As a retailer of farm goods you know that there are a lot of products on the market, and that customers can have a hard time navigating their way through all of the different products on their own. Your business exists to help customers find the tools that they need and get them those tools at a reasonable price. If you have not allied yourself with a large equipment manufacturer, then you are shorting yourself and your customers on the best products that are on the market, potentially missing out on sales. There are a lot of misconceptions about what it means to be an authorized dealer, and understanding why those attitudes are incorrect is important to getting the most out of your business. Here are three of the most common complaints and why they are misconceptions.
Being an Authorized Dealer Means giving up Autonomy.
One of the things that you will hear most often about being an authorized dealer is that you will have to give up the authority to run your own store. The equipment manufacturer will step in and tell you what you can carry and will also give you a list of things that you must carry, even if they do not sell in your area. In the past this was a serious concern, but this is no longer the case. Most of the large manufacturers want to be your partner, and they will give some advice about complementary goods that might work well with the things that you are already carrying, but they are not concerned about the details of the stock in your store. If anything, allying with an equipment manufacturer gives you a little more autonomy because you have more control over the things that you order and what you carry in your store.
The Big Equipment Manufacturers Charge Outrageous Wholesale Prices.
Another common misconception is the price that wholesales charge to their retailers. For years people believed that buying from the big manufacturers meant being a slave to their pricing models and that small retailers could not afford to offer the best products to their customers. To make matters worse, buying wholesale meant that retailers could not compete with the direct from the manufacturer prices some companies offered. While this is true for many consumer goods, it is not the case with large equipment purchases. Tractors and hay feeders are usually not sold directly to the customer because of the cost of shipping, and the big manufacturers count on people like you to be their distribution network. They understand how necessary you are to the process, and that you need to be able to make money on what you sell, so most of the time you will be able to get good prices from your allied equipment partner.
There are No Benefits of being an “Authorized Dealer”.
The final misconception that you might have is that there are no benefits of being an authorized dealer. This could not be further from the truth, as many manufacturers either only sell to authorized dealers, or only offer discounts to those dealers. What you will find is that by being an authorized dealer for the big manufacturers you will have the support of the manufacturer to sell their products, because the more you sell, the more the make. You can see deep discounts and special promotions from your allied partner that are not available to other companies.
As a retailer you need to take care of your business and do everything that you can to make sure the company is making money. You might be living under the misconception that becoming an authorized dealer for a big manufacturer will hurt your business, but you are in fact missing out on many of the benefits that come with a strong manufacturing partner.
I am Nathan Price, and I have been an authorized dealer of Farmco hay feeders in Pennsylvania for almost three years. The support that I get from Farmco makes it a pleasure to do business with them, and I have seen my profits grow, even during this down economy, because of the dealer pricing that I get from them. If you are serious about being a farming equipment retailer, I recommend going to www.farmcomanufacturing.com and checking out what it means to be an authorized Farmco dealer.