,'. ’G .. .. -.--9 uu‘ This is to certify that the thesis entitled "An Examination of the Public Relations Practices and Policy of the Independent Farm Equipment Retailer" presented by Benjamin F. Hennink has been accepted towards fulfillment of the requirements for N. 8. degree inJgriculture A/ZMWZ, Major rofessorf Date W/é/yr‘r/ I) k“ is v- " i.‘ I J _ ‘chgé _ v‘ THE PUBLIC RELATIONS PROGRAM AND PRACTICE OF TWO HUNDRED FIFTY MICHIGAN FARM EQUIPMENT RETAILERS by Benjamin J. Hennink A THESIS Submitted to the School of Graduate Studies of Michigan State College of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE School of Agriculture Department of Agricultural Engineering 1955 THESP ABSTRACT The cultural concept of the producer of raw food and fibre is bound up in a frame of reference labeled "farmer." Developments of recent years have necessitated a reappraisal of the term. Agriculture in the_last quarter century has felt the full impact of research, mass production and mech- anization." These forces have radically altered conditions upon which plans, policies, and approaches are made. The size of the farm, soil usage and conservation, technical research, communication, methods of information dispersal, training of personnel at all levels of food production, dis- tribution, and use, have undergone considerable adjustment. In the course of this transition, certain areas of agricultural endeavor showed singular conservatism in meeting the challenge of these new conditions. Not the least of these concerns is the lack of under- standing of the place, function and service of the farm equipment retailer. The retailer of farm equipment continued I to be called a "dealer." As shown in the data, management practices did not keep pace compared to like capitalized businesses on main street. Manufacturers of farm equipment continue to franchise retail outlets for their lines, without sufficient facts and figures as standards to defend such placement. There is no evidence to show that standard in- struments of testing are used to evaluate basic aptitude for 35064.5 ii the bu51n955' The 1USh Years following‘WOrld War II had a tendency to shove aside any realistic appraisal of the loss of public status. The farmer purchased at the lowest possible cost by positioning one dealer against another. Nothing was done to structure in the producer's mind the true service of a sound retailer. This study was directed toward the core problems of the industry, "What are the underlying reasons for the lack of respect for the farm equipment industry, and what possible remedial measures suggest themselves as a solution?" It was the object of this study to examine the problem by interviewing two hundred and fifty retailers of farm equip- ment, picked at random. On the basis of the data obtained, the causes for prevailing conditions were to be determined. It was hoped that developing patterns might point to possible solutions. This anticipation was realized. The critical areas studied were three in number: 1. The physical equipment. 2. Policy operation. 3. The public relations findings: a. in the field of employee practice and policy. b. in the field of customer practice and policy. c. in the field of community worker. d. in the field of community group and agency relationship. iii THE -r.; (.4-- ' 1 \‘h In '0 pd cv- A questionaire was constructed. The items secured the statistical data necessary to get an analysis of each busi- ness operation. It was necessary to obtain data on forces and factors relating to and having an influence on the main problem. These areas were: 1. The strength or weakness of the area agricultural economy. A sense of reSponsibility, or the lack of it, on the part of the retailer, the company "traveler," or the manufacturer towards its product and product service. Company policy as related to realistic field con- ditions. The influence of organization and associations related to the "dealer" and his activities. During the course of the investigation, specific pro- jects were undertaken to test assumptions. Summary Problems in the industry are traceable to the following conditions and facts as supported by the data: 1. There is a distinction between the "dealer" and his status as compared to that of the retailer who con- ducts his business and relationship to his customer as a purchasing agent for g businessman engaged in iv the production and pgocessing g: raw food and fibre. The farm equipment retailer stands high on the list h) of counselors of the farmer. As such, he (the retailer) stands near the bottom of the list on the basis of training to occupy that role. The retailer is a Elia; channel gfpcommunicatigg, but that channel is not always clear and open because of insufficient training. 3. The impact of youth training for agriculture pur- suits and the increased density of population of young farmers seems to have no recognition in thought or practice of a large majority of the businesses studied. The older retailershave grown older with their long time customers. There are isolated instances of measures being taken to con- .struct channels of communications with these new farmers. The recent new retailers of farm equipment are so beset with business problems that they have little time for cultivating the young farmer. Other problems relating to the main issues are discussed in the body of this thesis. ACKNOWLEDGEMENTS The author wishes to express his sincere thanks and appreciation to those who have been helpful in planning and encouraging this work. Indeed, it would not have been possible to secure adequate treatment of the elements of the problem if it had not been for their personal interest. To Professor Howard McColly, the author wishes to eXpress his deep appreciation for the guidance and council freely given in all stages of this investigation His advise, backed by his eXperience in the commercial farm equipment field, was invaluable. As the study eXpanded and field problems became numerous, Professor McColly always found time to assist. Particularly helpful were two members of the Guidance and Counciling Services of the College. Dr. Harry Scales took time on several occasions to review the writer's tech- nique in securing information, coaching and counseling, that greater skill might be used in "drawing out" the information sought. Dr. William Mann took an interest in the problem and participated in the pilot, summer workshops. It was he who aided and guided the technical phase of the work in securing the data on the use of aptitude tests for employment. Grateful acknowledgement is also made to S. E. Larsen, Secretary of the Michigan Farm Equipment Association. His 1 encouragement and helpfulness in the conduct of the field investigation is greatly appreciated. The writer deeply appreciates the financial support given by the association during the conduct of this work. Finally, it should be stated that this work had a significant beginning in the interest of Dr. A.‘W. Farrell, head of the department of Agricultural Engineering. His recognition of the problem and his insight into the possible uses of the work as a service to agriculture were stimulating. vi TABLE OF CONTENTS Page ABSTRACT . . . . . . . . . . . . . . . . . . . . . . ii ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . vi INTRODUCTION . . . . . . . . . . . . . . . . . . . . 1 STATEMENT OF THE PROBLEM . 2 HISTORICAL BACKGROUND . . . . . . . . . . . . . 3 APPARATUS AND METHODOLOGY , 8 A. The Pilot Study . . . . . . . . . . . 8 B. Approach to the Formal Study and Method of Obtaining Data . . . . . . . . . . . . . . . 16 DISCUSSION AND INTERPRETATION OF DATA . . . . . . . 20 PART I - The Physical Side of the Operation . . . 20 Introduction . . . . . . . . . . . . . . . . . 20 The Building . . . . . . . . . . . . . . . . . 20 Tenure of the Personnel . . . . . . . . . . . 22 PART II - The Policy Operation . . . . . . . . . 2% (Management) PART III - The Public Relations Findings . . . . 36 - Introduction . . . . . . . . . . . . . . . . . 36 Major Assumption . . . . . . . . .°. . . . . . 37 The Operation of the Business . . . . . . . . MO The Public Relations Area of the Study Defined . . . . . . . . . . . . . . . . . . M1 vii THES Cu Section A - The Impact of the Retail Farm Equipment R) .r L» \71 Business on the Public . Lack of Understanding of the Public Purpose of the Dealership Defined . The Impact of "Looks" on the Public . . . . . The Impact of the Used Machinery Lot The Impact of Dealer-Community Relations The Impact of the Farm Equipment Business on the School . . . . . . . . . . . . . . Section B 4 The Human Side of the Retailerships . l. 2. 