Bergey's Truck Centers

Transcription

1 Bergey's Truck Centers ACT Seminar #55 September 29, 2016

2 ACT Seminar #55 James Gavaghan September 29, 2016

3 Today's Agenda Introduction to Bergey s Strategy Successes Emission Regulations and Business Impact Business Environment Last Twelve Months Absorption Health and Impact Mechanical Staffing Industry Challenges and Opportunities Q&A 3

4 Introduction to Bergey s

5 Introduction to Bergey s Centers 1924 Norman L. Bergey opened Franconia Garage as and auto repair shop with 3 employees 2014 Bergey s celebrates it s 90 th year in business Bergey s Truck Centers named Mack NE Dealer of the Year 2015 Bergey s Truck Centers named Mack NE Dealer of the Year 2016 Bergey s Truck Centers Volvo VISTA USA Champions Awarded 2 of the 5 Mack Uptime Certified Truck Centers in NE USA

6 Introduction to Bergey s 6

7 Bergey s Truck Centers Centers Mack, Volvo, Hino & Isuzu Truck Dealer 7 locations throughout Southeaster Pennsylvania and New Jersey Offering truck sales, leasing, parts & service Focused on delivering Commercial Truck Solutions

8 Introduction to Bergey s Truck Center Centers IT S OUR MISSION Be the premier commercial truck solutions company dedicated to Keeping Customers on the Road. IT S OUR VISION To become the first choice for commercial truck solutions. OUR VALUES Be accountable to all we serve Have integrity in all we do Be committed to continuous improvement Have passion for excellence

9 Strategy Successes

10 Strategy Successes Centers Our team is continually evaluating our roles and services offered to continually drive improvements for our customers: Specification Engineer Role Dedicated to support new truck sales staff Vocational truck build due to complexity of specs Stock template development, ordering & coordinator Accompanies salesman to customers whose truck applications are more complex Primary purpose is to support sales personal to have more customer & prospect face time

11 Strategy Successes Centers Our team is continually evaluating our roles and services offered to continually drive improvements for our customers: Aftermarket Solutions Manager Supports sales staff at the customer level with detail around all Mack aftermarket solutions, ASSIST, Mack Preferred, UPTIME, Telematics, and Diagnostic software. Works with self-maintained fleets to set up J-Pro premium technical tooling and software integration

12 Strategy Successes Our team is continually evaluating our roles and services offered to continually drive improvements for our customers:

13 Centers Strategy Successes SELECT Parts Store Online parts ordering 24/7 In 2011 sales = $164, sales are tracking to reach $2.5 Million Marketing tools to educate the customers

14 Strategy Successes Centers

15 Centers Strategy Successes Marketing Dedicated role for commercial marketing Focus on our website Multi-channel campaigns Direct mail Salesman Collateral Social Focus Paid search Payments/Delayed Payment promotions

16 Emission Regulations & Business Impact

17 Emission Regulations & Business Impact Centers Negative impact to our customers Early on reliability Dealers slow to market with a diagnostics back in service strategy Higher level of focus on training to support Approximately 50% of our mechanics are master technician certified. Bergey s pays for time associated with training Master technicians paid on average 10% higher than technicians who are not certified.

18 Business Environment Last 12 Months

19 Business Environment Last 12 Months Centers Vocational Business +248% Year over Year through August Bodied up units Ready to Roll Forecasting 2017 to continue to be strong vocationally Sales Volume vs. Sales Gross Profit Class 8 & Medium Duty Sales volume is slightly down year over year Profitability is neutral year over year due to product mix Customers More Payment Focused Operating leases Packaging warranty & prepaid maintenance programs Lease & Rental Rental market has been soft, but picking up in Q3 Lease market is steady

20 Absorption Health & Impact

21 Absorption Health & Impact Centers 2016 Absorption Tracking Positive Facility upgrades Pennsauken, NJ Parts Warehouse Hiring next generation of salesman Lends itself to evaluating Mack specific sales vocations Waste Construction

22 Mechanical Staffing

23 Mechanical Staffing Centers Currently our dealership is fully staffed 2016 Company Goal Trade Schools Increased Referral Bonus Sign on Bonus Commitment to Training Marketing Impact to Hiring Process Telling the Bergey story Focus on what we are offering our technicians Comprehensive hiring package Training Technology A Winning Team Ongoing advertising efforts & focus on recruiting

24 Industry Challenge & Opportunities

25 Industry Challenges & Opportunities Centers Challenges People Attracting the next generation to our industry Connecting with the millennials Supporting growth initiatives from a managerial structuring standpoint Opportunities Continue to leverage the advantages of being a dealership owned leasing company Focus on customers with 0-10 trucks Defy the 80/20 rule Continue to grow the business cross-functionally Parts, Tires, New & Used Truck Sales

26 Thank You.