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Dealership operational excellence has never been more critical than in today's consolidated market. Troy Ottmer, a seasoned dealership executive turned consultant, dives deep into the often-overlooked opportunity of departmental reviews and their power to transform profitability.

The equipment dealer landscape has changed dramatically—where once there were dozens of competitors, consolidation has left many markets with just a handful of dealers. Yet despite this reduced competition, many dealerships struggle to maximize their potential, celebrating modest profits while leaving substantial money on the table. Troy reveals how the average dealership carries a staggering 50-70% dead inventory, directly impacting not just working capital but creating ongoing costs through warehouse space, property taxes, and lost sales opportunities.

One particularly eye-opening discussion centers on the difference between typical parts department performance (8% net income) versus what's actually possible (25% net income). Troy and host Ron Slee explore how lost sales tracking has virtually disappeared from many dealerships, despite being a critical tool for understanding market opportunity. They also dissect the faulty logic behind common "cost plus" pricing strategies for wholesale customers—strategies that often result in actual losses when fixed expenses are properly accounted for.

Beyond inventory management, the conversation tackles the growing talent crisis facing equipment dealers. With projections suggesting that by 2030, half the workforce may lack necessary skills for employment, finding and retaining qualified staff has become an existential challenge. Troy offers practical insights on leveraging technology like e-commerce platforms to address staffing limitations while improving customer experience.

Whether you're a dealer principal, department manager, or OEM representative, this episode provides invaluable perspective on operational excellence in equipment dealerships. Reach out to Troy for operational review services that deliver measurable improvement to your bottom line—because in today's competitive landscape, good enough simply isn't.

Visit us at LearningWithoutScars.org for more training solutions for Equipment Dealerships - Construction, Mining, Agriculture, Cranes, Trucks and Trailers.

We provide comprehensive online learning programs for employees starting with an individualized skills assessment to a personalized employee development program designed for their skill level.

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Troy Ottmer brings a unique perspective to the equipment and commercial truck industry that few consultants can match. Having started as an automotive technician in 1987, Troy deliberately worked across every dealership department, developing a comprehensive understanding of how each function impacts the whole. This hands-on experience across automotive, construction equipment, forestry, ag, medium and heavy-duty trucks gives him insight that's increasingly rare in today's leadership landscape.

What makes this conversation particularly valuable is Troy's analysis of the fundamental shifts reshaping the distribution channel. He highlights how the medium-duty truck segment is booming while industry analysts remain fixated on Class 8 freight tonnage - a blind spot creating both challenges and opportunities. Troy's description of Amazon's strategy to place multiple distribution centers within minutes of population centers reveals how last-mile delivery is transforming logistics networks.

Perhaps most provocative is Troy's challenge to conventional industry metrics. While dealerships have traditionally targeted 100% absorption rates, Troy argues that return on assets (ROA) represents a more meaningful measure of business health. His benchmark of 50% ROA - achieved by turning assets five times annually - provides a revealing contrast with rental companies who consistently hit this target while many dealerships struggle.

The conversation takes a concerning turn when discussing workforce development. With reading comprehension at grade level for only 32% of fourth-graders and America facing a projected shortage of 3.8 million employees by 2033, the industry confronts a looming crisis that technological advances alone cannot solve. Troy's work with high schools and OEMs to develop vocational education programs represents an essential response to this challenge.

Whether you're a dealer principal, department manager, manufacturer representative, or customer, Troy's insights offer valuable perspective on navigating industry transformation. His practical experience combined with strategic vision provides a roadmap for those willing to evolve rather than cling to "we've always done it this way" thinking. How might your organization benefit from this kind of candid, experienced-based assessment?

Visit us at LearningWithoutScars.org for more training solutions for Equipment Dealerships - Construction, Mining, Agriculture, Cranes, Trucks and Trailers.

We provide comprehensive online learning programs for employees starting with an individualized skills assessment to a personalized employee development program designed for their skill level.

Send us a text

What if navigating the fast-paced world of automotive and construction equipment could unlock profound insights into leadership and adaptability? Troy Ottmer, a veteran of these industries, joins us to share his incredible journey from an automotive technician in 1987 to a seasoned leader and consultant. Troy’s career is a testament to the power of mentorship and the impact of embracing diverse perspectives. His experiences across various roles, from Rush Enterprises to John Deere, provide a unique lens through which we explore the evolution of leadership and workforce dynamics across generations.

Managing a multi-generational workforce presents both challenges and opportunities, and this episode sheds light on how flexibility and empowerment can transform workplace dynamics. We examine the importance of open communication and active listening in creating a harmonious environment and discuss the influence of rapid technological advancements. Troy’s personal anecdotes, together with stories from other sectors like animal science, highlight the excitement and hurdles of adapting to these changes, emphasizing how generational differences can be leveraged positively in the workplace.

Finally, the conversation turns to the critical role of education in building sustainable careers. We advocate for a pragmatic approach that aligns educational paths with workforce demands, spotlighting vocational and technical education as key players in this shift. By focusing on practical skills that offer tangible economic benefits, we underscore the importance of continuous learning and adapting to change. Whether you're navigating career transitions or seeking to empower the next generation, this episode is packed with insights and inspiration for embracing diverse career paths.

Visit us at LearningWithoutScars.org for more training solutions for Equipment Dealerships - Construction, Mining, Agriculture, Cranes, Trucks and Trailers.

We provide comprehensive online learning programs for employees starting with an individualized skills assessment to a personalized employee development program designed for their skill level.