3. LI». 5 Product or People . . . . . . . . . . . . Relationship with Employees . . . . . . . . . Relation with the Farm Family . . . . . . . . Youth Contacts . . . . . . . . . . . The Use of Publicity in Building Human Relations . . . . . . . . . . . . . . . . Section C - The Influence of Company Policy on the 47w |\) H U1 Dealer's Public Relations Program . The Territory Manager and the Dealer Direct Company Policy . The "Dealer Council" . . . . . . . Over Population of Dealerships in an Area as an Influence on Public Relations . Aptitude Testing . . . . . . . . . . . . . . viii Page an MS 1+6 1+8 “9 62 66 66 69 7O 71 Section D - The Responsibility of Education . The Dealer as a Communications Channel . . . . l. The Central Problem . 2. Meeting the Challenge . . . . . . . . General Recommendations . . A Broad Approach to the Problem . I. At the Dealer Level . 2 At the Company Level 3. At the Dealer Organization Level A At the College Level . . . . . . . . . At the Youth Level . . . . . . . . . \n Specific Recommendations . . . . . . . . Specific Steps . . . . . . . . . . . . . l. A Committee . . . . . . . . . . . . 2. A Service from the College . . . . . . 3. Brochure Covering the Project . . . . . CONCLUSION . . . . . . . . . . . . . . . . . . . APPENDIX . . . . . . . . . . . . . . . . . . . . . . BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . ix lhl INTRODUCTION The work herein reported found its origin in questions raised concerning the widening gap of understanding between the farm equipment retailer and his producer Customer. Additional stimulus to study the problem occurred at the point of discovering a singular lack of information, data, and viewpoints in the literature. Should the recitation of facts, the supporting evidence of data and the discussion of indicated points of improvement add to or stimulate thinking on the problem, the work will have been justified. TH ESI‘. STATEMENT OF THE PROBLEM There is current, in the many activities related to agriculture, the concept that the farm equipment business is unstable. Of immediate concern is the question, "Why should there be so little respect for the place and function of the retailer of farm equipment, when he fills so vital a link in the chain that has made American agriculture capable of feeding so many, so efficiently?" The problem then has three elements. 1. What are the forces, factors, circumstances leading up to the current situation? 2. What is the basic measure of a farm equipment retailer and his function? h 3. What principles and programs are indicated which will help resolve the difficulties? It is to these three concerns that this thesis addresses itself. HISTORICAL BACKGROUND Early recordings of man's history show the use of simple tools.1 The bent back, forked stick, the beast of burden drawing a wood hook are symbolical of early man's struggle to provide food for himself and his family. Population growth was retarded by the impact of con- ditions of survival. The mind of man, except for isolated instances, did not conjecture for the improvement of his lot. Not until 1797 were there evidences of relating uniform- ity of steel products to food production.2 With the intro- duction of the steel mold board, a new era of food production was introduced. ' The development of the plow, cultivating tools, the advent of the reaper, later the use of the internal combus- tion engine as a source of power are too well known to be reviewed here. There was not, however, an equal pace maintained by our sociological or cultural concepts of the food production process. This is evidenced by the gravitation to the farm of those who couldn't maintain the exacting requirements of the professions, business competition or particular individual 1"Land of Plenty." Farm Equipment Institute, 1950. Chapter 1. 2Ibid. THESI skills.3 The standard of living in the country was lower. As late as 1935 farming was referred to as an occupation one could fill if unfit for anything else. Farsighted people, however, anticipated the future demands of population for food, recognizing that eXpanding demands for foods would necessitate greater skills in pro- duction. This foresight is evidenced by the following table. 1817--Massachusetts-~Mervinal to Congress, asking for a National Board of Agriculture. 1836--Patent Office--distribute seeds and plants. 1862--Agricultural Department United States. 1862--MOrrell Act--Land Grant Colleges l9lh--Hatch Act--Agricultural Extension and Experiment Station. 1917--Smith-Hughes--Vocational Agriculture in High Schools. l929--George Reed Act--EXpansion of Smith-Hughes. 1930--George Deen Act--Annua1 appropriation. 19h6--George Barden Act-~Permanent legislation-- vocational agirculture in high schools. Light on the central problem of this study occurs at the point of reference to the purveyor of farm machinery as a "dealer." The cultural concept of the "dealer" finds 3Austin, David F. "The Lost Medium of Exchange." United States Steel Company. TH E! its roots in "horse trading" as it is related to power and transportation.’+ With the advent of the tractor as an accepted source of farm power, the trading of horses for tractors was common to the industry. The dealer, recognizing the economic deval- uation of the horse, was usually alert to protect himself. It was in this era of "jockying for position in the act of trading" when the current connation of the term "dealer" found acceptance as applied to the farm equipment retailers. Unfortunately the very nature of the developing business militated for "dealing." The scarcity of early farm tools placed emphasis on the value of traded in and used farm equipment. Sales could be made easily at a profit on the used goods.5 The period beginning about 1935 witnessed the full impact of science, research, mass production, communication and population changes on our economy. Perhaps agriculture was under more pressure than any segment of our economy. The colleges struggled to transmit to the food producer the information necessary for him to keep pace with demand. Every means were used to accomplish this end. Banking, food processing, distribution and allied lines of many services l*Oester, Lester E. "Survey Report." Farm Implement, News, August, 1953. 5"Cost of Doing Business Survey." American Farm Equip- ment Association. 1951. TH E55 sought constantly to secure, select and train their per- sonnel that the product might achieve a better reception. Carefully laid plans and practices are common in industry to find, select, screen, train personnel and prospective personnel. By contrast the farm equipment industry, historically, has only of recent date inaugurated such activity as would 6 lift the public concept of the "dealer." There are evi- dences of standardization of buildings, dealer requirements, information to teacher-trainers, FFA activity, et cetera. There is much room for improvement, however, on a comparative basis with the auto industry. Summary Historically, the farm equipment retailer is at a dis- advantage. The cultural concept of his activity is still dominant. The dealer himself has done much to solidify the farmer concept that a merchandiser of farm equipment is unstable. The farmer also is responsible for a condition embarrassing to the farm enterprise. He did and does utilize such practices of bargaining as make it difficult for the sound retailer to compete. There is considerable evidence to show that the farmer has been encouraged to "shop" at the ultimate expense of himself and his normal supplier. 6Karr, C. N. "Industry Wide Public Relations." Report. Farm Equipment Institute, November, 1952. The farm equipment retailer is in the public mind a "dealer." The data shows that those retailers who recog- nized changing conditions and accomodated themselves to those changes, enjoy quite a different status in their communities than their competitors of the "dealer" type. APPARATUS AND METHODOLOGY A. THE PILOT STUDY A pilot investigation of the problem was conducted in the late summer and fall of 1952. Twenty dealers were selected in five counties. The area of public relations were designated as: 1. How the dealer rated the business as compared to other businesses. 2. His place of business (looks) as an instrument of public relations. 3. Rating of employee meetings to structure public response to an individual business.' h. Number and type of contacts with youth groups. 5. Number and type of contacts with farm groups. 6 Number and type of contacts in community activity. 