oct 2015

IN THIS ISSUE:3 Observations from the Field4, 6, 10 Association News8 Ag Industry Award to Elder Ag & Turf Equipment12 Industry News13 Affordable Care Act Information16 Always Hire the Best Employees Possible

18-19 Tax Tips20 Human Resources22 Tackle Dealership Issues With Legal Implications24 Successful Sales Follow-up25 Association Service | Sponsored Programs27-28 Equipment Industry News

ADVERTISER’S:2 Haylor, Freyer & Coon 5 Kioti11 Electronic Merchant Systems15 Fastline Publications17 BallastStar17 PartnerShip21 RCI Safety29 Federated Insurance

DEALERNortheast

The Newsletter of NoRThEAsT EquipmENT DEALERs AssociATioN, iNc.OCTOBER 2015 c Vol. 17, No. 199www.ne-equip.com

NEDA Salutes our Supporting Advertisers. It is our pleasure to list the names of those advertisers who support NE Dealer each month. We trust their advertisement will be remembered when goods and services are required by you, our dealer members. It is good to do business with companies who are interested in doing business with you and your industry association.

The U.S. Census Bureau revised its export reporting requirements under the Foreign Trade Regulations on March 14, 2013. One of the changes was the mandatory electronic filing of export information through their Automated Export system (AES) or through AES-Direct for all used self-propelled vehicles 72 hours prior to export, regardless of value or country of ultimate destination (including Canada). This chance was effective April 5, 2015, and, after a 180-day "informed compliance record" became enforceable October 3, 2014. For more information to see if you're in compliance with these regulations, email: [email protected], phone toll free in US and Canada 888-957-7224 and press 2, or visit their website at www.cbsa.gc.ca.

Exporting to Canada now requires advance "electronic" paperwork from both the US and Canada

ExpORTiNg SElf-pROpEllEdVEhiClES iNTO CaNada

As defined in the U.S. Customs regulations “Self-propelled vehicle”

includes any automobile, truck, tractor, bus, motorcycle, motor home,

self-propelled agricultural machinery, self-propelled construction

equipment, self-propelled special use equipment, and any other self-

propelled vehicle used or designed for running on land but not on rail.

To see if you qualify, call Patrick Burns at Haylor, Freyer & Coon 800-289-1501, Ext. 2148or fax a current declaration page to 315-684-9801 or call

Ralph Gaiss (Executive Director of NEDA) at 800-932-0607 for more information.You may also visit us at www.haylor.com

Northeast Dealer | OCTOBER 2015 … 3

This publication is designed to provide accurate and authoritative information in regard to the subject matter co v ered. It is furnished with the understanding that the Northeast Equipment Dealers Association, Inc., the publisher, is not engaged in rendering legal, accounting or other professional service. Changes in the law duly render the information in this pub-lication invalid. Legal or other expert advice should be obtained from a competent professional. Some of the editorial material is copyrighted and may be reproduced only when permission is obtained from the publisher and the association.

Board of DirectorsOfficers

JOhn e. KOMArisKY, President / Past Pres. 2012Main & Pinckney Equip Inc. / Auburn, NY315-253-6269 - FAX 315-253-5110New Holland, Simplicity, Brillion, Bush Hog [email protected]

JOsh AheArn, First Vice President / Treasurer /NAEDA OPE Dealer CouncilAhearn Equipment, Inc. / Spencer, MA508-885-7085 • Fax: 508-885-7261Kubota, Cub Cadet, Stihl, NAPA [email protected]

rOBerT sPOhn, Second Vice President / Past President - 2005Sharon Springs Garage / Sharon Springs, NY518-284-2346 • Fax: 518-284-2774AGCO, White, Hesston, Gehl, Kubota, Allis, [email protected]

eD hines, Immediate Past President 2014, 2001Hines Equipment / Cresson, PA814-886-4183 • Fax: 814-886-8872Case IH, Gehl, New Idea, Cub [email protected]

BriAn cArPenTer, NAEDA DirectorChamplain Valley Equipment / Middlebury, VT802-388-4967 • Fax: 802-388-9656New Holland, Case IH, Kubota, [email protected]

rALPh GAiss, CEO and Executive Vice Pres.800-932-0607, Ext. [email protected]

DirecTOrs

scOTT BAir, Director ElectMountain View Equipment, Inc. / Plattsburgh, NY518-561-3682 • Fax: 518-561-3724John Deere AG/CCE, Claas, Kuhn Knight, Kverneland, Stihl, Husqvarna, Frontier, Servis, [email protected]

BrAD hersheYHoober, Inc. / McAlisterville, PA717-463-2191Case IH, JCB, [email protected]

nATe shATTUcK, Past President - 2010Devon Lane Farm Supply, Inc. / Belchertown, MA413-323-6336 • Fax: 413-323-5080Yanmar, Landini, Monosem, Ferris, Simplicity, Stihl, [email protected]

scOT L. sTAnTOn, Past President - 2003Stanton Equipment Inc. / East Windsor, CT860-623-8296 • Fax: 860-627-9832John Deere Ag., Knight, Athens, [email protected]

WenDeLL WALLDrOff, Past President - 2002Walldroff Farm Equip., Inc. / Watertown, NY315-788-1115 • Fax: 315-782-4852New Holland, Hesston, Woods, White-New Idea, AGCO, [email protected]

DAviD WArner, will be completing Jeff Bull's termWarner Tractor & Equipment Inc., Troy, PA570-297-2141Case, Case/IH, Takeuchi, LinkBelt, LandPride, Agr. & Construction [email protected]

NORThEaST EquipmENTdEalERS aSSOCiaTiON

128 Metropolitan Park Drive • Liverpool, NY 13088 800-932-0607 • www.ne-equip.com

August was a very busy month on the association’s legislative front.

SB 126 came before the New Hampshire Supreme Court, HB1553 was introduced into the Pennsylvania legislature, and we began the process of restarting our efforts to amend Vermont’s Fair Dealer law. Many thanks to the dealers who were willing to “do the right thing,” make the calls, contacts, and visits necessary to ensure that legislators heard the “full story” and were able to truly understand the nature of the dealer/manufacturer rela-

tionship! Rest assured that they are hearing the manufacturer’s account… Many of you have already read one of the numerous news articles both in the industry and national media reporting on the New Hampshire Supreme Court’s hearing of Manufacturer’s legal challenge to NH SB 126. If you have yet to read one of these articles, I would encourage you to do a quick search for them on Google or one of the other internet search engines. While no one knows how the court will rule, having been at the hearing and listening to the arguments, questions, responses and follow-up, I can tell you that at times it seemed as though one could cut through the tension with a knife! I don’t think that many would argue that the passage of SB 126 has already had a significant impact on the equipment industry, as it has provided formal documentation that the relationships between auto dealer/manufac-turer and equipment dealer/manufacturer are virtually identical! In addition, however the court’s rules its decision, the manufacturer’s response and the dealer’s subsequent reaction will have a lasting impact on the industry. I personally hope that the court’s decision will provide an opportunity for equipment manufacturers and dealers to “reset” their relationship to one more closely resembling a level playing field - one in which responsibilities, performance, authority, and accountability are all shared in a fair and equi-table fashion. However, there should be no misunderstanding – regardless of what you may have been told or promised by a manufacturer, when push comes to shove, the only things that really matter are your dealer agree-ment and the state’s law. Therefore, one of your association’s top priorities is amending the state’s fair dealer laws! August 2015 may have been one of our better months, but it didn’t come easily! It came as a result of an overwhelming amount of work, dedication and money! Unfortunately, in many ways Augusts’ accomplishments are simply the first of many steps on a very long and expensive journey, one that could not have been accomplished without the active support and participa-tion of all concerned! Successful completion of the journey will mean that everyone has stepped up to the plate, done their share, and gone far beyond the call of duty – IT WILL NOT BE EASY!

REap the benefits of membership and yourpROfiTS will follow!

