Based on the primary objective of dealerships with their precision farm- ing operations, it’s not surprising that today, precision hardware sales gener- ate the most revenue in this segment. Respondents say 62% of preci- sion income comes through hardware sales. Products like GPS and auto- steer systems provide tangible pay- backs for customers and many dealers view them as “standard” equipment for customers. However, dealers are beginning to tap into more abstract offerings for customers, but they are not yet a con- sistent source of revenue.
Precision service (13.7%), software sales (12.3%), signal subscriptions (6.7%) and data management (0.8%) are less common profit centers and in- dicate that dealers are only beginning to explore new areas of profitability, beyond precision hardware sales.
Precision Revenue Breakdown
Additional Areas: 12% [Signal Subscriptions, Data Management, Other]
est portion of dealers’ precision staff, at 33.9%, followed by service staff (26.0%), other (25.2%) and parts de- partment (14.9%).
The fact that more than a quarter of respondents classified their precision staff as “other” is telling. Many deal- erships tell us they struggle to define singular roles for precision hires, or simply can’t afford to at this point. One of the challenges dealerships
face is the ability to find qualified help in order to maintain or expand preci- sion offerings. “We’re trying to get at least one pre- cision farming specialist in each of our ag locations,” notes one dealer from Pennsylvania. “We’re currently work- ing on hiring already qualified techni- cians and also ways to recruit young employees to help grow our depart- ment long-term.”
Software Sales: 12.3%
Service/Support: 13.7%
Hardware Sales: 62%
Precision hardware sales boost the bottom line for dealerships and most are only beginning to explore revenue through data management service or software sales.
A Structured Approach
While most respondents report only 1-2 employees working their preci- sion farming operations, the majority also note that those technicians service more than 100 farms. Currently, preci- sion farming specialists often play sev- eral roles within a dealership. Salespeople account for the larg-
ACI Distributors • St Charles MO • 800- 237-0562 •
www.acidist.com
Cummings & Bricker • Batavia NY / Carlisle PA • 800-252-1552 / 800-222-8969
www.cummingsandbricker.com
Edney Distributing • Lakeville MN • 888-443-3639 •
www.edneyco.com Ellis Equipment • Logan UT • 800-949-2336 •
www.ellisequipment.com
PRECISIONFARMINGDEALER.COM ••••• 2013 009
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