The official OPE daycare thread

[Loony661]

Here is a "productive" post for ya. Stihl as a company sucks but some as some far up their bung hole they cannot see the light of day. Thursday I phoned what is supposed to be a Stihl dealer. I needed a drum for a 044 which should be a stocked part. It was 4:15PM and the small engine guy was gone. The manager called be back and basically said we don't stock parts.

That’s not Stihl’s problem, that’s that individual dealer’s problem. If they don’t want to make money, they can choose to not stock parts, unfortunately.

 

[Bill G]

That’s not Stihl’s problem, that’s that individual dealer’s problem. If they don’t want to make money, they can choose to not stock parts, unfortunately.

It is 100% Stihl's problem. They are the ones that forced real dealers out of business by sleeping with Deere and box stores

 

[Loony661]

It is 100% Stihl's problem. They are the ones that forced real dealers out of business by sleeping with Deere and box stores

I see your stance on that subject, as you’ve stated it several times, however I disagree somewhat. Here’s why: if an existing dealer had an established clientele and great service, they needn’t be worried about losing a few saw/trimmer sales to the Deere dealer across town. Sales offer very little margin to begin with (20%). Where a Stihl dealer makes their money is in parts sales. Especially chain. Chain is tiered based on how much is ordered. When I was managing a Stihl dealer, I was in the second-best tier for my chain margin, and we were making 40% on all chain. Oil and MotoMix was another tiered product for increased margins. We ordered pallets of oil several times a year and were making a lot of money from the sales.. What I’m getting at is, if a mom and pop dealer doesn’t want to carry parts, or buy in bulk to increase their profits (all it takes is a little storage space and some planning) then they are their own enemy when it comes to making profit as a dealer. It takes money to make money is best used here. Does it cost a lot to buy bulk upfront? Yes, but it costs less overall, and always includes free shipping. The only mom and pop shops that should have been worried about Deere carrying Stihl as a side-line, were the ones who were already failing to provide adequate parts and service at the time. A green (pun intended) Deere dealer now carrying Stihl was not going take over all those years of dedicated service to the area, unless it was lacking to begin with.

 

[Bill G]

I see your stance on that subject, as you’ve stated it several times, however I disagree somewhat. Here’s why: if an existing dealer had an established clientele and great service, they needn’t be worried about losing a few saw/trimmer sales to the Deere dealer across town. Sales offer very little margin to begin with (20%). Where a Stihl dealer makes their money is in parts sales. Especially chain. Chain is tiered based on how much is ordered. When I was managing a Stihl dealer, I was in the second-best tier for my chain margin, and we were making 40% on all chain. Oil and MotoMix was another tiered product for increased margins. We ordered pallets of oil several times a year and were making a lot of money from the sales.. What I’m getting at is, if a mom and pop dealer doesn’t want to carry parts, or buy in bulk to increase their profits (all it takes is a little storage space and some planning) then they are their own enemy when it comes to making profit as a dealer. It takes money to make money is best used here. Does it cost a lot to buy bulk upfront? Yes, but it costs less overall, and always includes free shipping. The only mom and pop shops that should have been worried about Deere carrying Stihl as a side-line, were the ones who were already failing to provide adequate parts and service at the time. A green (pun intended) Deere dealer now carrying Stihl was not going take over all those years of dedicated service to the area, unless it was lacking to begin with.

When you worked for Stihl what was the lineal shelf space they required?

 

[Loony661]

When you worked for Stihl what was the lineal shelf space they required?

I had 41 feet on 1 wall. They have since added stand alone shelves since I left.

 

[Bill G]

I had 41 feet on 1 wall. They have since added stand alone shelves since I left.

Do you know how much they require of dealers today?

 

[Loony661]

Do you know how much they require of dealers today?

I do not.

