The Turnrow - Deep South Equipment Dealers Association

Transcription

2016 Volume
Officers
and Directors
20, Issue 4 · July / August 2016
The Turnrow
VOLUME
20, ISSUE 4
JULY / AUGUST 2016
The
President
Greg Hollier
Turnrow
Vice President
Leland Morrison
Treasurer
Jeff Adams
Immediate Past
President
Robert Maddox
Executive
Vice President
Vincent R. Zebeau, Jr.
Directors
Ryan Abell
Jeremy Gantt
Patrick Hensgens
Todd Huggins
Rob Richter
Thomas Soileau
Josh Vines
In This Issue:
Joint Conference Photos
Business Features
Overtime Regulation Information
Industry Updates
Risk Management Corner
Legal Update
P.O. Box 1191 | Baton Rouge, LA 70821 | (225) 383-5064 | FAX (225) 383-8581 | [email protected] | www.dseda.org
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Serving Association Members
Since 1959
The Turnrow
Volume 20, Issue 4 · July / August 2016
MANAGER’S
MESSAGE
The Turnrow
Volume 20, Issue 4
July / August 2016
Joint Summer Conference Sponsors...................4
EDA Board of Directors Elections......................4
Welcome New Member........................................4
Legal Update: It’s Elementary My Dear
Watson - Healthier People Cost Less and
Produce More...................................................6
2017 Joint Annual Meeting Save the Date..........8
Industry Updates..................................................10
Ag Braking Requirements for North
America: Review Continues
Ag Equipment Sales Continue to Struggle
Risk Management Corner....................................13
That Pain in Your Wallet Might Be
Caused by Insurance Fraud
Partners in Training
Feature: Right to Repair Legislation Puts
Consumers at Risk...........................................14
Feature: ESOPs - A Viable Succession
Planning Tool for Today’s Larger Dealers?...16
Joint Summer Conference Photos......................19
2016 LA and MS Scholarships Awarded............25
Business Update: One Key to Running a
Great Business..................................................27
Labor Update: Major Changes to the FLSA’s
Overtime Regulations to Impact Dealers.....28
Feature: 6 Challenges that Equipment
Dealers are Facing Online in 2016.................31
Feature: What Leadership Needs to Know
About Sales.......................................................34
Vincent R. Zebeau, Jr.
Executive Vice President
Information dissemination is probably something that most dealers feel
they are overloaded with from various sources, such as television news,
internet, radio, newspapers, publications, etc. There is probably some
great and useful information that is provided by these various news media
outlets, BUT your Deep South Association only focuses on the relevant
topics of interest that are industry specific and designed to help our
dealers improve their dealership’s profitability and awareness of current
issues affecting a dealer’s day to day business operations.
At our recent 2016 Joint Summer Conference held on July 17 – 20 at the
Hilton Sandestin Beach Golf Resort & Spa in Destin, Florida, dealers
in attendance had an opportunity to hear industry experts speak on
“Recent Department of Labor Changes to 401(k); Distracted Driving;
Fair Labor Standards Act Primer for Dealers; Used Equipment: Market
Value & Trends; Impact of Commodity Prices on Equipment Sales; and
a Panel Discussion on Managing Used & New Equipment.” All of these
topics are issues that occur in the everyday operation of a dealership.
The presentation regarding the new FLSA requirements and changes
that dealers/employers proved very timely assisting our dealers to
familiarize themselves with the new federal overtime regulations/rules
before its implementation by December 1, 2016. A synopsis is provided
in The Turnrow by the attorneys with Chaffe McCall, LLP who gave an
outstanding presentation during the General Session.
The Deep South Association and its Board of Directors encourage our
dealer members to attend all future Annual Meetings and Conferences
to benefit from the educational programs and enjoy an opportunity to
mingle with other dealers and industry friends. You will see photos of
various dealers and industry friends in this Turnrow publication enjoying
fun and fellowship at the Summer Conference. We can assure you that you
will understand it is indeed a valuable investment of your time away from
your dealership to gain industry specific information regarding current
issues affecting the daily operation of your business and the agriculture
industry.
Please make plans now to attend the 2017 Joint Annual Meeting scheduled
for February 12 – 15 at the Ritz-Carlton Hotel in New Orleans, LA that
the Deep South Association will serve as the host and will include the
3 of
Midwest-SouthEastern and Southern Associations. Come and be part
these meetings!
The Turnrow
Thank You 2016 Joint Summer Conference Sponsors
Welcome Reception
SENTRY INSURANCE
Entertainment (Welcome Reception)
BASIC SOFTWARE
Fishing PrizesFEDERATED INSURANCE
Golf PrizesSENTRY INSURANCE
Continental Breakfast
FEDERATED INSURANCE
General Session Speakers
FASTLINE PUBLICATIONS
JOHN DEERE
ASSOCIATION NEWS
The Deep South
Equipment Dealers
Association would
especially like to express
our sincere gratitude
and appreciation to all
the 2016 SPONSORS
of the 2016 Joint Deep
South & Southern
Association’sSummer
Conference for their
continued and gracious
Sponsorship whose
financial support allows
for such an enjoyable
Dealer meeting.
Farewell ReceptionTRACTOR HOUSE AUCTION TIME
Entertainment (Dinner Dance) FAUBOURG PRIVATE WEALTH
General SponsorsCDK GLOBAL HEAVY EQUIPMENT
DIVERSIFIED FINANCIAL
DLL FINANCIAL
EQUIPMENT INSURANCE INTERNATIONAL
HBS SYSTEMS
PARTNERSHIP
Mystery MastersDEEP SOUTH &
SOUTHERN ASSN.
Welcome New Member
Board of Directors Elections
Later this month, the Equipment Dealers Association will
hold elections for three board member positions! New
regional board members will be chosen for Canada, Great
Lakes and Gulf Coast. On August 18, EDA members in
these three regions will receive an email inviting them to
cast their vote. Elections will close at the end of August and
the new board will be announced in early September. The
new board will assume its duties on October 1, 2016.
EDA would like to thank the three outgoing board members,
Jim Backus (Canada), Mark Laethem (Great Lakes) and
Randy Anderson (Gulf Coast) for their dedicated service to
the industry and EDA.
4
Join the Deep South Equipment
Dealers Association in welcoming
our newest member.
Chaffe McCall, LLP
Sarah Voorhies Myers, Partner
Amy L. McIntire, Associate
1100 Poydras St., Suite 2300
New Orleans, LA 70163
office: 504-585-7009 | fax: 504-544-6092
[email protected]
[email protected]
Service: Employment Law
The Turnrow
ADAPT.
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At Basic Software Systems, we make our software adaptable so you can grow
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5
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The Turnrow
It’s Elementary My Dear Watson:
HEALTHIER PEOPLE COST LESS AND
PRODUCE MORE
by Doug Layman, President, Gilsbar Health & Life
How often do we spend HOURS AND HOURS
trying to think of the next best thing, only to end
up back where we started? It’s a frustrating cycle
that causes people to almost force creativity and
innovation. If it is new and different and has a lot of
components to it, then it must be innovative. Right?
Unfortunately, “innovative” does not necessarily
mean effective. Health management programs are
very tricky because their success is heavily weighted
on changing human behavior. What sounds good to
the leaders does not always motivate or engage the
doers. Through all of the innovation and creativity
that we see every day, we have somehow forgotten
a word that may be the number one driver in
impacting human behavior. Simplification. Wait,
the number one driver impacting human behavior
is simplification? That can’t be true, because when
it comes to engagement in wellness programs, we’re
told people are driven by three main factors: their
hearts (emotions), minds (analytics) or pocket
books (finances).
While this may be true, you should view
simplification as the key into the room where
those drivers are sitting and waiting to be put into
action. I am convinced that employee engagement
(don’t confuse participation with engagement) is
substantially reduced on a day to day basis by the
most well intentioned programs. We have leaders
all over the country who just don’t understand why
employees don’t truly engage in their company
sponsored health management programs. Many
employees just marginally “participate”, which costs
companies a boatload of money and rarely produces
true sustainable behavior change. Here’s a thought.
