Dealership grows from the core

The retail industry includes traditional sales outlets for consumers and business as well as online retailers and commission-based selling. A machinery dealership we worked with had spent several years developing a strong customer value proposition based on exceptional after-sales care, including a willingness to address product failure (even when the supplier was unwilling to repair the machine under warranty).

After refining its value proposition and operating rhythm to reflect best practice, the dealer wanted to grow beyond that core. Our strategy for growth? Expand geographically by developing a repeatable formula that took the existing business model and:

• Sought locations where its product was in demand but under-represented
• Transferred key management personnel from its existing operations to the new location and recruiting additional personnel to support them
• Supported the new business from Head Office with the existing systems, processes, buying power, etc.

Crucial to the business’ success was the time and effort put into developing its existing business model and developing a repeatable formula that could be rolled out efficiently in other regions.

The dealership grew its revenue from approximately $20m to over $100m within five years. By expanding competencies, it created substantial growth from its core business.