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REAL ISSUES. REAL ANSWERS: The Future of The Independent Dealer

“Independent dealers that adapt, and do the things that large pro dealers and box stores are unwilling or unable to do, will survive and prosper.”


“Strong independents will adapt to grow market share and margins. Those with poor/unresponsive management will be fodder for buy-outs.”


“The role of the independent dealer will change very little. We’ve always had to fend off the ‘big boys.’ Regardless of how many of them there are in our market, buying positions and best practices haven’t changed. Good business sense is still the key. For those who buy it right, sell it right (service), and treat their people right, these ideals will determine each independent dealers’ success or failure.”

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“Larger independents will almost certainly continue to consolidate.”


“From my view, most independents are family-owned, and not as many family members are interested in taking over the business. I still see independent dealers growing, but that growth is primarily from buying out other independents.”


“I’m a third-generation operator with 42 years of experience, and there’s still ‘juice in the orange.’ This M&A trend will continue strong for awhile. Region, location and demographics as always will continue to determine winners and losers. As independents, we do have the ability to do things better than those ‘other guys’.”

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“Bleak.”


“We are in a rural area. I can count 20+ dealers in a 50-mile radius of us that have closed in the last 20 years. Their closing has allowed us to expand our market area. Customers often ask me to come to their town and open a store. When they do, I tell them that I can deliver to their area cheaper than I can run another store. I think we will see a trend toward larger regional dealers with expanded service areas, as many small rural towns cannot support a dealer with the sales required to keep the doors open.”


“A lot of people do not like to deal with the bigger stores so they come to the independents to get their answers. Provided we are staffed correctly with knowledgeable people, there’s no question that the future of independents is still strong.”

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“The future can be bright if your company is right-sized for the market it seeks. Even with significant consolidation both upstream and downstream from the dealer level, there remains a market segment that both appreciates and needs a partner that places customer needs before shareholder wants. Independents can best fill that spot, because they must.”

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