Employees already know they are overweight, eat
poorly, don’t work out enough, smoke, drink too
much, spend too much money, don’t eat enough
vegetables, don’t visit the doctor regularly, forget to
take their meds, and so on. If changing behavior was
easy then these people would have already turned
their awareness into action and changed their lives
a long time ago. We have to move beyond creating
awareness and start heavily incenting change in a
simple way.
We, as employers, have a very unique opportunity
to create a true win-win-win scenario for our
business, our employees, and their families. Let’s
stop wondering why employees don’t take care of
themselves or why they don’t engage and let’s start
focusing on clear, simple, and measurable objectives.
Let’s create a long term plan that makes it easy for
someone to change their life, reward them for that
change, and increase the value of your business.
ot having a strategy
the survey, the 25%
their population had
ttom performers had
e expenses in 2014
person compared to
Company is by being
plan with employees
crease engagement
miss that opportunity.
6
sk of the population. I have always supported wellness programs that
Let’s walk through four main steps
that will create healthier people
who produce more.
1) Create a long term plan
and commitment to the
employee population. Too
many organizations “day-trade”
health initiatives. Employees are
smart; they are keenly aware when
commitment comes from the
“top”… and when it doesn’t. It’s
critical that the entire organization
understands the commitment
the Company is making to the
employees and their families. It
should be viewed as a decision that
The Turnrow
the organization has made to increase the overall wellbeing of every employee in the company - not be a plan to
reduce healthcare costs, but a plan to make the Company
better by focusing on the organization’s greatest asset, its
people. This has to be a long-term strategy with an initial
period of at least three years and must be accompanied
by an approved budget. This strategy will include a
description of what success looks like at key milestones
over the three years. The definition of success should be
consistent throughout all interactions with employees and
their families for the entire program.
The results of having a defined plan are staggering.
According to 19th Annual Towers Watson/National
Business Group on Health Employer Survey on
Purchasing Value in Health Care only 18% of employers
report they have a defined health strategy, 57% report they
are developing a strategy and the remainder don’t have
anything in place. Yet when you look at the cost and health
trend of this last group, not having a strategy in place is
mind boggling. According to the survey, the 25% top
performers in managing the health of their population had
trend of 1.6% from 2010 to 2013. The bottom performers
had a 9.2% cost trend. The total health care expenses in
2014 for the top performers was $13,634 per person
compared to $15,539 for the low performers.
Lastly, you must show how committed the Company is by
being transparent. Sharing the entire long term plan with
employees including the why, when and how will increase
engagement and build more trust in leadership. Don’t
miss that opportunity.
2) Focus on the current and future risk of the
population. I have always supported wellness programs
that make a population feel good about their employer
and have fun at the same time. When people enjoy
something they tend to be more engaged, so I’m relatively
bought in to that idea. However, we can’t just have a “feel
good” program, which tends to be where most wellness
programs end up. The program has a cool name and
there is friendly competition with walking programs and
weight loss competitions with prizes along the way. That
all sounds great, but it lives too much on the surface. It’s
time we dive deep and truly change behavior, fight disease,
enable our employees to become more productive and
increase their quality of life. The first step in making this a
reality is gathering data on each employee.
The need for good data on every employee is so important
that it is causing many organizations to change their
approach completely. Heavily incentivizing biometric
screening – even making it part of the benefit enrollment
process – and doing analysis on historical claims
information is becoming the norm. It’s impossible to know
how to help an employee if you don’t know where to start.
Once you have good data and perform the appropriate
analytics, then you can build a health improvement plan
per employee and for the company globally. This plan
will be focused on the current and future health risks of
each individual employee, creating a much higher level
of engagement. It’s actually easy to understand why this
would work. When someone is discussing how you should
manage your finances in a vague and global way, you’re
barely listening. When someone sits in front of you with
your data and specific financial information, you won’t miss
a word they say. Building health improvement strategies
customized to each individual elevates engagement and
maximizes results.
3) Engaged or Enraged, it’s a fine line. It would be
impossible for me to exaggerate the importance of building
a comprehensive employee engagement strategy around
wellness and health improvement. As mentioned at the
beginning, simplicity is king. If it seems complicated, it is.
If it seems like the program has too many moving pieces,
then it does. If it seems like the design may be difficult
for spousal buy in, then it will be. Don’t let your creativity
get the best of you. This is an opportunity to build trust
and too many times the opposite occurs – hence the word
enraged.
Do not build your engagement strategy around the
“squeaky wheel”. The employees who never engage in
anything, the naysayers, are a waste of time. It’s a common
and costly mistake to focus on these people in an effort
to limit the noise. Spend your time building engagement
strategies around the 60% of your population who can
be influenced in a positive way. (20% already are actively
engaged, 20% are actively disengaged, leaving 60% that
can make or break a program.) Building your strategy is
the key. Companies who use a programmatic approach to
build employee engagement report a 64% higher annual
increase in employee engagement and 26% greater year
over year increase in annual company revenue.4 Every
dollar invested in employee engagement is worth it.
4) Validation and Measurement. All of this sounds
fantastic, but if it can’t be measured, how can you validate
your success and address areas for improvement? The
amount of data that can be analyzed is never ending and
quite frankly, it can be very complex. An important part of
validation and measurement is yet again....SIMPLICITY.
Simplicity keeps rearing its head. What and how
everything is going to be measured should be agreed on
before your company’s wellness journey begins and should
7
4) Validation and Measurement. All of this sounds fantastic, but if it can’t be measured, how can you validate
your success and address areas for improvement? The amount of data that can be analyzed is never ending and
Volumeis20,
4 · July / August 2016
Thequite
Turnrow
frankly, it can be very complex. An important part of validation and measurement
yetIssue
again....SIMPLICITY.
Simplicity keeps rearing its head. What and how everything is going to be measured should be agreed on before
your company’s
wellness journey
begins
and
shouldyourself.
remainBuild
consistent
throughout
theeasy
journey.
Don’t
remain
consistent throughout
the journey.
Don’t
outthink
a dashboard
that is an
summary
for outthink
a busy
yourself.
Build
a
dashboard
that
is
an
easy
summary
for
a
busy
executive
to
understand.
Oh,
and
remember,
executive to understand. Oh, and remember, don’t ever day-trade results. It takes time, but you will begin to see positive
don’t ever
day-trade
takesemployee
time, butpopulation.
you will begin
see positive
changes
bothideas
clinical
data
and your
changes
in both
clinicalresults.
data andIt your
Aftertolooking
at various
modelsinand
about
measuring
employee
population.
After
looking
at
various
models
and
ideas
about
measuring
the
organizational
impact
the organizational impact of wellness and health management programs, here is what may be the most impactful withoutof
wellness
and health
management programs, here is what may be the most impactful without being unnecessarily
being
unnecessarily
complex.
complex.
CLINICAL
FINANCIAL
Forecasted risk score
Severity adjusted year over
year cost trend
Adherence to evidence based
measures
Individual and aggregated
health risk results
Severity adjusted medical and
pharmacy costs
Cohort analysis for
diabetics
BUSINESS
IMPACT
Absence rates per employee/
rolling 12 month average
Workers Comp claims (days
missed)
Employee engagement
measures
There are a million ways to approach a wellness program and there are a million ways to try and figure out if it is actually
There are
a million
ways to correlation
approach abetween
wellness
programthat
anddeliver
there strong
are a financial
million ways
to and
try and
out if
working.
There
is a compelling
companies
returns
thosefigure
that have
it
is
actually
working.
There
is
a
compelling
correlation
between
companies
that
deliver
strong
financial
returns
documented, best practice wellness programs.5 The problem is trying to define
“working”. Sometimes common sense can
5
Thehighest
problem
trying to
and those
that money
have documented,
best
practice
wellness
programs.
prevail.
Investing
in your greatest
asset
to make
sure it performs
at the
levelispossible
justdefine
makes“working”.
sense. It
Sometimes
common
sense
can
prevail.
Investing
money
in
your
greatest
asset
to
make
sure
it
performs
at the
always makes sense with computers, machines, and equipment. So why can’t it make sense with people?
highest level possible just makes sense. It always makes sense with computers, machines, and equipment. So why
can’t it make sense with people?
