field notes IOWA
SiGNS of A reBoUNd iN WHOLE GOOD SALES
TOM JUNGE, Iowa Field Director [
tomj@ineda.com]
The results are in! First, let’s take a moment to celebrate the good news – new equipment sales were up 2.8% and used equipment sales were up 22.8% for the first quarter of 2017 compared to the first quarter of 2016, according to the 2017 State of the Ag Industry (IA-NE) survey results. Total dealership sales were also up 7.5%.
Most firms in iowa and Nebraska might question these results though, because for the first time since the sur- vey was conducted there was a large disparity among multi-store and single store performances. For example, only 29% of the firms that reported showed positive results for new equipment sales; while 41.9% reported positive results for used equipment sales. However, due to the number of locations these firms represented, total sales of new and used equipment showed an increase. Based on the number of store locations, new equipment sales were up at 52.9% of the locations and 65.5% for used equipment sales.
Since the Association first started conducting this survey, data submitted by members was weighted based on the number of store locations the reporting dealer operated. This method provided the most accurate number when looking at percentage changes in total dollar sales for the two states. In the past, weighting by number of stores has had very little impact on the final results.
So believe it or not, whole good sales are up. While one can over analyze why the results are what they are, let’s just accept that the results were positive. Hopefully the next survey will reinforce this positive step forward.
Parts & Service Sales once again, the bright spots are in parts and service sales. Both showed modest gains.
Equipment Inventories
Used equipment inventory continues to fall with double digit declines. New equipment inventory declines were less modest.
Used Equipment Auction Values
Another sign of a positive change is that nearly 2/3 of the dealers feel auction prices for ag equipment have hit a low.
For more specific numbers regarding the state of the ag industry, remember to participate in the next survey this July. iowa SALES TAX spotlight
Q: A:
Do we charge sales tax on diesel exhaust fluid (DEF)? Yes, it is treated the same as oil and lubricants.
8 | The Retailer Magazine | May/June
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