“While it’s clear that North American farm equipment dealers have work to do to shore up profits, much of which needs to focus on the expense side, they have improved some areas of their operation. The most noticeable is the reduction in whole goods inventories.” – Farm-Equipment.com
One of the most concerning results of a recent report on dealerships’ cost of doing business is the increase in expenses and decrease in total profits from operations seen across the industry. This was caused by a variety of factors, including the general economic state of our nation, rising healthcare costs, and the addition of specialized labor hiring.
While we’re unable to control some of these factors, dealers and distributors do have the ability to strategically manage and refocus inventories with a dealer management system software. Here’s how:
- Eliminate Lost Sales & Profits – A unique challenge with inventory management in this field is knowing when interest begins accruing. If you don’t already have a system in place for tracking this information you could be leaving money on the table. ASPEN provides an option to set reminders and other important sales tasks.
- Stay On Top of Unit Depreciation – A dealer management system software can help you establish a process for tracking cost basis. Monitor progress to ensure cost basis never goes below the designated salvage value. Whether you choose to use scheduled depreciation, on-demand depreciation, or depreciation as a percentage of rental income, having an organized solution helps keep records and predicted profits up-to-date.
- Ensure the Accuracy of Individual Unit Records – Store all your unit and rental information in one place. Keep files like photos, shipping documents, invoices, unit condition, and point of sale tickets in a program that is easily searchable and provides 24/7 accessibility for other key team members who need to obtain real-time inventory changes on the go.
- Integrate Inspection Reports with Asset Valuations – Establish a more productive used equipment management system using cutting-edge technology, like a business management solution that integrates with Sandhills for equipment inspection. As a partner of Charter’s ASPEN platform, Sandhills offers our customers the ability to create individualized unit inspection reports with real-time asset and market data for faster and more accurate used equipment management.
Keeping track of vital dealership facts and statistics is the lifeblood of thriving businesses looking to rejuvenate profits. Having the right tools, like a dealer management system software, in place will provide you with a strong foundation for increased growth and dealership profit.