Save the Date
Healthier people cost less and produce more.
2017 Joint
Annual Meeting
Citations
1
The New Health Care Imperative: Driving Performance, Connecting to Value. Towers Watson/National Business Group on Health. 2014. Page 6
2
3
4
Employee Engagement: Paving the Way to Happy Customers. Omer Minkara and Michael M. Moon. The Aberdeen Group. September 2015.
February 12 - 15
5
Is There a Link Between Stock Market Price Growth and Having a Great Employee Wellness Program? Maybe O’Donnell, Michael P. MBA, MPH, PhD.
Journal of Occupational & Environmental Medicine: January 2016 - Volume 58 - Issue 1 - p e18–e20
The Ritz-Carlton
New Orleans,
Louisiana
Please Mark Your Calendar And Make Plans to Join Us All In New Orleans!
8
3
The Turnrow
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The Turnrow
Industry Update
Ag Braking Requirements for
North America: Review Continues
•
Changes in ag vehicle braking requirements for North
America are being considered.
Once agreement has been achieved, the discussions will move
to the formal ASABE standardization process.
The standard containing braking requirements for towed and
towing agricultural field equipment is in need of updating to
keep pace with current machine design and practices.
A small task force of braking system experts from several
North American-based equipment manufacturers along with
developers and suppliers of vehicle braking systems has been
comparing the current requirements in ASAE S365.9 to the
demands current equipment and practices are placing on
braking systems as well as requirements from other regions
of the world.
The review of the dated North American braking standard
will take the next step towards a thorough revision when
manufacturers meet in mid-June. The industry-driven review
has progressed to a point where a broader coalition, including
manufacturers of brake components, self-propelled, towed
and towing equipment, will meet to review ASAE S365.9 as
it applies to agricultural equipment currently being marketed.
The group recognizes that increases in equipment speed,
weight and size along with greater congestion of U.S. roadways
are placing more demands on the performance and design of
agricultural equipment braking systems.
•
Source: AEM
Ag Equipment Sales Continue to
Struggle
North American large ag equipment sales continued to be
weak in April, according to the latest numbers released by
the Assn. of Equipment Manufacturers. Row-crop tractor
sales were down 18.8% year-over-year, the smallest sales
decline for the category in 10 months. “April 2016 marked
the 27th month of large ag year-over-year declines with
magnitude of decrease remaining significant (down 21%
in total),” said Mircea (Mig) Dobre, analyst with Baird
Equity Research, in a note to investors.
•
•
Still a Long Way to Go
While much work has already been completed, there is
still a long way to go and many more voices to take into
consideration. Invitations have been extended to a broad
base of interested parties in both the U.S. and Canada. The
upcoming meeting will bring new attendees up to- date on
the current status, needs and timelines to enhance existing
standards and, where possible, establish consistency with
other regional standards and regulations, thereby improving
manufacturing efficiencies.
Topics to discuss include means to resolve the concerns over
the current ASAE S365.9 standard which:
•
•
•
•
10
Has no provision to allow towing of a lightweight towed
ag vehicle without brakes at speeds exceeding 32kph (20
mph)
Has no distinction between commodity trailers with
variable trans-port loads and implements with fixed
transport loads
Does not address how the brake system interfaces
between towing vehicle and the towed vehicle
Has no provisions to warn an operator that the brake
system has failed
Does not clearly address requirements for combination
braking systems (hydrostatic & friction brakes)
Increases complexity for manufacturers and users due to
the misalignment with other standards around the world.
•
•
•
U.S. and Canadian large tractor and combine sales
dropped 21% year-over-year in April, up from the
28% decrease in March. U.S. sales were down 21%,
while Canadian sales declined 22%.
The decline in combine sales increased in April,
posting a 30% year-over-year drop vs. down 25.5% the
previous month. U.S. combine inventories were 37.8%
lower year-over-year in March, compared to down
28.6% the month before. April is typically a slowerthan-average month for combine sales, accounting for
7.2% of annual sales over the last 5 years.
Row-crop tractor sales were down 18.8%, an
improvement from the 24.7% decrease in March.
U.S. row-crop inventories decreased 4.5% year-overyear in March vs. a 2.2% decrease the month prior.
Typically, April is an above average month for rowcrop tractor sales, accounting for 9.9% of annual sales
over the last 5 years.
4WD tractor sales were down 21.6% year-over-year
in April, an improvement from the 48.1% decline the
month before. U.S. dealer inventories of 4WD tractors
decreased 16.6% year-over-year in March. April is
typically an above average month for 4WD tractor
sales, accounting for 10.2% of annual sales over the
last 5 years.
Mid-range tractor sales dropped in April, down 13.8%
year-over-year after a 7% increase the previous month.
Compact tractor sales were up 6.6% year-over-year
in April, down from the 28.4% increase the month
before.
Source: AEI
The Turnrow
WHAT IS
EQUIPMENT INSURANCE INTERNATIONAL?
Incorporated in January of 1984, EII is an
insurance agency specializing in physical
damage insurance for financed, leased or
rented equipment.
WHO IS
EQUIPMENT INSURANCE INTERNATIONAL?
EII is a group of individuals dedicated to
providing your dealership and your retail
customers courteous and prompt service.
EII administers the entire program
from marketing, underwriting and policy
generation to the adjusting and payment
of claims.
Our programs are underwritten by
companies rated A+ (Superior) by AM Best.
120 Westlake Road, Ste. 7 · Fayetteville, NC 28314
11
(800) 476-2379 · www.e-i-i.com
The Turnrow
Advice Matters.
Family Matters.
. Retirement plan consultation and administrative support
. Onsite employee retirement education
. Generational wealth transfer
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. Investment advisory services
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. Direct asset management
. Continuously hedged portfolios
. Risk-conscious investing
. Wealth planning
. Life/business transition consultation
Together we’ll help you develop, streamline,
and work towards your financial goals.
*LPL Financial Representatives offer access to Trust
Services through The Private Trust Company N.A., an
affiliate of LPL Financial.
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(504) 321-0923
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Metairie and Old Gretna
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Level Four Advisory
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are separate entities from LPL Financial.
The Turnrow
Risk Management Corner
That Pain in Your Wallet Might
Be Caused by Insurance Fraud
Like the scene out of a movie, an “inside job” unfolds: A
jewelry store owner makes the conscious decision to defraud
his insurance company. Initially, the owner’s actions look
legitimate: He submits a claim for a stolen ring, and supplies
an invoice for the ring to his adjuster. His fatal error was
substituting the ring’s real invoice with one that was more
than $10,000 over the ring’s actual value.
What the owner failed to take into consideration was his
insurance company’s determination to fight fraud. In claims
for theft, the insurance company verifies the reported value
of the stolen property. What they discovered in this case
resulted in felony insurance fraud charges against the store
owner.
Victimless Crime?
Many people see insurance fraud as a victimless crime. After
all, who’s really getting hurt—some big bucks insurance
company that won’t even notice a few thousand dollars
missing? Outwardly, it may seem impersonal. But, when
the multiple layers of the effects of fraud are peeled away,
the real victim is revealed: you. Costs related to insurance
fraud are passed on to consumers through higher premiums.
Insurance companies take fraud very seriously. Employees
are trained to prevent, detect, and eliminate fraud to protect
policyholders, the public, and the company and its employees.
Proven anti-fraud tactics lay the groundwork for a firm
stance on eliminating fraud and prosecution of perpetrators.
Special Investigation Unit
Federated’s goal is to aggressively pursue individuals who
have submitted fraudulent claims. Our Special Investigation
Unit (SIU) reviews and investigates possible fraudulent
claims across the country, involving federal, state, and local
law enforcement and investigative agencies when necessary
or required. It’s unfortunate fraud is a problem big enough
to warrant a department devoted strictly to it. But, with
education and action, the message that insurance fraud is a
crime and will not be tolerated may eventually put the SIU
out of business.