Observationsfrom the FIELD

Tim WentzField Director717.576.6794

4 …”Committed to Building the Best Business Environment for the Northeast Equipment Dealer”

New York Dealer’s 4-Step Approach to Solving Problems Art White has been in the dealership business most of his 64 years, working for his dad before taking over the operation, White’s Farm Supply, with his brothers in the early 1980s. The dealership was founded by their father, Willard, in 1946. He’s managed his way through many challenges over the years and his philosophy for problem solving is based on what he learned from his Rotary Club, where he’s been a member for more than 30 years. “It can be quite perplexing when we are hit with problems and sometimes the issue can really be small, but the potential return could be big for the company. I try to take the problem apart and look at what would happen with the different potential solutions,” White says. He breaks down a problem situation this way: • Isitthetruth?Haseveryoneinvolvedsharedtruthfulinformation? • Whatsolutionwillbefairtoall? • Willthesolutionbuildgoodwillandfriendships? • Isthesolutionbeneficialtoall? “There are different answers to every question and it makes it worse when you have multiple right answers. Whatever you do, don’t make it bigger than what it is,” White says.White says the biggest challenge his dealership is facing today is finding the right employees and he is hiring based on qualities other than farm-related experience. “Our new service manager was a commercial rep for Lowe’s. He has no background with farm machinery or lawn mowers, but he has good customer service skills. He’s nice to our customers and gets the message across,” White says. He says the service department offers the biggest opportunities for growth. “Service should be a profit center for any dealership. If you aren’t making money there, you’re in trouble,” White says. His "golden rule" is to match labor and parts dollar for dollar. “It’s a good goal for good technicians. When you get into more complicated machines, that’s much hard to get done,” he says. White says excavators is one product category that has sold especially well this year, with contractors being the primary buyers. “By the end of February, we sold as many excava-tors as all of last year. By May 1, we sold as many of one model as we did all of last year,” he says. The dealership carries Case IH, New Holland, Kubota, Krone, Gehl, Ferris, Cub Cadet, Stihl and other lines, so has faced demands for purity. They’re standing firm on what they carry. “Every manufacturer is pushing for brand purity. We aren’t too brand pure. That’s the plus side of an old dealership. We do cherry pick equipment to make sure our customers get the best value for their dollar,” White says. WhatelsehascontributedtoWhiteFarmSupply’ssuccess?Answeringthephone.“Wenever let it go beyond 3 rings. One person can’t do this alone and a good team is the best start, but it takes time to develop,” White says.

Your View? What’s the view from your dealership on hiring, brand purity and service? I’m alsointerested in hearing the golden rules your dealership follows. White shared some interesting thoughts, not the least of which is to not make a problem bigger than it is. That’s hard to do in this competitive industry, but worthy of striving for. -- See more at: http://www.rurallife-styledealer.com/blogs/1-from-the-desk-of-rld/post/4432-new-york-dealers-4-step-approach-to-solving-problems-rldbrief#sthash.owDWfI5J.dpuf.


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September 22, 2015

Mr. Harry M. Elder Sr.

Elder Sales & Service, Inc.

4488 Greenville-Sandy Lake Road

Stoneboro, PA 16143

Dear Mr. Elder:

I read the tribute and honor you received as one of the three honorees

that was presented with Crawford County, PA highest award for service to

agriculture and I want to also congratulate you on receiving this great honor.

I can only imagine how much time, effort and money you invested for over

three decades in serving this community.

It was also very thoughtful and kind to recognize your family and employees

for standing by and supporting you and your customers, when you received

this well-deserved recognition in serving farmers as well as all your other

customers in a very wise and honest manner that has made you so suc-

cessful in what you do.

My congratulations to you and your business, and best wishes for continued

success in all that you do, and thank you again for all of your support to our

Equipment Dealers Association.

Sincerely,

Ralph F. GaissEVP/CEO

cc: John Komarisky, President

Josh Ahearn, Vice President

Bob Spohn, Second V.P.

Ed Hines, Immediate Past President

Brian Knotts, Northeast Division Sales Manager, John Deere & Co.

See related article on page 8

Pictured, L-R: Harry Jr., Harry Sr., Roberta

Elder and C.H. McCutcheon, son-in-law.

COSTOF

DOINGBUSINESS

STUDYThe 2015 Cost of Doing Business Study presents the annual financial and operational profile of independent, retail equipment dealerships.This Study is made possible through the cooperation of participating dealers associations and their members who provided detailed financial and operational information for their individual companies. The Study assesses financial performance and presents composite income statements and balance sheets in addition to averages for key financial performance ratios. Use it to:

Compare your financial performance to that of all dealers (regardless of lines or manufacturers represented);

Use it to assist in the valuation process of your businesses for estate planning, buy/sell agreements, mergers/consolidation purposes;

Use the benchmarks to establish future goals and budgets.

NEDA participated in this joint venture, with other North American Equipment Dealers Association affiliates, because it is important for a trade association to generate this type of information for members to measure their own performance against industry averages. The data sets benchmarks you can use to establish financial plans to improve profitability.

COST OF DOINGBUSINESS STUDY

COST OF DOING BUSINESS STUDY fees:•Memberswhosubmittedfinancials–FREE•Memberswhodidnotsubmitfinancials–$99 per survey

• Non-Members–$399 per survey

qSendahardcopybookletqEmailStudyResults

FirmName _______________________________________________

OrderedBy _______________________________ |Date__________

Address __________________________________________________

City|State|Zip __________________________________________

Phone___________________|Fax ___________________________

Email ____________________________________________________

q Bill my company Charge the fee (plus sales tax and shipping) to my MC / VISA credit card (please print):

qMCqVISANameonCard ______________________________

Card#_____________________CVSCode_____Exp.Date ________

CardholderSignature _______________________________________Please fax your completed order form to: 1-315-451-3548

or email [email protected]

ORDER FORM

Established 1901

NortheastEquipmentDealersAssociation

128 METROPOLITAN PARK DRIVELIVERPOOL, NY 13088

p. 800-932-0607 | f. 315-451-3548www.ne-equip.com

See related article on page 8


Crawford County PA

Ag INDUSTrY AWArD To HArrY ElDEr, Sr. oF ElDEr Ag & TUrF EqUIPmENT

Elder Sales and Service has seen many changes over the years. Since starting business in 1952, Harry Elder has gone from selling horse drawn equipment to selling tractors equipped with Auto-Steer that can drive by themselves. The Parts department use to wait two weeks for parts that they now get the next day. The Service Department today has more training and better resources to fix more complex equipment.

1950-1955 Harry Elder Sr. acquired a contract in 1952 to sell Minneapolis-Moline tractors and other related farm equipment. It was in 1953 that Harry really got the business started, Elder Sales and Service, on the family farm. Harry purchased a facility of his own in 1954 in the village of Clarks Mills, PA. He moved his operation there in 1955, he had five employees at that time. Harry started out selling a lot of horse drawn manure spreaders. In approximately 1955, Minneapolis-Moline tractors were introduced with live power. Since they were now pto driven, there was no more need to have engines on balers and choppers. This was the beginning of the end of farming with horses.

1956-1965 Over the next several years, Harry added a service shop to the facility in Clarks Mills and a parts room. Harry continued to expand his business further by adding the Oliver product line of equipment, Gehl forage products, and Patz barn cleaners and silo unloaders and more employees. During the start of Harry’s business, Elder Sales and Service, advertising consisted of word of mouth and newspapers. Most farmers did not have phones and televisions. Parts came by mail, which took several days and the machines came by trains, which Elders had to unload at the local station. In 1958, a farmer could buy an Oliver Super 77 farm tractor for $2,156. The average size tractor for a farm was 25 horsepower. In the early 1960’s, diesel engines were becoming more prevalent. Equipment was becoming more efficient, and also more expensive. Since sprayers did not exist yet,

Harry sold a lot of cultivators. Most farmers bought 3 things: a tractor, a plow, and a cultivator.

1966-1975 Harry Elder ran his business out of the village of Clarks Mills for 22 plus years. All through the consolidation of the machinery companies, White Farm Equipment taking over Moline, Oliver and Cockshutt. These companies were later taken over by Agco Corporation, etc. The industry as a whole was changing rapidly.

