The McDonald Group, Inc. 847-340-5518  847-340-5518
PO Box 730
Arlington Heights, IL 60006
Walt@mcdonaldgroupinc.com

White Papers

White Papers are organized into four sections: For All Dealer Managers, Sales Managers, and Aftermarket Managers, Dealer Principals/Business Owners .


For All Managers

How to Avoid Death by 10,000 CutsHow to Protect Dealer Cash Flow (download)

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

(download full article)

Service Management and Parts Management Burnout – A Dirty Industry Secret: Service Management and Parts Management Burnout (download)

A dirty industry secretA sinister force in our industry today is cutting down many excellent employees in their prime.  The hidden problem is Service Management and Parts Management BURNOUT!  Many dealer executives tell me the expected time on the job for service or parts managers may be only 3½ to 4 years.  Way too short for these very talented people!

I have privately surveyed over 700 service and parts managers in my Service and Parts Management Workshops. About 672 (96%) said burnout was a very significant problem for each of them!  The result of my survey caused me to continue looking into this unsettling situation.  What follows is a summary of the responses from service management and parts management discussion workshops I conducted during my formal Dealer Management Seminars to identify the causes and possible remedies for burnout.

Responses from these managers follow, including conclusions and recommendations for Dealer Principals, Senior Executives as well as for Service Managers and Parts Managers.

(download full article)

How to Move Up to the Next Level of Profit PerformanceSuccessful Technician Recruiting: 
10 Field-Proven Techniques that Work (download)

How to Move Up to the Next Level of Profit Performance – Successful Technician Recruiting: 10 Field-Proven Techniques that Work Today, most dealers understand a top performing technician can be the greatest revenue producer in the business. In addition, each dollar of labor sales generates about an additional dollar in parts sales. A skillful service technician can provide more than a three-fold revenue return on wages and benefits.

Yet, why do so many dealer executives and operations managers struggle with the issue of technician recruitment? We know there is a shortage of qualified service technicians across all equipment industries: heavy-duty truck, Ag equipment, construction equipment and forklift. Dealer owners now recognize that each additional service employee, if kept busy, can generate over $110,000.00 in annual labor billing plus at least an additional $80-$100,000.00 in parts on those Repair Orders.

So, let’s look at some of the ways how successful technician recruiting it is getting done today.

(download full article)

How to Move Up to the Next Level of Dealer Performance – 21 Gorilla Marketing Ideas for Equipment Dealers (download)

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.

(download full article)

How to Move Up to the Next Level in Your Personal Performance – Hierarchy of Dealer Knowledge:  On Becoming a More Effective Dealer Manager (download)

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 or struggling with rework. They may be constantly reacting to emergencies, never getting ahead of the curve. Every day is a frustrating firefight.  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.

Unless the manager can step back, gain some perspective and get a look at the Big Picture, he/she will be forever bogged down, reacting and firefighting. If we move up the “Hierarchy of Dealer Knowledge” from the “Transaction Level” we can begin to identify causes of problems.  And, we can start to structure proper Corrective and Preventive Action.

(download full article)


For Sales Managers

How to Improve Odds of Recruiting Success – Accelerated Start-up: How to Get Your Brand New Sales Rep Productive in Less than 100 days (download)  

You have just spent time, effort and money recruiting and selecting what you hope will be a highly productive new member of your sales team. Your recruitment process has been developed over the years, including testing, screening, reference checking and multiple interviews. Now, this handsome, impressive, candidate is ready to start next Monday. You feel confident about your new hire. Yet, there is a very good chance he may flounder.  More than 3 in 10 new sales hires in this industry fail. Only about 40% meet their first year performance expectations. And, new sales rep turnover costs about 150% of total compensation. The good news is, you can improve your odds for recruiting success. Here’s how.

(download full article)

How to Improve Selling Skills How to Sell Engineered Systems (download)

Successful sales of complex, custom designed, high-value equipment demands an intelligent diagnostic methodology. Sales tools should also include testimonials, website enhancements and powerful capabilities presentations. Additionally, product support has proven to be a highly effective entry strategy that can yield high-level management access. Product support work also enables you to identify major influencers, decision makers, technical and financial evaluators involved in the large new equipment purchase process. By utilizing product support early in the sales cycle, your company can build in the prospective target account management team the perception of your interest and capability of supporting them after the sale.

