Resonant Dealer Services was established in 2013 for the purpose of assisting equipment dealers with the challenges and opportunities that exist in the arena of aftermarket support.
Dealers in the equipment industry tend to be “sales-centric” in their approach to the market place, and dealer principals tend to view their organizations as “Sales” organizations, that “service what they sell”. The sales department is the focus of the organization. Most of the management focus, time, energy, resources, and advertising are reserved for the purpose of building a dealer brand around the PRODUCTS that they represent. Parts and service departments SUPPORT THE SALES PROCESS, but generally are not designed to be the centerpiece of the dealer value offering. This culture is further entrenched by the fact that a vast majority of dealer principals entered the industry through either the sales or finance departments.
This has been the standard mode of operation for most dealers for more than 80 years. As little as 20 years ago, this business model was supported by sufficient sales department profitability. Times and market conditions however have changed significantly. As the industry matures, and the equipment based value propositions between brands narrows, very few if any sales departments have the luxury of self-sufficiency, let alone significant profitability.
The financial facts show, that since the 1980’s most dealerships have depended on their aftermarket departments to keep them profitable. KPI’s like “absorption”, “effective billing rate”, “labor utilization”, and “inventory efficiency” have played a larger and larger role in ensuring operational solvency.
Industry culture however is a difficult thing to change. Dealers remain unwilling to redeploy resources into the aftermarket segment of their business, because they either “don’t know how” or don’t believe that they can gain significant or sustainable ROI from such measures.
Resonant Dealer Services assists dealers with this necessary shift. The custom designed programs that RDS can install in any dealership, help dealers to fabricate the same type of aftermarket accountability and reporting structures they have in their sales departments.
RDS programs enlist and empower ALL aftermarket employees to GROW REVENUES and PROFITS (yes, EVERYONE is a salesman!). With these programs in place, the dealership begins not only to enhance its profitability, but also to “re-image” itself from a “Sales Organization That Services What It Sells” to an “Integrated Solutions Provider”.
With a refocused culture, the dealer becomes less dependent on the OEM, because the value of the dealer offering is NOW focused on the dealership’s PEOPLE, instead of the dealership’s PRODUCTS. With the motivations and intentions of the OEM’s in a constant state of change, RDS programs are needed more than ever to secure the future of dealer organizations.
Proud member and contributor to MHEDA!