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becoming a dealer

Started by yamaha605, September 11, 2015, 03:35:07 AM

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yamaha605

Allright so the local steal dealer in my area went out of business.  Not due to the stihl side of his business but the fact that he was a mine supply store also and the coal mining industry is crappy right now.  I was thinking about opening up a stihl shop on the side.  also about seeing if I could do a husky shop also because the closest to my area is about an hour fifteen minutes away.  Does anyone here know what requirements the companys have and what its gonna cost to open up.  For each one or both. 
Stihl 034 av super,  Stihl ms290 Farmboss,  Stihl 661 c-m

Spike60

Hate to come off negative, but as far as stihl and husky go, your idea is about 30-40 years too late. These companies are no longer willing to sign guys up for part time "on the side" type shops. They want real businesses that keep real business hours.

They both require a significant investment, and they also require you to take more than just the chain saws. They want full line dealers, and in Husky's case, you'd be asked to take tractors, zero turns and such. The investment in stihl is huge and payable in a relatively short time. They even make you buy their displays, which is about $3500 alone.

The remaining options for you are the second tier lines such as Jonsered, Dolmar, Efco, and maybe Echo depending on distributor requirements. Each has it's pros and cons. (which will no doubt create a lot of silly debate here) But you need to look at each of them through a "business" lens and not form opinions based on youtube vids of how a particular saw cuts.

What are the dominant brands in your area? That's what you will see on the repair side and you are going to need some type of parts source. Jonsered would give you access to a lot of the husky parts. Stihl parts are pretty locked up, and you will have to rely on aftermarket for most of them.

What is your customer potential? Loggers, arborists, firewood cutters? The more serious users, the better for your shop. But the type of customers in your area also factors into which of the saw brands could make some sense. For instance, Echo makes just as good a quality saw as Jonsered IMO. If your customer profile is mostly firewood cutters, then either brand is fine. But Jonsered would clearly cover the pro market far better.

Don't just think in terms of how many saws you will sell either. At first, it's all gonna be about how many saws you will fix. That will be your "phase 1" with most folks as you earn their respect. Perhaps more important than a saw line is your parts and accessories lines. Bars and chains, oil, saftey, and such. This stuff and the repair parts is what really adds up profit wise. And you have to first try and support what saws are already out there before whatever you are going to sell. Especially in an area with a tight economy. Folks are going want someone to keep their saws going, more than they'll want new saws.

Even part time hours have to be somewhat regular hours. Customers will want to know when you'll be there and when  you won't. Think ahead to how many of those hours you are willing to cut out of your life on a consistant basis.

So, there is a way to do this. Sounds like it's a long way to any saw shop, and that's a big strength for you. But trust me on this last point, and I mean no disrespect to a lot of the advice that will follow here: There is a HUGE difference between the real world and the hobby/enthusiast world that exists on these saw sites. I'm lucky, cause I get to do both.  :)  But there are some different realities between the two that can steer you in the wrong direction.
Husqvarna-Jonsered
Ashokan Turf and Timber
845-657-6395

ZeroJunk

There is a repair service up the road from me that has four or five full time employees. They are a Husky dealer but I bet it is not 5% of their business. They repair anything and everything and seems there are three or four people in line all the time.

So, I don't know that spending many thousands of bucks to sell new saws is where the money is. Stihl repair and cost of parts borders being insane. So, a man that can do repair can easily charge 50 bucks and hour and undercut the dealers by close to half. If you don't have to get bogged down in real estate costs etc. there is some money to be made.

I don't even advertise, have a sign , or anything and stay busier than I want.

IndyIan

Up here atleast, Husky seems to allow the smaller dealers to start up.  My tractor dealer wanted to run Stihl as well, but they had all sorts of huge minimum product orders, and he had to carry nearly the full line.  So he does Husky and sells saws, push mower, and riders.
I think the real money is in repairs anyways, there's not many places that can sell a mid price saw an hour, which is probably what a tech brings in.

luvmexfood

About 3 years ago I had an interest in opening a small engine repair shop. Not selling anything other than parts and repair but did want to become an "authorized B&S repair facility then hopefully branch out to some of the mower brands as a repair center. Then hopfully pick-up service work from some of the box stores.

Anyway, B&S has about 5 major distributors across the country. You must deal with them for all matters including training. After finally getting the distributor to call me it was basically your not going to be big enough for us to fool with. Yes they did on ocassion offer a school but he didn't know when or provide any other information.

Hope you have better luck.
Give me a new saw chain and I can find you a rock in a heartbeat.

630red

yeah I have heard stories of a repair shops doing well for 20 years or more then setting up with a dealer having to take on their full range of machines,then they close with in 12 months later because they don't have volume of passing trade that want all the other stuff that comes with the contract

HolmenTree

Quote from: Spike60 on September 11, 2015, 06:20:16 AM
Hate to come off negative, but as far as stihl and husky go, your idea is about 30-40 years too late. These companies are no longer willing to sign guys up for part time "on the side" type shops. They want real businesses that keep real business hours.
Very true. ;)
Back in the day when every third saw sold was a pro model, it could happen.
In the 1980's when logging with chainsaws was strong I was offered a Stihl franchise, as at the time in my region Stihl was trying to break into the market that was dominated by Husqvarna and Jonsered.

