For truck dealers to survive and prosper in today's complex business world, several things must happen, according to American Truck Dealers Chairman Stanley DeVore, Jr., of Casper Truck Center, Casper, Wyo.
Dealers must be “constantly vigilant” in improving efficiencies, managing costs and going back to business basics, he said in the opening address to the 38th Annual ATD Convention and Exposition, held in Baltimore April 21-23.
Just as importantly, DeVore said, truck manufacturers must "stop changing the rules of the game. It deteriorates the level of confidence that the dealer has in his manufacturer." Plus, truck sales and customer relations and satisfaction are adversely impacted when there is no consistency with new truck marketing policies, warranty administration or financing.
Truck manufacturers "need to do all that they agreed to do," said DeVore. Dealer-manufacturer relations must become "better and more stable and predictable."
DeVore said there is no problem with dealers being asked to participate in the many programs developed by their manufacturers, provided "they truly add value and make economic sense -- make that economic common sense." But dealers shouldn't be forced to do things "just because everybody else is doing it."
By way of example, he asked: With business down and energy costs going through the roof, does it really make economic sense for a manufacturer to demand that every one of its dealers operate 24 hours a day?
The common thread between truck manufacturers and their dealers is satisfying the customer, DeVore said, and the goals of both should not work at cross-purposes.
Truck dealers "have earned the right to be respected by the manufacturer and have earned a place at the table where decisions are made that affect our operations," DeVore said. "Fiscal financial responsibility is a two-way street."
The ATD chairman called upon the manufacturers for help in developing better inventory reduction and management programs.
Further, he stressed the need for manufacturers and dealers to work together as an industry to tackle the industry’s continuing problems, such as technician and driver shortages, the high price of energy, insurance issues, consolidation and buyouts, the evolving role of the Internet and the 12% Federal Excise Tax -- which he feels is the biggest impediment to the economic recovery of all truck dealers, regardless of size or circumstance.
In concluding his remarks, DeVore acknowledged that truck dealers are indeed facing tough times. But, he said, "there’s nothing wrong with this business that a good dealer selling a good truck to a good customer who intends to pay for it won’t cure."