1976-1985 In 1976, Harry moved Elder Sales and Service to the present location on Route 358 in Stoneboro, PA. John Deere line of equipment was added then, while maintaining the former product lines – White Farm Equipment, Gehl, Patz, etc. In the early 80’s, Harry Elder’s son and daughter, Harry Elder Jr. and Joyce, came to work full time for the business. They have both become very involved and continue to work for the family business to this day. 1986-1995 Harry purchased a second John Deere store in East Palestine, Ohio in the early 1990’s, using the facility that was already in existence. The Exmark zero turn mower line was added. This was a big change for Elder’s, as they expanded from being a solely agriculture business to also supporting the commercial mowing business that was growing.

1996-2005 In February 1998, a state of the art new facility was built on Route 14 in East Palestine. This second location was named Elder Ag and Turf Equipment Co. This store would be managed by Harry’s daughter and son-in-law, Joyce and C.H. McCutcheon. John Deere added the gator utility vehicle to their line-up. The utility vehicle has become very popular with farmers and also large property owners. Now almost every farmer has some form of utility vehicle to help out with the daily demands of a farm. Elders expanded into the Hardi Sprayer business and light construction equipment.

The showroom at the Stoneboro location was also expanded. This allowed for one to two information clinics to be held per year, holding 200-300 customers. The Sprayer Clinic, Elder’s works closely with Crawford County Extension and other clinics are held.

2006-present In 2007, the Service Department added a Ready-to-Mow truck, a mobile maintenance truck specifically designed for lawn and garden equipment and commercial mowing equipment. This was a big change for Elders and also a huge convenience for customers that live a busy lifestyle and have no way to transport their mower in for service. Big changes came to agriculture in approximately 2009, when Ag Management Systems became available to farmers. This allowed for more accuracy when planting and spraying, ultimately saving time and money. In 2010, the Stihl Hand-held Power Equipment Line was added. A third location, in Fairmount City, PA, was added in 2013. This expansion has greatly increased Elder’s territory, which now spans from western Ohio to the middle of Pennsylvania. With the addition of the third location, now doing business as Elder Ag and Turf Equipment Co. At the present time, Elder Sales and Service has three generations working and still involved in the business and is owned by two generations.

RYLIE STEINER/Meadville Tribune

C. Sherman Allen presents the Ag Industry Award to Elder Ag and Turf Equipment Com-pany during the 2015 Agriculture Hall of Fame and Ag Industry Award Ceremony at the Crawford County Fair.

Your Association is involved in State Legislation Sessions, identifying and tracking all bills affecting equipment dealers and or/are relative to our industry. Legislative reports are shared with members.

NEDA works with EDA and other affiliate associations across North America to work with equipment manu-facturers, distributors, and other suppliers to address new Manufacturer Dealer Agreements including other industry topics to help resolve dealer issues.

NEDA members receive special pricing on trade-in guides for agricultural, construction, outdoor power equipment and power sports as well as Flat Rate Time Guide for Agricultural Tractors and Combines and the Outdoor Power Equipment Flat Rate Time Guide.

Your Association’s recommended providers offer the best business insurance and OSHA consulting pro-grams.

Your Association maintains relationships with various attorneys and consultants to help members address employment, labor law issues, dealer contract issues, customer relations, OSHA compliance, workplace safety issues, environmental issues, etc.

Annual Cost of Doing Business Survey along with the Wages and Benefit Survey provide data which allow dealers to compare their dealership operating results with averages of other Northeast Dealerships includ-ing all dealerships in North America.

We represent Equipment dealers’ interest in the North-east Equipment Industry concerning Government Relations. Keeping you informed of issues affecting you is our primary responsibility.

NEDA along with National Equipment Register (NER) provides stolen equipment alerts that go out across North America to law enforcement and other equipment dealers.

Legislative Representation

Dealer-Manufacturer Relations

Trade-In and Flat Rate Guides

Business Insurance and OSHA Compliance Services

NEDA, in partnership with Haylor, Freyer & Coon Health Group, provides equipment dealers and their employees with comprehensive, quality and afford-able Health, Disability and Dental Insurance coverage you can trust.

Health Insurance

Legal Counsel Hotline

Cost of Doing Business, Wages Survey

Government Relations & Compliance

NEDA staff provides ONE (1) forklift safety training & certification course at your dealership for all staff per-sonnel operating your forklift(s). Eligible staff must be 18 years of age or older with valid driver’s license for certification.

Forklift Training – Train the Trainer

Stolen Equipment – Call us Immediately!

NEDA’s website is a “hub” for dealer members and provides instant access to online dealer information and a database with a wealth of information. You can also use our 1-800-932-0607 hotline to call for immedi-ate assistance.

NEDA Hotline/Website

Annual regional meetings are conducted in various locations convenient to your dealership each year to interact with dealer principals and employees con-cerning various operational and marketing strategies relevant to your business.

Annual Regional Meetings

NEDA IS DESIGNED TO MEET YOUR BUSINESS NEEDS

NortheastEquipmentDealersAssociationEstablished 1901

Committed to Building The Best BusinessEnvironment for Northeast Equipment Dealers

Let us prove that membership doesn’t cost . . . it pays!

Your link to the power equipment industry isNeDA!!!

What’s in it for me?PLENTY!!!

128 Metropolitan Park Drive | Liverpool, NY 13088 | phone 800.932.0607 | www.ne-equip.com

www.ne-equip.com

NEDA offers you forms and supplies specific to equip-ment dealers. Count on a wide selection, competitive pricing and great service! Please call us.

Business Forms and Supplies

Regulations continue to be a large burden like OSHA, Trucking,Health Mandates, Data Security/Privacy, Retail Financing, etc.

NEDA is here to help take the mystery of these burdens away from you,so you can continue to run your daily business operations.


Federal IRS Tax Law Introduced September 16, 2015 New York Senator Introduces New Farm Equipment Depreciation Bill Standing at CNY Farm Supply in Cortland, N.Y, U.S. Senator Charles Schumer announced legislation designed to help farmers invest in new equipment and collect on the value of their current equipment. According to Schumer, the current federal tax code is preventing farmers from invest-ing in new equipment. Schumer said if small farmers had better incentives to purchase new farming equipment, those in Cortland County and around New York State would be more inclined to make these costly investments. The Agriculture Equipment and Machinery Depreciation Act introduced by Schumer would allow farmers to receive the equipment depreciation tax deduction over five years rather than the current period of seven years. Schumer said under the current Federal Tax Code, if a farmer purchases a tractor for $100,000 it will run effectively for about five years. During that five year period, the tractor would depreciate in value to $30,000. The $70,000 lost in value can be deducted by the farmers on their taxes. Right now, farmers receive a deduction on their taxes over seven years for the depreciation cost of the equipment. "So what we have said is, have the depreciation match up with the life of the agricultural machine," Schumer said. "That will increase the amount of depreciation the farmer gets which will decrease their taxes and allow them to buy new equipment sooner." Schumer hopes to have a vote on the bill by the end of 2015 so it can take effect in the spring of 2016. See more at: http://www.farm-equipment.com/articles/12013-new-york-senator-introduces-new-farm-equipment-depreciation-bill#sthash.uth5ONUj.dpuf

NEDA Now Offering Workplace Safety and OSHA Compliance Assessment The workplace safety and OSHA compliance assessment will be con-ducted by a qualified and experienced safety professional. The assessment will include several elements including a review of existing policies and procedures, a two hour employee safety orientation meeting, training on the new Globally Harmonized System (GHS), and a “mock” OSHA inspection. In addition, the facility will receive an Injury and Illness Prevention Plan, safety talks, and program specific procedures that can be used to enhance your existing safety management system. The workplace will be assessed to OSHA’s General Industry standards (29 CFR 1910). To schedule an appointment or to get more informa-tion on this new program, call Dave Close at 800-932-0607 or email [email protected].


