Farm Equipment — Dealer Parts Operations Survey – April 2017 Question Title * 1. Please indicate the primary equipment brand handled by your dealership: AGCO Case IH John Deere Kubota New Holland None of these/shortlines only Question Title * 2. What is the estimated split of your wholegoods sales dollars by customer type? (total must equal 100%; if “0” or NA please enter “0”) Cash Crop buying big equipment Mixed and Livestock farms buying Hay & Forage and/or medium equipment Rural Lifestylers or Consumers buying compact or lawn & garden equipment Question Title * 3. What percentage of total employees at this location work in your parts department? Less than 5% 6-10% 11-15% 16-20% 20% or more Question Title * 4. What is the estimated productivity of your Parts Department (annual $ parts sales per person, including Part Managers and Support people) over the last 3 years as a percentage? Question Title * 5. On average, over the past 3 years, what percentage of your total dealership revenues came from the Sale of Parts? Less than 10% 0-15% 16-20% 21-25% 26-30% Question Title * 6. On average, over the past 3 years, how did your Parts Sales Mix break down by customer type? (total must equal 100%; if “0” or NA please enter “0”) Customer – Over the Counter Customer – Over the Counter Customer – Internal Warranty Other Question Title * 7. Do you charge Internal Parts out at the same rate as Customer Parts? (Internal for setup & delivery, sales promotion or to complete a wholegoods sale) Yes No Question Title * 8. What is the gross margin on Parts from Full or Shortline OEMs (including discounts)? Full-line OEM Parts Shortline Parts Question Title * 9. What is the difference in gross margin for Parts Over the Counter vs. Parts Sold on Repair Orders through the Shop? No difference Counter Parts Less then 1 Point less Counter Parts 1 to 2 Points less Counter Parts Over 3 Points less Question Title * 10. What number of Inventory Turns are you achieving in your Parts Dept.? Question Title * 11. Has this improved from 3 years ago? Yes, they’ve improved from _________ turns 3 years ago No, they’re down from ____________ turns 3 years ago They’re about the same as 3 years ago ____________ Question Title * 12. Do you have a stated target for number of Parts turns you’re aiming for? If yes, what is it? Question Title * 13. What is your Customer Fill Rate Over the Counter (based on number of part numbers requested, what % of time does the customer leave with all parts requested)? Question Title * 14. What is your Absorption Rate from Parts Sales (Percent that Parts Gross Margin covers all Dealership Expenses)? Question Title * 15. Does your dealership track Lost Parts Sales to update demand history? Yes Mostly Yes Rarely No Question Title * 16. What percentage of your annual parts sales come from the following sources? (must equal 100%; if “0” or NA please enter “0”) New OEM sourced Parts Non-OEM sourced Aftermarket Parts Rebuilt/Salvaged Parts Other (please specify) Question Title * 17. Have your sources for Repair/Service parts changed significantly in the past 3 years? Yes No Question Title * 18. If yes, what is the primary reason you changed your parts supplier? (Please rank in order of importance: 1 = most important; 2 = important; 3 = not important; please rank all that apply) 1 2 3 Price Price 1 Price 2 Price 3 Availability Availability 1 Availability 2 Availability 3 Quality Quality 1 Quality 2 Quality 3 Timeliness of shipments Timeliness of shipments 1 Timeliness of shipments 2 Timeliness of shipments 3 Ease of ordering Ease of ordering 1 Ease of ordering 2 Ease of ordering 3 Discount/incentive programs Discount/incentive programs 1 Discount/incentive programs 2 Discount/incentive programs 3 Other (please specify) Other (please specify) 1 Other (please specify) 2 Other (please specify) 3 Question Title * 19. Have you changed your strategies for Parts Inventory in the past 3 years? No Yes (Please explain) Question Title * 20. If your dealership has multiple stores, have you consolidated service parts inventory into one location vs. stocking at multiple locations? Yes No If yes, please explain how your system operates (delivery to other locations, etc.): Question Title * 21. Have you implemented different service parts inventory strategies for tractor parts vs. harvesting parts vs. tillage/planting parts? Yes No If yes, please explain why and how this strategy works: Question Title * 22. Are the OEMs able to supply service parts to your dealership in the timeframes and quantities required? Yes No If no, please explain why and how they’ve fallen short of your expectations/needs: Question Title * 23. Does your dealership participate in programs where service parts orders placed with the OEM are shipped directly to the dealership from the manufacturer of the parts (Direct Ship)? Yes No Question Title * 24. If yes, would you like to see more or less of these type of programs? More Less Question Title * 25. What do you see as the advantage/disadvantage of these programs? Question Title * 26. Do you use these programs to hedge having to hold inventory? (please explain) Question Title * 27. Are your customers moving away from OEM service parts and choosing aftermarket options? Yes No Question Title * 28. Are you losing customers to online options for service parts (primarily aftermarket)? Yes No Question Title * 29. What is your biggest challenge regarding service parts in this down market? (please explain) Question Title * 30. What changes has the dealership made in the last 3 years that significantly improved overall operations (efficiency, productivity, etc.) of the Parts Dept.? (please explain) Question Title * 31. What changes has the dealership made in the last 3 years that significantly improved the sales and profitability of the Parts Dept.? (please explain) Question Title * 32. What changes is the dealership planning in the next 18 months to improve overall efficiency and/or increase sales and profitability of the Parts Dept.? (please explain) Question Title * 33. Dave, if you use my comments, please keep they anonymous. Yes No, feel free to use them with attribution to me Question Title * 34. Do you want a copy of the report? No Yes (Please provide your email for a copy) Done