(download full article)

How to Improve Selling Skills Photo Shoot on the African Serengeti (download)

Organizing and conduct a successful East African camera safari is not much different than organizing and managing a highly successful equipment or product support sales territory. You must demonstrate the skills essential to identifying the game, then, you must competently execute the skills necessary to capture the photo. Included in this paper is a personal selling skills inventory checklist on the skill sets essential for high performance machinery and aftermarket sales professionals.

(download full article)

How to Improve Selling Skills   Sales Rep Confidential: Are You a Dinosaur? (download)

Unless you are from another planet, you must know that many dealer principals are extremely unhappy with their current sales organizations. Does your boss have the perception that you are the weakest link between his dealership and profitable new business? Are you in danger of being seen as a dinosaur by your company owner? Are you in danger of being replaced by a more cost-effective sales process in your sales territory? Check yourself out…

(download full article)


For Aftermarket Managers

How to Effectively Deploy Product Support   Product Support: a Barrier to Competition (download)

Building competitive strength through more robust Product Support has proven to be most effective. This is a practical guide to both internal and external programs that work best to differentiate your business from competitors. Internally we first focus on performance improvements in critical customer support areas including the dimension of employee attitudes and competencies. Then, externally, we monitor customer attitudes and perceptions on how well we meet their expectations. These combined efforts build "world class" product support that serves as an effective barrier to competition.

(download full article)

How to Improve Selling Skills   16 Tools to Build Your Service Labor Business (download)

Equipment dealers want and need to know how to improve service labor sales and profitability. Until now, nothing seems to work very well. Here are 16 dynamite field-proven tools you can implement today.

(download full article)

How to Improve Selling Skills   Product Support as a Competitive Weapon (download)

Equipment industry end-user customers are now demanding both product quality AND competent aftermarket parts and service support. By the end of the last decade, many equipment manufacturers have learned how to deliver quality products. In several industries we now see great parity between competitive product technologies and equipment performance. Consequently, the major differentiator today between equipment vendors in any given market becomes the responsiveness of the manufacturer-dealer partnership in the delivery of premiere aftermarket product support (service and parts). This guide helps you do just that.

(download full article)


For Dealer Principals and Business Owners

How to Optimize Business Value      Four Dimensions of Dealer Development (download)

Four Profit Improvement Strategies

Dealer Principals aspiring to be a top 10% performer in their class must look beyond the historical scoreboards of the P&L and Balance Sheet to optimize their business.

In order to optimize dealership performance and achieve financial prosperity, highly successful Dealers are exploiting the Four Dimensions of Dealer Development: Markets, Customers, Operations and Management.

(download full article)

How to Optimize Business Value   Four Dealer Profit Improvement Strategies (download)

What are some aggressive high-performance equipment dealers now working on to bolster revenues, strengthen customer relationships and improve operating cash? Hint: Service labor can contribute 8 to 10 times the gross profit per dollar sale than new machinery. Yet senior management often focuses the vast majority of their time and attention on lower margin machinery sales operations. The four horsemen of dealer profit improvement for strategic thinkers include renewed focus on service, rejuvenated objective focused machinery sales, creative parts marketing plus customized skill and knowledge training for each individual dealer employee.

(download full article)

How to Optimize Business Value     Succession Planning: Twists and Turns (download)

A relatively robust economy may help the multiples of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for which some business owners sell their dealerships. And, a stronger economy will drive a perceived sense of urgency to sell. However economic cycles are just that. And, no matter when you get ready to transition your business on the spectrum, if you haven’t considered some of the things mentioned in this article your business will be undervalued. Detailed here are the mistakes to avoid and positive steps you should take to preserve and optimize the value of your business.

(download full article)

How to Avoid Problems with OEM Agreements – Are they Functional or Fractured? (download)

In this paper, we continue the discussion on how to improve OEM- dealer/distributor relations by examining ways to avoid problems with the OEM Sales and Service Agreement. Both the OEM and the dealer, as they conduct their business, need to be respectful and mindful of the intentions, mutual expectations and landscape defined by a business Agreement. The thoughts and recommendations presented in this article may help you and your OEM get to “yes “rather than battling out legalities in court.

(download full article)

Login