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News Helping Dealers Succeed

INDUSTRY


The Associated Press reports John Deere and other farm equipment manufacturers faced off recently against the state of New Hampshire over the so-called Auto Dealer Bill of Rights law, which law-makers expanded to encompass manufacturers of tractors and yard and garden equipment. On September 10, 2015, lawyers for John Deere and other manufacturers argued their case in front of the New Hampshire Supreme Court. According to the report: "'It protects dealers and, I would argue, it hurts consumers,' attorney Gordon MacDonald, representing John Deere, told the court. Because the law is retroactive, it affects every existing contract the company has with dealers, he said. "Assistant Attor-ney General Francis Fredericks argued that the new law is a merger of laws that previously dealt separate-ly with automobile manufacturers and farm and trac-tor manufacturers. The new law bars manufacturers

Charter Software’s flagship business manage-ment system, ASPEN, was certified last month on two additional interfaces with AGCO Corporation. The first certification relates to parts ordering integration between AGCO Solutions Online and ASPEN, and the second certification relates to the reporting of Cana-dian taxes through Charter’s already certified AGCO+ Plus revolving credit integration. “This comes as no surprise to the Charter Software team, as the original design and implementation for integration with parts ordering for AGCO Solutions Online was part of ASPEN during its original design,” said Kendall Edwards, lead business analyst at Charter Software. “Acquiring certification with AGCO Solu-tions Online for all parts order types didn’t require changing a single stitch of code. This code foundation has been in use for years. After all we’ve been work-ing smoothly with AGCO for eons. From day one, the ASPEN system was designed to integrate seamlessly

from terminating contracts with dealers without just cause and places the burden on the manufacturers to justify any terminations. "MacDonald argues that that undermines the essence of Deere’s contracts with its dealers. "'We agree with the dealers to sell certain products, where they can sell them and who can sell them,' MacDonald argued, saying provisions of the new law violate constitutional protections. "Attorney Brian Cullen, representing Kubota Tractor Corp., said the law amounts to “a hostile takeover” of the in-dustry." The justices didn't indicate when they would make a ruling in the case. See more at: http://www.rurallifestyledealer.com/articles/4443-john-deere-appeals-inclusion-in-auto-dealer-protection-law#sthash.xwZEWsxV.dpuf

~ Posted in Manufacturer NewsDealer News Source: Associated Press

September 10, 2015

with the top manufacturers in the world, AGCO being one of them.” Charter Software customers in Canada also have the benefit of additional certification received for reporting the breakout of Canadian taxes as part of the AGCO Plus+ revolving credit integration. This integration allows the dealership’s customers to see the breakout of taxes on the statement they receive from AGCO. “Here’s to the continued mutual success of AGCO dealers and Charter Software,” said Anne Salemo, president and CEO of Charter Software. Charter Software is the only business manage-ment software provider endorsed by five regional equipment dealer associations “and includes the Northeast Equipment Dealers Association.” For more information on Charter Software please visit: http://chartersoftware.com/

John Deere Appeals Inclusion in Auto Dealer Protection law

Charter Software’s ‘ASPEN’ receives official Integration Certifications from AgCo


hEalTh iNSuRaNCE ... affORdaBlE CaRE aCT ... mEdiCal

FIND oUT IF YoUr HEAlTH CoVErAgE IS qUAlIFYINg CoVErAgE UNDEr THE HEAlTH CArE lAW

The Affordable Care Act requires you and each member of your family to have qualifying health care coverage, qualify for an exemption from the responsi-bility to have minimum essential coverage, or make an individual shared responsibility payment when you file your federal income tax return. For purposes of ACA, qualifying health care coverage is also known as mini-mum essential coverage.

miNimum ESSENTial COVERagE iNCludES: health plans offered in the individual market – plans offered by a health insurance issuer licensed by a state, including a qualified health plan offered through the federally-facilitated or a state-based Health Insur-ance Marketplace grandfathered health plans – plans that were in existence on March 23, 2010 and haven’t been changed in ways that substantially cut benefits or increase costs for consumers – for more information, visit HealthCare.gov government-sponsored programs

•MedicarePartA•Medicaid,exceptforcertainprograms•The Children's Health Insurance Program, better

known as CHIP•CoverageundertheTRICAREprogram,exceptfor

certain programs•Coverage consisting of the medical benefits

package for eligible veterans•Civilian Health and Medical Program of the

Department of Veterans Affairs•Comprehensivehealthcare forchildrensuffering

from spina bifida who are the children of Vietnam veterans and veterans of covered service in Korea

•AhealthplanforPeaceCorpsvolunteers•The Non-appropriated Fund Health Benefits

Program of the Department of Defense Employer-sponsored plans – coverage that you have through your employer, including:

•Aplanor coverageoffered in the smallor largegroup market within a state

•Aself-insuredgrouphealthplanforemployees•The Non-appropriated Fund Health Benefits

Program of the Department of Defense•A governmental plan, such as the Federal

Employees Health Benefits Program•COBRAcoverage•RetireecoverageOther coverage designated by the Department of

Health and Human Services•Coverage under Medicare Part C – Medicare

Advantage•RefugeeMedicalAssistance

•Employer coverage provided to business ownerswho are not employees

•Coverage under a group health plan providedthrough insurance regulated by a foreign govern-ment if it meets certain requirements

Minimum essential coverage does not include cover-age that may provide limited benefits. For more information about minimum essential cov-erage, visit IRS.gov/aca and HealthCare.gov

WHAT EmPloYErS NEED To KNoW AboUT THE AFForDAblE CArE ACT The health care law contains tax provisions that affect employers. The size and structure of a work-force – small or large – helps determine which parts of the law apply to which employers. Calculating the number of employees is especially important for em-ployers that have close to 50 employees or whose work force fluctuates during the year The number of employees an employer has during the current year determines whether it is an applicable large employer for the following year. Applicable large employers are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents affordable coverage that provides minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers. For more information on these and other ACA tax provisions, visit IRS.gov/aca.

fEwER ThaN 50 EmplOyEES

ShOp marketplace Eligibility • Employers with fewer than 50 employees can

purchase insurance through the Small Business Health Options Program (SHOP) Marketplace.

information Reporting – Self-insured Employers

• All employers, regardless of size, that provideself-insured health coverage must file an annual return for individuals they cover, and provide a statement to responsible individuals.

•Thefirstinformationreportingreturnsaredueto be filed in 2016 for 2015.

continued on page 15


Ralph Gaiss, CEO and Executive VP,

NEDA, Darwin Allen and Dave Close

at Darwin's Retirement Celebration.


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WHAT EmPloYErS NEED To KNoW continued from page 13

Credits •Employersmaybeeligibleforthesmallbusiness

health care tax credit if they: 1. Cover at least 50 percent of employees’

premium costs 2. Have fewer than 25 full-time equivalent

employees with average annual wages of less than $50,000

3. Purchase their coverage through the Small Business Health Options Program.

• Employers with fewer than 50 full-time employees or full-time equivalent employees are not subject to the employer shared respon-sibility provisions.

Equal TO OR mORE ThaN 50 EmplOyEESappliCaBlE laRgE EmplOyERS ShOp marketplace Eligibility

• Employers with exactly 50 employees can pur-chase insurance through the Small Business Health Options Program (SHOP) Marketplace.

information Reporting

• All employers including applicable large employers that provide self-insured health coverage must file an annual return for indi-viduals they cover, and provide a statement to responsible individuals.

•Applicablelargeemployersmustfileanannualreturn – and provide a statement to each full-time employee – reporting whether they offered health insurance, and if so, what insurance they offered their employees.

•Thefirstinformationreportingreturnsaredueto be filed and furnished in 2016 for 2015.

payments

•Ingeneral,anapplicablelargeemployerwillbesubject to a payment if the employer does not offer affordable coverage that provides “mini-mum value to its full-time employees and their dependents, and one or more full-time employ-ees gets a premium tax credit.

•Various formsof transition relief areavailablefor 2015, including for applicable large employ-ers with fewer than 100 full-time employees, including full-time equivalent employees. Full details are available in the transition relief section of the employer shared responsibility questions and answers page.


This is part two of a two-part article. Part one appeared in Septembers' NE Dealer.

