C6115 - Farm implement dealerships, mechanical irrigation equipment sales and service

Industry code: C6115
Premium rate: 1.14

Classification Facts

Class: C - Commodity - Wholesale - Retail
Rate Code: C61 - Automotive, Implement Sales and Service

Description

Operational Details
Farm implement dealerships sign agreements with manufacturers to exclusively sell their product, provide authorized factory parts, warranty service, auto body repairs, and assemble or install factory authorized accessories on their vehicles. The manufacturers ship their products to the dealership by rail, auto truck haulers, or flat bed trucks and they are off loaded at the dealerships sales yard.

Farm equipment, and implements are sold from a lot. or show room. Customers may also special order from the manufacturer, but the products must be sold through a retail dealership. Warranty servicing requires periodical check ups of the power train and other parts under warranty, plus prescribed oil changes and greasing. Farm equipment and implement sales may also include some set up of implements that are shipped in components or pieces. Drill presses, harrows, etc. are examples. It is also common for dealerships to operate a lease division, which is similar to new vehicle sales. Some may sell recreational vehicles as a supportive activity to their overall operations.

Workers in this industry includes: sales personnel, receptionists and administrative staff, drivers to pick up and deliver customer's vehicles, auto mechanics, autobody workers, parts personnel, car wash personnel, etc. Dealerships have the ability to service and repair farm equipment when it is off warranty and the customer must pay for the repairs personally. This service is seen as a marketing tool to encourage prospective customers to purchase newer models, yet recognizing it is important older models continue to function well so that the good name of the brand is protected.

Occasionally a customer may ask the dealership to install mud flaps, running lights, a head ache rack (a row of lights on top of the cab of farm machinery), detail tape, etc. In addition, engines or parts of the power trains may be replaced under warranty.

Should a dealership default in any area of service, or if there are numerous complaints made to the manufacturers' representative, the dealership may lose their franchise or dealership. Dealerships sell on behalf of the manufacturer and once a product is sold, and financing put in place, the dealership must send the manufacturer their share of the sale. Inventories are spot checked by the manufacture and certain sales conditions put in place, whereby if a certain model sales exceeds expectations, a bonus is paid to the dealership.

Mechanized irrigation equipment sales and service are also part of this industry. Irrigation equipment such as linear, pivotal and quick tow systems are sold. These are used in place of the traditional stationary irrigation watering system. The systems are comprised of a cart, towers, steel or rubber tired wheels, an engine, hydraulic pump, gears, fuel tank at the central point, lengths of stainless, galvanized, perforated pipe, and rods. Often the sale includes set up of the equipment. Parts may also be purchased and some emergency field repairs may be made by the dealer.

SIC Codes
000000265 - Mechanical irrigation sales/service.
000000263 - Farm implement dealership.

Previous Codes

NAICS 2007
Code: 41711 - Farm, Lawn and Garden Machinery and Equipment Wholesaler-Distributors