No. 6 June 2012

Hope you’ve been appreciating this wonderful spring and summer we’re having.  Spring came early this year and appears to be sticking around, unlike 2011 when spring arrived early in March for a large part of the country and then immediately disappeared until May.  This nice warm weather is apparently influencing consumers to spend more time and money on their yards.   Demand for equipment is strong, as is service, parts and accessory sales.  Many OEM’s cannot keep up with unit demand.  Let’s all enjoy it while we can!

Have you heard about “showrooming?”  If you haven’t, you better get ready for it because it’s coming your way very soon.  And I suspect you’re not going to like it when it walks in your front door.

An April 11 Wall Street Journal (WSJ) article about “showrooming,” explained what the term means.  “’Showrooming’ is when a shopper walks into a ‘bricks and mortar’ store (it could be your store) to scope out merchandise and then ends up buying the products they have seen in the store from a rival’s website at a lower price.  ‘Showrooming’ hurts the bottom lines of traditional stores while benefitting online-only retailers such as Amazon.com which have the advantage of lower overhead costs and mostly can skirt the collection of sales taxes while often allowing customers to avoid shipping fees.  In a recent survey by ClickIQ Inc., ‘half of shoppers who buy products online first checked them out in a traditional store.’ 

What are savvy retailers doing to fight “showrooming.”   The April 11 WSJ article had these answers: “Target pushed its suppliers to offer it exclusive products not found at competitors.  Wal-Mart is emphasizing in-store pickups for online orders, many available the same day they are purchased – allowing customers to avoid shipping fees. 

Some retailers are trying apps to drive shoppers to both their stores and websites, allowing them to create shopping lists or receive daily-deal alerts and exclusive discount coupons on their phones.  Some experts think such targeted discounts, along with loyalty rewards programs, may make higher shelf prices less problematic for retailers.” 

While there will be winners and losers amongst the big retailers, so far, the OPE industry has shown that consumers will still strongly support local dealers and retailers who offer a personal positive sales and service experience and a strong appreciation for their loyal customers.

Is it true that cannibals don’t eat comedians because they taste funny?

Harvey MacKay recently told this hundred-year-old story regarding the creator of Sherlock Holmes illustrating the importance of noticing little things and knowing your audience.

Sir Arthur Conan Doyle, the creator of Sherlock Holmes, was quite impressed with the observational powers of a cab driver who picked him up at the train station after a vacation in the south of France. As he stepped into the cab and put his suitcase on the seat next to him, the driver surprised him by asking him, "Where would you like to go, Mr. Doyle?"

Doyle was surprised that he knew his name, and asked whether they had ever met before. The driver said no, which prompted Doyle to ask how he knew who he was.

The driver replied, "This morning's paper had a story about you being on vacation in Marseilles. This is the taxi stand where people who return from Marseilles always come to.

Your skin color tells me that you have been on vacation. The ink spot on your right index finger suggests to me that you are a writer. Your clothing is very English, and not French. Adding up all those pieces of information, I deduce that you are Sir Arthur Conan Doyle."

"That and your name is on your suitcase."

This coming Sunday afternoon, pick yourself up out of the chair in front of your TV and take your family or some friends or just yourself for a drive through the countryside.  Take time to inhale the fresh air and see how farmer’s crops are coming along.  Stop by a river or stream and just stare at the water for a while.  Try to notice and see things all around you that you normally don’t see or look at.  Now head for home and take that nap you just earned.  You’ll feel refreshed and good about yourself.  And Monday will be just another great day.

No. 5 May 2012

This past winter was the fourth warmest in the United States since 1895, according to the National Oceanic and Atmospheric Administration. That warmer winter weather has allowed the U.S. economy to continue to sputter along with some extra growth. Warmer winter weather has also meant about $30 billion extra in consumer pockets because of lower heating bills. This extra money has cushioned many consumers from rising gasoline prices, and meant more cash in their pockets to buy things like cars or even outdoor power equipment. Hurrah!

