Beyond Sales: Evolution Of Construction Equipment Dealerships

Construction equipment dealerships are facing a whole new set of challenges with rapid advancements in tech. Those days are long gone when the dealerships used to simply sell equipment, parts and repair services. They are beyond sales and are evolving in how they deal with their customers. Apart from all the success and revenues they made, it is still a very overlooked debate to look at how challenges could be overcome. Things are getting smarter due to the inclusion of technologies, further reforming the dealership businesses.

What actually forcing them to transform?

In the equipment dealership business, the major thing that influences the most is customer demand. In the last few years, people have started focusing religiously on sustainability and eco-friendly machines that release less or zero emissions. The shift in customer demand has mainly fueled and agitated the equipment dealers to transform their machines and their way of dealing.

Mark Hogg, director of construction industries at CAT dealer says “Instead of just selling the equipment, dealerships are becoming more of a whole-life service and solutions provider for our customers.”

Not only are the environmental concerns fueling the change in dealership businesses but inflation is another major contributing factor. The high mortgage rates in equipment financing and rising fuel prices have also forced customers to shift to electric equipment that is comparatively less expensive and uses less fuel to run.

Despite opting for eco-friendly and cost-effective machines, people are not convinced to compromise on efficiency. This has made the situation even more difficult as bringing everything to the table at once is quite unreal. However, the OEMs are trying their best to meet the consumer demands and support the local dealerships to sustain in this tough situation.

Technological incorporation 

With each passing day, a new tech evolution is introduced in the heavy equipment making it more user-friendly and sustainable. However, the dealership now comes under pressure as their older inventory isn’t cleared now and the new advancement is already taking over the market.

The good news is that the equipment manufacturers keep room for the customization of the latest tech in the older machines. This is where dealerships move smartly by offering customization services as well.

For example, if a customer asks for a fuel-efficient used track excavator, a battery-operated engine could be offered with customization. This way they will be able to reduce 20% to 30% on fuel prices.

On the other hand, the upcoming generation in the construction businesses are more interested in digital services. Hence, many older dealerships are now shifting to online platforms to attract young customers.

Handling the Energy Transition

Dealerships for construction equipment are also being impacted by the trend toward electrification and alternate fuels. Hogg observes that there are more and more questions concerning electrification, especially for government-funded projects with strict carbon reduction objectives. Although CAT has declared the introduction of four new electric models of its electric equipment, however, it will still take decades to fully migrate to the electric equipment.

Dealerships are responsible for assisting clients with the intricacies of using electric machinery, such as maintenance, power supply, and logistics.

As the equipment manufacturers are not rapidly producing battery-operated machines, it will be difficult to meet the demand and supply. In this situation, all the stakeholders need to take responsibility to cash out the time by introducing training sessions for equipment operators and construction contractors. These sessions will be helpful for new operators to learn about electric machines’ intricacies. Industry experts suggest that in this changing environment, the capacity to provide customized service and warranty packages and react quickly to client needs will be essential.

Wrap Up

Construction equipment dealerships are going through a significant change as the construction sector keeps evolving with tech advancements. The rapid shift in the customer demands and the inflation scenarios around the world enforcing dealership businesses to transform. Dealerships can make sure they stay competitive and keep offering their customers outstanding value by staying ahead of current changes and having strong partnerships with manufacturers.

In this competitive market, if you are looking for a reliable dealership in town, Look no further than MY Equipment. We are a Houston-Texas based used equipment dealership and are committed to meeting your unique demands for heavy construction equipment. Explore our inventory and contact us for the best prices.

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