Planning in advance will result in job evaluations and personnel needs. This in turn will strengthen the probability of doing a superior job of hiring. It will further establish a better base for stronger controls over the entire hiring process. This entire pre-planning process encourages management to think about specific job requirements and about the type of personnel required. Once such pre-planning is done, management has specific reference points for evaluating a candidate on an objective basis. In pre-planning, management should develop checklists. This list would include requirements for a specific job and would be an in-depth job description for the manager to use in hiring. This list would contain the technical and personal requirements of the position. It would assist the hiring manager in recognizing the specific qualities necessary to hire the right candidate. A well thought up list helps identify more clearly what to look for in considering candidates for the position. Seek out and develop a list of prospective candidates for the position. This next step concerns your desire to reach the right candidate for the job. What is done here will determine to a high degree the number and the kind of individuals that present themselves as candidates for the position. The objective is, of course, to generate as many likely candidates as possible so that management can have a choice in filling the position. Source of candidates is no longer just a local matter. Many successful equipment dealers are recruiting out of state for personnel. No longer is it a local matter or a case of promoting within the dealership. The important thing is to try several methods rather than just one or two methods of locating candidates. Methods such as: word of mouth, asking present employees for suggestions, advertising both local and out of state, using both local and national associations, etc. Once candidates begin to respond, the next important action is having them complete an application form or forward a job resume. The use of an application form is just good business and it assists management in determining the applicants ability to read and follow instructions and to write. The application is a time saver for management. It is a written review of the candidates work experience. The application identifies skills and weaknesses of the candidate. It becomes a positive guide for the personal interview and it provides reference information for the follow-up.

We, of course, caution anyone in developing a job application to be aware of the numerous laws and regulations concerning what can and cannot appear on the application form. Once applicants have completed this application form, management is in a position to review the information provided and screen the candidates against the pre-planned requirements. The interview grows out of the information on either the application form or the resume. Questions are developed by intense research into the material presented on either of these two forms. Once the interview is terminated and the candidate has been dismissed, it is suggested that summary notes be made on the interview as a further aid in making the final selection. We strongly recommend that the manager make these summary notes during or immediately following the initial interview. When the interviews are completed, the references checked and the interview information reviewed, management is ready to select the candidate considered best qualified in relation to the technical and personal qualifications established in the pre-plan for the position. Management’s decision should be communicated to the selected candidate promptly and arrangements finalized for the individual to report for work. Likewise, candidate not selected should be advised that a decision has been reached. Following the final selection is the important action of placing the new employee on the team. This action involves common courtesy. It will cover matters such as assuring full understanding of all fringe benefits, of the pay plan, working hours, vacation, training and other company policy matters important to the hired individual. Lastly it involves putting the individual on the team by introducing them to all dealership personnel and getting them properly started on the new job. Better hiring practices builds stronger dealership teamwork and this all starts with the hiring process . . . make this process the best you can! We have two manuals on special this month for our readers: One is Technicians, field & Shop and covers numerous techniques for finding and hiring technicians. The second is: Technicians, articles we have written. Simply email your request for these two publications, stating your name, your title, your dealership and, your dealership’s location, as well as your product line. We would also like to hear from you as to where you read this particular article. The document(s) will be sent via email to you along with an invoice in the amount of $16.99, which you will pay after the material has been received. If after receiving the materials, you are not satisfied, simply email us telling us of your dissatisfaction and withhold any payment whatsoever; simple enough? Our email address is: [email protected]

ALWAYS HIRE THEbEST EmPloYEES PoSSIblE

ThE afTER maRKET SalES fORCE

BY JOHN WALKERPresident,AfterMarketServicesConsultingCo.,Inc.–817StockbridgeDrive,#399,Ft.Mill,SC29708•Cell918-230-0791

www.amsconco.com


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18 …”Committed to Building the Best Business Environment for the Northeast Equipment Dealer”18 …”Committed to Building the Best Business Environment for the Northeast Equipment Dealer”

TAX TIPS The new ACA Information Center for Applicable Large Employers page on IRS.gov features informa-tion and resources for employers of all sizes on how the health care law may affect them if they fit the definition of an applicable large employer. The web page includes the following sections:

•What’sTrendingforALEs,•HowtoDetermineifYouareanALE,•ResourcesforApplicableLargeEmployers,and•OutreachMaterials. Visitors to the new page will find links to:•Detailed information about tax provisions in-

cluding information reporting requirements for employers,

•Questionsandanswers,and•Forms,instructions,publications,healthcaretax

tips, flyers and videos. Although the vast majority of employers will not be affected, you should determine if you are an appli-cable large employer. If you averaged at least 50 full-time employees, including full-time equivalent em-ployees, during 2014, you are most likely an ALE for 2015. If you have fewer than 50 full-time employees, you may be considered an applicable large employer if you share a common ownership with other employ-ers. As an applicable large employer, you should be taking steps now to prepare for the coming filing sea-son. In 2016, applicable large employers must file an annual information return – and provide a statement to each full-time employee – reporting whether they offered health insurance, and if so, what insurance they offered their employees. If you will file 250 or more information returns for 2015, you must file the returns electronically through the ACA Information Reports system. You should re-view draft Publication 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns, now for information on the communication proce-dures, transmission formats, business rules and vali-dation procedures for returns that you must transmit in 2016.

New IrS resource helps Employers Understand the Health Care law

The Health Care law and You: Nine Facts About letters Sent by the IrS


The IRS sent letters to taxpayers this summer who were issued a Form 1095-A, Health Insurance Marketplace Statement, showing that advance payments of the premium tax credit were paid on the taxpayer’s behalf in 2014. At the time, the IRS had no record that the taxpayer filed a 2014 tax return. Here are nine facts about these letters and the actions you should take:

• IRSletters5591,5591A,or5596remindyouoftheimpor-tance of filing your 2014 federal tax return along with Form 8962, Premium Tax Credit.

•Youmustfileataxreturntoreconcileanyadvancecreditpayments you received in 2014 and to maintain your eligi-bility for future premium assistance.

• Ifyoudonotfile,youwillnotbeeligibleforadvancepay-ments of the premium tax credit in 2016.

•Evenifyoudon’tusuallyfileorifyourequestedanexten-sion to Oct. 15, you should file your 2014 tax return as soon as possible.

•Until youfilea2014 tax return to resolve the issuewithyour Marketplace, you will not be eligible to get advance payments of the premium tax credit to help pay your health coverage premiums in 2016 from the Marketplace.

•YoushouldhavereceivedaForm1095-A,HealthInsuranceMarketplace Statement, earlier this year if you or a family member purchased health insurance coverage through the Marketplace in 2014. This form provides the information youneed to complete Form8962.Youmust attach Form8962 to the income tax return you file.

•ContactyourMarketplaceifyouhavequestionsaboutyourForm 1095-A.

• Ifyouhaverecentlyfiledyour2014taxreturnwithForm8962, you do not need to file another tax return or call the IRS about these letters. In general, if you filed your tax return electronically, it takes three weeks before it is pro-cessed and your information is available. If you mailed your tax return, it takes about six weeks. However, processing times can vary based on other circumstances.

•YoushouldfollowtheinstructionsonanyadditionalIRScor-respondence that you receive to help the IRS verify informa-tion to process your tax return.

In addition to these letters from the IRS, your health insurance company may contact you to remind you to file your 2014 federal tax return along with Form 8962. In some cases, they may contact you even if you did not receive advance credit payments in 2014. If you are not otherwise required to file a tax return, you do not have to file a return if you or anyone on your return did not receive advance credit payments in 2014. For more information, see the Affordable Care Act Tax Provi-sions for Individuals and Families page on IRS.gov/aca.


TAX TIPS Some of the provisions of the health care law apply only to applicable large employers, which is generally those with 50 or more full-time equiva-lent employees. The law requires ALEs to file in-formation returns in 2016 with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offered.

monthly Tracking To prepare for the reporting requirements in 2016, applicable large employers should be track-ing information each month of 2015, including:

•Whetheryouofferedfull-timeemployeesandtheir dependents minimum essential cover-age that meets the minimum value require-ments and is affordable.

•Whetheryouremployeesenrolledintheself-insured minimum essential coverage you of-fered.

Annual Information ReportingThe first statements to employees must be pro-

vided by January 31, 2016, and the first in-formation returns to the IRS must be filed by February 28, 2016, or March 31, 2016, if filed electronically.

•ALEmembersmustfileForm1095-C,Employ-er-Provided Health Insurance Offer and Cov-erage, and Form 1094-C, Transmittal of Em-ployer-Provided Health Insurance Offer and Coverage Information Returns, with the IRS annually, no later than February 28 – March 31 if filed electronically – of the year imme-diately following the calendar year to which the return relates.

