Step One Of The New CODB Is Complete - On the Numbers
Construction Equipment Distribution magazine is published by the Associated Equipment Distributors, a nonprofit trade association founded in 1919, whose membership is primarily comprised of the leading equipment dealerships and rental companies in the U.S. and Canada. AED membership also includes equipment manufacturers and industry-service firms. CED magazine has been published continuously since 1920. Associated Equipment Distributors
Home         About Us         Media Kit         Subscribe         Previous Issues         Search Articles         Meet the Staff        AED Homepage

CED Menu

Arrow Home
Arrow About Us
Arrow Media Kit
Arrow Digital Subscription
Arrow Search Articles
Arrow Meet the Staff
Arrow Trade Press Info
Arrow AEDNews



Premium Sponsor:
Infor

SECTION: On the Numbers

Questions or feedback?
Contact Kim Phelan at (800) 388-0650 ext. 340.


Step One Of The New CODB Is Complete

Written By Garry Bartecki

Article Date: 07-01-2004
Copyright (C) 2004 Associated Equipment Distributors. All Rights Reserved.


Now we start the job of improving it further, and we could use your help.

As I am sure you know, AED and I have spent a lot of time and effort developing new tools to help dealers improve profit and cash flow – the new Cost of Doing Business Report, The Expanded Profit Planning Model, the Business Segment Analysis Report, new Self-Study Programs, Management Certification Programs, to name a few. In my travels, I see a lot of these types of offerings, and I can honestly report AED offers one of the best programs available to its members. However, as a business owner or manager, are you taking full advantage of the opportunities available to you? Do you want to make more profit? Would you like to improve cash flow? Would you love to get the banks off your back? Would you like to have all your managers know what it takes to make a maximum contribution to your business? Would you like to have cost-effective industry-specific education for your employees? Those are silly questions, because every CEO wants those things. At the same time, I recognize you are being pulled in 20 different directions to spend your time and training dollars. Your vendors want your time and dollars. Your customers want your time. Suppliers are all over you for your business. Still, please remember AED’s offerings are industry-specific, current, and cost-effective. My point being, maybe it’s time you carved out an hour or so to review what AED offers and how you can best use it. Especially now, when business is picking up.. I am personally involved with the new CODB report. I believe the CODB committee did a terrific job of making this report much more informative, with more information to support management decisions and planning. With the ability to compare your operation many different ways, analyze each department, use the profit-planning model to analyze changes in your business strategy, and compare performance to the region you work in, the new CODB will provide an important tool for your management team. On the other hand, we have more work to do to get more members to participate. Too many of you said, “I’ll just buy one.” I assume you plan to do the work internally to create the comparisons the report offers. The CODB survey was more demanding to complete, but not very much. If you compare the input required to a prior input survey, you’ll find it’s not much different. And, if you really think about it, nothing was asked that you shouldn’t be asking yourselves in your management meetings. If you’re not, all the more reason to participate. Some of you said you had too many surveys to complete. That may be true and we should do something about that. But being able to compare your operations to others in the industry may be more important than what you prepare for vendors. To make completing the CODB survey easier we are considering:
  • Providing the survey to industry system vendors and asking them to program the financial information so it prepares the survey for you. Our initial response from vendors is encouraging. Whether they can do this as part of their existing contracts or need to pass the programming costs on to customers is still up in the air.
  • Working with dealers who need assistance to complete the survey for a nominal charge. Dealers would need to complete all the demographic information required and submit financial statements as required. We would complete the survey and return it for your review and submission to Profit Planning Group.
Have your dealer council provide input about any changes they would like to see in the report to comply with vendor requirements. If the changes are meaningful, we will make them. If they are vendor specific, Profit Planning Group may be able to provide assistance. We believe we can make this process more efficient if we work together to make it happen. Help us out if you can; it will be a win-win for all parties concerned. Excerpted from August 2004 Construction Equipment Distribution. To subscribe, CLICK HERE.
[ TOP ]