Absorption Rate.


A highly useful and effective AI application can determine:

  1. Did you answer the phone?
  2. Did you convert the call to a sale?
  3. Did you schedule the service?
  4. Did you take the parts order?

Dealers need to monitor phones to determine if employees handled calls properly at all points of contact, especially if there is a performance problem. An embedded AI system electronically communicates how well you get that information into hands of someone who can handle it.


* Equipment Dealer Call Answering Statistics courtesy of Debbie Frakes, Managing Director at Winsby, Inc. For additional information on these and other powerful imbedded Artificial Intelligence dealer management tools, contact Debbie at (312) 870-5656, winsbyinc.com, dfrakes@winsbyinc.com

Artificial Intelligence: The Digital Imperative by Nick McGaughey

Artificial Intelligence (AI) is much, much more that robots. AI, sometimes referred to as Cognitive Computing, is a collection of capabilities that allow computing machines to sense, comprehend, perform, adapt, and learn. For equipment dealers, AI means computer systems that perform and enhance business activities by simulating or reproducing human intelligence with the purpose of increasing efficiency, effectiveness, and engagement. Advances in computing and data gathering have propelled AI from hype to reality.


This AI reality is already being experienced in practice. Businesses recognize its growing importance and are evaluating, experimenting with, and adopting AI. Surveys reveal that executives are expecting and realizing the following main benefits from AI investments: increased sales and profits, stronger customer experiences and responsiveness, and improved decision-making by employees.


Surveys also reveal the top obstacles to taking full advantage of AI are lack of a clear AI strategy and persistent commitment, the absence of people with appropriate skills, and issues with the AI software and its vendor. Going forward, dealers that do not aggressively use AI technologies will be replaced by those who do! But recognize that it takes significant time, effort, and money to digitally transform.

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Customer Satisfaction Surveys Help Equipment Dealers Prosper

By Debbie Frakes, Winsby, Inc., Guest Contributor


Surveys Are A Critical Driver of Customer Retention and Revenue Growth!
Customer satisfaction surveys can provide Dealers accurate insights into how everything is going operationally.


In an Equipment Dealership, there are opportunities for a variety of issues every day. It is impossible to track every problem that might occur, especially for a Dealer with multiple locations. By conducting customer satisfaction surveys every month, it is likely you will uncover any problems quickly. And, you may hear about all the things that are going well, too.


A recent study compares growth metrics for two groups of Equipment Dealers: those that are conducting customer satisfaction surveys each month and those that are not. The results are based on analyzing data over 10 years for over 500,000 Equipment Dealer customers at over 150 Equipment Dealerships, with over 15 million Dealer transactions.


Surveys Boost Your Bottom Line
The differences in the two groups show it is definitely advantageous to your bottom line to make sure you are receiving consistent feedback through customer satisfaction surveys. Here is how the two groups compare.


Business metrics are significantly better for Dealers conducting customer satisfaction surveys than for Dealers that do not:


  • Retention of customers is 20% higher,
  • Growth in the number of customers is 49% higher, and
  • Revenue growth is 123% higher for Dealers receiving regular feedback.

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How Winsby Inc. Grows Businesses

They know what works

Founded in 2003, Winsby has been growing businesses across the world for nearly two decades. They specialize in working with dealers and their manufacturers and use proven processes that are constantly monitored to ensure consistent growth and results. Winsby is unique because they will take the reins and become your complete marketing department.


From building and optimizing your website, gathering emails and identifying needs through calls, crafting and distributing emails that boost sales, analyzing invoices, and calling your customers to find out how recent transactions went, Winsby handles all of the critical marketing functions. All their clients need to do is review and suggest changes on what they develop or correct any internal issues they uncover, while Winsby does all the heavy lifting for marketing tasks.


Who Winsby Serves
Winsby handles the marketing for a wide range of businesses throughout the United States and on multiple continents. Clients include equipment distributors, various types of technology and industrial manufacturers, contractors, auto repair and home service providers, software companies, and the list goes on. The common thread that runs through them all is Winsby's focus on determining what the customers' habits and needs are so that everything is presented to maximize revenue increases.

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Do You Have a Competitive Advantage or a Painful Experience?

By Walter J. McDonald, President, The McDonald Group, Inc.


Industrial Equipment and Machinery customers demand BOTH high product quality AND excellence in aftersales service and parts. By the end of the last decade, most equipment manufacturers learned how to deliver quality products. Consequently, the major differentiator today is Aftermarket Support. The difference between competitors in any given market becomes the responsiveness of the manufacturer-dealer partnership to deliver PREMIER aftersales service and parts support.


Quality of Product Support Determines Competitive Advantage
Quality aftermarket product support is a powerful competitive weapon. For both manufacturers and dealers, product support level can raise the barrier against all competitors. For the past 45 years The McDonald Group, Inc. has been working with manufacturers and their dealers to improve marketing and operations effectiveness. Our ongoing field research clearly identifies quality product support as the primary determinant of competitive advantage and market success. We found clear evidence the more a dealer can successfully deliver excellence in aftermarket product support, the higher the barrier against all competitors. Benefits of this strength cascade through an appreciative, loyal dealer customer base.


World Class Aftersales Product Support Performance Targets
World Class Aftersales Product Support Performance Targets are the benchmarks set by highprofit – high-market share market place leaders. Top tier machinery dealers at these performance levels have focused management attention on delivering superior aftermarket product support. They have invested in the information systems and employee training and development essential to reach these levels.

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