Help Wanted
Fraud can be committed at any type of business and comes in
all shapes and sizes: arson, suspicious medical bills, a staged
car accident or slip and fall incident, padded invoices…the
list, unfortunately, goes on. The tactics are as varied as the
perpetrators.
There’s no one better to stop fraud in its tracks than
policyholders themselves. To report suspected insurance
fraud of any kind, immediately contact your state’s fraud
bureau or the insurance company. Depending on the type of
fraud, you may also contact the following:
•
•
•
•
Partners in Training
Employers appreciate the benefit of offering practical,
relevant employee training that helps their workers better
identify and manage on-the-job the risks.
Federated Insurance has partnered with J. J. Keller®, a leading
provider of safety and compliance solutions, to provide
clients complimentary access to easy-to-use, timely, and
engaging employee training tools that fit their business’s
needs.
Educational content is available through instructor-led
presentations via streaming video (video on demand), or
interactive, self-paced, online courses for individual training.
Sessions incorporate the latest adult learning techniques,
and deliver a consistent and standardized message at each
location.
National Insurance Crime Bureau – 1-800-835-6422
(for suspected property/casualty, auto, homeowners,
liability, and workers compensation fraud)
Medicare/Medicaid – 1-800-447-8477
Federal Crop Insurance – 1-800-424-9121
Medical providers – call your state’s medical board or
chiropractic board
Training topics available from J.J. Keller include:
•
workplace safety—HazCom, forklift safety, and fire
prevention
• construction—fall protection, confined spaces, and
excavations
• transportation/DOT—hours of service, alcohol and
drug testing, and vehicle inspections
• human resources—FMLA, ADA, and substance abuse
• HazMat—compliance, security awareness, and
placarding
Risk management is a continuous process, which is why
Federated strives to provide useful products and services that
can help businesses keep pace with their changing needs.
For more information or to access more risk management resources, log on to
Federated’s Shield Network® or contact your local Federated representative.
13
The Turnrow
Feature
Right to Repair Legislation Puts
Consumers at Risk
Fact vs. Fiction: Understanding What Right
to Repair Means for Consumers and the Industry
Recently, small advocacy groups in several states, including
Nebraska, Minnesota, New York and Massachusetts have
been promoting what is commonly known as “Right to
Repair” legislation. These groups have (unsuccessfully)
argued that state Right to Repair legislation will lead
to increased competition and decreased prices for
consumers. What these proponents didn’t tell you is that
this type of legislation does little to protect the average
equipment owner and instead jeopardizes existing safety
and environmental protections in several ways.
First, farmers and other owners of equipment already have
access to the information they need to make basic repairs
and to perform general maintenance on their modern
equipment. The very same service manuals which are
purchased by authorized dealers from Original Equipment
Manufacturers can also be purchased by equipment
owners and third parties. Claims by Right to Repair
proponents to the contrary are false. In addition, many
authorized dealerships offer free educational programs
and other reduced cost incentives to help equipment
owners minimize downtime from these types of issues.
The service information that proponents of Right to Repair
legislation actually want has nothing to do with ordinary
repairs or regular maintenance; these proponents want to
allow unqualified and untrained individuals to “repair”
and/or modify sophisticated equipment mechanisms
used in agriculture, construction and other industries.
If performed improperly, these types
of repairs and/or modifications could
result in death or serious injury to the
equipment operator or others.
Second, Right to Repair advocates
want the right to circumvent safety and
environmental preservation mechanisms
which are required by law in order to
“enhance” equipment performance. These
types of modifications are not only illegal,
but they can be dangerous and usually
void the manufacturer’s warranty for the
equipment in question.
14
Third, Right to Repair advocates want to “increase
competition” by putting dealers, who invest heavily in
technician training, safety infrastructure and appropriate
liability insurance to protect consumers, at a price
disadvantage against those who choose to skip such
measures. The majority of equipment owners and/or
independent repair shops lack the resources to invest
in the safety and technology training that is required of
authorized dealerships. In essence, advocates of Right to
Repair legislation want equipment owners and/or third
party repair facilities to perform sophisticated equipment
repairs without investing in the educational and safety
mechanisms that ensure that it is done safely and correctly.
Dealers not only pay to ensure their technicians are trained
to service cutting edge technology, but they also offer high
wages in order to retain this talent in competitive rural
job markets. This type of legislation would also create a
situation where third parties injured by an improper
repair performed by an unqualified technician are unlikely
to recover for the damages they sustained due to the
negligence of an equipment owner or third party.
Authorized dealerships strive to bring their customers
value in all they do. To do so, they spend significant capital
each and every year to ensure their technicians have the
latest safety and technology training. They believe that
their investment in their employees leads to more efficient
and reliable repair processes which, in turn, benefits their
customers’ own bottom lines as well as
helping to ensure their safety.
Given these significant issues, Right to
Repair legislation has been and should
continue to be opposed across the United
States. It is wrong for our customers and
our industry.
Natalie J. Higgins, VP of Government
Relations, Equipment Dealers Association
Brad Griffin, President,
Montana Retail Association
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15
The Turnrow
Feature
ESOPs
A Viable Succession Planning Tool for Today’s
Larger Dealers?
by Lance Formwalt, Seigreid Bingham, P.C.
We are all familiar with the 20+ year consolidation trend
among equipment dealers. This trend has provided an
effective exit strategy for many dealers. But what about the
dealers that remain?
Many dealers operating today have experienced rapid growth
in the last decade. Much of this growth has been fueled
by mergers. Mergers facilitate the creation of large dealer
organizations because they generally require no additional
equity and can be completed on a tax-free basis. Although the
purpose of these mergers is to help the merged dealers become
more profitable and efficient, these larger dealer organizations
also frequently create succession planning challenges due to
(a) large ownership groups that make managing the exits of
individual families over time difficult and (b) a shrinking pool
of potential buyers that can purchase the business.
Succession planning involves two key elements: management
succession planning and ownership succession planning. The
good news for larger dealer organizations is that the size of
these organizations has led to a trend toward developing and
hiring management teams that are not members of the core
ownership groups. This can make management succession
planning easier to accomplish in the future, especially since it
is not tied to ownership succession planning.
Ownership succession planning is another story. As your
dealership gets bigger, the options for transitioning the
business become smaller and harder to accomplish. Let’s take
a quick look at your basic options:
•
Sale to Another Dealer. This is the most logical option for
most dealers. However, a sale to another dealer becomes
very difficult for large dealers because of the way that
manufacturers calculate tangible net equity percentages
or ratios that are usually mandated as part of the
approval process. The tangible net equity requirements,
when combined with growing inventories that are often
fully financed (and therefore reduce tangible net equity
percentages), significantly limit the ability of many buyers
to pay blue sky for a dealership. What this means is that
the bigger your dealership gets, the harder it can become
to extract the true value of the business from a buyer.
•
Sale to Private Equity/Outside Investor. Outside investors
with capital are another option because these groups have
the financial resources to meet the tangible net equity
requirements of manufacturers. Unfortunately, outside
16
investors are often hesitant to accept the manufacturer
limitations on transfer without approval and usually will
not accept requirements to give manufacturers personal
guarantees. These issues can create uncertainty as to
whether an outside investor will be approved and limit the
pool of available outside investors.
•
Partial Ownership Purchases. Ownership succession
planning can be accomplished by having the dealership
or other owners purchase the stock of a retiring/selling
owner. This can be an effective strategy when the owners
have exit strategy timing spaced out over several years or
even generations, but it needs to be managed carefully
to avoid creating too much of a financial burden on
the dealership. In addition, funding purchases of even
minority owners of today’s large dealerships can be too
large for dealerships to pull off without seeking additional
investors.
What about ESOPs?
One option for today’s large dealer is an Employee Stock
Ownership Plan (ESOP). An ESOP is a form of retirement
plan recognized by the IRS that can also serve as a powerful
succession planning tool for dealers. An ESOP works as a
succession planning tool for an owner by buying the owner’s
stock in the dealership with proceeds from a bank loan,
owner-financing or a combination of both. The ESOP can
acquire all of the dealership’s stock, purchase the stock of only
certain owners or buy stock over time. This can provide a lot
of flexibility depending on your needs.
