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Kubota Dealer Management Groups What is a KDMG?
Kubota Dealer Management Groups What is a KDMG? KDMG Meetings ! Up to 8 Dealers with Common Objectives ! Groups Meet Twice Annually ! Forum to Share, Learn and Participate in Business Improvement ! Winter meeting is held in a neutral (Warm) Destination ! A Confidential Environment to Express Ideas and Gain Peer Feedback ! Summer meetings are hosted by Member Dealership (rotates) ! A Peer “Board of Directors”, to Help Define and Guide Goals ! Web Conference Meetings periodically as required ! Sample Meeting Topics !• Improving Service Department Performance !• Employee Compensation & Performance Evaluations !• Absorption Rate and Benchmarks !• Parts Margins, Turns and Fill Rates !• Organizational Growth !• Margins (What should they be?) !• Advertising (Budget allocation, Proven media) !• Best Management Practices !• Communication between Departments !• Staff Recruiting / Retention Kubota Dealer Management Groups What are the Benefits of Joining a KDMG? • Profitable Sales Growth! ! • New and Used Wholegoods Optimized Margins and Asset Turnover • Disciplined Appraisals, Trading and Buying Used Equipment • Market Trends and Insights • Marketing, Advertising and Promotions • Competitive Market Share improvement • After-Market Services • Improved Parts Fill and Turnover Ratios !• Service Billing Efficiency !• Increased Absorption Ratio to Cover Operations • Financial Benchmarks and Operational Improvements • Group Benchmarks and KPI’s • Return on Investment and Assets • Gross Margin per Employee • Peer Accountability • Comparative Review – Group and National • Management and Staff Development! • Compensation/Commissions Plans/Wage Surveys !• Employee Retention/Recruiting! • Team Building (5 Dysfunctions)! • Personality Profiling (Meyers Briggs, DISC, etc) Which other dealers will be in my Group? !• Initial group proposed for approval - based upon dealer profile and objectives !• No neighboring or directly competitive dealerships in the same KDMG !• New dealers added to existing KDMG Dealer Commitment !• Members must commit to attending all meetings (if at all possible) !• Provisions will be made to join by Web conference (if needed) !• Dealer Principal must be primary sponsor attending at least one mtg / year !• Responsible for fees and share of meeting cost even if not in attendance !• Accountable to other dealers in the group ! Kubota Dealer Management Groups Departmental Benchmarks, Ratios & KPI’s ! Benchmarks developed by KDMG members specifically for Kubota Dealers !• Gross Margin – New, Used, Parts !• Gross Margin generated per Employee • Compensation – Wages & Commission !• Return on Equity (ROE/ROI) !• Current Ratio – Leverage at Bank • New & Used WG Inventory Turnover !• Parts Turnover & Zero Sales Parts !• Parts Fill & Stock Order Participation • Absorption Rate of Parts/Service GM !• Service Billing Efficiency & Recovery! ! Financial Comparative Analysis ! Confidential ! Normalized Format ! Compare your Performance to KDMG and N.A. Average Manager/Facilitator Kubota Dealer Management Groups ! Merlyn’s career has been dedicated to the equipment industry. As a former equipment dealer he has experienced many of the challenges facing dealers today. His enthusiasm for used equipment marketing and technology, together with a strong agricultural and dealership background led to the creation of the Official Guides and the formation of IRON Solutions. Through his dedication and desire to assist dealers become more profitable our industry has witnessed the development of many new and innovative products. Much of this is centered on sales tools for CRM and the management, valuation and marketing of equipment inventory. Over the past 20 years Merlyn has visited with dealers at dealerships and conferences across North America and globally. Challenges and issues that he once felt his dealership faced alone, were common across all lines of brand color and geography. Merlyn has presented many seminars focused on Profitable Sales Growth, Optimizing Margins and Turnover, Appraising, Buying and Trading Used Equipment. As an entrepreneur Merlyn has built several companies based on vision, trust and hard work. He believes by building a team, which is focused on these values, and who are dedicated to exceptional customer service, that every dealer can achieve their desired success. Merlyn is pleased to work together with Kubota Canada in the development of Dealer Management Groups with a goal of improved operational performance. Dealers’ participating, sharing and working together in a KDMG have witnessed the positive impact in their operations. Meeting together with peers can be very rewarding for dealers and key personnel as we draw on the experience of every KDMG member. As founder and minor shareholder, Merlyn continues to serve on the board of IRON Solutions, Inc. He also serves as vice-chairman of his local church board. Over the past 35 years Merlyn and his wife Elna have raised three grown sons and are new grandparents. Contact: Central Communications Corp. PO Box 1082 311 Willow Place Outlook, SK S0L 2N0 Phone Fax Email Website (306) 867-7097 (866) 459-6687 merlyn@centralcorp.com http://www.centralcorp.com Kubota Dealer Management Group Signup Form Primary Contact _______________________________________ Position ________________ Dealership ________________________________________________________________ Address ________________________________________________________________ City/Town ________________________ Prov Phone ________________________ Email ________________________________ 1. Number of Locations operated? ___________ PC ________________ _______ _____ Single Store $500 Initial Fee $1,800 Annually ($900 semi-annually) _____ Multi-store $800 Initial Fee $3,000 Annually ($1,500 semi-annually) 2. Key Managers who may participate in meetings – Name Position ___________________________________ ______________________________________ ___________________________________ ______________________________________ ___________________________________ ______________________________________ ___________________________________ ______________________________________ 3. I agree to be bound by the Terms and Conditions of Membership as defined in the Agreement adopted by the majority of the members of the Management Group, including a. Member Responsibilities b. Member Code of Conduct c. Group Sharing of Information d. Confidentiality of Group Discussion e. No Anti-competition Activities f. Policies and Procedures 4. I agree to attend Group Meetings (if at all possible) or have someone from my dealership represent our group membership and shall assume my portion of the Groupʼs shared meeting expenses, whether I attend or not. Name _______________________________ (Please print) Signature _______________________________ Return to: Central Communications Corp. PO Box 1082 Outlook, SK S0L 2N0 Date _________________ Fax to: (866) 459-6687 (toll free) Kubota Dealer Management Groups Profile Questionnaire Dealership Name! ___________________________________________________________________ Address! ___________________________________________________________________ City/Town ! ________________________! Prov! Phone! ________________________! Email! ___________________________________ Contact Name! ___________________________________________! Position _______________ ___________! PC ! __________________ 1. Are you currently or have you ever been involved in a dealer 20 group? (If yes, please explain) 2. ! ! ! How many locations do you currently operate? _______ (please list) _________________________! ! __________________________! _________________________! ! __________________________! _________________________! ! __________________________! 3. ! ! ! In addition to Kubota what lines do you carry? _________________________! ! __________________________! _________________________! ! __________________________! _________________________! ! __________________________! 4. Description of Facilities – (sq ft, showroom, parts, service, storage, lot) 5. ! ! ! ! ! How many employees do you currently have? a.! Sales b.! Parts c.! Service d.! Admin/Accounting e.! Other 6. ! ! ! ! ! ! ! ! ! ! ! Key Personnel (please list names) a.! Partner(s)! ! ! __________________________ ! _________________________! __________________________ b.! Store Manager(s)! ! __________________________ ! _________________________! __________________________ c.! Sales Manager! ! ! __________________________ d.! Parts Manager! ! ! __________________________ e.! Service Manager! ! __________________________ f.! Accountant/Controller! ! __________________________ g.! Other! ! ! ! __________________________ ! _________________________! __________________________ ! _________________________! __________________________ Kubota Dealer Management Groups - Profile Questionnaire ! 1 7. What Business System do you use? 8. What month is your fiscal yearend? 9. ! ! ! What are your current sales and growth objectives? ! ! ! ! ! Current!! a.! Sales Volume ! i.! New! ! $! ! ! ! $ ! ! ii.! Used! ! $! ! ! $ ! ! iii.! Rental! ! $! ! ! $ ! b.! Parts! ! ! $! ! ! $ ! c.! Service!! ! $! ! ! $ ! ! d.! ! Overall Profitability! (EBITDA Before Tax) $! ! ! $ 10. ! Goal What are your biggest issues or obstacles to growth/performance? (please explain in space provided) ! a.! Sales Dept ! b.! Product Availability ! c.! Market share ! d.! Parts Dept ! e.! Marketing/Advertising/Promotion ! f.! Service Dept ! g.! Warranty ! h.! Customer satisfaction ! i.! HR/Staffing ! j.! Compensation plans ! k.! Administrative/Accounting ! l.! Currency exchange Kubota Dealer Management Groups - Profile Questionnaire ! 2 ! m.! Technology ! n.! Available capital ! o.! Legislative ! p.! Succession planning ! q.! Other 11. Where do you see yourself and your company in 5 years? 12. How supportive is Kubota of your growth objectives? Or what support would you like? 13. ! ! ! ! ! As you consider joining a Dealer Management Group a. ! What type of Group would you like to be part of? ! ____ Similar size! ! ! ____ Similar other lines/products ! ____ Aggressive! ! ! ____ Multi-store ! ____ Good mix/variety! ! ! ____ Doesnʼt matter ! ____ Other _____________________ ! b.! What are the top 3 things you would expect/like to gain? ! ! i.! ! ! ii.! ! ! iii.! ! c.! What questions, concerns or reservations do you have? ! ! i.! ! ! ii.! ! ! iii.! Please return completed form to:! ! ! ! ! ! ! ! ! ! ! Central Communications Corp PO Box 910, Outlook, SK S0L2N0 Fax: (866) 459-6687 Kubota Dealer Management Groups - Profile Questionnaire ! 3
