Seeing Orange

By Ken Wysocky

Filed Under: Featured Manufacturer

May 2008 Issue

“Once an iron man, always an iron man-that’s what they say,” he says wryly. “I’ve always been open to a challenge, and with this job, there’s always a new challenge. There’s never a dull moment. It’s a different job every day.” Abley’s primary satisfaction comes from making a retail sale, or as he puts it, “finding that customer and satisfying his needs.” When he isn’t on the road taking the business pulse of his dealerships, Abley enjoys refurbishing his 1934 Plymouth coupe. Who knows? Maybe someday this self-described “horsepower guy” will be tooling around his territory in something a little flashier than his 2006 Chevrolet Trailblazer. Now that would make “windshield time” a whole lot more fun.

COMPANY HISTORY



An international leader in manufacturing agricultural machinery, Kubota Corp. was founded in Japan in 1890 and now sells its products in more than 130 countries. In 1969, the company sold its first tractor in the United States-the 21-horsepower L200. Its success led the manufacturer to form the Kubota Tractor Corp. in 1972. In 1974, the company introduced a 12-horsepower, four-wheel drive tractor-a first in the compact-tractor segment of the industry. Since then, the product line has expanded to include four lines of tractors, compact construction equipment, turf equipment, lawn and garden equipment, pumps, generators and a variety of implements and attachments. The company now offers more than 80 models.

SALES REP’S RESPONSIBILITIES

 

As a sales manager, Abley’s primary concern is inventory. “I have to make sure the dealers have the inventory they need on-hand, and that they take care of that inventory,” he explains. “I monitor their actions in terms of demonstrator machines, assist them with ordering and promoting product and handle dealer calls and customer calls.” A fundamental tool in Abley’s arsenal is a planning sales and inventory report, which shows how many units were sold in the last 12, 24 and 36 months, on a 12-month rolling basis. “From those reports, we look at sales trends and see if there is enough inventory to meet those trends,” he notes. “If there’s a down trend, we want to make sure the dealers don’t have excess inventory. The ultimate goal is retail sales. But if you don’t have the correct product mix for the market, that’s a difficult goal to attain.” Another important duty for Abley is prospecting for new dealers in areas with potential for sales growth.

FORECASTING ACCURACY IMPROVES

 

Accurate forecasting is important because it takes about four months from the time orders are placed for dealers to take delivery of machines. Over the last five to six years, computer programs that collect and analyze data have made forecasting more of a science than an art, Abley says. “It’s all based on hard data now, not just pie-in-the-sky numbers.” Moreover, the advent of groups and organizations such as the National Equipment Dealers Association, the Minnesota/South Dakota Equipment Dealers Association and the Equipment Manufacturing Institute have contributed to more accurate data collection, Abley notes.

BELLWETHER PRODUCTS

 

During the last five years or so, construction customers in Abley’s territory more and more often opt for mini-excavators instead of larger tractor loader backhoes, Abley points out. “They like the versatility of the product, plus they don’t need large truck and trailers to move the machines around,” he says. “They can get the same thing done with a 5- or 6- ton excavator as they can with a larger one. The only thing they lose is a smaller machine can’t load as much at one time. On the other hand, the smaller machines are less expensive and more fuel efficient.” Kubota has also enjoyed success with its line of utility vehicles, the RTV 900 and RTV 1100; the M series of tractors; and zero-turn mowers.

NEW DEALERS POSE A CHALLNGE

 

Abley says his biggest challenge is prospecting for new dealers in areas where competitors’ dealers are already established. That’s a tough sell, because most of those established dealers sell much more expansive product lines from the likes of John Deere, Case IH, AGCO and New Holland, Abley notes. “It’s hard for a dealer to make a living selling just small tractors and excavators,” he explains. “It’s difficult to compete against dealers that sell complete product lines that also include tillers, planters, combines and the like. Plus, those dealers have been there for ages-they’re entrenched, with strong customer bases. For good product support and service, people like to buy local.” That means in order for Kubota to enjoy continued growth, its needs to either establish more new dealerships or rely on existing dealers to penetrate markets far from their home bases. In all likelihood, new dealers will probably carry other lines of equipment aside from Kubota, just like almost all of Abley’s 26 existing dealers already do.

GROWTH PROSPECTS ARE GOOD

 

As for the future, Abley sees continued growth for Kubota, driven by more dealerships and new products. “We came out with the RTV machines in 2004 and grew that by gangbusters,” he recalls. “Now we have a new compact track loader in the works.” The economic downturn isn’t affecting commercial construction equipment nearly as much as equipment for residential home building, so Abley feels good about where Kubota stands despite the pervasive economic pessimism.

JOB DEMANDS LONG HOURS

 

What would surprise people most about a sales manager’s job? “The amount of hours I put in,” Abley answers without hesitation. “I work 60-plus hours a week and am on the road two or three nights a week. If I leave a dealership at 5:30 p.m., I might have to drive another three hours to the next dealer. “It’s gotten to the point where I’m the direct contact for dealers for virtually everything,” he continues. “If they have a parts question, they call me. If they have a repair question, they call me. If they call a parts department and don’t get an immediate response, I’m the one they call.’’