Torodealer.com

Torodealer.com
Dave Francis, Sr. Manager e-commerce
2012 National Sales Meeting
Power Equipment is Big Business Online
Retail in 2012
www
%
12
Power Equipment Sold Online
10 Yr. CAGR: 24%
10
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
YTD
L&G equipment/supplies are roughly $2.2B in
retail sales (10%) according to Global Insights
Top Market Share Brands
All OPE
Unit Share
$ Share
2
1
3
3
4
2
If Toro were to get the same share in online sales that
we have overall, we’d have a $200,000,000 online
business
Launched on June 19th
Singular goal:
Capture as much
purchasing activity
as we can and
funnel it through
All Toro dealers –
either online or in
a dealer’s brick and
mortar
Dealer Feedback
“I just wanted to let you know STI Turf Care received its first ecommerce equipment order recently. The gentleman
purchased a TimeCutter on a Saturday. I immediately received
an email notification of the order that afternoon. On Monday I
confirmed I had the mower in stock and contacted the
customer. We set up a delivery for Thursday and hung up. He
immediately called me back and asked if we sold trimmers. I
told him we did sell them, and within a few minutes, I had sold
him on a $255 trimmer and $100 in accessories. Nice add-on
sale! All equipment was delivered as promised, and the
customer was extremely happy. I wish all orders were this
simple!”
Thanks again,
Stan Bain, STI Turf Care
Incremental business?
First 90 Days
1
2
3
4
5
6
7
8
9
10
Orders
Anaheim Mower
180
Maestranzi Brothers
73
General Chainsaw
71
Gauvin Supply
55
Broadway Total Power
50
Stark Street Power Equipment
41
Big Tool Box
38
Cypress Lawn & Turf
31
STI Turf Care
27
Exit 18 Equipment
21
Order
Value
$ 6,601.00
$ 3,502.00
$ 3,346.00
$ 2,589.00
$ 1,746.00
$ 2,941.00
$ 1,696.00
$ 3,899.00
$ 4,129.00
$ 4,363.00
Average for all dealers
$ 450.00
7
Current Participating Dealers
Customer Orders
13% of our
orders have
come from
here!
Quick Refresher
Requirements to Participate
Service
Dedicated
• Must be an ASD or MSD
• Must place a qualified booking order each year
Parts
• Must participate in PWP program
E-mail
• Must be an E-dealer
Full Line
• Must carry Toro’s full line (WPMs, ZTRs, Snow)
*In addition, must be compliant with our internet policy
What is on the site?
Everything,
plus all
residential parts
and accessories
Pricing
• Virtually all of these products
are already sold online. In order
to be competitive, most
products are priced at the
promotional price
• Some products, such as cast
deck mowers, are priced at
MSRP
• Customers will pay for shipping,
but we will offer free shipping at
times to keep the site
competitive
Product Delivery
•
•
•
•
Toro will be responsible for
shipping all products with the
exception of ZTRs, TimeMasters
and 2-stage
These will be delivered by a dealer
either from their inventory or ours,
dealer’s choice
In addition to the commission on Z
and TimeMaster orders, dealers
will receive a $50 set-up/delivery
fee
Dealers will be expected to deliver
orders that are a reasonable
distance from their store
Returns
Parts and Portable Power
• Toro manages these returns just as we did
on Shoptoro; the customer initiates the
return online and ships the product to
Toro. When the product is received we
issue a credit to the customer’s cc and
reverse the commissions
• Runs about 3%
Gas Powered
• Customer brings the product to the dealer.
• Dealer makes final determination if product is
returnable, i.e. used/abused.
• Dealer prints a return receipt for the
customer.
• Dealer notifies Toro of the return
• Toro issues a credit to customer’s cc, reverses
commission and puts the returned unit on
dealer’s Red Iron account.
• Dealers cost on used equipment is cost less
10%.
• Running at 0%
Order Management Tool
•
•
Dealers will use this tool
to manage orders and
communicate with Toro:
– Z, TM, 2SS order
acknowledgment
– Proof of delivery
– Manage product
returns
– View order history
and customer
information
– View commissions
You will continue to use
the commission report
on the portal
Fit with other Toro programs/promotions
• We will generally run all national residential
promotions concurrently on Torodealer.com when
they are in stores
• At this time we will not allow regional promotions
on the site or support any local promotion that a
dealer may be running
• All sales made on the site, whether delivered by a
dealer or by Toro, will count as a sale to the dealer
and be included in any volume based dealer
program.
Dealer commission structure
WPM, ZTR
and snow
throwers
Portable
power
• Standard dealer margin*
less 5% pts.
