RED-85-Z51
Addicted to ArboristSite
Sometimes you need to have more balls than brains to be in business. When a sales rep comes up with a ridiculous figure like that they are testing you. They are looking to see if you are serious by watching your reaction. You need to hold your ground and tell him that that sounds fine and ask him when he can meet with you to go over the details. At that time you can actually discuss with him a reasonable amount of inventory to stock. This should be a full representation of the product line. If you are a good operator you will always sell more than you think!
Don't forget that inventory is floor planned for a short period of time and new dealers typically get longer floor planning terms for their initial order. Reps want to let you think that you will require cash for everything when you really only require the equivalent with the equipment finance company. This means that your cash start-up cost is for the signs displays and some tools only. Furthermore most OEM's will give you 50% Co-Op on the signs and displays.
I am not saying that bringing on a large commitment like this is easy. It is not! But it is not imposable if you have the desire to succeed!
I asked him if I could just get some saws and stuff like that, and all the accessories that go with them, including bars, Screnches, oils, chains, etc...He said firmle "NO, WE DONT DO THAT" $50K with a minimum of 50 units and 60 running feet of wall for displays. I have 0 intentions of only carring 1 brand, and all that would take up all my space with stihls.
I know about floorplanning, its not a bad thing, but Id like to start small and own my stock.
Ive been successful thus far by going slow, and being careful.
Ive emailed TANAKA, their stuff looks great, 1,500 hr engine lifetimes, full line of equipment.