ESOP Tax Advantages
The sale of your dealership to an ESOP can create tremendous
tax advantages. When you sell to an ESOP, you are selling your
stock. A stock sale will be subject to capital gains tax, the lowest
income tax rate under our tax system. When dealerships are
sold to other dealers or outside investors, they are normally
structured as asset sales. Asset sales generally result in higher
taxes on the seller and these taxes can be significantly higher
if your dealership is a “C” corporation because a sale results in
two levels of tax – a corporate income tax on the sale proceeds
and a dividend tax when the sale proceeds are distributed to
the owners.
In addition to the tax rate benefit, sellers to an ESOP can also
defer tax for many years in certain situations. Similar to a taxfree like-kind exchange involving real estate, the sale of 30%
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or more of the shares of a “C” corporation (dealers that are
“S” corporations can usually convert to a “C” before a sale) to
an ESOP allows sellers to postpone the payment of tax on the
sale proceeds if they use the proceeds to purchase “Qualifying
Replacement Property” within 12 months of the sale (e.g.,
invest in publicly-traded company stock). Capital gains
tax can even be eliminated permanently if the replacement
property is held long-term and eventually goes into your
estate.
How can an ESOP solve issues for Large Dealer Organizations?
An ESOP is a way to create your own buyer for a dealer
organization that may otherwise have limited options. For
dealerships that aren’t currently looking at an exit, this should
help give you confidence that a future exit strategy can be
found even while your organization remains in growth mode.
In addition, a partial ESOP sale can also be a tool for helping
to fund the purchase of stock from retiring owners now and
in the future without requiring new investors.
Tax benefits also apply to the dealership after the sale. If the
dealership is or becomes an “S” corporation after the sale, the
income from the business will be tax-free because an ESOP
is a tax exempt entity. This tax benefit helps the ESOP make
the loan payments needed to fund the purchase and can also
result in accelerated equity growth that is important from the
standpoint of manufacturer expectations and for purposes of
funding additional acquisitions.
Conclusion
What Qualifications do I need to use an ESOP for Owner
Succession Planning?
The good news is that most dealers will be in a position to
consider an ESOP. While there are many requirements
involved in establishing and maintaining an ESOP, any dealer
structured as a corporation with an active and responsible
management team that will remain in place after the sale can
consider an ESOP. The use of an ESOP in connection with
an LLC is an emerging area that may also work in certain
situations.
The challenge of succession planning for large dealer
organizations is something that dealers and manufacturers
need to be thinking about now as the consolidation of dealers
continues and the ownership base grows older. As part of this
process, an ESOP should be evaluated as a tool for helping to
foster transitions among these owner groups. Over the course
of our next few articles, we will take a deeper look at ESOPs
from the perspectives of the sellers, employees/management
and manufacturers.
Lance Formwalt is the leader of the Equipment Dealer Group at Seigfreid
Bingham, P.C. The firm also serves as legal counsel to equipment dealer
associations and many individual equipment dealers. Lance may be
contacted at [email protected] or 816-265-4106. Also see www.sb-kc.com.
This article is intended to provide general recommendations and is not
intended to be legal advice. You should always consult your attorney for
advice unique to you and your business.
17
The Turnrow
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18
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2016 Joint Summer Conference
July 17-20, Hilton Sandestin
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The Turnrow
The 2016 Louisiana and Mississippi Scholarships Have Been Awarded
SINCERE CONGRATULATIONS are extended to
the following Recipients of the 2016 Louisiana and
Mississippi Deep South Equipment Dealers Association
Scholarships.
The 2016 Louisiana Deep South Association Scholarship
was awarded to Jackson Loupe. Jackson will be a
sophomore at LSU majoring in Agricultural Business.
Jackson is from Abita Springs, Louisiana is thrilled to
be receiving the “prestigious scholarship” from Deep
South. His goal is to one day own his own business in the
Agricultural field, possibly a hydroponic garden because
of his passion for harvesting and gardening. On a trip to
Epcot, Jackson rode the “Living With the Land” park ride
and said he saw farming in a new light, and wondered, if
this was the next stage of farming? That ride planted the
seed, so to speak, in his head and many years later, he chose
to do his Senior Research Project on hydroponics to learn it
in greater detail. Jackson commented in his biography that
the teachers he presented to were thoroughly impressed,
not just by his knowledge on the subject, but the passion
he presented it with. With the Deep South Scholarship,
Jackson said he will be able to flourish into the “welleducated, hardworking, agricultural businessman he has
always wanted.” He will also be working at the LSU Dairy
Store to help pay for some of his College expenses. Jackson
plans on giving 100% effort and through hard work,
perseverance and studying, he plans to get his Agricultural
Business Degree and one day, achieve his goals.
Mark A. Hall of Pontotoc, Mississippi was awarded the
Mississippi Deep South 4-H Foundation Scholarship for
2016. Mark will be attending Mississippi State University
as a freshman and plans to earn a degree in Agricultural
Engineering. He is considered a “bright and ambitious
student in the top 10% of his class and maintained a high
GPA, taking AP courses while juggling extracurricular
activities”. Mark was a 10 year participant in the 4-H club
where his main projects were shooting sports, wildlife
judging, consumer judging, horticulture and compact
tractor. He has won the Mississippi State Second Place
Dairy Judging Team, Horticulture Judging and Small
Engines Contest. Mark has been proud to be a 4-H Judge
both at District and State Congress numerous times. He has
worked hard at the Mississippi State University Pontotoc
Ridge-Flatworks Branch Experiment Station and at his
family’s Reeder Farm Supply helping his Dad with their
cattle farm and hay business. In Mark’s recommendation
letters, he has been praised as “an outstanding your man
with a caring heart that is willing to help anyone that needs
help, very Community minded and volunteers many hours
to help the less fortunate and his Community”. As one
of his recommendations stated, “Mark is a hard worker
and very dedicated in whatever he chooses to do. He is
an outstanding young man and one that would use his
scholarship wisely. An investment in Mark would be a wise
investment and help contribute to his dream of a College
degree a reality”.
Our most sincere and best wishes are extended to Jackson
Loupe and Mark A. Hall as the 2016 outstanding Deep
South Scholarship Recipients whose future endeavors
are in the field of Agriculture.
25
The Turnrow
When it comes to offering benefit
assistance & education to your employees,
PICK THE CREAM OF THE CROP.
We Offer:
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• Assistance with diagnoses & treatments
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225.383.5064 or 225.978.9160
26
Since 1959
The Turnrow
Business Update
One KEY to Running a
GREAT BUSINESS
What is one of the most influential factors affecting your
company’s success? It’s your employees—the people who are right
beside you, helping to build the profit and pursue opportunities
for growth. Physical assets—the buildings and equipment—
support financial goals, but to carry out the directives necessary
to reach those goals, a company won’t get too far without trusted
employees.
And, if you’re like other business owners, you have certain
employees whose departure from the company could create
genuine setbacks. They’re the ones with the management skills,
technical know-how, experience, and customer relationships
you rely on. How would your company handle the void left by a
key employee’s departure or death, and the urgent need to find a
qualified replacement?
Are any of your key people close to retirement, or absent due to
a long-term illness or disability that may prevent their return?
Perhaps one of your star performers recently quit. Or, perhaps,
one of your key employees passed away not long ago. With the
anxiety of losing a valuable employee still fresh in your mind,
it’s a perfect time to start putting a plan in place to protect your
company in the event another key person leaves.
Determine who your key employees are.
They are the employees you could describe as the people you
can’t do without—the ones you trust to make the right decisions
when you’re not available. They can be at any level or in any
position. And there currently may be no one who could step
right in and take over their responsibilities. Remember, you’re
a key person too! While it can be uncomfortable to think about
one’s own mortality, concentrate on those left behind and what
they could go through if you haven’t planned for your company’s
future.
Decide how to protect your company after losing a key
employee.
It’s an unhappy reality of running a business that good employees
leave. And, if an employee has distinctive skills, the loss can
be even harder to deal with. That person’s unique talents and
expertise mean you need to fill some big shoes. Plan to spend
a lot of time and effort finding a replacement. And, don’t forget
money. It’s estimated that the cost to replace mid- to high-level
employees can range from one-and-a-half to four times their
annual salary.