7. Number and type of contacts with the community through the various advertising media. The following questions were asked and the results obtained are indicated.1 1. In your judgement where does the farm equipment business rate in public respect. Put a 1, before your first choice, a 2, your second choice, et cetera. Automobile retailing Elevator Supply Business Grocery retailing Farm equipment retailing 1See Appendix, Exhibit Number 1. b 2. How does farm equipment rate as to "looks" as com- pared to: (Place (1) before your first choice, (2) your second choice, et cetera.) Automobile retailing Elevator retailing Grocery retailing Farm supply retailing 3. Do you have regular policy and business conferences with your employees aimed at increasing your business? Circle one. Yes No On occasion A. Do you have a planned, sustained activity with youth? Circle one. Yes No On occasion 5. Do you engage in any regular, planned sustained contact with farmers' groups? Circle one. Yes No 6. Do you belong to any civic group other than church? Check your activity on the list below adding any not listed. Noon luncheon club Chamber of commerce. A civic promotional activity. A governmental reSponsibility. 7. Check the items in the list below that you use in your promotional work. Classified advertising. Space advertising. TH‘ qlhlrs , 10 Company advertising. Radio. Special house organ. 8. Place the proper figure 1, 2, 3, et cetera before the items you select as contributing mpg; to public disre- Spect for the farm equipment business. The color of paint. Credit policy. Quality of merchandise. Trade-in policy. Farmer gossip. The personality and The "looks" of a dealer's practices of a place. given dealer. 9. Do your employees bring in "prospect" names to you? Circle one. Yes No Occasionally 10. Check the activity with which you have been identi- fied in the last year. a. Visited the high school advising the Vo-Agri teacher of your desire to help him if he had occasion to call on you. b. Vo-Agri teacher has been in your store. c. Made yourself acquainted with the FFA president. d. -Put on a demonstration for a youth group. I e. Have had a NH tractor club in your place of business. f. Chaperoned one group of FFA members to some agricultural meeting or event. 11 g. Visited the home of a boy or girl who has achieved recognition for work well done. h. Identified yourself with some youth activity in the public press. Questions and Results Quegtion number I: In your judgement where does your business rate in public respect as compared to each of the following businesses. Automobile retailing Elevator supply retailing Grocery retailing Farm equipment retailing Result: Four of twenty voted the farm equipment retailing as standing second, 16 voted that it stood fourth. nggtion number g: How does farm equipment places of business look as com- pared to: Automobile retailing Elevator supply retailing Grocery retailing Farm equipment retailing Rate the above in order of their "looks" to the customer. Result: Two voted to place the farm equipment retailing in third place, 18 voted for fourth place. Quegtion gumber‘3: Do you have regular policy meetings with your employees aimed at achieving customer increase? 12 Result : Seventeen voted no, three said "on occasion." Question number 3: Do you engage in any regular planned, sustained activity with youth? Result: Two said yes, 18 said no. Question number j: Do you engage in any regular planned, sustained contact with farmer groups? (Grange, Extension, Farmers' Clubs, Farm Bureau, Soil Conservation.) Result: TWO said yes, 16 said no. Question numbe; Q: Do you belong to any civic activity other than church? Result: Seven reported specific membership or responsibility in civic group affairs. Questign number 2: What commercial advertising do you use? ngult: All reported the use of the local newspaper. All reported the use of company advertising. Two reported the use of radio. Two reported individual, printed advertising activity. 13 In each of the geographical areas where data was obtained two farmers were asked two questions. The response is tabulated below. Question One: What dealer comes to your mind as a reSpected citizen and sound businessman? Result: Of the forty farmers interviewed only fourteen picked the particular dealer in the study. Question I30: What one thing makes you pick that man? Result: The answers fell in three categories: (1) The integrity of the owner. (2) Personal likes or dislikes. (3) The business deals that the dealer makes with his customers. The pilot study indicated that public relations could not be isolated from sone other factors. These were: (1) The structure, organization and functioning of the business as a business. (2) An evaluation of the dealer as one trained for the job. (3) The influence of company policy. Data in these three related areas resulted in a decision to make the investigation comprehensive. The study would 1h attempt to measure the public relations program and practice of 250 farm equipment retailers in the areas of: (l) The business as a functional physical unit. (2) The policy Operation of the buSiness. (3) The business as a functional public relations activity. The pilot study gave rise to the catalogue of major and minor areas of the farm equipment business, data concerning which had to be obtained if sound conclusions were reached in the area of public relations. The chart on the next page shows the breakdown of the business as obtained in the pilot study. 15 mmcfipome oohoamem .v muonpo sesame .o mononm soonzonm spam mpfimmcon oohoamsm .n upped mononw mHoonom oohoansm .m npsow soonsonm oofiuuo couomaoom hoaaom HecnounH Hmfiomdm Hm: masonm uncapnmnoc moam uoH>HocH moapumm :fiuoomna manna oaomm mcaxnmm omnomcomm muoononn uaomnu mafimmo cameo mammsoo mpfinsssoo mono omsom wcaococflm pcoaco>noo unmoqm< cmammamo NpH>Hpo¢ mono nonwamaoz moamm mcoapmaom encapsuooo moHHom moomag : mocmswood coflpnooq Hmowmhnm wcfimapno>o< coauoaond Hoccomnom moan mafiafimna moan pcosmamwm wcficaasm opam was -mapmpm -mapepm Hmoamsna mafioaansm Hmpd> Hmufi> aofloaoh .3 a g g g .. g nonmaomo nocso czHAHdamm BzmzmHDGw zm¢m B. APPROACH TO THE FORMAL STUDY AND METHOD OF OBTAINING DATA 1. The Questionaire. A questionaire was constructed.2 In obtaining the data, at no time was the complete questionaire in evidence. The recording was done immediately after the interview. Method: Interviews were predicated on the assumption that the interviewer was helping the dealer. Advance infor- mation was available thru the association records on some items in the questionaire. There was some reluctance to cooperate in isolated instances. It was necessary in some cases to return as many as four times before the dealer became friendly to a point where he would give the informa- tion desired. Where the attitude was defensive the barrier had to be removed to achieve the real facts.’ The greatest difficulty occurred at the point of obtaining the facts of gross volume of sales of used equipment inventory, and status of accounts receivable. 2. The questionaire was constructed using items obtained in (l) the pilot study, (2) company forms and literature, and (3) help from interested and informed individuals.3 3. WW The college facilities in personnel were used extensively. The technical problems of research were discussed on stated, _.L 2See Appendix, Exhibit Number 2. 3See Appendix, Exhibit Number 3. l7 scheduled occasions. Routes of travel and contacts were worked out with the help of the Michigan Farm Equipment Association. Advice of company officials was asked in the formation of the questionaire. There was one formal report made to company personnel midway the study. Data obtained was in three categories. Categozy gag: The physical Operational aspects of the business. Each item was given a weight.Lf Obviously there is room for debate as to the relative weight to be given each item. A strategic site or an adequate building carries more weight than the arrangement of the merchandise or the equipment placement. Similarly, policy operation should receive more weight than evidence in the category of vital statistics, such as, age, training, tenure. Category 129: Operational policy. It was necessary to obtain data in this area because of its influence on the public relations status of the business. Category Thggg: Direct data bearing on the problem of public relations. Selection of dealers to be studied. No attempt was made to pick dealers to be studied. A travel route was outlined and the questionaire filled out on L*See Appendix, Exhibit Number A. 18 each dealer on the route of call. Every attempt was made, however, to: 1. Balance the numbers of total dealers per company (25). 