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The 2017 Cost of Doing Business Study suggests positive outlook for equipment dealers

Kansas City, MO (September 25, 2017) – Equipment Dealer Consulting, LLC, the certified public accounting firm affiliated with Western Equipment Dealers Association (WEDA), has released the 2017 Cost of Doing Business Study.

This unique research effort for equipment dealers represents the most up-to-date comparative financial performance information available anywhere. “The Cost of Doing Business study is important to the industry because it is the only financial and business operation study that includes dealers from all brands across the United States and Canada,” says John Schmeiser, CEO, WEDA. “The study is used by dealers to compare financial performance against other dealers in their region, or at comparable volume levels throughout North America.  This valuable tool provides straightforward guidelines for analyzing the profitability of equipment dealerships, thus helping dealers improve their own businesses.”

According to WEDA Chief Financial Officer Curt Kleoppel, who leads the project, “Of equal importance, especially if a dealer principal is nearing an exit from the operation, the study is used for valuations, estate planning and mergers across North America.  It is also used by our Dealer Institute trainers/consultants to establish benchmarks, comparisons and ratios for equipment dealers.”

Highlights from the 2017 Studycirculation@rdstar.sk.ca

  • Total equity percentage increased 0.71 percent from a year ago and gross profit margin percentage increased 0.6 percent from last year.
  • Total inventory as a percent of assets decreased 2.23 percent, indicating dealers are controlling their new and used inventory.

The Western Equipment Dealers Association (WEDA), in cooperation with other participating dealer associations and their members, compiles data from independent dealers who provide detailed financial and operational information for their individual businesses. This confidential information creates average income statements and balance sheets, in addition to key financial performance indicators. “The 2017 edition compiled information from 203 dealers representing approximately 672 locations. Last year, we had 230 dealerships representing 609 locations, an indication consolidation is still happening,” adds Kleoppel.

Participating associations for the 2017 edition are the Deep South Equipment Dealers Association, Far West Equipment Dealers Association, Iowa-Nebraska Equipment Dealers Association, Midwest-SouthEastern Equipment Dealers Association, Northeast Equipment Dealers Association, United Equipment Dealers Association and the Western Equipment Dealers Association.

How to Access the Study

To obtain the complete report, dealers must contact their state or regional equipment dealer association. The 2017 report has been sent free of charge to equipment dealers that provided their confidential financial reports for compilation. Non-participating dealers can purchase the results for $200 ($275 in Canada) if they are association members; the report is $450 ($525 in Canada) for non-members.

Additional Resources

For questions or to learn more about how to access the survey results, please contact Lonnie Finch, CPA, Equipment Dealer Consulting, LLC at 800-762-5616, email lfinch@westerneda.com

About Equipment Dealer Consulting, LLC

Equipment Dealer Consulting, LLC is a long-term partner of Western Equipment Dealers Association and was created to provide financial services for dealers. The accountants for Equipment Dealer Consulting, LLC have more than 90 years of combined experience in the farm, outdoor power, industrial and construction equipment businesses, as well as the hardware and building materials industries. The Equipment Dealer Consulting team members are licensed in Missouri, Kansas, Iowa, Oklahoma and Texas. They are also members of the Missouri Society of CPAs and AICPA.

About Western Equipment Dealers Association

WEDA represents more than 2,000 farm, industrial and outdoor power equipment dealers in every Canadian province with the exception of Quebec – as well as nine states in the U.S. – Alaska, Idaho, Kansas, Missouri, New Mexico, Oklahoma, Oregon, Texas and Washington.  WEDA also represents 1,250 U.S. hardware retailers in the same U.S. states plus Arkansas, Louisiana and Nebraska.  As the largest equipment dealer association in North America and the largest regional trade association of its kind in North America, WEDA offers members a comprehensive array of dealer-oriented legislative, educational and communications services, ranging from lobbying to legal, accounting and marketing support.  WEDA also provides products and services that include industry and manufacturer relations, as well as industry information and intelligence. The Association’s many programs are either available only to members or provided at a reduced cost for members. Visit https://westerneda.com for more information.