•ALEmembersarealsorequiredtoprovideastatement to each full-time employee that in-cludes the same information provided to the IRS, by January 31 of the calendar year follow-ing the calendar year for which the informa-tion relates.

•ALEsthatfile250ormoreinformationreturnsduring the calendar year must file

the returns electronically. ALEs who are self-insured – who sponsor, self-insured group health plans – are subject to the employer information reporting requirements as well as the reporting requirements for providers of minimum essential coverage.

Other Reporting Requirements •TheAdditionalMedicareTaxappliestowag-

es, compensation, and self-employment in-come. As an employer, you must withhold and report an additional 0.9 percent on em-ployee wages or compensation that exceeds $200,000.

•Youmaybe required to report the valueofthe health insurance coverage you provided to each employee on his or her Form W-2.

For more information, including whether you’re subject to an employer shared responsibil-ity payment, see Publication 5196, Understanding Employer Reporting Requirements of the Health Care Law. For more information, see our Ques-tions and Answers about Information Reporting by Health Coverage Providers and Reporting of Offers of Health Insurance Coverage by Employers.

Reporting guidance for applicable large Employers

fBi: Connected health devices are security risks Health devices and other technology that con-nect to the Internet are vulnerable to cyber security threats, according to a warning from the FBI. "Once criminals have breached such devices, they have ac-cess to any personal or medical information stored on the devices and can possibly change the coding con-trolling the dispensing of medicines or health data collection," the agency said. See more information at: http://www.healthcareitnews.com/news/fbi-issues-alert-iot-device-security


RESOURCESHuman

Small talk is fine to start the interview, but get down to business and ask the right kinds of questions to uncover which candidate is the best fit for your dealership. A how-to story in the Wall Street Journal recom-mends focusing on four kinds of questions:

1. Fact-finding questions to verify credentials2. Creative thinking questions to see how much they understand

industry trends3. Problem-solving questions to have them prove what they know4. Behavioral questions to see how they might fit within your busi-

ness culture According to the story, “Hiring experts say behavioral questions reveal the most about how a candidate would fit into the company cul-ture. Another way to get at this is through role-playing. You might set up a scenario in which you are a potential new client, and ask the candidate to deliver a pitch. Or if the job you’re filling is managerial, play the role of an underperforming employee and ask the candidate to coach you.” The experts also suggest watching how the candidate behaves before and after the interview. For instance, are they polite to others they see in the office? Do they look frazzled or prepared? A final check: Watch how they follow up with you. They should send you a thank you note and offer to provide any additional information to help them secure the job. See more at: http://www.rurallifestyledealer.com/articles/4459-ask-these-four-kinds-of-questions-during-employment-interviews-rldbrief#sthash.NDP2CakP.dpuf

Ask These Four Kinds of questions During Employment Interviews

Are Employers obligated to Pay for Unapproved overtime?Question: What are the laws regard-ing an employee who is scheduled to work an 8 hour shift but clocks in be-fore their shift starts and also stays after their shift ends when it is not expected of them? If this overtime is not approved is the employer under any obligation to pay?

Answer: Non-exempt employees must be paid for all time worked, even if it is not approved. Thus, an employee must be paid for the time even if he/she worked without authorization. The employer may discipline the employee, consistent with employer policy and practice, if the employee violated any such policy with respect to prior approval for overtime.

~ Federated Insurance Co.

whaT’S REally OuT ThERE? By Steve Norris

2015 is looking like one of those years where you just have to paddle a bit harder. Crop conditions run the gammit from phenomenal to disastrous and that’s just in Illinois. USDA seems to think that there is a lot of grain to be harvested, while several growers in Illinois, Indiana and parts of Ohio will offer differing perspectives. As always yield monitors in the combines will have the last word. Tighter cash flow doesn’t have to keep growers from acquiring the equipment they need this year. As always, with interest rates still at historically low levels, Diversified Financial is ready to provide fixed or floating rate financing as well as leases to help growers’ cash flow their operations.

~ Diversified Financial


Who must have an SPCC Plan?

Any business that has a cumulative above ground storage capacity of 1,320 gallons or more of oil in containers of 55 gallons or larger.

Why do I need an SPCC Plan?

The bottom line is that every EPA region is con-ducting SPCC inspections and assessing fines for non-compliance. The fine for not having a plan may be as high as $1,000 in addition to any infrac-tions. The size of a facil-ity has not been shown to exclude it from an inspection. How can RCI help? RCI has developed an SPCC program that meets the latest federal requirements, provides technical support from staff P.E.’s and cus-tomer service representa-tives, and is accessible on-line, all at an economical price.

What are the benefits to RCI’s program?

It’s easy. NEDA com-

pletes all field work and facility inspections.

Facility and personnel

changes are easily amended with the on-line program.

RCI keeps your SPCC

plan up-to-date with regulatory changes.

All forms and checklists

are built into the pro-gram.

RCI can easily re-

certify your on-line plans every five years as required by law.

Toll free assistance

from RCI P.E.’s and customer service rep’s.

You can access your

plan from any location and monitor multiple sites.

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NEDA Liverpool, NY


ApplYIngpRoCESSIMpRovEMEntto TACKLE DEALERsHip issuEsWiTH LEgAL impLiCATiONs

bY lANCE FormWAlT, SEIgFrIED bINgHAm, P.C.

I have been fortunate to have the opportunity to speak too many of you at association conventions or dealer meetings. During those presentations, I try to update you on key legal issues impacting your dealerships. Although I hope that information is helpful, I want to also make the point that some of this information must be analyzed and translated into dealership processes to make it useful to you on a consistent basis. In the past, I described why process improvement in general is important to you as your business expands in an environment of ever-increasing complexity. In addition, process improvement relating to legal compliance, like it or not, is going to take on increasing importance in your business. I want to briefly describe some examples of legal compliance topics that require processes and explain how you can approach putting those in place.

CaNdidaTES fOR lEgal pROCESS impROVEmENT Since you are in the business of working with customers, a logical place to start for identifying legal process improvement opportunities is your interaction with customers. The following are examples of customer-focused areas that are likely candidates for the implementation of a process:

Retail financing Transactions. Many of your equipment sales involve customer financing, some of which are supposed to be “non-recourse” to you. However, to make sure these loans don’t later become “recourse” to you through a chargeback, you need to make sure the lender’s requirements are satisfied on each transaction. Examples may

include (a) verifying customer identity, (b) making sure equipment has the proper insurance and (c) delivery of all required customer notices.

used Equipment Transactions. Many of your equipment sales include trade-ins. In addition to establishing a value for the trade-in, you also need to make sure you will be able to keep the proceeds when you sell the trade-in. To do this, you need to develop processes to confirm the trade-in is not subject to a lien. If it is, the lien holder will jump ahead of you and get the first crack at any proceeds you later receive from selling the trade-in.

Repair work. Most of you will perform repairs before collecting payment. To increase prospects for payment, you will need to understand the legal steps involved in creating and enforcing a security interest or repair lien and have the appropriate processes in place to be able to use these tools when a customer decides not to pay.

implEmENTiNg lEgal pROCESS impROVEmENT After a need for legal process improvement is identified, you need to be able to determine how to put it in place. To do that, I recommend the following steps: • Brainstormtherelatedareasofyour business that may be candidates for legal process improvement to help identify integration opportunities for processes as you dive into more detail. • Identify your current process(or possibly multiple processes if more than one location is involved). • Review contracts or relatedlaws/regulations to identify the

outcomes needed for the process to comply with the contract or laws/regulations. • Develop instructions andmaterials, using existing processes where practical, to make sure the appropriate steps are followed to meet the contract or other legal requirements. • Determinehowtheprocesscanbe integrated with other processes. • Establish the goals to beachieved through use of the process. • Roll out the process to allapplicable staff and locations. • Develop a framework andtimeframe for measuring both compliance with the process and whether the process achieved the results desired. Embracing process improvements to facilitate compliance with legal obligations will be critical for dealers operating in a business filled with legal relationships. It is my hope that this information will help you start or continue on a path that will be important from the standpoint of limiting risk and protecting your dealership’s bottom line.