Are you prepared to cover that expense out-of-pocket? Few
employers have that kind of extra money lying around, “just
in case.” Having an important employee leave is enough of
a disruption to your business. Do you want to add a financial
burden on top of that?
Insure the life of your company.
In the strictest sense of the word, life insurance insures someone’s
life. But, when used as key person protection for your business, it
can be thought of as insuring the life of your company, too.
Life insurance is a cost-effective solution to help provide some
welcome financial support toward your company’s need to
replace a key employee. Life insurance can help to
•
keep the business running and growing
•
assure creditors that their loans are safe
•
assure customers and employees that the business will
continue
•
recruit, attract, and train a replacement
•
replace lost profits
•
provide time and flexibility for survivors to make necessary
business continuation decisions if the key person is you or
another owner
The benefits of key person coverage go deeper than just the
cash value of a life insurance policy. It can help smooth the way
back to “business as usual” after your organization loses a vital
member. In other words, you and your team gain peace of mind
thanks to an added degree of stability and security. And isn’t that
“key” to running a great business?
MAKING FORMS & SUPPLIES AVAILABLE & AFFORDABLE
*Business Forms, Stationery, and Envelopes
*Computer Invoices, Statements and
Checks
* Sales Tickets
*Work, Repair, and Purchase Orders
* Federal and State Labor Law Posters
We’re here for your form and Supply needs, PLEASE CALL TODAY!
Deep South Equipment Dealers Association
550 Lakeland Drive, P.O. Box 1191 | Baton Rouge, LA 70821 | Phone: 225-383-5064 | Fax: 225-383-8581
27
The Turnrow
Labor Update
MAJOR CHANGES TO THE
FLSA’S OVERTIME REGULATIONS TO IMPACT DEALERS
On May 18, 2016, in response
to a directive from President
Obama
to
“modernize”
federal regulations governing
minimum wage and overtime
pay, the Department of Labor
published a final rule revising
the so-called “white-collar”
exemptions to the Fair Labor
Standards Act (“FLSA”).
Generally, the FLSA requires
minimum wage and overtimepay protections for employees
covered by the Act, but certain
“white-collar” employees who
receive a specified minimum
salary amount and perform
specified job duties are exempt
from
those
protections.
The Department of Labor’s
significant revisions to the law
include, among other things, an
increase in the specified minimum salary amount needed
to qualify as an exempt “white-collar” employee. The
Department of Labor estimates that, without intervening
action by employers, this change will extend the right to
overtime pay to 4.2 million previously exempt employees
across all industries – including agriculture and farmequipment dealers. Employers must implement these
changes by December 1, 2016, and it is imperative that
dealers familiarize themselves with these new rules before
this deadline.
What Changed?
Under the “white-collar” exemptions to the FLSA, an
employee must earn a specified minimum salary or
compensation amount and also perform specified job
duties. The new rule significantly raises the minimum
salary amount needed to qualify for any of the “whitecollar” exemptions applicable to executive employees,
administrative employees, learned professionals, and
highly compensated employees. Specifically, the new law
raises the minimum salary level from $455 per week (or
$23,660 annually) to $913 per week (or $47,476 annually)
beginning December 1, 2016 – and this salary amount
28
must be paid on a “salary basis,” meaning that the employee
is entitled to at least this compensation regardless of the
quantity or quality of work performed. An employee
whose compensation falls below this new threshold will
not qualify as an exempt employee, regardless of his or her
job duties. However, employers may now include nondiscretionary bonuses and incentive payments (including
commissions) to satisfy up to 10% of this new threshold.
The new regulations also increase the total annual
compensation required for an employee to qualify as an
exempt highly compensated employee from $100,000
per year to $134,004 per year. Finally, the Department
of Labor’s new regulations mandate updates of these
minimum salary and annual compensation levels every
three years beginning January 1, 2020. Accordingly, the
new “white-collar” exemptions now require the following.
To qualify for the executive-employee exemption, an
employee (1) must be compensated on a salary basis at
a rate not less than $913 per week (or $47,476 annually);
(2) the employee’s primary function must be managing
an enterprise, a subdivision of the enterprise, or a
recognized department; (3) the employee must regularly
and customarily direct the work of at least two or more
full-time employees; and (4) the employee must have the
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authority to hire or fire, or the employee’s suggestions and
recommendations as to the hiring, firing, advancement,
promotions or any other change of status of other
employees must be given particular weight.
To qualify for the administrative-employee exemption, an
employee (1) must be compensated on a salary basis at a
rate not less than $913 per week (or $47,476 annually); (2)
his or her primary duty must be the performance of office
or non-manual work directly related to the management
or general business operations of the employer or the
employer’s customers; and (3) the employee’s primary duty
must include the exercise of discretion and independent
judgment with respect to matters of significance.
To qualify for the learned-professional exemption, an
employee (1) must be compensated on a salary basis at
a rate not less than $913 per week (or $47,476 annually);
(2) the employee’s primary duty must constitute work
requiring advanced knowledge (intellectual in character)
that is in a field of science or learning; (3) the advanced
knowledge must be customarily acquired by a prolonged
course of specialized instruction; and (4) the employee
must execute his or her duties with sufficient independent
judgment and discretion.
Finally, to qualify for the highly compensated employee
exemption, an employee (1) must receive total annual
compensation of $134,004 or more; and (2) must perform
any one job duty of an exempt executive, administrative,
or learned professional employee. Nondiscretionary
bonuses and incentive payments (including commissions)
may be counted towards a highly compensated employee’s
total annual compensation requirement ($134,004), but
the employee must receive $913 per week each pay period
on a salary or fee basis without regard to the payment of
such nondiscretionary bonuses and incentive payments.
What Did Not Change?
Although the changes to salary and annual compensation
requirements for certain “white-collar” employees are
significant, the Department of Labor’s new rules have no
effect on other exemptions that may apply to employees of
agriculture and farm equipment dealers, such as (without
limitation) exemptions for farm implement dealerships
(salesmen, partsmen, and mechanics exemption) and
exemptions for sales (commission-sales employees and
outside-sales employees).
Finally, while the new rule changes the federal “whitecollar” exemptions, applicable state and local laws remain
unchanged by the Department of Labor’s revisions.
Employers are bound to comply with federal law
governing minimum wage and overtime requirements –
in the form of the FLSA – as well as all applicable state and
local laws. While some states, like Louisiana, do not have
separate minimum wage and overtime laws and instead
defer to the federal regulations, other states, like Florida,
impose additional (and more demanding) requirements
upon employers. In all instances, employers are required
to comply with applicable federal, state, and local laws and
regulations – and these obligations remain unchanged by
the Department of Labor’s revisions to federal regulations.
How Can You Protect Your Business?
Given the significant changes to the FLSA’s “white-collar”
exemptions and the rapidly approaching December 1,
2016 deadline for employers to bring their businesses
into compliance, dealers should take steps to protect their
businesses as soon as possible. First, all dealers should
conduct an internal audit of their workforce. This internal
audit should include a review of employees’ day-to-day
activities, and employers should update job descriptions
accordingly. Employers should also identify positions
which may be treated as exempt under the requirements
of one or more of the exemptions, and for each position,
employers should ensure that they are complying with the
minimum wage, overtime, and record keeping obligations
imposed by the FLSA. To keep accurate records, employers
should identify all “working hours” for which non-exempt
employees are entitled to compensation.
After conducting this internal audit, dealers should
identify employees who are no longer exempt under the
new law. For these employees, employers should proceed
to evaluate how much under the new salary minimum
($913.00 per week or $47,476 annually) the employee falls.
At that point, dealers have the option of either (1) raising
the employee’s salary to meet the new salary minimum; or
(2) re-classifying the employee as a non-exempt employee
effective December 1, 2016. If the choice is made to reclassify the previously exempt employee as non-exempt,
dealers should ensure that the change is communicated
properly to the employee and that the employee is trained
on how to record his or her hours of work. In certain
instances, dealers may discover through an internal audit
that they have inadvertently misclassified an employee as
exempt. In these situations, dealers should consult with
legal counsel to discuss possible options for addressing
the misclassification.