I do know, that before I left the dealership, the owner was looking ahead to retirement. We had a couple serious meetings about me buying the Stihl dealership from him, and him selling off the rest of his business to someone else. I wanted to do it, Stihl wanted me to do it, the problem was that even with the volume of sales and service we had, it wouldn’t provide enough income for me annually. I would also have to buy into and carry a lawn mower brand and snowblower brand, etc to keep steady income coming in seasonally throughout the year. I was selling over 400 new Stihl power units annually. Our service was excellent and we had great commercial accounts, as well as many repeat homeowners.. If I would have bought it, I would have made it even bigger. More saws, trimmers, etc. Nothing on our shelves sat for long.

 

[Bill G]

Well here is one of the many problems. Stihl requires dealers to devote a certain amount of lineal feet to Stihl products. It seems that amount goes up each year. In addition as you well know you are required to purchase the shelving and displays from them. If your store looks like this...........


Or this........


You can devote the lineal feet to it. If your store has 1200 square feet of showroom you cannot.

 

[Loony661]

Well here is one of the many problems. Stihl requires dealers to devote a certain amount of lineal feet to Stihl products. It seems that amount goes up each year. In addition as you well know you are required to purchase the shelving and displays from them. If your store looks like this...........

View attachment 428320
Or this........

View attachment 428321
You can devote the lineal feet to it. If your store has 1200 square feet of showroom you cannot.

You’re not wrong. I would say to that: you’re either growing or falling behind.

I know a lot of the mom and pop shops are small - there’s one that just closed up the river from me (2nd generation dealership) that was run out of a garage, and you could see into the owners bedroom if the door was left open.

In understand space can be limited for growth, and Stihl worked with the dealers around here that were already busting at the seams. Keep in mind, although they were small, they will killing it with high volume sales and great service.

 

[Bill G]

You’re not wrong. I would say to that: you’re either growing or falling behind.

I know a lot of the mom and pop shops are small - there’s one that just closed up the river from me (2nd generation dealership) that was run out of a garage, and you could see into the owners bedroom if the door was left open.

In understand space can be limited for growth, and Stihl worked with the dealers around here that were already busting at the seams. Keep in mind, although they were small, they will killing it with high volume sales and great service.

And where are those dealers now?

 

[Loony661]

And where are those dealers now?

The one I referenced that closed was because the owner got cancer and retired early. The others are still kickin.

 

[Bill G]

The one I referenced that closed was because the owner got cancer and retired early. The others are still kickin.

So Stihl is allowing them to operate without the mandated linear feet of display?

 

[Bill G]

 

[Loony661]

So Stihl is allowing them to operate without the mandated linear feet of display?

Yes.

I know of one locally that has about 4 trimmers displayed and a couple saws. Only about 8 ft of stihl display in his shop. He’s still a dealer. We got to talking about it one day when no one else was around, and he’s allowed to stay a dealer, he’s just in the last (worst) tier for margin on everything he orders. And he also has to pay shipping on every order. He’s basically not making more than pennies keeping Stihl. But, it still brings him business.

 

[Bill G]

Who is your distributor?

 

[LAWN BOY]

Been working quite a bit. Spent almost all day yesterday tearing siding off of an old farmhouse that we are remodeling that my boss is going to rent out. I have tomorrow off work. My grandma and I might go to the fair. I’m sending my Makita 520i off to be ported soon by s&s worksaws for free.

 

[Bill G]

Been working quite a bit. Spent almost all day yesterday tearing siding off of an old farmhouse that we are remodeling that my boss is going to rent out. I have tomorrow off work. My grandma and I might go to the fair. I’m sending my Makita 520i off to be ported soon by s&s worksaws for free.

Well there you go! That is a great opportunity for you.

 

[LAWN BOY]

Well there you go! That is a great opportunity for you.

My mom wants me to ask about the details of the rental on Friday, yeah.

 

[LAWN BOY]

Yesterday evening at work I got stung by ground hornets 1-3 times, but kept working weed whacking fencelines for a few for hours anyways. It swelled up but not crazy. This morning my left hand and arm are in pain and swelled up crazy. I can’t even use my left hand. I’ve been stung many times before and nothing like this happened.

 

[Powerstroke Cowboy]

That's not good. Must be allergic to them.

Did they leave their stingers in your arm?