2. Balance the number of dealers per company in each of the four gross volume categories. a. Cross sales under $100,000 b. Gross sales 100,000 to 250,000 c. Gross sales 250,000 to 350,000 d. Gross sales 350,000 over All data was limited to a dealer franchised with a major line. ‘ TABLE 1 Group Group Group Group A B C- D Company 1 -- 26 dealers were studied 12 7 5 2 Company 2 -- 29 N n n 7 12 9 1 Company 3 -- 27 n n u 6 13 8 0 Company A -- 27 N u n 5 8 10 E Company 5 -- 26 " u n a 9 10 3 Company 6 -- 2h " " " 10 ll 3 0 Company 7 -- 2% n n n 11 9 2 2 Company 8 -- 2 H n u 5 8 8 g Company 9 -- 26 u n n 9 9 7 1. Total 23% 69 86 62 17 19 Total number of competitors in a circle of twenty-five miles diameter . . . . . . . . . . . . . . . . . . . 23 Total number of competitors of the same "make" in a circle of twenty-five miles diameter . . . . . . . . h Average distance between competitors, all lines . . . . . . . . . . . . . . . . .(miles) 7.8 Average distance between competitors, same line . . . . . . . . . . . . . . . . .(miles) 13.6 Number of dealers per county, average fifteen (excluding seven counties) ' Number of farms with income over $1,000.00 in Michigan . . . . . . . . . . . . . . . . . . . . 92,0001 Number of farms with income over $2,500.00 in Michigan . . . . . . . . . . . . . . . . . . . . 61,0002 Average dollars to be spent on farm machinery in the state per farmer . . . . . . . . . . . . . . $2003 This data furnished the background for evaluating the success of some dealers while others failed in the same area of operation. lDoneth, John. Michigan Earm Business Report, 1953. 214.8.0. EXperimental Station, Quarterly Bulletin, Volume 37, Number 2, Page 272. 3"Farming Today-~What It Costs." Cooperative Extension Servige, M.S.C. Agricultural Extension Bulletin Number 537, Page . DISCUSSION AND INTERPRETATION OF DATA PART I THE PHYSICAL SIDE OF THE OPERATION I. Introduction The physical side of the farm equipment retailing in this study was not the area of concern. However, the physical aspects of the business did have an influence on the public relations of the dealer.1 As such the whole area of the physical operation of the business will be discussed briefly. Some interesting facts concerning this side of the business was developed in the data. II. 1h; Building a There was definite data available concerning the physical plant. The summary of that data is contained in the following table. . Group A -- Total Number of Dealers 69 Location Strategic 7 Convenient 35 Adequate 16 Isolated 11 Structure New-Mbdern 2 Medern 16 Adequate 3% Medium 17 Adequacy Floor Above Space Standard 0 Standard 11 Crowded #3 None 15 Appearance Neat Dusty 25 Clean 12 Clean 2% Cluttered Dirty 18 Parking esignated 9 Assigned 16 urb 15 None 2% Business I __§ectioned Areas H 3 Areas 12 2 Areas #0 1 Area 11 1"Farm Equipment Industry and the Public." Report of Farm Equipment Institute. November, 1952. 20 21 Group B -- Total Number of Dealers 86 Location Strategic l7 Convenient 38 Adequate 21 Isolated 10 Structure New-Modern 11 Modern MO Adequate 9 Medium 26 Adequacy Floor Above Space Standard 9 Standard 31 Crowded 26 None 20 Appearance Neat Dusty Clean 17 Clean NH Cluttered 12 Dirty 13 Parking Designated 2h Assigned 52 Curb 8 None 2 Business Sectioned 4 Areas 5k 3 Areas 26 2 Areas 6 1 Area 0 Group C —- Total Number of Dealers 62 Location Strategic 31 Convenient 2O Adequate 9 Isolated 2 Structure New-Modern 2H Modern 31 Adequate 5 Medium 2 Adequacy Floor Above Space Standard h Standard 26 Crowded 2% None 8 Appearance Neat Dusty Clean hl Clean 11 Cluttered 8 Dirty 2 -Parking Designated 39 Assigned 11 Curb 12 None 0 Business Sectioned A Areas 51 3 Areas 6 2 Areas 5 1 Area 0 Group D -- Total Number of Dealers 17 22 Location Structure Adequacy Floor Space Appearance Parking Business Sectioned Strategic l2 New-Modern 9 Above Standard 10 Neat Clean 7 Designated 6 h Areas 17 Convenient A Modern h Standard h Clean \‘I Assigned 9 3 Areas 1 L Adequate 2jlsolated O Adequate 3 Medium 2 Crowded N None 0 Dusty Cluttered h Dirty O Curb 3 None 0 2 Areas 0 1 Area 0 III. Tenure 92 the Personnel There is a close of physical equipment had been in business. point. Group A Group B Group C Group D - ll H Years in Business '1 H.7 7.9 13.6 2h.1 and the length of time the operator correlation between the type and kind The following-table illustrates that 23 A summary of the data of the area of physical equipment indicates the following: The new and younger dealer is definitely handicapped with inadeguate physical facilities.2 His assets are usually put in the merchandise and parts inventory. The extent of the physical equipment and plant are usually dictated by what is left of capital assets. In each of the other three groups there is marked improvement in the physical aspects of the operation as indicated in the table. IV. The other elements of the business, pgppp department, office gpg records, showroom, pppp, ppg pppg,machiner , parallel closely the data in the foregoing tables. Wide variation was found in the used machinery lots. To quite some degree the used machinery lot reflected the personality and the business practice of the owner. Some of the newer and younger equipment retailers, having been properly "scared" at the spectre of used machinery junk yards, were not to be caught in comparison with their competitors. The used machin- ery show lot was orderly, clean, and the used machinery re- conditioned and painted. 0n the other hand it is interesting to note that some of the high volume dealers actually hid their used machinery inventory. This hiding took various forms. Trips to Archibald, Ohio, auctions, storage in old 2See Chart, "Group A" item 2. 21+ buildings or barns ppd with quite some frequency the used machinery was restricted to public view by being hidden in weeds seven feet in height, by actual measurement.” By contrast, the dealers in distress might well learn a lesson from the high scoring dealers in.the matter of the used machinery lot and used machinery merchandising. One illustration out of many will emphasize this point. This dealer did not have a "fancy" operation so far as building was concerned. It was neat, painted and in repair. However, the machinery lot was ypll drained, slightly raised, graveled, and surfaced with a fine crushed stone. The new equipment occupied one area, the used equipment in another area. In the center of the lot was an eight inch high,'ten by thirty foot platform. On it, each week was displayed a "package deal" of used machinery. The combination of items was so arranged that She total sale price would achieve a net profit. The dealer reported that in.a seven months' period'he had averaged a package sale a week with but one s exception. PART II THE POLICY OPERATION (MANAGEMENT) Internal policy is defined as the directive program and activity of the owner or manager. It is a second, vital phase of the business. It was necessary to secure some data THESI 1-, .. mww wu-‘ ' )‘9‘ r h \ Q.;:-e.... . , ‘il'rl CTVJVO‘ ‘- . The liquid assets of this dealer were in his used machinery--piled three—deep behind this shed. THE 26 in this area because of its influence on public relations. Data was secured on the following items: Group A B C D Xééié 12§£§ Xééié XQQEE Tenure of the Owner 4.7 7.9 13.6 2h.l Tenure of the Employees 1.3 2.6 h.8 7.7 Training of the Owner, education (high school) 4.1 h.2 h.2 3.9 Training of the Employees 3.5 3.5 h.0 3.9 In Service Training of A11 Personnel (Company Schools) Capital Structure Credit Policy "Trade-in" Practice Sales Plan The data in the areas of capital structure, credit policy, trade-in practice and sales plan was inconclusive. There was no way to get at the relationship of volume, assets, liabilities, credit without making a detailed, exhaustive, study of the business records. It was not the intent or purpose to pry into this phase of the business. It was the Opinion of the writer and those advising the study, that it would be best to avoid the specific data in this field: GROUP A do no $3 CD 0.00 a>:u\ ms:c> m Q)QU\ ms:c> mam swwA-H ham RHH 043' 0+)! '6 0+9I O+Jl OCOO 0mm pg omo 0min COD: (ODIN A (DO-1m (0335 I T n u ' I Location . , Structure . a Adequacy Floor Space ' Appearance : Parking - , Building Sections . Shop . Office 0 Parts u Showroom Mobile Equipment Tenure in Business Training Personnel Tenure Personnel Training Capital Structure 'Monthly Balance Sheet Credit Trade-in Practice Internal Policy Personnel Education Sales,Plan Promotional Advertising Public RelationS' Bulletins Demonstrations Company Literature Visual Aids Farmers' Meetings Extension Meetings F.F.A. Meetings--Activity F.H.A. Meetings--Activity NH Activity Young Adult Night School Soil