Same number. Different stage. Different conversation.
Every dealer goes through a lifecycle. Recognising which stage a dealer is at can make the OEM–dealer relationship much more productive.
I would describe it in five stages, with indicative timescales:
Appointment (3–6 months). OEM and dealer commit to each other. Getting the fit right here sets up everything that follows.
Launch (6 months – 2 years). Demo fleet, training, first deliveries. Whole goods lead, and they should at this stage.
Build (years 2–5). Machines come out of warranty. Parts and service become viable. This is where strong partnerships start to pay off.
Maturity (year 5 onwards). Aftersales carries the business. The focus moves from setting up to fine tuning.
Renewal (triggered by events, not time). Succession, acquisition, reinvestment. The business prepares for its next chapter.
The timescales are a guide, not a rule. What really moves a dealer through the stages is the number of machines in the field and how old they are.
Early on, a dealer lives on selling machines. Later, it lives on supporting the machines it has sold. That’s why context matters when reading performance.
A dealer two years in with service absorption at 45% may be exactly on track. A dealer fifteen years in at 45% has a different conversation to have.
Same number. Different stage.
· A new dealer, new territory. No machines in the field, no history. The full lifecycle applies, and reaching maturity can take five years or more.
· An established dealer taking on a new brand. The business is mature, but the brand is at launch. The dealer has premises, technicians and customers are already in place, so launch and build can happen within a year or two. The new line is best judged on its own numbers, not against franchises the dealer has held for fifteen years.
· A replacement dealer inheriting a machine population. The sequence turns around. Aftersales demand exists from day one, before any new machines are sold. That gives the business a head start, but the focus is different. Earning the trust of existing owners, understanding the machines already in the territory, and building parts and service capability fast enough to meet demand that’s already there.
Three starting points. Three different definitions of “on track”.
A replacement dealer may show strong service income in year one while machine sales take longer to build. A new dealer may show the opposite. Neither is a warning sign if the expectations match the situation.
It all starts with a simple shared question.
Not just “how is this dealer performing?” But also “where did this dealer start, what stage is it at now, and what does good look like from here?”
That question helps OEMs target support where it has most impact. It helps dealers see where they’re heading. And it gives area managers and dealer principals a common language.
Which starting point do you find hardest to get right: new dealer, new brand, or replacement?
Do you see the lifecycle in your own network? And how do you judge a new brand inside an established dealer?
If you're a channel director or regional manager looking at how your network reviews are structured, drop me a message or comment below.
#DealerDevelopment #ConstructionEquipment #Aftermarket #DealerHealthCheck #Profitability