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Conduit Extraordinare
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Discussion Starter · #1 ·
Who here is a dealer for Generac, Kohler, etc.

What are the real advantages of becoming a dealer in lieu of just purchasing from HD, Norwall or a local supplier and installing. I understand it could be another revenue stream with maintenance and warranty work.

Is it profitable to be a dealer? What is the break-even, either in units you have to sell a year, service calls a month, etc. to make it worth making the investment in the training and other costs associated with becoming a dealer?

Thanks.
 

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Can't Remember
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I am a dealer for Generac and soon Briggs/GE. I haven't figured out any break even points. I just got tired of relying on others to repair things. You are either all in or out though. If you aren't selling a whole lot of them, then you may find someone who gives you a good deal on them and can handle delivery for you. My supply house gives me prices close enough and take care of delivery for me. They have a cart and will set them in place for me. Having to wait for freight delivery and then handle the units is a pain unless you have warehouse space and the means to load and unload. My supply house will take delivery of ones I order from the factory and deliver those to me when I need them. Establish a good relationship with someone.

The service may take awhile to make you some money. You need to invest in classes and parts kits. A couple of days of classes is a good start, but it takes time to learn this stuff and you learn by doing. Prices paid for warranty are flat rate. See where I'm going? Don't let this discourage you from trying though. If there aren't many doing the service, you can get work from other installers.

The Briggs/GE thing was the next logical step because I have a couple of customers who have Briggs units and a couple with Briggs parts ie Pow'r Gard and Dayton. Need a supply chain for parts. Its hard to get any support for anything without being a dealer.
 

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We are a dealer. Got the dealership to save some money on equipment. There is no exclusivity but I understand that since Generac bought Koehler that May change. To do service on warranties you have to send someone to their training. I see that as the money maker. We don't do residential work so I can't speak to the profit on that part. Depending on purchase levels, u can drive your costs down significantly. Kinda like Grainger. It's been a good deal for us for about 3 years. We stock some portables. That help?
 

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Scotchkote Installer
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Being a Generac dealer actually costs you money in the long run....

I can buy generators for less money from Norwall that using my "confidential pricing sheet"...

You have to go into service big time to mike any money after you pay for their schooling and mandatory parts stock...

But I keep my dealership up to date by buying at least one unit per year....
 

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Sorry about the misinformation. U r right. It was Baldor. The exclusivity comment is based on things I have heard & a gut feeling. I'm probably wrong but it never hurts to think outside the box. We only service what we sell & we're not "qualified" to do Generac warranty work.
 

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Everybody I know in this area, who were generac dealers gave it up because the support from the company was not there and the product didn't seem to be of great quality. Not sure how you all feel about it.
 

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Everybody I know in this area, who were generac dealers gave it up because the support from the company was not there and the product didn't seem to be of great quality. Not sure how you all feel about it.
I know that's how I feel about it.
 
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Conduit Extraordinare
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Discussion Starter · #12 ·
We are a Generac dealer and we also provide service. One advantage is coop money based on sales. We don't focus on selling units but install packages. We are offering a $100.00 trade-in on any portable towards the purchase of a standby unit installed.

Of course I would focus on installed packages and not merely selling the units. The money is made on the sale and install, and I am assuming the follow up maintenance and service (I am assuming).

If the product is not stellar, (I.e. I have heard service issues with generac) wouldn't it be a rather good stream of revenue, since there would always be service work to do?

What are the coop advantages?

What will you do with the traded in portables? Re sell them?
 

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Of course I would focus on installed packages and not merely selling the units. The money is made on the sale and install, and I am assuming the follow up maintenance and service (I am assuming).

If the product is not stellar, (I.e. I have heard service issues with generac) wouldn't it be a rather good stream of revenue, since there would always be service work to do?

What are the coop advantages?

What will you do with the traded in portables? Re sell them?
We make a good profit on installs and then we sell a one or two year maintenance agreement . Generac provides a template for the service agreement. We do to visits a year to do basic maintenance this keeps us top of mind with the customer for other work.

the coop is based on our sales 3% that can be used for any generac advertising.

We did this last year and ended up with 8 portables we took them to an auctioned and turned a profit.
 

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I recently became a Kohler Sales and Service and Generac Service dealers. I have yet to purchase a Generac to seal the Generac Sales Dealer but Kohler requires you to take there service course to activate the generators.

Other than buying the service package it enables warranty repairs that are flat rate and selling maintenance agreements. We do get a slightly better price with Kohler but that's because i can pick them up at a local distributor. Generacs almost cost more to buy thru them till you buy enough and level up to a different tier.

I took them and will be taking both company's liquid cooled course. I thuirst for knoledge and as of now if you take generacs 2 day air cooled it covers Generac, Gaurdian(hd brand of generac) Seimens(rebadged generac) , GE(rebadged generac) and Honeywell(rebadged).

Good luck
 

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Being a Generac dealer actually costs you money in the long run....

I can buy generators for less money from Norwall that using my "confidential pricing sheet"...

You have to go into service big time to mike any money after you pay for their schooling and mandatory parts stock...

But I keep my dealership up to date by buying at least one unit per year....
I thought this was your bread & butter, what happened? How long ago did you stop hustling Generac's?
 
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