Conservation Activity Community Activity House Organ THESI! ‘fi—vm GROUP B DD 0.0 C no (Dill-h CDC—IO m mam Fur-£01 H-r-‘lh\ ”-4 3.4.45 04-" CPU '0 0+1: OMO 0mm (D 060 U10: Comm '2: comm Score Rating 75-100 Location Business Structure Adequacy--Floor Space Appearance Parking Building (Sections) Shop Office Parts Showroom Mobile Equipment Tenure in Business Training Personnel Tenure Personnel Training Capital Structure Monthly Balance Sheet Credit Used Inventory Internal Policy Personnel Education Sales Plan Promotional Advertising Public Relations Bulletins Demonstrations Company Literature Visual Aids Farmers' Meetings Extension Meetings F.F.A. Activity Women's Activity Young Adult School Soil Conservation Community Activity Publicity /\ “V A V THES‘ GROUP C Score Rating 25-50 Median Score Rating 50-75 Score Rating 75-100 Location Structure Adequacy Floor Space Appearance Parking Building~Sections Shop Office Parts Showroom Mobile Equipment Tenure in Business Training Personnel Tenure Personnel Training Capital Structure Mbnthly Balance Sheet Credit Used Inventory ' Internal Policy Personnel Education Sales Plan Promotional Advertising Public Relations Bulletins Demonstrations Company Liberature Visual Aids Farmers' Meetings Extension Meetings F.F.A. Meetings--Activity F.H.A. Meetings--Activity hH Activity Young Adult Night School Soil Conservation Activity Community Activity Publicity ---‘ --_ _’- --- THEE GROUP D 30 no m) c m) cmc> ¢>GU\ ms3c> m a>mu\ m£3c> HHN Fuflh H new» HfiH. 0+?! 0+)! '13 O-Pl Oat-II omo 0mm 0 omo 0mm mm mmm 2 mmm mmm Location Structure Adequacy Floor Space Appearance Parking Building Sections Shop Office Parts Showroom Mobile Equipment Tenure in Business Training Personnel Tenure Personnel Training Capital Structure Monthly Balance Sheet Credit Used Inventory Internal Policy Personnel Education Sales Plan Promotional Advertising Public Relations Bulletins Demonstrations Company Literature Visual Aids Farmers' Meetings Extension Meetings F.F.A. Meetings--Activity F.H.A. Meetings--Activity NH Activity Young Adult Night School Soil Conservation Activity Community Activity Publicity dfld-d -~qb 31 spnpfipoa maoapmamm onapSg . nofipfimom sunfiom .m IIIIII nacho mesao> 30g ngompmg .Hmnomnom .m .1 msono madao>_gwam pecan Hmofimmnm .H J m m H {I d u 1 u n u . . . . . . . . . . h . . “ mm macaw . om whoom . mu mnoom 00H whoom oo.ooo.ooae aoflmm ossHo> a gnome 32 conpfimom accepmflom onflnzm . coapflmom sunflom .m I I I I I l mnmnoom 33 m Honcomnmm I Hmcompom . muopoom swam m human amoewsnm .m : m m H u c u q - - . u . . . . . . n n . . _ . . . . _ mm onoom . . _ . _ _ om myoom mu mnoom ooH macaw ooo.omme - ooo.ooaa wasHo> m maomo 33 cOHpHmom mnoHpmHmm oflnnsm .: macapfimom hoaaom .m II. I I I l mnmnoom 30H m .328an Iquomnom .m mnmgoom ace m pqum Hmonssm .H J m m H mm onoom Om .onoom mm mnoom ooH mpoom coo.Omm@ - ooo.omma mssHo> o gnome 3% ohm :opw mfinp mo omfinspm GOHpHmom moHHom mpmammo mo Hopes: annoy may .qucownmm I.Hmnomnmm .m pcmHm Hmonmsm .H .30H Hnnnwfin :dllvmunommu cowpfiwom macaumamm oaansm .m in m m H mm 0m mm --—------d-- ----------- OOH pm>o - ooo.omma mesHo> a gnome mpoom macaw mpoom whoom This can be said in summary. It is at this point in the business where the owner decides whether he runs the business or whether the business runs him.3 Summary The physical equipment and operational policy are an integral part of the success or failure of a particular business. The farm equipment business might be likened to a structure having three supporting columns, namely the physical plant, the operational policy and the human rela- tions. Emphasis on any one of these factors at the relative expense of the others courts trouble. In the study it was apparent that high scores could be achieved by new, young, (or both) dealers with what they had to work with. The sales volume as compared to the low scorers in their partic- ular group, usually reflected a better public response to the business. 3Appendix, Exhibit 5, Cost of Doing Business--Low and High Scoring Dealers. PART III THE PUBLIC RELATIONS FINDINGS Introduction lot a Earadox put Lack of Bglance A hasty summary of the data bearing on public relations "fl would lead one to the conclusion that a paradox exists at the dealer level in the farm equipment industry. This apparent situation is discussed at some length because it sheds light on the central problem of this investigation, namely that public relations training of farm equipment retailers needs immediate attention. On one hand the servicing of the agricultural industry with machinery has been a magnificient contribution of the dealers and this Job has achieved position of public admira- tion.1 A very strong case can be built for the part that the farm equipment retailer has played in the growth of America. His role is well illustrated by the fact that he has been an essential element in the process that made it possible for one present day farmer to raise food and fibre for seventeen of his fellow countrymen.2 On the other hand--the balanced operation of the few high scoring dealers gives rise to the observation by 1 Graham, Merril D. The Eggm Equipment Business--1£§ ast, Present and Future. Chapter 1. . 2Austin, David F. The Lost Medium 9§_Exchange. Chapter 1, page M. y, 36 37 contrast, that the majority of the dealers, in their operation, do present a paradox. Fifty-four percent of the total number of dealers studied had less than a minimum standard of public relations activities. Put in other terms, how did the dealers do such a magnificent job while paying so little attention to public relations and human engineering. Rather than being a paradox, the situation is one of lack of balance. By the very nature of the pressure for ex- pansion in agriculture of recent years, the emphasis has been on product; company travelers have been trained in product, retailers have been trained in product.3 By contrast, the successful dealer apparently recognized the necessity for keeping product knowledge and merchandising practice in balance with his public relations practice and policy. His success in the field of public relations is traceable to his continuously structuring helpful situations on the human side of the equation of success. Major Assumption A Definition gf the Function 9; the Farm Eguipment Retailer The sharp contrast between the top and bottom scores in the study gives rise to the suggestion that the success of the ,3Graham, Merril D. "A Lump of Yeast." Report. American Farm Equipment Association. 195%. 3Fletcher, L. J. "Telling the Story of Our Business." Farm Equipment Industry Report. 1953. Lu ((3 top group be defined. The following definition is submitted to cover the total operation of the successful operators. "The retailer of farm equipment is essentially a purchasing agent and a counselor to a businessman engaged in producing and processing raw food and fibre."“ The interpretation of the data is predicated on this concept of the retailer and his relationship with his public. It,is in order that some elaboration be made of the defini- tion. Graphically analysed the definition reads: Technical knowledge Purchasing Agent Counseling and Counselor Product knowledge Client needs of a Large farm operation Businessman Books Profit economics Stature -- status Efficiency Engaged in Production Productive Methods Techniques Markets of Varities Cultural Methods Markets Food and Fibre ' Processing In spite of the possible charge that the above eXplana- tion is academic, the evaluation of procedures and practices of the high scoring dealers support the definition. L'"Our Business Code." Farm Equipment Retailing, August, l9k9. Page 28. VA Purchasing Agen " As the data was collected, the writer of necessity, spent some time with particular businesses to "get at" the reason for success or a difficulty. Whenever a dealer was scoring high in the schedule of items, it was noticed that the dealer kpgp pig customepls business gpd talked with the cugtomer pp pp; familiar ground g; pig business operation. The farm equipment retailers in these instances were not sellers, they were not purveyors, they were not dealers. Essentially they were acting on a plane equal to that of a purchasing agent of any large manufacturing plant. Similarly, these dealers counseled the farmers not only in the purchase of machinery, but in several other areas as well. There was definite technique of assisting a farmer to help pip solve ,pig problem. "Businessman" The high scoring retailers, treated their customers on an equal business plane. They discussed the "deal" in terms of sound ethical business. By contrast, the following