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Keeping the edge: ever wonder why your competition is creeping ahead?

Outdoor Power Equipment - June 1, 2003

Remember the old story about the young man who came home from agricultural college and for days flooded his dad with a boatload of ideas about how to do a better job on the farm. The father listened patiently, nodded when appropriate, and finally said, "Son, I really am impressed with what you've learned in only a few short months in college. And, Son, I'm sure these are all good ideas that could really help turn this place around. But if it's all the same to you, I think we won't do any of them right away. You see, Son, I'm really not farming as well as I know how right now!"

I see a lot of this farmer's attitude in today's OPE dealers whenever the subject of dealer education is brought up. First, the eyes glaze over. Then, all sorts of reasons come out about why they don't need dealer education.

Before I go any further, let's admit right now that dealers have every right to feel this way! They're forced by manufacturers to take employees out of the dealership for expensive (sometimes non-essential) refresher courses; are often coerced into attending cookiecutter seminars, which have little application to their retail world; and spend valuable time listening to industry "experts," who have never set foot in an OPE dealership.

I have had the good fortune to work with several retail dealers across the U.S. and Canada in my staff role at the North American Equipment Dealers Association (NAEDA). I've worked with very large and very small dealers, OPE and agricultural dealers, urban and rural dealers, and more. One thing that I have learned is that all dealers have one thing in common: the need for help in running their business!

Notice I said "help" in running the business, not "education" in running the business! Starting now, the word "education" will not appear again in this article.

NAEDA has just one primary goal, and it's contained in the corporate mission: "committed to building the best business environment for North American equipment dealers." As an association, we do this in many ways, ranging from working with manufacturers on issues affecting dealers; to providing legislative information; to good deals on financing, credit cards, freight, telephone services and more.

But nowhere is this mission more apparent than in two specific programs: 20 Groups and Distance Learning (which we call NAEDA Knowledge Net). Each of these programs has its own unique characteristics, and each delivers the value component in different ways.

20 Groups

20 Groups is a peer-to-peer, dealer-to-dealer program. Each participant learns from the other dealers in the room, as well as from the industry expert who is present to facilitate the meeting. A 20 Group meeting is an intense experience; it's no place for the shy or easily embarrassed. Two unique things make a 20 Group meeting get right to the point: (1) Everyone around the table is a dealer, so everyone around the table has "been there and done that;" and (2) Each participant's dealership financial statements are open for all in the group to see. Deficiencies become apparent very rapidly. A 20 Group meeting is definitely not a liars' club!

Here are some key components of the 20 Group experience that make it work and make it unique.

* These are small groups--no more than 20 (hence, the name) and typically 15 to 18 participants.

* Groups typically conduct three, two-day meetings per year.

* Members submit their dealership financials to NAEDA every month, and the association puts them in a common format for comparisons. All members see the group data monthly.

* All meetings are facilitated by a knowledgeable industry person, who can keep things on track and add "meat" to the discussions.

* Other dealership management personnel may be included in meetings, based on the wishes of the group. Often parts, sales or service personnel may attend meetings and break out with their own facilitator to focus on their area of responsibility.

* Everyone participates, everyone talks, and everyone contributes.

Group members sometimes describe the group as "another board of directors for the dealership."

A dealership should expect to invest at least $5,000 annually in the 20 Group program, including monthly fees and meeting costs. It could be less or more, depending on the travel involved and whether other dealership personnel attend. A 20 Group is not for everyone, but participation in a group will help you make your business better.

NAEDA Knowledge Net

NAEDA Knowledge Net is at the opposite end of the spectrum from 20 Groups. With this Distance Learning program, you never leave the dealership. Participants still have the advantage of material being presented from top experts in the industry, and also have the opportunity to ask questions and problem-solve during the session.

Here's the way it works:

* You log on via your computer, right in the dealership. You hear the leader talking through your telephone speakerphone, and you see the leader's slides and other materials on your computer screen.

* While the program is in session, you have the opportunity to ask questions--either verbally or via the computer keyboard.

* Gather as many people around the computer as you wish. You only pay for the single connection!

* Sessions are never more than two hours long.

Sessions are presented as E courses (three two-hour modules held on separate days) or as E-seminars (a one-time one- or two-hour presentation). Cost of an E-course is $499 for NAEDA members and $599 for non--members; an B-seminar costs from $79 to $199.

NAEDA launched the Distance Learning initiative in fall 2002, and all participants have found it very valuable. Here are some subjects either already presented or scheduled for the future:

E-COURSES

* Overview of a Successful Dealer

* Profitable Design of a Service Department

* Dealership Account Management

* Put a Charge in Your Parts Department

* Creating an Environment of Employee Performance

* Care and Feeding of Salespeople

* Running Rental Successfully

* Establishing a Customer Satisfaction Program

* Dealing with Difficult People

E-SEMINARS

* Dealership Agreements and How Franchise Statutes Help You

* Sales, Mergers and Consolidations

* The Art of Merchandising

* On the Front Line of Customer Service

* Dealership Valuation

Without question, these programs can help you make your dealership better and more profitable. Just like the old farmer, you may not be running your business as well as you know how. But what's worrisome is that the dealer down the road, your competitor, may be using tools like 20 Groups or Distance Learning to help the business achieve full potential.

NAEDA's only purpose is to "build the best business environment for North American Equipment Dealers." Let us help you!

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