Distribution headwinds
Improve productivity and reduce costs. Those are the deliverables promised my just about 100% of the ads you read regarding both warehouse space and manufacturing floors. The scary part is that these rewards result from robotics, a lower headcount, and a specific claim to reduce equipment Cap X by $200000 to $400000. Great results for the distribution centers and manufacturers, but not so great for the material handling dealers since...
Buy-Lease-Rent Financing status: You better sit down for this
At this time in our economic lives this topic has a lot of pros and cons to consider before deciding what dealers need to do, what customers want to do and how dealers need to assist customers meet their goals using proper financial options. When we consider the three variables involved (buy-rent-lease)…. the pandemic equipment pricing for both new and used equipment…..interest rates along with new bank loan agreements and...
Internal audit
Back in the good old days I used to spend a lot of my professional life auditing equipment dealers and construction companies. Also did a lot of franchise work, which kind of ties in with the OEM-Dealer relationships. I was always fascinated with the full-service equipment dealers because of all the departments they had to manage to make the dealership work, keep the OEM and banks happy while also keeping the customer’s coming back. I...
Getting closer
I am sitting at my computer on May 14 wondering if my T Bills will be worth anything two weeks from now. I must tell you, on a financial front, we are in deep Dudu if we default on our debts. WHAT A MESS. And if I get bored, I run to YouTube to see what I can find out about where the EV (Electric Vehicle) vs ICE (Internal Combustible Engine) debate stands. Came across one program that was pretty good where they compared EV total cost...
Balance sheet Part 2
There is no doubt that Balance Sheet Management needs to be a top priority for Dealer Management. Dealers have a lot of money tied up in the Balance Sheet and with current economic and industry dynamics changing it will be imperative that Dealers be able to convert Balance Sheet Assets into CASH. Sounds like another MTM conversation but it is not. I have been doing my normal economic daily review which entails about 100 email sources...
Are you prepared to talk MTM to your banker?
Hey, let’s talk MTM, otherwise, known as Mark to Market. You will soon become very familiar with this phrase. Especially if you are renewing your banking arrangements or are looking for a new loan or loans for 23 and beyond. How about we see if your banker has a sense of humor? When he/she asks for your latest Balance Sheet, how about your ask to see the bank’s Balance Sheet to see if they are liquid and will be able to process...
A Winner or a Loser?
I spend hours on a daily basis reading and listening to information regarding the equipment industries, rental industries, and the economy in general. Summing up all that has transpired and presented to me by various sources since the beginning of the year have provided me with enough to write a book about. But don’t worry, we will cover the major points in this month’s contribution to MHW. I decided on the Winner/Looser title after...
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