illus- tration is used to point up how injurious nefarious approaches can be by the "smart-boys." In this instance the dealer was irritated by the in- ability of his salesman to secure the signed order from a farmer. The dealer (his own words) "hopped on the combine with the farmer and told him that he (the dealer) needed his (the farmer) old tractor because he had a market for it." MO The deal was closed. Later the farmer saw the tractor in the used machinery lot. While he did not regret his purchase of a new tractor (at his price) he raised the question as to the ethical grounds of approach to him for a sale. The customer said, "He must be getting terribly hungry for a sale." "Engaged lg Epoduction p§--" Essentially this is a core value in the American concept of free enterprise. Everything inherent to the dynamics of personal enterprise is tied up in the act of engaging in and producing thru the activity of farming. The sound retailer treats his client with the respect due him. One man on the farm feeds and clothes seventeen other .MDerican citizens. This enormous repsonsibility calls for all the assistance the producer can get. As his first ally he turns to the dealer. The dealer is a vital part of the farm operation. [pg Qperation 9; pp; Business The physical operational element of the retail business is not covered in detail in this report. Much has been done in recent years by the companies to improve the physical retail operation. Stores have been improved; service and management schools are common; programs are in operation to improve the service on the machines. Ml The discussion of these physical and management elements of the equipment business received full treatment in the Farm Equipment Retailers Handbook published by Farm Equipment Retailing, Incorporated. This book is a significant contri- bution to the industry. In itself this book can be of great The dealers scoring high in the tabulations seem to have a mental dynamics that carried them into reading, conferences, conventions, displays, exhibits and demonstrations. They utilize many sources of information to keep abreast of their business. I g Bublic Relations Apgg pf pp; fippgy,pefined Public relations as such cannot be isolated.5 Almost every phase of the business, in some way, produces a reaction on the part of the customer. One dealer using an approach to a problem involving people will secure a reaction totally different from another dealer handling the same situation. The voice used in telephoning, types of advertising, effec- tive or ineffective shop practice, prompt or tardy field service are all elements of the intangible web called public relations.6 5Dalton, James H. "How's Your Rating." Farm Equipment Retailing. April, 19h5. 6Dealer's Guidebook. General Motors Corporation Publication, 1953. Page 9. #2 An illustration will serve to emphasis this point. The owners of a farm equipment business partitioned off a part of their office into a coffee Spot. Accessories were ar- ranged for leisurely, comfortable conversation. Over a cup of coffee, the owners paused to share a few minutes with their floor traffic. Invariably the discussion or conversation f would strengthen the tie between the customer and the owners. This led to farm calls and sales. Where did public relations begin? Where did the sales process start?* In spite of the difficulty of isolating a pure factor of public relations, the data seemed to classify itself into four major areas. These are: l. The impact of the retail farm equipment business ‘on the public. 2. The human side of public relations within the farm equipment business. 3. The influence of company policy. h. The responsibility of education in the area of dealer program and practice of public relations. These four areas are discussed in detail on the follow- ing pages. *There were only three such "coffee spots" in the state. 43 I. .n U A D v. . i. _ O GOHpmsnsoo Hmzpoan cm mo mmHmHonHHn may mmmao mHSHHSOHHmm HmnoHpmoop m wnfinommpuumncHngoop .mmeQm mCOHemHmn oHszm Hmufi> m wcfihoansm unmEQHSUm anew mo mHmHHmpmp manoom mow on» we mno Id ' I fithVRLKHK .w . . . .. .. .. _. ...“...t.... .. .y .. v ...... ,. . . 7.9».\.\.t.\w.\.t\ .. . ......... .. ...... .. I u... . 3......1. III N. M \ a o O TH ES! nu SECTION A THE IMPACT OF THE RETAIL FARM EQUIPMENT BUSINESS ON THE PUBLIC l. Lppk pf Qerrstanding q; the Public Throughout the research on this project, nearly all segments of the community including the farm equipment busi- ness, seemed to reflect a singular reserve of appreciation 1 towards one of the most important sales, supply and service functions in the American economy. One man on the farm now feeds and clothes seventeen of | his city friends. He can do this only because he has machines to do the job and a farm equipment retailer to back him up. As long as food is produced, there must be the farm machinery suppliers. Farm machinery is a stable industry. The major portion of farm machinery is sold in the small towns. Figuring that each of the twenty thousand dealers in the United States have a minimum investment of $50,000, the one billion dollars represented is no small sum.2 Similarly, eight hundred fran-l chised dealers in this state thus have an investment of forty million dollars. Again, these eight hundred dealers, averaging $100,000 in gross sales, represents a sales volume of eighty million dollars. Many other facts, such as employment, com- munity activity, and community economic growth could be cited 1Fletcher L. J. "Telling the Story of Business--Our Job." Caterpillar Tractor Company. Page 7. 2 Farm Equipment Handbook. National Farm Equipment Association, Section B, Part 1, page Mk to build the case for the dealer. The interesting thing disclosed in this research is that the dealer has done so little to tell his story to the public. 2. Purpose pf Egg Dealership_Defined The farm implement dealer's primary purpose is to sell farm machinery to the farmer-grower.3 In the carrying out of this function a complex program is involved. First, the dealer is obliged to invest his money in a building, fixtures and tools. He must staff this with com- petent service, parts, and salesmen who not only try to sell equipment, but must also understand the farmer's needs that he may be equipped with the proper implements for his par- ticular needs. Secondly, he must invest money in inventory--both new machines and parts, that when a farmer needs a machine, delivery can be made. When a machine already in service breaks down, it is the reSponsibility of the dealership to repair it quickly and put it back into service. The urgency of putting a machine back into service is of the utmost im- portance to the farmer. He has his money, future operations and income at stake. w 3Land okalentx. "The Better Life." Farm Equipment Institute, 1950. Page 6%. 1+Cost of Doing Business Survey. Report, 195%. The dealer, like his salesman, must become an authority on farm management practices--especia11y those related to machinery, so that ie can counsel with his customers regard- ing the latest and best suited equipment for each type of farm operation. It is understood that the dealer is in business to make money. And like everyone, he is concerned with making a living for himself and his family. However, when he chose to make a career in farm equipment retailing he accepted the giving of utmost service to his customers as part of that career. ‘It is for the community to recognize the essential service rendered by the dealer. 3. The Impact 9; "qukg" qp_ppg Public The study revealed some specific data in this area. One hundred dealers out of the two hundred and fifty studied were asked the question,5 "Would you put the average farm equipment business first, second, third or fourth when compared in "looks" with the retail auto business, farm elevator business, the grocery business?" Sixty-four placed their business on the a bottom of the comparison, twenty-four placed it third, twelve refused to vote claiming the comparison was not proper. In the areas where the above question was put to the dealers, occasions arose when it was possible to ask the farmer-customer the question,6 "Does the physical appearance 5Exhibit 1, Questionaire. 6Exhibit 1, Questionaire. ." .0. I.