Value Added Proposition - 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
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SECTION: On the Numbers

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Value Added Proposition

By Garry Bartecki

Article Date: 09-01-2008
Copyright(C) 2008 Associated Equipment Distributors. All Rights Reserved.

Wondering if AED is focused enough on your business? As a matter of fact, it's all about you.

I make contact with numerous members – dealers and manufacturers – each and every year and have listened to the argument that “AED is geared toward small dealers,” and then a day later that “AED is geared to large dealers.” In both cases people are inferring that AED is not doing enough for their market segment. In my mind, both sides are in error.AED management and Board members are well aware of the membership makeup and understand the need to meet the expectations on both sides of the aisle. What perhaps we don’t do well is make known the value added benefits available to all members – dealers with volume of $25 million and under and dealers over $25 million in volume. I personally have seen shifts in dealers’ participation from both ends of the dealer population. Small dealers are calling with more questions and asking for help in many areas. Where we can’t answer the questions ourselves we make it a point to find a source or two to help out. On the other hand, large dealers are participating in more programs and seek input about sophisticated tax or accounting areas, or seek input about the status of pending legislation. But no matter how you look at it, AED is providing services to dealers of every size. Dealers without  a full complement of experienced executives need more hands-on help with accounting and benchmarking formulas, have operational questions, have financing needs, would like to keep professional fees to a minimum, and in general have to find ways to educate their employees to help drive superior dealer results. These may be the $25 million and under – or not; but in most cases they are the smaller-sized dealer members. From their standpoint, AED is an immense resource, and I am not sure they know it. Larger dealers with a full contingent of “C-level” executives (CEO, COO, CFO, CIO, etc.) have different needs. In a lot of cases these companies represent a single line and provide internal training, get manufacturer training and use outside training as needs arise. They do, however, have a greater interest in what is going on in Washington and where they are spending our money. Death taxes, incomes taxes and tax incentives are also of importance to this group. While this group can get a lot of information from internal sources there are still special industry issues where they find more input is required. For this group, AED meets these needs through its Washington office and offers the types of programs this group is likely to attend. To make this concept clearer I have broken down AED’s value added benefits into three categories: general benefits, benefits for smaller dealers and benefits for larger dealers. I’m sure you can add or delete some or move them around, but no matter what you do, you will wind up with a pretty convincing “Value Added” proposition associated with AED membership – if you use them and if you participate.General Benefits for All Members
  • Industry advocacy
  • General and department training
  • Monitor federal funding
  • Public policy intervention
  • Technician development programs
  • Promote tax incentives for purchasing equipment
  • IRS intervention on industry specific tax issues
  • Benchmarking statistics
  • Industry statistics
  • Networking opportunities
  • Dealer/manufacturer relationships
  • Industry/economic analysis
  • Tax audit support
 Small-Sized Dealerships
  • Training to cover all aspects of the business
  • Accounting assistance
  • Tax compliance assistance
  • Benchmarking reports
  • Profit planning models
  • Planning resource
  • Continual profit improvement ideas
  • Survey preparation assistance
Large-Sized Dealerships
  • Specialized training
  • Sophisticated tax issues
  • New accounting pronouncements
  • International accounting
  • Ownership transition options
This isn’t just lip service. It’s the real deal, in case you needed a reminder.
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