And with a record-breaking warm winter comes lots of spring-time ticks, ants and spiders. To offset that image of rampaging bugs, let’s focus on what appears to be a two- to three-week early spring season with warm days, quickly growing grass and the wonderful sound of lawn mowers doing what they do best. Put the odor of freshly cut grass and timely rainfall with all the above and you almost have OPE industry heaven!

What have you done to bring more people into your shop or business this spring, or were you lucky enough to have them show up on your doorstep during the early warm weather? Did you try something different to market your business to potential new customers? Or, did you stick to what’s worked well for you in the past? The old adage of “The harder (and smarter) you work, the luckier (and more successful) you become,” has never been truer. You can’t afford to wait to make something good happen in your business. Ask some of the salespeople that call on you to share successful marketing ideas used by other businesses similar to yours. Don’t ever hesitate to copy someone else’s best ideas in your own business. What worked well for someone else might very well work for you too.

I enjoy reading about relationships between businesses and their customers, and how those relationships have changed and adapted in the digital age. Aaron Shapiro, CEO of digital marketing agency Huge, wrote in an article in the April issue of the McKinsey Quarterly that consumers are increasingly interacting digitally with companies. Growing digital customer relationships means “the location of your businesses is no longer a barrier to transactions; brands alone aren’t a proxy for quality; and pricing is increasingly transparent.” Your digital customers may know as much about your product as you do. They may know your cost and selling price and your competitor’s selling price. Your digital customers probably don’t care if your run your business out of your bedroom or have a location that looks as nice as an Apple retail store.

To compete effectively, you must not only run your core business (operations) successfully, but also the software layer that connects the people who use digital media and technology to interact with your company. Most likely, your company wasn’t created to build and operate great customer-facing software. Ours wasn’t either. But you or a dedicated resource must make sure the way your customers are interacting with you digitally meets their needs, is easy to use, and strengthens your relationship with them.

The number of virtual consumers will only increase as people born after the Internet’s advent become the primary consumers and business decision makers. As time goes on, it becomes more and more critical to attract and win over digital-first consumers. You can accomplish this by making each additional digital interaction more frictionless and enjoyable. Otherwise, frustrated users will head straight to your competitors, even if their prices are somewhat higher.

Here’s a good piece of business advice: “Do not argue with an idiot. He will drag you down to his level and beat you with experience.”

Unfortunately, most of us learn this fact through our own experiences with this type of person. If you’re a quick learner, then I bet you haven’t repeated this mistake very often.

I hope you are having a very busy and prosperous spring. I know our dealers and service center customers are. Be sure to keep one eye on your expenses. During busy times, we tend to watch the revenue line go up because it’s a lot more fun than making sure expenses don’t get out of hand. Exploding labor and overhead costs will quickly eat up the additional profits gained from great revenue growth. Don’t let expense surprises ruin an exciting start to your 2012 business year.

No. 4 April 2012

Spring is a time of renewal for plants and crops, flowers and even people.  A spring shower refreshes and deep-cleans the air.  Afterwards, I always take a deep breath outside because that refreshing air is so very special.  The first several lawn-mowing’s adds the scent of freshly cut grass to the air and on a cool spring morning that scent puts a spring in your step – no pun intended.  Forsythia and ornamental Bradford Pear trees bloom first, putting pops of yellow and white across the landscape.  White and pink dogwoods and redbud and cherry trees’ pink blossoms follow quickly.  Azaleas are the real star of the show.  Their bright hues of pink, red, purple or white blooms, and especially those found on large varieties, make front yards in my part of the country become showcases of color.

I’m starting to feel pretty good just writing about spring, and I haven’t even touched on our outdoor-related (landscape and hardscape) and outdoor power equipment-related businesses beginning to get really busy.  What’s not to like about this season of the year?  Plus, spring is appearing early.