• 3% of promo retail price
(blowers, trimmers, e-snow)
Parts
• Same as Shoptoro (standard
dealer margin at list retail)
* Standard margin = promo retail - dealer cost, note: dealer cost will not include
volume rebates, truck-load discounts, etc. that may apply to a dealers cost for
their store orders.
How to opt in
• Log into the Toro dealer
portal:
http://partner.thetoroco.com
• In the quick links section on
the right side of the screen,
find the update my locator link.
• Once there, click yes on the
radio button about
participating in the
Torodealer.com program
• Indicating yes and meeting the
program qualifications will
enroll a dealer in the program
• Before being activated we will
verify that they meet the
program requirements
Change to the site:
• Forcing the visitor to
select a dealer when
entering the site…
Hate
it/frustrating
Don't mind it
Like it
It is necessary
0%
20%
40%
60%
• 70%+ visitors were
leaving the site
Metrics
Traffic Sources
Direct
Toro.com
Google
Other
Unique Visitors
2 months after launch
4,500
58% more traffic than 2011
4,000
3,500
3,000
2,500
2012
2,000
2011
1,500
1,000
500
0
19-Jun
26-Jun
3-Jul
10-Jul
17-Jul
24-Jul
31-Jul
7-Aug
14-Aug
21-Aug
28-Aug
Orders/Day
200
34% less orders/day than 2011
180
160
140
120
2011
100
2012
80
60
40
20
0
19-Jun
26-Jun
3-Jul
10-Jul
17-Jul
24-Jul
31-Jul
7-Aug
14-Aug
21-Aug
28-Aug
Conversion Rate
9.0%
Avg. 2.4% vs 6.1% in 2011
8.0%
7.0%
6.0%
5.0%
2011
4.0%
2012
3.0%
2.0%
1.0%
0.0%
19-Jun
26-Jun
3-Jul
10-Jul
17-Jul
24-Jul
31-Jul
7-Aug
14-Aug
21-Aug
28-Aug
Sales/Order
$160.00
Avg. $60.17 vs $43.78 in 2011
$140.00
$120.00
$100.00
2012
$80.00
2011
$60.00
$40.00
$20.00
$-
19-Jun
26-Jun
3-Jul
10-Jul
17-Jul
24-Jul
31-Jul
7-Aug
14-Aug
21-Aug
28-Aug
• How will we address these deficiencies?
– Parts pricing – keep the gap, but close it some (we are
20%+ higher than list)
– 80%+ of visitors to the site are looking for Toro parts. We
send them to Toro.com in our keyword buys because of a
better conversion and click-thru rate, but they still get
lost on Toro. We will create a specific parts landing page
to eliminate confusion
– Offer free freight promotions during key retail periods –
ups conversion by a factor of 10x
Marketing the Site
Goal is to achieve 3.5M in visitors
3.5M
87,500 Orders
Parts
Accessories
WPMs
Port. Power
74,500
4,500
4,300
3,500
Snow
ZTRs
2,000
900
2013 Marketing Tactics
Goal is to achieve 3.5M in visitors
SEM - Our effort will be very
focused/efficient on capturing the customer
looking for Toro:
• Search marketing (SEM) with Google
and possibly with Bing
• Presenting the site to the 1Ms of searches
for Toro rather than the 100Ms for
general lawn equipment
SEO – Compliment our SEM with a
site well designed for natural search
• This will complement our focused
SEM and create general awareness
of the site
• Links from Toro AND dealer sites
Linking – Provide all
participating dealers with a
customized link to the site
that will populate the header
with their dealer image/info.
Ratings and Reviews – Work
with a 3rd party to get ratings
and reviews on both Toro.com
and Torodealer.com. This will
boost our conversion rate and
generate traffic.
Toro.com – Buy now links on
every product page on
Toro.com. Currently 60% of
our traffic comes from Toro.
SEM and SEO for Lawn Mowers
SEM and SEO for Toro Parts
Enhancements for next year
Printing – Allow a visitor to
print a summary page of their
product with dealers
information tagged in the
header
Linking – Provide participating
dealers with a logo and customized
link for their site that would link to
TD.com and pre-populate the
header with the dealers information.
+
Ratings and Reviews – Work
with a 3rd party to get ratings
and reviews on both Toro.com
and Torodealer.com. This will
boost our conversion rate and
generate traffic.
Financing – Allow customers
to apply for and use their Toro
card on the site to make
purchases.
