Examining Branded Dealerships

When dealers commit to one manufacturer, customers can benefit.

Every equipment dealer who enters a branded partnership commits to an extensive transition. Handing over the branding reins to a single manufacturer can be intimidating, but dealers gain significant benefits from the relationship—including enhanced regional brand awareness, a rewarding bond with an equipment manufacturer and financial, facility and sales support. 

What’s in a Name? 

Instant recognition, or brand awareness, is the first benefit dealerships receive after integrating a manufacturer’s name into their own. Potential and current customers more easily identify with a specific brand name, rather than a generic or family-named business. Advertising and marketing efforts are also simplified, because a branded name explains what type of equipment a dealership sells without having to include it in advertising and collateral materials. 

Making the transition from an unbranded to a branded dealership does require dealers to make a significant investment. New internal and external signage is expensive, as is the cost of redesigning a website, clothing or vehicle decals. Plus, dealers must communicate the brand change locally and to existing customers. Manufacturers don’t want financial barriers to inhibit dealers from becoming branded, so they address these challenges through several options—such as cost-sharing for the dealer’s rebranding investment.  

While dealers may be reluctant to give up an existing website, the cost of upgrading technology can often be too expensive for independent dealerships without the financial support from manufacturers. The new website acts as a valuable asset for customers while allowing dealers to gather customer information for future sales. In fact, out of the three groups involved—manufacturers, dealers and customers—customers benefit the most by having an up-to-date information source at their fingertips.

Naturally, with change comes some hesitation. A branded dealership means a loss of identity for independent dealers. Many dealerships are family-owned, which is reflected in their name. In order to be rebranded they must relinquish this name in lieu of the manufacturer’s name or find a way to incorporate it into their new brand. 

The name change can also elicit uncertainty from dealers who worry about being associated with only one manufacturer. If the manufacturer experiences a problem or negative media coverage, the repercussions will trickle down to their dealers. 

Inside Information

The relationship benefits both manufacturers and dealers alike. Manufacturers receive more name recognition on a local level and have dedicated dealers through which they can channel new information, updates and brand pride. Dealerships also have immediate access to new product updates or launches and other inside information. This is an excellent selling tool, as customers can put more trust into a branded dealership’s source and timeliness for information. Allen Baron, owner, operator and president of Telo Coring, an excavation contracting company in Sherwood Park, Alberta, said he always purchases equipment from branded dealerships because he can trust that the mechanics are experts in a specific manufacturer’s equipment. 

Direct and open communication with the manufacturer is another priceless benefit. The partnership between branded dealerships and manufacturers makes communication more accessible. Dealers know exactly who to contact at the manufacturer, and manufacturers realize the value in communicating openly with their dealers. 

Mike Havens, branch manager for JCB of Alberta in Grande Prairie, Alberta, said becoming branded allows dealers to hone their levels of expertise when it comes to selling and servicing a specific manufacturer’s equipment. “It enables us to bring sharpness and focus to what we’re doing. As a branded dealer we’re able to specialize in one brand and share that knowledge with our customers.”

Because the dealer’s staff can dedicate itself to one equipment brand, customers may enjoy a better overall experience and timely product updates. 

Dedicated Support

Yet another incentive for branded dealerships is the ability to tap into manufacturer support. Some manufacturers provide additional support as another benefit to the program and to assist dealers in their initial sales and training. The relationship also leads to improved customer service since local dealers can turn to their manufacturers with questions and concerns—allowing them to provide a quality response to their customers while they, in turn, free up time for other activities. 

With the backing of a single, dedicated manufacturer, dealers can offer their customers financial and logistical support they wouldn’t receive otherwise. The addition of a highly trained sales and service staff gives the dealers the type of expertise that makes them a real value to equipment buyers in any industry.