Okay, Mr. Perpetually-Grumpy, I know I neglected to mention pollen, allergies, hay-fever and runny noses.  I grew up with sinus infections, hay-fever and allergies, so that makes me an official allergy sufferer and survivor.  But, remembering my mantra about our lives being about the choices we make every day, I choose to focus on the beauty and renewal of spring and the beginning of our industry’s busy business season.  I’m smiling and you should be too.

My refrigerator is in my living room.  Now I’m not recommending that you keep your refrigerator in your living room.  It’s just that every time I think about this, it makes me laugh, so I thought I’d share that fact with you. 

No, it doesn’t belong in my living room, but it has been there for several weeks and will probably be there for several more.  Where it used to be is now 100 per cent gutted and empty, on purpose.  The polite word for describing this home project is “remodeling” the kitchen.  More accurate ways of describing it are  “a fine layer of dust covering everything you own” and “eating dust.”   The rumor is that “it will all be worth it.”  There’s no doubt in my mind that it will.  But it does bring back memories of days in the U.S. Army military police directing tank convoy traffic in the dust at night with one small flashlight in my hand.  Now that was “eating dust!”

Here’s an interesting fact you need to know:  You do not need a parachute to skydive.  Now I know that statement is a little troublesome.  But let me finish the statement:  You do not need a parachute to skydive.  You only need a parachute to skydive twice.  It’s amazing what you can learn by doing a little reading.

Speaking of reading, did you know that only one-third of elementary- and middle-school students are competent in reading, math and science according to an editorial in the March 20 edition of the Wall Street Journal?  And did you realize that “compared to their peers in industrial countries, American 15-year-old Americans rank 14^th in reading, 25^th in math and 17^th in science.”  The editorial goes on to say “Less than five percent of US college students graduate with engineering degrees, while in China that percentage is 33 percent. Thirty percent of high school graduates can’t even pass the Armed Forces Vocational Aptitude Battery tests.”  This country desperately needs a better educated workforce who “can keep the U.S economy strong and innovative amid global completion, and the workforce we need requires skills in reading, math and science, as well as foreign languages and cultures. 

Throwing more money at education is the easy way out of making tough decisions.  I know that isn’t the solution anyway, based on the results I’ve seen in my community, and read about in other communities.  I’d be willing to bet that more money coming out of your taxpayer pockets each year really hasn’t improved the results in your community’s school system very much, if at all. 

I always liked the following adage:  Although no one can go back and make a brand-new start, anyone can start from now and make a brand new end.  It’s all about making the right choices and knowing where you want to end up.

No. 3 March 2012

Did you know that March 20 is the first day of spring?  As Charlie Brown would say, “Good Grief!”  

I missed the notice that came out a few months ago that read “due to lack of interest, winter has been canceled!”  Obviously, it has been cancelled in my area of the U.S. and most likely in your area too.  We received our first snow yesterday (Feb. 27) and most of it has already melted today.  The positive aspects of snow on the ground certainly benefit our industry.  Just like rain, when snow falls or doesn’t fall, we equate the effect on all our businesses in dollars and cents.  Weather and the economy both affect us so much, that we’ve learned or should have learned to hedge our business planning because we don’t really know what business will be like next month or next year. 

In a Feb. 20 article titled “Early Spring for Home Improvement” in The Wall Street Journal, Joan E. Solsman  reported, “government data shows that this past December and January were the warmest such months in the contiguous U.S. since 2006.  January was the fourth warmest going back to 1895.  While sporting goods and apparel stores were affected negatively, Lowe’s Cos. And Home Depot are enjoying an early start to spring selling.  Planalytics (a weather forecasting service for business) estimates weather has driven down demand 2 percent in the snow-removal industry in the current season from a year earlier.”  That’s a painful decrease for our industry.

If you’ve ever wondered what the difference between knowledge and wisdom is, the following answer will bring a smile to your face:  Knowledge is knowing a tomato is a fruit.  Wisdom is not putting it in a fruit salad.