Lance Formwalt is a member of the Equipment Dealer Practice Group at Seigfreid Bingham, P.C. The firm also serves as legal counsel to the Western Equipment Dealers Association. Lance may be contacted at [email protected] or 816-265-4106. Also see www.seigfreidbingham.com. This article is intended to provide general recommendations and is not intended to be legal advice. You should always consult your attorney for advice unique to you and your business.


ROBERT WATSONMEMORIAL TOY AUCTION

LeClar Bros. Auction ServiceFriday, February 26, 2016 | 5:00p

Building 2, Arts & Home Center


bY JoHN CHAPIN

SUCCESSFUL SalES fOllOw-up

One of the biggest reasons salespeople don’t close more business is that they either don’t follow up enough or they don’t follow up properly. Here are the keys to close more sales by following up the right way. Key #1: follow up at least 12 times. The average salesperson follows up with a prospect once or twice. The ma-jority of sales are made between the 4th and 12th contact. As a result, you need a step-by-step follow-up system that con-sists of at least 12 contacts. Two of the most important aspects of follow up are consistency and commitment. Having and sticking to a step-by-step follow-up system with each and every prospect will ensure you have these two aspects in place. For those of you who believe 12 fol-low-up contacts are too many, you need to get resold on your product. If your product can truly help the prospect and you believe you have the best product for them, you owe it to them to follow up at least 12 times, and probably even more. Key #2: Talk in benefits and add value where possible. What was the reason they originally contacted you or, if you initiated contact, what was the reason they decid-ed to talk to you? How can you remind them of that and further drive home the point that now is the time to act? Has there been a change or update which might affect them? Is there some new information you can provide that might help them make a better, more informed decision? Is there something you can give them that costs you little or no money, and yet, can show your value to them? Al-ways think in terms of what’s in it for them and always put yourself in their world. How can you add or show value to the prospect? Why should they be interested in what you are talking about? What will they get out of it? What would cause them to be motivated to act? Key #3: use a variety of follow-up methods. Your follow up can consist of phone calls, in-person visits, mail, e-mail, faxes, and even text messages. Of these methods, an in-person visit is by far the most effective, fol-lowed by phone, mail, text, fax, and finally e-mail. You want to use a variety of these but try to focus on the more effective methods. You can also use these in conjunction with one another. For example, right after you make a

phone call, send out an e-mail. One thing you want to avoid is follow up by e-mail alone. E-mail is impersonal and also the least effective follow up.

Key #4: Continue to stay in con-tact with people. If you are unsuccessful with your 12 contacts, and assuming they are still a viable candidate for your product, you must continue to stay in touch. Get them on your contact list and continue to reach out via a variety of methods: monthly newsletter, postcard mailer, product updates, birthday, holiday, and other cards, gifts, and sending out other items of interest. Note: Reach out to people about once a month with the above methods. Daily or even weekly contact will irritate most people; almost all are okay with some form of monthly contact. Also, as stated under Key #2, make sure the con-tact has some value for the prospect. Note 2: If you’re really concerned about contacting people after they’ve said they aren’t interested at the mo-

ment, but you’ve determined they’re still a good prospect, try the following, “Okay, I completely understand. Let me ask you; is it okay if I reach out from time to time with product updates and other pertinent information?” Most people will agree to that. BONUS: Here are the four biggest follow-up mistakes in order of “bigness”:

• Thesalespersondoesn’tfollowupquicklyenough• Theydon’tmakeenoughfollow-upcalls• Theydon’tknowwhattosayortheysaythewrong

thing• Theydon’tprovidecontactinformation

What’s most important is that you get to the person as quickly as possible once you realize they are interested in your product. Even if you aren’t prepared (3rd biggest mistake), make the initial contact as soon as possible. Just let them know that you are aware of their interest, are working on the situation, or whatever the case may be, and let them know when they will hear back from you. Also, anytime you aren’t sure what to say, whether it’s the first contact or 12th, just take your best guess and call. The most important part of follow up is to make the con-tact regardless of what you say. Just make contact. John Chapin is a sales and motivational speaker and trainer. For his free newsletter, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. The most comprehensive "how-to" guide on selling.

Your follow up can consist of phone calls,

in-person visits, mail, e-mail, faxes,

and even text messages. Of these

methods, an in-person visit is by far the most

effective ...


CrEDIT CArD ProgrAmEmS (ElECTroNIC mErCHANT SYSTEmS)Steven miller866-367-1818, Direct 585-285-9954F: [email protected] FINANCIAlYour Financing ChoiceSteve Norris at 800-648-8026, C: 402-677-7991, F: 888-356-6242 [email protected]

FEDErATED INSUrANCE ComPANYProperty & Casualty Insurance (8statesexceptvt), HealthInsurance(pAonly)Workers' Comp (AllstatesexceptnY)matt Johnson at 800-241-4925, C: 606-923-6350Fax [email protected]•www.federatedinsurance.com

HAYlor, FrEYEr & CooN, INC.Health Insurance Program lauren marecek Mgr., Group Benefit Consulting315-703-3215/800-289-1501, [email protected]•www.haylor.com Jim mcgarvey Supervisor Benefit Consulting 315 703 3239•[email protected]

Physical Damage Insurance (HF&C,Inc.),Rental / Leasing EquipmentPatrick burns at 800-289-1501, Ext. [email protected]•www.haylor.com

Workers' Comp (ReturnDividendprogramfornYDealersonly)property&CasualtyInsuranceforvtPatrick burns at 800-289-1501, Ext. [email protected]•www.haylor.com

lEgAl ASSISTANCE – FrEE lImITED Dave Shay at 816-421-4460Fax:816-474-3447•[email protected]

NEDA oN-lINE CAmPUSDave Close at 800-932-0607 x [email protected]

oSHA WorKPlACE SAFETY ComPlIANCE Prog.Dave Close at 1-800-932-0607 Ext. [email protected]

PArTNErSHIP FrEIgHT ProgrAmYellowFreight,UpSFreight,FedExgroundKeith Korhely at 800-599-2902 x [email protected]

PoWEr Pro ACCrEDITED DEAlErJoe Dykes at [email protected]

rEgUlATorY CoNSUlTANTS, INC.CErTIFIED SPCC PlANDave Close at 800-932-0607 x 235robb roesch at 800-888-9596 x 222www.rci-safety.com

TElEPHoNE DISCoUNT ProgrAmWorldNet Solutions, Inc.866-532-7653 Mention NAEDA

ralph gaiss,Executivevp/CEo800-932-0607 x [email protected]

Dave Close, Operations Manager800-932-0607 x [email protected]

Kelli Neider, Administrative Assistant800-932-0607 x [email protected](BusinessForms)

Tim Wentz, Field Services DirectorC: 717-576-6794, P: 717-258-1450F: [email protected]

Scott grigor,nYFarmShowManager800-932-0607, Ext. [email protected]

Art Smith, Consultant/Editor, NE Dealer717-258-8476, F: [email protected]

CHArTEr SoFTWArE bUSINESS SYSTEmSmelissa Amen303-932-6875 - Ext. 219www.chartersoftware.com

CErTIFIED bUSINESS VAlUATIoNSWestern Financial Consulting, P.C.Curtis A. Kleoppel / bob Charbonneau816-561-5323 x 116 & 117Fax: 816-561-1249 or 800-762-5616

For Service / SPoNSoreD ProGrAMS,cAll Your ASSociAtioN

800-932-0607 • 315-457-0314 • Fax: 315-451-3548 • www.ne-equip.com

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Northeast Equipment Dealers Association Serving Farm, Industrial & Outdoor Power Equipment Dealers Since 1901

*** October 2015 *** Adjustable Magnetic Based Safety Lights

HF18A-MB (Amber) HF18R-MB (Red)

� 2 Functions: Flashing & Steady � Super Bright LED Lights � Visible to 1.25 mile � Heavy Duty Adjustable Magnet � Last up to 36 Hours on 4 “AA” Batteries

Regular Price: $15.82 Special Price: $13.45 Reg. Sell Price: $25.99 Case: 10 Units

