Dealer Customer Base Changes

Discussion in 'Lawn Mowing' started by puppypaws, Mar 30, 2010.

  1. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,872

    My dealer just told me he had the worst January and February he could remember since being in business, but had the best March, and sold 32 mowers Saturday. The big change he is seeing is where 80% of his business had always been commercial but has now reversed to more people performing their own lawn maintenance.

    This is saying to me the professionals are holding on to commercial equipment longer. I realize this can be different in certain parts of the country, but people are afraid of the economy in this particular area.
     
  2. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    What I think is happening is people are getting tired of not spending money and are willing to spend it whether they have it or not. Personal savings rates had started to increase for a little while but the savings rates are going back in the toilet again as consumer spending is up.

    If you go all of the way to the bottom of the link I am providing you'll see that personal income is up but the amount that is available for people to spend (disposable income) is down. You'll also see that personal expenditures are up.

    This basically means people are spending money that they're not earning. Whether they're borrowing it or taking it out of savings isn't discussed.

    http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
     



  3. they have been watching the government spending more than its bringing in. kinda like "Monkey See, Monkey Do"
     
  4. Yater

    Yater LawnSite Senior Member
    Posts: 687

    What? Our country was founded on the principle of selling debt. We've been in debt since 1776. Please don't confuse deficit with debt.
     
  5. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,202

    Just a cycle. Can he expect his commercial guys to buy mowers every year? Maybe they are trying something else out? It could be many things who knows.

    For the home owner sales, many have put off those kind of purchases for the last couple years so it was a matter of time till they needed to replace their mowers.
     
  6. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    I figure if I have to starve, so can everyone else lol.
     
  7. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,872

    There is one of three things that must take place if you survive an economy such as this. I talked about this a very long time back in this forum, and said there would be less spendable income as time passes. The cost of everything is escalating, and to survive this change the amount of work or prices must increase to keep pace, either that or spending must be cut. I think I can say without doubt that most families are cutting back, this does not mean the rich are not getting richer, but it does mean the middle class is getting poorer. The section of a graph portraying our middle class is shrinking at a very fast pace, I believe more people are beginning to feel and realize this.
     
  8. Triplex

    Triplex LawnSite Member
    Posts: 220

    I wonder if the Internet is making customers savvier. A low-end commercial trimmer or blower doesn't cost much more than a high-end homeowner one with a lot of bells and whistles (I've seen Poulan backpack blowers for about $300 for example) - people who are willing to spend that kind of money might be figuring out you can do better at a mower dealership than at Lowe's!
     
  9. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,872

    This article verifies exactly what I said would happen, less spendable income means a change in lifestyle for the middle class. You either figure out how to raise your spendable income, or you learn to cut expenses.
     

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