The February issue of The Kiplinger Letter features an article that states, “the enthusiastic talk you hear from politicians (about) creating millions of new industrial (manufacturing) jobs is a pipe dream.”  The article also states, “each nation benefits most by concentrating its efforts on what it does best.  For America, that’s creativity and innovation, not stamping out widgets on an assembly line.”  While you may disagree with that statement, keep reading to understand the rationale behind the thinking.

Kiplinger goes on to say, “In the United States, service jobs will dominate.  And that’s not bad news.  Doom-and-gloomers fear a nation of low-paid burger-flippers, producing little of lasting value.  But…the greatest added value no longer comes from the production of goods.  It comes from inventing, designing, marketing and servicing them.”  Those are encouraging words, because you and I are brand servicers and marketers for many of those very “goods!”

Kiplinger’s key conclusion: “In the Information Age, education and innovation are the keys to growth, in generating well-paying jobs and to continued improvement in U.S. living standards.  Keeping the edge in those fields is what will keep the U.S. on top.”   

Meanwhile, politicians keep feeding us “pipe-dreams” instead of stating the truth, providing leadership and offering solutions.  They keep “kicking the can down the road,” instead of addressing the real issues of fundamental tax reform to make our system simpler, fairer and more competitive while generating more revenue.  And they continue to ignore talking about real solutions to mandatory spending programs like Social Security, Medicare and Medicaid and interest on debt that by “the year 2022, will “by themselves account for more than 77 percent of all government outlays.” You don’t have to agree with me or Kiplinger, but I hope you will think and talk about our opinions with your family and friends.  Somebody has to, because politicians won’t!

Need some cheering up?  You should read the new quarterly Industry Research Update for the lawn, golf and turf equipment industries recently launched by GE Capital, Americas.  The initial spring 2012 four page report shows that the outlook for our industries is increasingly positive.  Now that’s what I call good news!

You can find this new quarterly report at:  http://www.gelending.com/CDF/DealerExclusiveNewsletter_02-2012/docs/Golf_Turf_Update_1Q12.pdf       It’s free.  It’s a quick read.  And you’ll definitely feel better after you read it. 

No. 2 February 2012

You and I probably don't go anywhere without our iPhone and iPad or Blackberry – we’re afraid we might miss something important.  And we’d probably agree that technology can, and probably has, become an addiction.  Even worse, we let technology blur the boundaries between our work and our personal lives.

We hear an email alert or a ding and we just can’t help ourselves. We have to check it.  We stop what we’re doing or stop focusing on listening to someone else, to check the cause of the alert, knowing that the majority of technology alerts we receive are of little importance.  These interruptions and our “always on” mentality really keep us from having a life.  Whoops, sorry, I have to leave for a few minutes to check an email that just arrived; I think it might be really important.  Okay I’m back now.  Sorry for the interruption.  What were we talking about?

“Since 2004, the US lawn and garden market has declined over 33%.  This significant and prolonged market decline is unlike any other this industry has seen in decades.” 

So read two sentences in the “Restructuring Actions” section of Briggs and Stratton’s financial results report released Jan. 26, 2012, for its second fiscal quarter and first six months of fiscal 2012, ending Jan. 1, 2012.  My question to you is “have you noticed this market decline?”  And equally important is my other question “what have you done differently in your business in response to this declining market in your chosen industry?” 

Briggs and Stratton is responding to this declining market by closing two plants - one in Newbern, TN and the other in Ostrava, Czech Republic - and consolidating that production into two other U.S. plants in Murray, KY and Poplar Bluff, MO.  As Todd Teske, chairman, president and CEO of Briggs and Stratton, states in the financial results report, “The actions announced today to consolidate our manufacturing footprint further will better align our production capacity to the markets we serve,,,  It is a very difficult decision to close these production facilities; however, these changes are a necessary step in executing our strategy to grow the profitability of our business and invest our resources in high margin and margin expanding areas.  We will make a dedicated effort to minimize the impact of these closings on our employees and the surrounding communities.”