Order Form Item # Qty. Cost Ea. Total Dealership Name: __________________________ HF18A-MB ____ $13.45 _______ Shipping Address: __________________________ HF18R-MB ____ $13.45 _______ City, State, and Zip: ____________________________ SUB TOTAL ________ Terms: NET 30 DAYS TO APPROVED MEMBERS (If not for resale)TAX ________ Freight: PREPAID ON CASE QUANTITIES OF LIKE COLOR SHIPPING ________ TOTAL ________ Payment Method (Prepayment is required) Check Enclosed (Payable to NEDA) __________ Credit Card (VISA or MC) Acct # ____________________________________ Exp. Date: ___________ (Circle One) Cardholder Name: _____________________________ Signature: _______________________________

128 Metropolitan Park Drive, Liverpool, New York 13088 • PO Box 3470, Syracuse, New York 13220 800-932-0607 / 315-457-0314 Fax: 315-451-3548 Website: www.ne-equip.com

OFFER EXPIRES: October 31, 2015


EquipmENT iNduSTRy NEwS

As Ag Equipment Intelligence reported in the Sept. 11 "On the Record" broadcast, new dealer contracts are on the way from CNH, with the intent to get all of its dealers on the revised agreements by the end of 2016. CNH announced a new agreement in July for each of its dealer networks - Case IH Agriculture and Case Construction Equipment - thatdealers say gives the OEM a lot more teeth in the agreements with dealers carrying the CNH brands. Lance Formwalt and Dave Shay of Seigfreid Bingham, the legal counsel that represents Western Equipment Dealers Assn. and the NAEDA Industry Relations Task Force, received notice to review the agreement and provided feedback but noted the new agreement represents several significant departures from current contracts. Because Case dealers have not signed new forms of agreements since the mid-1990s, Formwalt and Shay say thec hanges are more dramatic for CasecAg and construction dealers than for New Holland dealers. Seigfreid Bingham's Formwalt and Shay issued a memo on Aug. 10 to CNH dealers that summarized the top changes appearing in the new dealer agreement. Following is a synopsis of 4 items they say will most affect farm equipment dealers carrying the CNH brands. 1. future Replacement of dealer agreements – A new provision may give CNH the right to require dealers to sign any new form of dealer agreement introduced in the future. "This is important because its effect is to make the dealer choose between signing the new agreement or be faced with termination - even in states or provinces where good cause is required. 2. Separation of facilities/ personnel – CNH is reserving the right to require separate facilities and/or personnel if a dealer is engaged with another business that requires a "considerable commitment" of a dealer's resources or efforts. "We believe that CNH may attempt to use this provision in connection with dealers that carry product lines that are viewed as competitive with Case or New Holland," Formwalt and Shay say. CNH also included language about display area size requirements for its brands relevant to other products in the dealership. 3. Removal of locations from dealer agreements & Removalof product lines – Case IH and Case Construction want to add the ability to terminate a single branch location (vs. the entire agreement) as remedy for dealer violations. It is significant "because dealers may not be able to use the dealer protection laws to protect against termination," say Formwalt and Shay, because dealer protection laws address the entire dealer agreement, not specific locations. The remedy already exists in the New Holland contract. Additionally, each of the new agreements gives the OEM the authority to remove CNH products from the list of equipment a dealer is authorized to sell. "This is especially concerning since this remedy can be used even if a dealer is complying with the terms of the agreement, including market share.

4. minimum Ordering Requirements – The new agreement requires dealers to maintain an inventory "at the level deemed necessary to meet dealer's equipment sales obligations." Formwalt and Shay say this standard "puts significantly more discretion in the hands of CNH than in the current agreement where the dealer's inventory must be 'adequate in relation to the sales and service potential.'" CNH is also reserving the right to require dealers to order inventory in minimum speCified quantities. One dealer Ag Equipment Intelligence contacted, who had not yet looked at the contract, said that state law is paramount when it comes to termination language and, thus, the effect of contracts will vary depending on locations. In states with strong dealer protection laws, the concern is not as great. With regard to enforcement of the new agreement (which CNH wants to get all dealers onto by December of 2016), Formwalt and Shay say, "In general, if you request permission from CNH to add territory, product lines or locations, CNH will likely be able to require you to sign the new dealer agreement as a condition of that approval. If a dealer requests permission from CNH to approve an ownership transfer (including transfers between existing owners or for a sale/merger transaction), CNH's ability to condition the approval of the transfer on signing a new dealer agreement may be limited by the dealer protection law. Formwalt and Shay are encouraging affected dealers to contact their state and regional dealer associations with questions. Ag Equipment Intelligence learned that the Case IH Dealer Advisory Board, chaired by Steve Hlmt, H&R Agri-Power, a Case IH group doing business in five states, would be reviewing the issue further later this month.

~ AEI

Kubota's Resources paying Dividends for Kverneland Being acquired by Kubota 3 years ago is proving positive across the board for hay and tillage implement manufacturer Kverneland, according to senior managers. "Kubota is a solid owner that understands the industry and has a long-term view of our business, which was not the case with previousinvestors; he said. "Much of the focus of Kubota's ownership so far has been on improving the supply chain by developing a master plan for investment in our factories. "I anticipate a further decline in the market this year and in the first 6 months of 2016 before we see a recovery; he said. "The low investmentin past months eventually brings a need for farmers to invest again in new machinery.

~ AEI

seigfreid Bingham cites Top 4 changes,concerns in cNh's New Dealer Agreement



Analyst spots Three of the majors' major Trends at Farm progress show While attending the Farm Progress Show in Decatur, IL, on Sept. 1-3, Morningstar equity analyst Kwame Webb said during his visits with the three major equipment manufacturers, three major trends emerged. These included substantial investments in telematics, less emphasis on high horsepower equipment, and an ongoing push to reduce their own and dealer inventories. Following meetings with top managers at AGCO, Deere and CNH Industrial, Webb said, "We think overall sentiment is on par with recent company reports of oversupply in the farm equipment market. In North America, new and used equipment inventories remain high, and an anticipated sales decline of 25-30% in 2015 is likely to weigh on 2016 sales unless there is a weather abnormality that improves farm economics." He pointed out that each of the three largest tractor manufacturers continued to emphasize that they've reduced production volume below end-market demand to improve their 2015 free cashflow outlook as well as to reduce overall dealer inventory levels. "In another bid to improve dealer inventory levels, CNH Industrial mentioned that traditional dealer incentives that were 15% dedicated to used products have now grown to 50% of incentives in the current marketplace,"said Webb.

~ AEI

Reducing costs &inventory pays off for Titan machinery in FY2q16 While total revenues remain decidedly below year-ago levels, Titan Machinery registered a slight win in its fiscal second quarter ended July 31 - at least with analysts. Consensus for the period was for an adjusted loss of $0.03 per share, but Titan managed to eke out a brea keven EPS of $O.OO.T his was the second consecutive quarter that the dealership group beat analysts' consensus for EPS. The beat was driven by a lower cost structure as a result of reducing headcount, modifying compensation programs and closing some locations earlier in the year. Operating expenses decreased $12.4 million or 18.3% for the fiscal second quarter of 2016.

~ AEI

industry consultants Following Dealers consolidation Lead It was just a matter of time before long-time industry consultants got on the consolidation bandwagon that's been running for more than a decade for farm equipment dealers. Earlier this summer several consultants and consulting groups got together to form the Machinery Advisors Consortium (MAC). And, in September, Spader Business Management (SBM) and Jerkins Creative Consulting (TCC) announced they had signed a Letter of Intent for SBM to acquire JCC.

~ AEI

Early orders for 2016 Decline significantly vs. 2015 Levels The level of early orders in late summer and early fall for farm machinery is considered a reliable indicator for farmers' buying intentions for the coming. year. That being the case, 2016 doesn't look particularly promising. Preliminary results from Ag Equipment Intelligence's 2016 Dealer Business Outlook & Trends survey indicate that early orders for farm machinery dealers are down again, following the trend from a year ago. Nearly 300 dealers participated in the survey. They were asked, "How do your early order presells this year compare with early orders last year at this time?" Overall, only 5.8% of dealers reported that their early orders for new 2016 equipment were up compared with a year ago. None said their presells at this point were up more than 10% (vs. 1.1% in 2015 and 0.0% in 2014). Only 1% said they were up 6-10% (vs. 1.8% in 2015 and 7.2% in 2014).

~ AEI

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