BOPIS – Lay the ground
work for customers to buy
online and pick their
purchases up in their selected
dealer
Dealer Participation
Current Participating Dealers
Fall off – Direct Territories
Don’t qualify for many reasons
All Direct
Qualified
Participating
3,674
•
•
•
•
•
1,036
809
•
•
2,192 No qualified booking order
2,053 Not PWP
1,503 Not full line
965 Not an e-dealer
799 Not servicing dealer
Dealers choice
Awareness
30%
Don’t qualify for single reason
78%
3,674
All Direct
Qualified
Participating
Add back:
• 18 who are not e-dealer
• 258 who are not PWP
• 259 w/ no booking order
• 104 not full line
1,675
1,306
•
•
Dealers choice
Awareness
78%
46%
Fall off – 2-step Territories
Don’t qualify for many reasons
1,069
All 2-Step
Qualified
Participating
413
156
•
•
•
•
•
499 Not full line
439 Not an e-dealer
378 Not servicing dealer
Dealers choice
Awareness
39%
Don’t qualify for single reason
38%
All 2-Step
1,069
658
Qualified
Participating
250
•
•
Dealers choice
Awareness
Add back:
• 55 who are not e-dealer
• 16 who are not service
• 174 not full line
38%
62%
Eligible Dealer NOT Participating
Dealers Missing One Qualifying Requirement
Future of Shoptoro
• We will retire the Shoptoro.com site at the end of
the fiscal year and redirect the traffic to
Torodealer.com
Today: 1,750 Dealers
Nov. 1: 950 Dealers
Internet Policy 1.1
All of Toro’s channel partners can sell the same family* of gas powered products online that they carry, or
make available, in their store environment. For dealers, these products are defined in their dealer
agreement. In addition the following restrictions apply:
1.
Landscape Contractor Equipment (LCE) and all Titan series products must be sold and delivered by
local authorized Toro retailers. This requirement will ensure that appropriate setup and user training
take place after every sale. Effective immediately, Toro dealers may not advertise the price of, nor
sell, Toro LCE or any Titan series products in and/or via any public electronic media including the
Internet. This includes, but is not limited to, online services such as e-Bay, dealer-owned web sites,
and Craigslist. This requirement applies to both new and demo equipment still covered by the
manufacturer's warranty (demo equipment is defined as machines with less than 150 hours of
service). All LCE and Titan series products may still be featured on a dealer's web site – minus any
pricing information.
2.
No Toro retailer is allowed to sell any new (unused) Toro product on a third party’s website.
3.
No parts wholesaler is allowed to sell to any online retailer
4.
Any exceptions to this policy need the GM of Toro’s RLC division’s explicit permission
* Family is defined as products of the same subseries of a category, i.e. cast deck mowers are a subseries (family) of Toro walk mower
category, TimeCutter Z are a subseries (family) of Toro ZTRs category.
Internet Policy 1.2
All of Toro’s channel partners can sell the same Toro branded products (gas powered, electric powered, parts and
accessories) online that they carry, or make available, in their store environment. For dealers, these products are
defined in their dealer agreement. In addition the following restrictions apply:
1.
Landscape Contractor Equipment (LCE) and all Titan series products must be sold and delivered by local
authorized Toro retailers. This requirement will ensure that appropriate setup and user training take place
after every sale. Toro dealers may not advertise the price of, nor sell, Toro LCE or any Titan series
products in and/or via any public electronic media including the Internet. This includes, but is not limited to,
online services such as e-Bay, dealer-owned web sites, and Craigslist. This requirement applies to both new
and demo equipment still covered by the manufacturer's warranty (demo equipment is defined as machines
with less than 150 hours of service). All LCE and Titan series products may still be featured on a dealer's web
site – minus any pricing information.
a)
LCE equipment must not be included in any shopping feed
b)
LCE equipment pricing must not be included in any website source code
2.
No Toro retailer is allowed to sell any new (unused) Toro product (gas powered, electric powered, part and
accessory) on any website other than their own.
3.
No parts wholesaler is allowed to sell to any online retailer
4.
The word “Toro” is an exclusive trademark of the Toro Company and may not be used in any URL that a
retailer uses.
5.
Any exceptions to this policy need the GM of Toro’s RLC division’s explicit permission
Ending Notes
• Review your dealers
– Get those on-board that already qualify
– Close the loop on those that almost qualify
– Especially those who are on Shoptoro.com
• Remind dealers
–
–
–
–
–
–
Check their e-mail daily
Load their logos into the system
Link to Torodealer.com
Monitor their commission reports
Use the customer information we provide
We are enforcing our internet policy
• Monitor your dealers internet activity for policy
violations
• Report violations outside of your territory to me
Dave Francis
952-887-8947
[email protected]