“ H7 Four-tenths of one mile of used farm equipment. The second and third rows could not be readily seen for the sweet clover cover. of the business have any relationship with your trading here?" The question was put forty-six times. Thirty-one of the replies indicated that, "The dealer who keeps his place neat and clean is a harder man to deal with." The inference was plain. The retailer who pespected pg; business7 to the ex- tent of keeping the premises neat and clean was catalogued in the farmer's mind as one whose business dealings compelled respect. H. 1p; lppqgg pf :he Used Machinery Lg; In the process of this investigation farmers were asked the question, "How would you pick the farm equipment dealer with whom you could drive a sharp bargain?". Nineteen of the thirty responding farmers said, "I'd shop around." Eleven said, "I'd find the guy who has a large used machinery in- ventory." . The practices of the high scoring dealer in the matter of the used machinery and its merchandising, is significant. in their success.8 The general policy of this group seemed to be that they pgq purchased g pigpg pf equipment fpp_§qlg and, as such, it should be put in the best possible condi- tion, painted and displayed at the earliest possible moment. The anecdotal records reveal that dealers who were in ...—— 7Farm Equipment Retailers andbook. National Farm Equipment Retail Association, Section . 8 Graham, Merril D. Earm Equipment--East--Present-- Future. "Handling Used Farm Equipment," Implement and Tractor. North Carolina Farm Equipment Association. TH E‘. #9 difficulty usually were found to have most of their liquid assets tied up in their used machinery lot. 5. The Impact q§_Qealgp-Community Relations The community reacts to a business because of its prod- uct and the man who represents that business.9 It was significant throughout the studyithat banks, farm loan officers, service or civic group members were usually in accord in naming the dealer or dealers who were contributing to their community. The following table in- dicates this fact. The question was asked, in ten communi- ties having four or more dealers in it, "Can any dealer be singled out as doing his full share of community work?" In each community four people were asked to name their choice (a banker, a civic group head, the vocational agricultural teacher, a main street businessman). Total number of communities 10 Total number of dealers 62 Total number of people choosing MO Total agreement on first choice 86% 9 In other words the community had spotted and agreed on" fifty-three out of sixty-two dealers as having made an impact on the community through their service activity. 9Jolly, Fred. "Community Relations." A Report. American Farm Equipment Institute, 1950. THE 3., I‘ll!" . 50 III-”fi- All too seldom do the owners of farm equipment business take time to sqll themselves. This retailer is explaining his business operations to a group of rural people. 6. Tpg Impact 9: ppg Eppm Equipment Business pp ypg School This area of public relations will be discussed in another section of this report. It must be recorded, however, that in the over-all picture, the contact with youth has been badly neglected. An illustration will emphasize this point. There are in Michigan nearly 100,000 youngsters in the school grades three to six inclusive.10 At some period in those years agriculture is studied. Yet in the two hundred gpq fifty dealers studied only_four haqftaken occasion with toy tools to aid the teacher in instruction as to thehpgpt farm machinery played in agriculture! Summary “R“ It would appear from the study that the farm equipment business must take steps to "sell" or "resell" itself to the public. It has a good story to tell. It need not be ashamed of its contribution. True, that unfortunate circumstances at times has given the industry a black eye. Currently there is much distress for dealers who for one reason or another will not remain in the business. Basically, the sound retailer of farm equipment is a vital link between town and country. As such he has both status and stature in his community. loSchool Census Report. Michigan State Department of Education. 195%. THEE full-Ag I fl... 52 t . 3."..U‘w I \W‘UW aunt!” Only three dealers had an active, successful, cooperative "on the job" training program with the vocational agricultural schools. SECTION B THE HUMAN SIDE OF THE RETAILERSHIPS 1. Product 2; People In the many discussions the writer had with dealers throughout the investigation, invariably the point was raised as to whether the management of the physical side of the business was more important to success or the human side of the operation. Both elements, product and people, are present in the business. At times it would appear in a given situation that product was the more important. On other occasions it appeared that the management of the human element meant the difference between success or failure. There was gen- eral agreement that all too little emphasis had been placed by the industry on understanding the influence of the human element on the success or failure of the business. In the hope that some help may be given in this area of the problem, cases of successful practice by the high scoring dealer are offered in each category of human rela- tionships of the business. It was noticed that all the high scoring dealers had a technique (peculiar to themselves) of engineering gituations Egg; pgpg favorable pg Egg business. Whether in the field” of job asSignments, youth work, customer relations or com- munity activity, these dealers were structuring the situation to keep the human element happy. 2. Relationship with Employees The tenure of employees was the critera for evaluating the relationship with employees. The average tenure of employees on one hundred six dealers who responded to this question, was %.2 years. It was impossible to isolate any reason for such a low figure. It is significant that, of the dealers scoring high in the study, working conditions, compensation gpq owner treatment (human element) of the employees were rated on a near equal level by dealers and employees alike. gap; Number 1. The dealer was a college graduate, com- munity worker, twenty-five years in the bhsiness. There were eight employees, average tenure was nine years. The owner held regular, weekly staff conferences; there were bonuses and extra benefits. In this case the dealer was forced into a building eXpansion program (the employees and owner put up the prototype building after hours) because pp; employees ygpg constantly active ip mppy‘ypyp pp secure buginesg. g§§p_mumber g. The dealer had been in business for about twenty years. There were seven employees. The building was old but adequate. The working conditions were acceptable but dark. There was no ready market for labor in that area. The employer said, "I have the policy of keeping my employees Q 1Carmecheal, Dr. Leonard. "Manpower and Human Talents." Science Newsletter, March 7, 1953. \‘1 \n A.‘ D r 5, 4 _ N " " m as - uni-up » e I! ‘- ‘ a One of the top scoring dealers laying the facts and figures before father and son on the cost of doing business. careful to keep their job. I never pay a man what he is worth." The dealer complained bitterly about the lack of tenure, was critical of all competition and wanted immediate help to sell out. In this case the employees were hesitant toward the customers, surly toward one another, and were not known to present a prospect name to the owner. 3. Belation ELLE}; 13.219. 233p Eamily In this category of data, there was a wide variety of approaches by the successful dealers. It was noticeable that their approach in this field was plannpd. Not only did the-dealer know the family as it related to the farm business, he knew the people of the family. ~ The farm housewife is a big factor in the practice of the successful retailer.2 _Christmas gifts of paring knives, pot holders and mirrors (to mention a few) are common. How- ever, the economics of choice is influenced by the housewife. A $h,OOO investment in a major machine is of deep concern to the housewife who needs a deep freeze and a new rug. The - good dealer doesn't forget this. Again, it was noticeable in the top scoring dealers, the readiness with which they were invited and welcomed into the farm home.. Welcome and receptivity was in sharp contrast to coolness and antagonism as noticed in the interpersonal relationship of dealer and housewife in the low scoring group. 