Here’s my two cents worth how you should respond to this declining market: quit doing what you’ve always done!  Don’t necessarily focus on what you can do better.  Focus instead on what you should quit doing.  Ask yourself the following questions:  “Is  it really necessary to keep doing something?”  Why do you do it this way?   If you didn’t do this at all, would anybody notice?”

In my business, our computer spits our lots of reports, some daily, some weekly, and some monthly.  Guess what?  We discovered that many of these reports are never read by the people who receive them.  We don’t print them anymore or at the very least, not as often.  If you only read the executive summary, then that’s the only thing you should print regularly.  Maybe quarterly executive summaries will suffice instead of a daily or weekly report? 

In 2012, we’re focusing on what we should quit doing.  Maybe you should too?

Husqvarna recently reduced its parts distributors in the US from about eighteen to five.  It’s been a long time since any OPE manufacturer made such a radical distribution change.  No matter how manufacturers rationalize their parts and service distribution channels from time to time, your expectations as a warranty or non-warranty service dealer should never change.  You should always expect and receive high quality and timely parts service from your authorized OEM central distributor or other authorized OEM source.  And most importantly you should always expect to be treated like the valuable customer you are or will become, as long as you fulfill your business obligations with your suppliers.

I’ve previously written about how we are each responsible for our life, and how our ultimate success depends on the choices we make daily.  Taking responsibility for the choices you make and the life you live is an indication of good character.  Here’s a little story I read recently in Harvey Mackay’s Blog about accepting responsibility for the choices you make and the resulting outcomes.

“In ancient Rome, when the scaffolding was removed from a completed Roman arch, the law read that the Roman engineer who built the arch had to stand beneath it.  The point was, if the arch came crashing down, he would experience the responsibility first hand.  As a result, the Roman engineer knew that the quality of his work was crucial and would have a direct personal impact on his life.”

Roman engineers truly took responsibility for the job they did and the choices they made.  Do you?

No. 1 January 2012

I came across the following prayer that should bring a smile to you face. I think I’m going to try it and see if it works!  “Dear God, My prayer for 2012 is for a fat bank account and a thin body.  Please don’t mix these up like you did last year. AMEN!”

In one of the many personal finance blogs I read regularly, I came across an insightful but very depressing summary of what has become of our dream of retirement, and I saved it to share with you. It sums up my feelings very well.

“Remember the way retirement was supposed to work? That model depended in many cases on an employer who paid you a pension and took care of your medical bills in exchange for 30 or more years of loyalty.  That model depended on a system of affordable housing that would increase in value, little by little, year after year. That model depended on a banking and investment system that believed in a fair profit but managed to keep the most greedy and immoral members of its community under check or quickly disposed of. That model depended on a government that worked, compromised as needed, and understood that we are all in this together. To  create a nation of a few haves and a whole bunch of have-nots was in no one’s long-term interest.”

“That model has been either severely damaged, if not shattered. Certainly, there will be an increasingly large percentage of our citizens who have no real expectation of a standard retirement lifestyle. The financial meltdown has destroyed too many nest eggs and shredded too many financial plans. Working as long as possible will be essential, or even desired, by many.”

Welcome to the new “normal.”

I usually don’t comment about product introductions, but this announcement in a recent Reuters article by John D. Stoll caught my eye. A new line of premium Craftsman lawn mowers, retailing between $3,000 and $6,500, will be introduced in January 2012 at the Detroit Auto Show.

Yep, that’s right...the Detroit Auto Show. The hope is that launching the new Craftsman CTX lineup at the Detroit Auto Show will greatly increase visibility for the brand as it aims to move up-market to better take on rivals like Deere & Co., Cub Cadet and Toro Co.

Craftsman spokesperson Kris Malkoski “sees the event as a significant debut of high-end products by a brand that has largely been associated with lower-priced mowers.” The new tractors’ 8-mile-per-hour top speed is at the top of the mower industry, she added. Other features of the CTX lineup include press-button adjustments for blade height and attachments that quickly convert the mower into a hauler, aerator, sweeper or snowplow. The CTX line will be built in New York and Georgia by Briggs & Stratton and sold in Sears’ stores nationwide, starting in February.