I talked my logging partner into the scheme and he setup business in his car garage at his home. When I saw the amount of inventory  we had to buy I let him go on his own. I then enjoyed the convenient benefit of getting saws and parts at dealer cost as I was making living with a saw anyways.
Alot of 034, 064 and 044's were sold, but the money maker was the Stihl sawchain and files. My partner got all of the areas 6 logging camps set up with the saws and chain and business was good.
Shortly after in 1989 Stihl offered me a job to work out of one of their largest branches in western Canada to help plant the seeds of the new 044AV.
The 044 was the saw Stihl needed to compete with the Husqvarna 268XP which was the prime logging saw in the region at the time. I put alot of 044s in endusers hands to try out and it didn't take long for Stihl dealerships to pop up in many large hardware stores and other dealerships.
That window of opportunity was perfect timing for Stihl to get roots established, as 5-10 years later after the 044 was introduced logging with chainsaws almost completely disappeared.
Without that initial pro market saw companies and their dealerships wouldn't be what they are today.

But there is a new pro saw market today , where once loggers roamed with saws in the deep isolated forest....the growing  urban forest in major cities and towns is spawning the distant sound of chainsaws in the  hands of an arborist.
Making a living with a saw since age 16.

weimedog

Quote from: HolmenTree on September 12, 2015, 09:12:33 AM
Quote from: Spike60 on September 11, 2015, 06:20:16 AM
Hate to come off negative, but as far as stihl and husky go, your idea is about 30-40 years too late. These companies are no longer willing to sign guys up for part time "on the side" type shops. They want real businesses that keep real business hours.

The 044 was the saw Stihl needed to compete with the Husqvarna 268XP which was the prime logging saw in the region at the time. I put alot of 044s in endusers hands to try out and it didn't take long for Stihl dealerships to pop up in many large hardware stores and other dealerships.
That window of opportunity was perfect timing for Stihl to get roots established, as 5-10 years later after the 044 was introduced logging with chainsaws almost completely disappeared.
Without that initial pro market saw companies and their dealerships wouldn't be what they are today.


So it's ALL your fault... :) (The demise of Jonsered & Mac & Homies)  ;D
Husqvarna 365sp/372xpw Blend, Jonsered 2171 51.4mm XPW build,562xp HTSS, 560 HTSS, 272XP, 61/272XP, 555, 257, 242, 238, Homelite S-XL 925, XP-1020A, Super XL (Dad's saw); Jonsered 2094, Three 920's, CS-2172, Solo 603; 3 Huztl MS660's (2 54mm and 1 56mm)

HolmenTree

Quote from: weimedog on September 12, 2015, 09:39:29 AM

So it's ALL your fault... :) (The demise of  Mac & Homies)  ;D
In these parts the last time the Macs & Homies were in their glory was the 1960's :D
Making a living with a saw since age 16.

nitehawk55

One angle you can look into is finding a Stihl dealer you can sub deal thru . This will only work if there is no other dealer close by and if the dealer is willing to work with you .

I work with a Husky dealer in that I repair and sell any Stihl saws he gets traded in . So far it has worked very well for both of us :D
I AM NOT BRAND LOYAL !

Spike60

Quote from: weimedog on September 12, 2015, 09:39:29 AM

So it's ALL your fault... :) (The demise of Jonsered & Mac & Homies)  ;D

How DARE you lump Jonny in with those other two!  :-[
Husqvarna-Jonsered
Ashokan Turf and Timber
845-657-6395

HolmenTree

Quote from: Spike60 on September 12, 2015, 07:47:55 PM
Quote from: weimedog on September 12, 2015, 09:39:29 AM

So it's ALL your fault... :) (The demise of Jonsered & Mac & Homies)  ;D

How DARE you lump Jonny in with those other two!  :-[
I agree Bob ;) As I deleted Jonsereds out of Walter's quote.and just had Mac and Homies.
I have a fond spot in my heart for Jonsereds/Jonsered as that was my first brand of saws I made a living with for my first 8 years. My 630 was my last favorite Jonsered at the time
Making a living with a saw since age 16.

Spike60

Quote from: HolmenTree on September 12, 2015, 07:55:18 PM
Quote from: Spike60 on September 12, 2015, 07:47:55 PM
Quote from: weimedog on September 12, 2015, 09:39:29 AM

So it's ALL your fault... :) (The demise of Jonsered & Mac & Homies)  ;D

How DARE you lump Jonny in with those other two!  :-[
I agree Bob ;) As I deleted Jonsereds out of Walter's quote.and just had Mac and Homies.
I have a fond spot in my heart for Jonsereds/Jonsered as that was my first brand of saws I made a living with for my first 8 years. My 630 was my last favorite Jonsered at the time

630 was always popular around here also. Probably more so than the 670.

Jonsered did travel a different road off of the lead lap. With them is was really a matter of what Elux decided NOT to give them. Husky respnded to the 044 with the 272XP, and Jonsered as we know never got a 52MM model on that chassis, and I think that hurt them in that class.

930Super would outcut a 288, but the 900 series saws lacked the 288's toughness and ability to take a beating. Then factor in the lack of Jonsered versions of the 242, 254, and 262 and the picture becomes clear.

Today of course they are taking the opposite approach and giving Jonsered almost every model that Husky has.
Husqvarna-Jonsered
Ashokan Turf and Timber
845-657-6395

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