2"Special Sales Events." United States Chamber of Commerce, 19%“. . \ TI \1 In recent years retailers have taken on supporting lines, including household appliances. This has aided the dealers in their contact with the housewife. However, the approach usually is to sell them something rather than sell themselves as a person from whom the customer desires to buy. The following two cases prove the point of importance attached to this phase of public relations by successful dealers. Qppg,flumber ;. A retailer (father and two sons) started a practice sixteen years ago of recording farm births in their trade area. The arrival of a baby in the farm family trade area was the signal for a personal note of congratulation and well wishing. On the third birthday of each child a toy im- plement combination (tractor and one tool) was sent to the youngster. The dealer showed the writer the record of how the youngsters, on reaching a responsible age in the farm operation, influenced the business of the farm toward that particular dealer. As the dealer put it, "I got my color of paint in their blood early." Case Number g. The data shows absolute neglect of the dealer toward the future homemaker. Data from dealers carry- ing white goods, kitchen equipment and hardware (household) disclosed that ppppp_yp§ pp evidence pf ppy dealer having made a "play? fpp,ppi§,gpppp--ppgipigh school pppg economics rou . \R Cf) In one instance a dealer, having a demonstration of frozen foods, complained about the non response of his cus- tomers' wives to the demonstration. There were twenty-two women present. The invitation went to customers' wives only. Yet in that community there were seventeen major wgmen's groups pppp,pgpp potential buyers. Th2;p,ygpg pap; vocat;gpal home economigp groups totaling one hundred twenty-one girls in a radius of twelve miles, yet not one school had been invited. h. prth Contacts Of the two hundred and fifty dealers, forty-one had active programs underway with 35 tractor clubs! A total of one hundred six dealers cooperated "as was convenient," the balance, all too frequently reported they didn't want to be bothered. . I Equally amazing is the indifference to the high school Egg training program. All segments of our American life recognize, admire and applaud the vocational growth of the farm boy in FFA.3 The impact of leadership skill as acquired in FFA training has been felt in all segments of our economy. Yet the data shows that l2§§.£2§2 twenty-five percent of the dealers interviewed could: (1) Call the vocational agricultural teacher by name even though the two lived in the same town. 3Wright H. C. "Industry Relations with Educators." International Harvester Company Publication, 1952. Vocational guidance at its best. A farm boy learning the function of the parts department in the retail farm equipment business. 60 (2) Less than twenty-five percent could call the FFA chapter president by name. (3) Less than sixteen percent had any sort of a joint dealer-vocational agricultural activity. A study of the successful retailer in the top scoring groups shows the importance attached by them to this phase of public relations activity. The following illustrations are offered as evidence of successful practices. I Qp§§_Number l. Recognizing the advantage of a contact with youth as a "talker" for himself and his business, this dealer was ready to step into an emergency teaching situation in a school agricultural class. Carefully structuring a con- tinuing relationship, he now is a regular lecturer in nine surrounding area towns having vocational agriculture. The dealer, in a public statement said, "This expansion of public relations activity has become our bread and butter." The schools report that no attempt has ever been made to sell products. This dealer helped the school with their problems, thus winning a large following of public confidence. gp§g_Number g. The dealer was not satisfied with the local business house-school relationships. Unable to find ready acceptance of his concern with his fellow businessmen, he structured, with the help of the school, an "on the Job" training program for qualified youth. The program is so successful that on a local and state basis many other retailers are copying the plan. The data shows the strong impact of this program on sales. THE-'- J .‘I I“' \ ..... 'Future farmers learning dealer in _ .-: ' 4. ...: -.- an. - e .z "'1‘"! z ‘ 5"“;- - ”@115: ~ 61 ‘a ,- (,1. .3 ‘j §1‘\ 62 Case mumber 3. The dealer found that the high schools. night young farmers' class was without adequate shop and demonstration facilities. Here again, the situation was resolved by opening up his shop to the group. The continuous contact with the youth materially assisted the dealer in broadening his sales contacts. Case Number 3. Thirteen dealers were influenced to award FFA mechanics' judging teams a trip to the laboratory of their company. The dealers were instructed in the total process of inviting the boys, how and what to talk about enroute to the plant as the dealer's guests in.p;§ car, and the follow up. Nine of the thirteen dealers evaluated the eXperiment and its results as being excellent in developing other areas of relationship with the FFA boys. 5. Ipp,§§p_p£|2ublicity ip;§uilding fippgp,3elations This is a critical area of the dealer public relations. There were pply_twelve dealers out of thirty-four (who gave definite answers) that could boast a plan, policy and activity that sought to "tell his story."h It can be argued that these are many ways to tell the story. The point is that the twelve dealers were using devices that were building, in their pub- lic's mind, the essentialness of their business to the com- munity. The following cases are offered to support this point of view. _ 1+Ruder, William. "Publicity a Merchandising Tool." Advertisers Digest, January, 1953. Page 17. “ ‘L 63 ‘ Q 1 § 5 ? t 3 . § 1 Future farmers are the constant concern of enterprising dealers. Here a group of F.F.A. boys are spending several hours as dealer guests in the laboratory of a manufacturing business. T!- 6h gppg Number 1. A group of dealers had experienced a growing concern for increasing farmer criticism of the sales and services of the area dealers. The situation demanded concerted action. The situation was studied at considerable length by the writer. A report was made to the group on the findings. Four meetings ensued with a total average attend- ance at the meetings of nineteen dealers. Decisions were reached, plans laid, action was taken aided by resources supplied by the college. The dealers pooled their advertising resources to make a six months' presentation of their case through skillful advertising. The results were immediate and gratifying. Case number g. The dealer uses the device of the per- sonal letter. Frequent discussions with his customers in the realm of pppip interest focuses the particular interest. Frequently the dealer, when running across a news article, magazine article or some‘material pertinent to the subject would mail it to his customers with either a typed note or penciled comment. The letter or note usually reads "I ran across this today and it bears on our discussion of last , week when you were in my store." The dealer reports that it is a strong device for holding his customers in line. Frequently he finds occasion to drop a line to a youth member of a farm family who had achieved recognition. gppg Number 3. The dealer sends his house organ to the high school. He tries to get in high school news with names of the high school boys in the article. He frequently turns over his radio time to youth panel groups. Results from this public relations practice have paid off in sales. In summary, it is evident that the skilled use of pub- licity is not known to many of the dealers. This area of dealer public relations needs attention. (6 SECTION C THE INFLUENCE OF COMPANY POLICY ON THE DEALER'S PUBLIC RELATIONS PROGRAM The influence of company policy on the dealer and his public relations needs much more study, particularly by the company. This study and discussion focuses attention on the problems in the hope that much more work can be done on this point. Four areas are considered. They are: l. The territory manager (blockman). 2. Direct company decisions (policy and programs). 3. Over population of dealers in a given area. h. Aptitude testing. 1. mpg Territory Manage; ppd ppngealer The company representative, no matter what the title or responsibility, lg the company to the dealer at the particular moment of contact.1 It is significant that thirty-pi; percent p§,gll dealers interviewed did not rate their company repre- sentative as being helpful to them.2 All too frequently the dealer sought to attack the company through the representative. Oftimes the dealer was defensive, insecure and uncertain. He manufactured grievances traceable to his own ineptitude and took out his annoyance on the traveler. He feels that the lMiulliken, Paul S. "A Public Relations Program." Farm Implement News, April, 1953. 2Exhibit 1, Appendix. e7 ccnnpany is not sincere in its eXpressed concern for his welfare. Admitting that many of the dealer-company frictions