OK, let’s review the facts again. The Craftsman CTX lineup will be introduced at the Detroit Auto Show. It will retail at more than double the price of a standard mid-range riding mower. It will have lots of bells and whistles, which apparently includes push-button electronic controls for adjustments. I suspect it will have lots of “wow factor” and attract lots of attention.  It better, at those prices.  But at the end of the day, no matter how many bells and whistles it has, it still just cuts grass. At those price points, it will be interesting to see how well they do in the marketplace.

The next time you get ready to give up and stop working to make your business successful, think about the following story:

A man walking down a narrow, twisting road spotted a guru sitting on the grass in meditation. He approached the guru and asked, “Excuse me, master, is this the road to success?”

The old man nodded silently and pointed in the direction the traveler was headed. The traveler thanked the guru and went on his way.

An hour later, the traveler returned, bleeding, exhausted, and angry. “Why did you tell me that was the road to success?” he asked the guru. “I walked that way, and right away I fell into a ditch so deep it took me almost

an hour to climb out. Why did you tell me to go that way? Was that some kind of joke?”

The guru stared at him. After a long pause, he started to speak.  “That is the road to success.  It lies just beyond the ditch.”

No. 12 December 2011

Don't ever forget the magic of Christmas! 

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T'was The Night Before Christmas by Clement Moore

T’was the night before Christmas, when all through the house
Not a creature was stirring, not even a mouse.
The stockings were hung by the chimney with care,
In hopes that St Nicholas soon would be there.

The children were nestled all snug in their beds,
While visions of sugar-plums danced in their heads.
And mamma in her ‘kerchief, and I in my cap,
Had just settled our brains for a long winter’s nap.

When out on the lawn there arose such a clatter,
I sprang from the bed to see what was the matter.
Away to the window I flew like a flash,
Tore open the shutters and threw up the sash.

The moon on the breast of the new-fallen snow
Gave the lustre of mid-day to objects below.
When, what to my wondering eyes should appear,
But a miniature sleigh, and eight tinny reindeer.

With a little old driver, so lively and quick,
I knew in a moment it must be St Nick.
More rapid than eagles his coursers they came,
And he whistled, and shouted, and called them by name!

"Now Dasher! now, Dancer! now, Prancer and Vixen!
On, Comet! On, Cupid! on, on Donner and Blitzen!
To the top of the porch! to the top of the wall!
Now dash away! Dash away! Dash away all!"

As dry leaves that before the wild hurricane fly,
When they meet with an obstacle, mount to the sky.
So up to the house-top the coursers they flew,
With the sleigh full of Toys, and St Nicholas too.

And then, in a twinkling, I heard on the roof
The prancing and pawing of each little hoof.
As I drew in my head, and was turning around,
Down the chimney St Nicholas came with a bound.

He was dressed all in fur, from his head to his foot,
And his clothes were all tarnished with ashes and soot.
A bundle of Toys he had flung on his back,
And he looked like a peddler, just opening his pack.

His eyes-how they twinkled! his dimples how merry!
His cheeks were like roses, his nose like a cherry!
His droll little mouth was drawn up like a bow,
And the beard of his chin was as white as the snow.

The stump of a pipe he held tight in his teeth,
And the smoke it encircled his head like a wreath.
He had a broad face and a little round belly,
That shook when he laughed, like a bowlful of jelly!

He was chubby and plump, a right jolly old elf,
And I laughed when I saw him, in spite of myself!
A wink of his eye and a twist of his head,
Soon gave me to know I had nothing to dread.

He spoke not a word, but went straight to his work,
And filled all the stockings, then turned with a jerk.
And laying his finger aside of his nose,
And giving a nod, up the chimney he rose!

He sprang to his sleigh, to his team gave a whistle,
And away they all flew like the down of a thistle.
But I heard him exclaim, ‘ere he drove out of sight,
"Happy Christmas to all, and to all a good-night!"