• Product Knowledge
• A Professional Atmosphere
• Increased Sales & Profitability
• New Products
• STIHL vs. Competitors
• Being STIHL Exclusive

MULTI-LINE VS. STIHL EXCLUSIVE

At Mississippi Valley Stihl, we look for ways to make it easier for you to become more successful. No doubt you’re already aware of the marketability and quality of STIHL. What you might not know, however, is how profitable it can be to become a single-line dealer.

Becoming a single-line dealer offers many benefits... from better overall product knowledge to increased profitability. That’s why we interviewed three multi-line dealers who became STIHL exclusive... we wanted you to hear it from them. You may find the results surprising: the fewer lines the dealers sold, the better their profitability. But these dealers didn’t stop there... they also talked about increased product knowledge, the professional atmosphere produced by a STIHL concept store, along with new products and the competition. They put it on the line... and so are we.

Product Knowledge

When asked about product knowledge, these three dealers indicated that carrying only one line makes it easier to sell because everyone is working exclusively with the STIHL family. They don’t have to represent several different lines, and that means less time spent on trying to remember the benefits of different products and more time listening to the customer and what they need.

“We’re telling our customers that we’re dedicated to one product line,” Chuck Agans of Clive Power Equipment in Clive, Iowa, said. “It’s the best line out there, and we have it. You get a customer based on which STIHL product they want, rather than which line they want. Instead of trying to discuss different lines, we’re discussing the needs of the customer all the time.”

Tim Boone, B&B Lawn Equipment in Geneseo, Illinois, agrees. “Selling STIHL exclusively also helps us reinforce the idea that everyone needs a STIHL when they don’t own one. You’re selling STIHL, you’re telling them about STIHL, you have STIHL, they buy STIHL, and they’re happy with STIHL. Overall, everyone’s happy.”

“When it comes to having parts, it’s much easier too,” Craig Profit of Knoxville Farm & Home Equpment in Knoxville, Iowa, said. “We can walk back and pull the part off the shelf, possibly fix the piece of equipment while the customer waits. That’s a tremendous asset because it proves you’re there to service them. In today’s market, you have to sell the service, and we can prove we provide it.”

A Professional Atmosphere

Chuck, Tim and Craig also say that the STIHLpro™ display helps convey a professional image, which makes the customer feel more at ease. When people walk in the store, they recognize the STIHL name and are reassured by a staff who can answer their questions. It makes them feel better about buying... and telling others to buy.

“STIHLpro™ gives us a professional attitude not only with the customer, but with ourselves,” Craig continued. “We can walk to any piece of equipment a person has a question about and physically show it to them. Before, you might have had to dig a piece of equipment out of a box because you didn’t have room to display it. Now when you talk about service and what this product is going to do versus another product, you can physically show the customer the difference.”

“Customers know we have a quality product,” Chuck said, “and they are really comfortable with that. We keep the store lighted at night and anyone driving by in front of the store sees STIHL. It’s professional looking all the time. They can see our whole lineup - it’s all right here.”

Tim added, “You have organization within the STIHL displays, your inventory and uniforms. You can provide a well-rounded, professional atmosphere for the product, and you have more space for the STIHL line. You’re not going to dedicate a whole 20 feet of wall to a product if it’s not selling. We have more than 20 feet of STIHL because the product does sell.”

Increased Sales & Profitability

All the dealers experienced sales increases and higher profit margins as the result of being STIHL exclusive. “What you have to look at is the full line of STIHL dollar volume,” Tim said. “You may be selling a chain saw with a 20% margin and then you get added sales - all of it adds to the bottom line of the sale and you’re looking at a long-term, repeat customer. We don’t see a lot of customers wanting to trade in their STIHL. They want to keep their old STIHL and add to their fleet. I don’t know if you can put a percentage on your bottom line for that.”

Craig added, “We are at about 32% margin with the STIHL line. That’s 6% higher now that we’re an exclusive STIHL dealer. We went from 202 STIHL unit sales last year, to over 400 this year. By having the STIHL display, our increase in accessories dollars has tripled, if not more.”

Chuck reported, “In the last year, while we’re all talking about an economic downturn, our STIHL sales were up 30%.”

New Products

The dealers also commented on the fact that STIHL is continually introducing new products to better meet customer demand. What’s more, Craig said, those products always sell well, too.

“We don’t have to look to find the product our customer demands,” Chuck said. “We know it’s coming from STIHL. We can do it with one line; we don’t have to look anywhere else.”

“They’re coming out with a new yard care system, which I call a multi-cultivator,” Tim continued. “I’ve not ordered any products to compete with it because that will be the only one we carry. Our confidence in STIHL is simple: We put our money where our mouth is.”

STIHL vs. Competitors

As far as the competition, according to these dealers, there really isn’t any. “The warranty is the first thing we usually start with,” Tim said. “I’ll give you an example: STIHL has a lifetime shaft warranty. They’re bold enough to say we don’t have a problem with breakage, but if you do, we’ll pay for it. There’s an issue of integrity for us: We know STIHL is the best.”

“By selling STIHL exclusively, we’ve been able to focus on one line of equipment, gain the knowledge to sell that one line, and feel confident that when we recommend something to the customer, it’s the absolute best they can have,” Chuck said.
“ We’ve been exclusive STIHL dealers for about two years,” Craig added. “We carried other brands before that, but they always took a backseat to STIHL.”

Being STIHL Exclusive

Better product knowledge, a more professional atmosphere, along with increased sales and profitability - these are some of the direct benefits of becoming STIHL exclusive, but there are others too.

“The advantage of being an exclusive STIHL dealer is product knowledge, service and it’s fun,” Craig said. “When someone walks in your store and you ask if you can help, and they say, ‘not really,’ and you say, ‘Well, how about I just answer questions for you?’ Then five minutes later, they buy the product because you know the product. That’s fun! I’m impressed with the quality of STIHL equipment, and that’s why I’m a STIHL exclusive dealer.”

“I think being STIHL exclusive has to be a major positive for any dealer in the business,” Chuck said. “You’re going with the best name in the industry. It’s something people understand, and our customers know we are focused on one product line and don’t get distracted with anything else.”

Tim added that MVS offers some of the best support in the industry. “I highly recommend being a STIHL exclusive dealer for professionalism, organization and the bottom line,” he said. “You’re going to write one check to a company with excellent integrity. They’re not selling themselves out to discount stores. The STIHL name is built on a reputation based on a superior product, performance and reliability. They’re looking at the Big Picture for the independent dealer.”