With product margins shrinking, billable support is an increasingly vital part of creating a consistent precision revenue stream. So how are dealers implementing bankable strategies to package, price and promote service plans?
Colin Hlavinka, precision farming manager with Hlavinka Equipment Co. in El Campo, Texas, discusses how the dealership views its precision service plans to reinforce customer satisfaction and confidence, while also generating an 8-10% sales margin.
David McGavin, sales and service with Precision Seeding Solutions in New South Wales, Australia, shares the dealership's approach and success with developing precision service revenue, along with some of the international differences between the country and other parts of the world.
Putting together a precision farming service plan can be a messy process. What to include — and exclude — how to bill and of course, what to charge, are key decisions that need to be made prior to launching a package.
Multitasking was the name of the game while riding along with Nathan Zimmerman, precision farming manager for A.C. McCartney, for our latest Day in the Cab profile. With the sun finally breaking winter’s gloom and temperatures in the mid-60s, spring had taken root in northern Illinois, making area farmers anxious to get in the field.
Jason Pennycook, precision specialist at Johnson Tractor (4 stores in Wisconsin and Illinois), says Johnson is still working on the internal management issues, including how service plans are billed, who is responsible and how to get all locations on the same page, as many farmers will use one or more stores. “We’re working on ways to make sure every service manager at every store knows when a farmer is on a service plan so he doesn’t get billed incorrectly.”
After years of “giving unapplied service labor away for free when it came to precision technologies” the dealer panel presentation on capturing revenue in service plans for precision was of keen interest for Summit attendees.
For most dealerships, the backbone of their precision farming business is hardware sales. But as more technology comes standard on farm equipment, and the market becomes increasingly saturated, dealers are realizing the need to diversify their precision business to remain profitable. [To view any of our webinar replays, you must be logged in with a free user account.]
According to a study on precision agriculture conducted by the Assn. of Equipment Manufacturers, the American Soybean Assn., Crop-Life America and the National Corn Growers Assn., the environmental benefit of precision ag technology fuel efficiencies is similar to taking 200,000 cars off the road ever year.
The college offers an associate degree in Applied Science in Agriculture (60 credit hours). Students enrolled in this program may specialize in precision farming technology by selecting up to 15 credit hours in this area and agriculture business, sales and agronomy.
The college offers an AAS in Precision Agriculture and customized precision ag- related training for agricultural producers, insurance underwriters, equipment dealer and agricultural cooperative employees and others.
Offering training on Ag Leader, Trimble, Reichhardt, Norac and Integris Systems in twice yearly customer training events (spring/fall). Also offering individual training opportunities on any HTS Ag products and SMS software, year round.