Author: Sarah Myers (myers@chaffe.
com) and Amy McIntire (mcintire@
chaffe.com)
29
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Feature
6 Challenges that Equipment Dealers are
Facing Online in 2016
Let’s face it: Today’s world can easily cause information
overload. When equipment dealers develop marketing
strategies, they’re still categorizing media as traditional and
digital. Marketing has become multi-screened, and media
channels are becoming intertwined.
your location. Be sure your addresses, phone number,
hours, etc. are all correct. Place pictures of the physical
location inside the directories.
Challenge Two: iFrames
Your website must serve as an online storefront that’s as
organized and inviting as your physical location. Your
online store should convert visitors into customers just
like your trusted employees do. 93% of purchase decisions
begin with a Web search. Your website is an extension of
your physical location(s), so it should represent the core
values and priorities of your location(s). It’s important
that the look and feel
of your dealership is
consistent. Informationonly websites aren’t
useful
to
potential
customers anymore. On
average consumers look
at 7.2 websites prior to
purchasing new or used
equipment. These days,
people are researching
everything they intend
to buy prior to making a
purchase.
Most dealers are using OLD technology to push out
inventory to their websites, and this is causing major
issues. The first issue is that Google doesn’t accept iFrames
with websites. If you are wondering what an iFrame is, it
is an HTML document embedded inside another HTML
document on a website. The iFrame HTML element is
often used to insert content from another source, such as
an advertisement, into a
Web page.
Following
are
six
challenges
your
dealership is already
facing or will soon face and how to solve them in the
digital world.
Challenge Three:
Mobile
Challenge One: Local Search
Most dealers are unaware that Google is setting you up to
win and not to fail. Many dealers don’t realize this, but in
2015 Google implemented its new algorithm that favors
local businesses rather than national businesses. Think
about it: When you’re on your smartphone and you Google
“restaurant,” it shows you the nearest one. This happens
with all searches, including businesses that sell equipment.
Try it out.
Solution: Be sure that your local directories have been
claimed and optimized to make it easy for people to find
Solution: The solution
is easy. Directly tie your
inventory into your
website using an API
from your point-of-sale
system. You must get
away from using the
“Free”
TractorHouse
website to do this.
Google downgrades you
every day for using this
approach.
Most dealerships do NOT show up in a Mobile Search.
Consumers buying equipment check out an average of 7.2
websites on their smartphones before making a purchase
decision. This is a huge issue. If your website has issues
functioning, loading or appearing on a smartphone, then
you’re missing out on half (or more) of your audience.
Google won’t allow you to rank in their search engine if you
don’t provide a good Web experience to the smartphone
user. Period. It is a pass/fail test. It’s like closing your
dealerships and not allowing at least half of your foot traffic
thru the front door.
Solution: You must have a responsive site that integrates
your equipment into your website and isn’t iFramed in
from external sources. A responsive website allows users
31
The Turnrow
to access your site by a variety of devices and presents the website as it should
depending upon the layout of the device.
Challenge Four: Dealership Size/Scale
Stop believing that you’re just a small dealership and don’t matter online. This
is FALSE. Google has set up its entire algorithm for you to win! The question
is, are you set up to win? According to Compete.com, TractorHouse.com and
MachineFinder.com have had a decrease in traffic of almost 50% year-overyear due to the new algorithm.
Solution: Don’t get out of TractorHouse or MachineFinder nationally, but
ensure that your website is your online storefront. You want to OWN what
you have on your website. Don’t send the user to a competitor because of
an accidental click or two in iFrames or allow all your traffic to be sent to
the brand’s website. Keep them on your site just as you would try to keep a
customer in your showroom.
Challenge Five: Retaining Relationships in a Digital
World
This can be tricky because consumers now have so many choices. You want
to have a close relationship with your customers online just as you do in the
physical world. I’m sure your customers text you and send you Christmas
cards, but think about how to retain relationships in an online world when
they have so many choices.
Solution: Integrating your business solutions (CRM or Point of Sale) with your
website to provide a customer portal with invoices, record of inventory, etc.
is important. Another way is through social media marketing. Four in five
American adults have Facebook or use social media. People love to interact
and feel wanted online. Your equipment dealership can build trust and loyalty
through social media.
Challenge Six: Responding to Leads
Your salespeople have only 20 minutes to respond to an online lead before the
conversion rate drops to 12 percent. When consumers are on your website
(your online storefront), they fill out a form to request information about a
piece of equipment. How long does it take you to respond? Do you respond
right away or do you give them enough time to move to the next business?
Solution: Reach potential customers before they leave your business’s website
using Calldrip. When a consumer fills out a form on your website, your
salespeople are automatically notified on their phones. If one salesperson isn’t
available, Calldrip’s system moves to the next salesperson available. An available
salesperson answers the call and is notified that someone just requested
information. The salesperson is then prompted to call the consumer back right
away. This allows you, the dealer, an opportunity to set an appointment with
the consumer before that person ever leaves the website or looks at another
dealer’s inventory. The challenges each of you face in the digital spectrum
happen more frequently than ever. Four of the top 10 equipment dealers in the
country have created a top-of-the-line website that engages customers, retain
them and doesn’t allow iFrames to disrupt the user’s flow. They’re all following
Google’s rules because Google is the king. If you follow Google’s rules you will
succeed in the online world Google wants you to succeed in.
32
By: Tim Whitley, President & CEO, Team SI
The
Turnrow
Advertising
Space is
Available!
The Turnrow,
the Deep South
Equipment Dealers
Association bimonthly Newsletter
is designed primarily
as a source of
information for its
dealer members and
others involved in the
industry. Distribution
is to more than
650 members and
contacts.
*Discounts
available for
multi-month
contracts.
For additional rate
information, publication
profile, format specifications,
advertising deadlines or any
additional questions contact
Patty at the Deep South
Association office at (225)
383-5064.
The Turnrow
Jaron B. Miller
Call us today to discuss a
retirement plan review.
Private Wealth Support Associate
[email protected]
Office: 504.321.0938
(504) 321-0923
P. David Soliman
Private Wealth Advisor
www.fpwa.com
[email protected]
Office: 504.321.0936
We are proud to announce Deep South Equipment Dealers Association has selected
Faubourg Private Wealth as the Preferred Partner for 401K Retirement Plan Services.
Our strong values and investment services are aligned with your business' needs.
We seek to provide:
* Cost-saving retirement plan analysis and assistance
* Dozens of 401K platforms and unbiased advice to find the right fit
* Personal, on-site employee financial education
* Greater investment options that put your financial interests first
If you haven't reviewed your company's retirement plan or get the feeling your 401K isn't working
for you or your employees, let us review the existing plan – with no obligation or commitment to us.
Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Level Four Advisory Services, a registered
investment advisor. Level Four advisors Services, LLC, Faubourg Private Wealth Advisors and Deep South Equipment Dealers are separate
entities from LPL Financial. The LPL Financial Registered Representatives associated with this company may only discuss and/or transact
securities business with residents of the following states: AL, CA, CO, DC, FL, GA, LA, MA, MD, MI, MO, MS, NC, NY, PA, RI, SC, TX, VA, WI.
33
The Turnrow
Feature
What Leadership Needs to Know About Sales
In the leadership
role you probably
already
get
that sales is the
primary key to
massive success
and prosperity.
As you know, the
most successful
companies sell
better and more
than everyone
else. Starbucks
doesn’t
have
the best coffee,
they’ve simply sold an enormous number of people on
doing business with them. That said, to ensure colossal
success for your company, here are the sales facts you want
to ensure your company is living by.
Fact #1: Sales has to be at the top of the food chain.
Everything starts and stops with sales. Without sales, there
is no service department, no installation department, and
in fact, no people because you’re out of business. Until a
product is sold, nothing moves. No money goes into the
bank account, trucks don’t move, customers aren’t helped,
nothing gets installed or serviced, and economies stop.
Companies go out of business because they don’t sell
enough at high enough prices. Companies thrive because
they sell enough at the right prices to cover bills, payroll,
growth, and mistakes. If you want to thrive in good times
and bad times, independent of the economy, the President,
rules, regulations, and other factors, you do so with lots of
sales. Everyone and everything has to support sales first
and foremost.
Note: This is not permission for the sales department to run
roughshod over everyone, treat anyone like a second-class
citizen, or break rules in order to sell something. All business
must be clean and ethical, and all other departments treated
with the utmost respect and professionalism. Also, for the
love of God, don’t ever verbalize “sales department first” to
other departments. “Sales first” is an unwritten rule. I don’t
want to see this in an e-mail or even scratched on a random
notepad in bad handwriting. The other departments need
to know and be told they are important. The key point:
when push comes to shove, sales comes first. When the
receptionist says, “that’s not my job” to a simple, reasonable
34
request from sales, the receptionist’s attitude is addressed,
not the salesperson’s demands or expectations.
Fact #2: Your focus needs to be on attitude and
activity within the sales department.
A sales team with superior attitude and activity levels
will always outsell a sales team with superior skillset and
products. While skillset and product are important, and
will be discussed in Fact #3, the actual acts of going out and
connecting with a high number of people are paramount.
The most important factors are how motivated the sales
team is and how many people they talk to and connect with.
When you’re hiring salespeople, you’re hiring attitude. You
can’t teach drive and work ethic. You’re looking for people
who are hungry, with a blue-collar mentality, and a thick
skin. You’re also looking for people who are extremely
persistent and resilient. They need to follow through and
follow up, and follow up, and follow up.
Next, what is the activity level? Are they coming in early
and leaving late, are they working on the weekends? Are
they working on the right things? Are they selling anything?
If you aren’t sure of their activity, go on calls with them. You
can also call them, ask where they are, and surprise them in
the field. I know of one company that tracks their sales reps
activity via GPS. They are able to ensure they are making
the required 10 to 12 sales calls a day, beginning by 9 a.m. at
the latest and finishing by 4:30 p.m. at the earliest. For those
of you cringing right now, the only people offended by this
will be the people who aren’t doing what they’re supposed
to be doing.
Bottom line: hire attitude, set expectations around activity
level, and hold people accountable. And remember, at the
end of the day it’s all about production. They are either
paying their way and getting the job done, or they’re not.
Fact #3: You must invest in your sales team.
A highly effective sales team needs tools, resources,
training, and support. Your goal is to have them spending
as much time as possible prospecting, presenting, and
closing. This is going to take one: support people to do
paperwork, order entry, and other non-sales related items,
two: tools and resources such as CRMs, computer systems,
and other technology, and three: systems and processes
that standardize operations and remove all guess work.
Among other items, you should have selling system in
The Turnrow
place complete with scripts, competitive information, and
anything else that a salesperson could possibly need during
an interaction with a prospect or customer.
Next, invest in the development of sales skills. While
attitude and activity are most important, a sales team
that also has great sales skills is lethal. Invest in learning
tools such as books, CDs, DVDs, classes, and seminars.
Salespeople should be continually practicing, drilling, and
rehearsing sales skills in sales meetings, in the car, with you
and other salespeople, and even with friends and family
members. You should also be throwing objections at them
when you simply walk by them in the office. Preparation
and knowing exactly what to
say are critical.
Fact #4: Everyone and
everything affects sales.
Everyone affects sales at your
company from the receptionist,
who is the first person people
come in contact with, to the
janitor, who runs into people
walking in and out of your
building, to your truckers,
your customer service people,
and your salespeople. All
make an impression, good
or bad, and that impression
helps determine whether or
not people do business with
you. Taking it a step further,
it’s my belief that because
selling is your company’s most
important activity, everyone
should be directly involved in
sales. Everyone knows people
and they should all be looking
for possible prospects for your
product or service. Yes, even
the janitor and receptionist. If
they pass on a name to the sales
department and a sale is made,
they should be rewarded with
money, a gift, or something
else of value, but all employees
should be sold on your product
and looking for people to help.
Everything counts. From clean
floors, to correct shipments,
to properly spelled names, to
all employees interacting with
customers with caring and
enthusiasm, everything sends a message as to whether or
not your company is one people should do business with.
Even the smallest item can affect a sale. On that note, you
should be shopping your company. Call and see how the
phone is answered. Ask for information. Is it sent? Does
someone follow up? How and when? If they’ll know it’s you
calling, have a friend or family member call.
John Chapin is a sales and motivational speaker and trainer. For his free
newsletter, or if you would like him to speak at your next event, go to:
www.completeselling.com John has over 28 years of sales experience as
a number one sales rep and is the author of the 2010 Axiom Awards sales
book of the year: Sales Encyclopedia. For permission to reprint, e-mail:
[email protected].
What’s in it for me?
P L E N T Y ! ! !
DSEDA IS DESIGNED TO MEET YOUR BUSINESS NEEDS
www.dseda.org
LEGISLATIVE REPRESENTATION
Your Association is involved in State Legislative
Sessions, identifying and tracking all bills affecting
equipment dealers that are relative to our industry.
DEALER-SUPPLIER RELATIONS
DSEDA works with EDA and other affiliate associations
across the nation to work with manufacturers, wholesalers, distributors and other suppliers to address contract and industry topics and help resolve issues.
RESOURCE CONNECTIONS
Your Association maintains relationships with various
resources to help members address employment and
labor law issues, dealer contract issues, customer relations, OSHA compliance and workplace safety issues,
and environmental issues.
BUSINESS INSURANCE
Your Association’s recommended provider offers the
finest property & casualty insurance coverage for its
members, with prompt, personal service, and competitive rates. Estate planning and risk management
programs are also available.
GROUP HEALTH INSURANCE
Your Association provides competitive Group Health,
Life, Accident, Dental, Short & Long Term Disability
insurance programs with maximum coverage at a
minimal cost as well as keeping members apprised of
Health Care Reform updates.
MONTHLY NEWSLETTERS & INFORMATIVE EMAILS
DSEDA provides an on-line publication and informative emails regarding various updates of dealer and
Association activities. Special bulletins are issued as
occasion demands.
CREDIT CARD PROGRAM
DSEDA’s Credit Card Program offers customers the
convenience and instant credit advantage of VISA or
MasterCard cards, at a low, competitive discount rate
and a personal follow-up if you experience problems.
ANNUAL & SUMMER MEETINGS
Annual Educational Conventions and Summer Conferences are conducted each year to interact with
dealer principles and/or employees in various aspects
of business operations.
BUSINESS FORMS & SUPPLIES, PROGRAMS
DSEDA supplies you with a complete stock of forms,
supplies and programs. Count on a wide selection,
competitive pricing and great service!
TRADE-IN AND FLAT RATE GUIDES
DSEDA members receive special pricing on trade-in
guides for agricultural, outdoor power equipment and
power sports as well as the Flat Rate Guide for Agricultural Tractors and Combines and the Outdoor Power
Equipment Flat Rate Guide.
COST OF DOING BUSINESS, WAGE SURVEYS
Annual Cost of Doing Business and Wage and Benefit
Surveys provide data which allows dealers to compare their dealership expenditures with averages
within our geographical area.
ENDORSEMENTS
DSEDA thoroughly researches various companies to
ensure that only those businesses providing services
and products with the very highest professional and
ethical standards are endorsed by the Association.
www.dseda.org
Your Association’s website is a “hub” for dealer members, providing instant access to online dealer information and resources, database with a wealth of
information available 24-7, 365 days a year.
STAFF RESOURCES / INFORMATION
Your Association is a source of information as near as
your telephone, mailbox, fax machine or computer – a
“business partner” that can provide immediate assistance on both day-to-day and long-range operations.
Let us prove that membership doesn’t cost . . . it pays!
Your link to the power equipment industry is
DSEDA!!!
P.O. Box 1191 | Baton Rouge, LA 70821 | p. 225.383.5064 | f. 225.383.8581 | www.dseda.org
35
The Turnrow
36

The Turnrow - Deep South Equipment Dealers Association

Transcription

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