1. No category

PACIFIC NORTHWEST
HARDWARE & IMPLEMENT
ASSOCIATION
Serving Dealers Since 1899
INSIDE:
Wishing You & Yours A
Blessed Christmas &
Prosperous New Year
December 2014
 111th Pacific Northwest Association Annual Conference
 Annual Meeting Notice
 Introducing Your 2015 Lobbyist
 The Lame Duck Home Stretch: Waiting On Senate Extenders Package
Approval
 Drones, drones, Drones
 Take My Agronomic Advice
 Amazon May Move Drone Testing Overseas
 New Precision AG Liability Coverage
 After 37 Years Vashon True Value Soon To Become Part Of Ace
Hardware
 Walmart CEO Doug McMillon: We'll Do Away With Minimum Wage Pay In
New Year
 Employee Quits Are Up: Is It Time To Raise Wages?
 Businomics Connect The Dots
 Business Groups Express Serious Concerns Over EPA’s Proposed Power
Plant Rule
 The Danger Of A Big Customer: G T Advanced Technology's Bankruptcy
 Knowing & Understanding Your Aftermarket Opportunities
 Businomics Connect The Dots
 AEM Flash Report
Invitation from the Chairman
This is your personal invitation to attend the Pacific Northwest Hardware & Implement
Association’s 111th Annual Conference. Please note this conference is for both owners and
managers.
One of my passions in life is fishing the pristine waters of Idaho in pursuit of trophy
steelhead, rainbow or cutthroat trout. I am a bait or lure fisherman. My sons fly fish and are
doing their best to convert their dad. It takes a perfect cast to catch a trophy trout. To make
that perfect cast takes practice. Practice is a word that congers up comments such as
"That's so boring, What's the point?, I really don't have time," or better, "I don't need to
practice". Well, all these are true to a certain extent but if we use them as an excuse to
justify our fishing sob stories then we have no one to blame but ourselves. You think
LeBron or Tiger would hit the court or the links without practicing, never.
The point of practice is to sharpen our skills. The point of the Association Annual
Conference is also to sharpen our skills. I look forward to joining you as we sharping our
skills.
In addition to the great speakers and information presented at the conference, we will
learn as much or more from each other. All of us, including me, typically associate with
dealers representing the same suppliers we represent. At the Association conference we
have an opportunity to associate with and learn from dealers representing the “other”
suppliers. Where else do you have that opportunity?
The registration form is enclosed. Return the registration form to the Association, make
your room reservation at the Embassy Suites Portland Airport and you are set to go.
I am looking forward to being with you at the February 2015 Annual Conference. Register
today!
Sincerely,
Farrell Oswald
Pioneer Equipment, Idaho Falls, Idaho
Chairman of the Association Board
PACIFIC NORTHWEST ASSOCIATION
111th Annual Conference
February 17-19, 2015
Tuesday February 17th
Arrival Day for Association Annual Meeting Attendees
4:00pm
Registration Opens
West Foyer
6:30 – 8:00pm
Welcome Buffet Reception
Ballroom
8:00 am
Registration Opens
The Pines
8:30 am
John Deere Dealers Meeting
The Firs II & III
8:30 am
New Holland Dealers Meeting
Fir I
Wednesday February 18th
10:30 am
Kubota Dealer Meeting
Cedar II/III
12 noon
Manufacture Luncheons
Kubota
John Deere
New Holland
TBD
Cedar II/III
The Firs II & III
Pine I
1:30 – 2:30 pm
Industry Update
Ann Duignan, J.P. Morgan
Ballroom
2:45 – 3:45 pm
Understanding Precision Ag Liability/ Cyber Liability
Mike Russell, Federated Insurance
Ballroom
3:45 - 4:00 pm
Break
Ballroom
4:00 – 5:00 pm
Data And Technology In The Dealership: Managing Risk And
Customer Expectations In A Changing Legal Environment
Lance Formwalt, Seigfreid Bingham
Ballroom
7:00 pm
Dinner
Ballroom
After dinner “Texas Hold’em & Casino Night”
Thursday February 19th
8:00 – 10 am
The Leadership Difference
Doug Fleener, Dynamic Experiences Group, LLC
Ballroom
10:00 – 10:30 am
Break
Ballroom
10:30 – 11:30 am
Financial Side of Farming
Jim Faulk, Agricredit
12 noon – 1:30 pm
Lunch
Ballroom
Association Annual Business Meeting
NAEDA Update
Rick Lawhun, CEO NAEDA
1:30 pm
Break
Ballroom
1:45 – 2:45 pm
Precision Ag, Drones, Regulations And The Dealership
Ryan Jenson, CEO HoneyComb
Ballroom
Industry Update
Ann Duignan, J.P. Morgan
Securities LLC
Ann Duignan is a managing director at J.P. Morgan, covering the U.S. machinery
sector. Ann has ranked # 1 and/or # 2 in Institutional Investor’s All-America
Research Team survey and the Greenwich Poll for over a decade. Ann joined J.P.
Morgan from Bear Stearns, where she was the diversified industrials analyst for five
years. Prior to that, she worked at Sanford C. Bernstein & Co. as the capital goods
analyst. In her five years with Eaton Corporation, she held positions in the
Aerospace Controls Division as vice president and general manager, in the Truck
Components Division as a business development and strategy director, and at
corporate as manager of business development. She also spent two years with
management consultant Booz & Company and a number of years in the automotive
supply industry.
Ann holds an honors degree in agricultural engineering from University College
Dublin Ireland, a higher diploma in mathematical modeling and computer
simulation from Trinity College Dublin Ireland, and an M.B.A. from Vanderbilt
University, Nashville TN.
Providing Data, Intelligence, and Tools for Profitability
Understanding Precision
Ag Liability/Cyber
Liability
Michael D. Russell, National
Account Executive Association
Risk Management Services
Federated Insurance
Companies
Mike Russell is a Senior Account Executive for Federated Insurance. Mike is
responsible for managing Federated’s affinity/buying group partnerships across
nine western states. Mike has been with Federated for 30 years, holding various
positions in the Marketing Department.
Mike is a widely recognized author and speaker and has consulted with hundreds of
business owners and associations in the areas of safety, risk and business
management. Mike has also been instrumental in the establishment of numerous
successful association insurance programs, focusing on value, service and long-term
relationships.
Mike grew up on a farm in Madelia, MN, and graduated from Winona State
University in Winona, MN in 1984, and currently serves as the Past Chairman of the
Board of Trustees for WSU. Mike is an accomplished endurance athlete and has
competed in some of the world’s most challenging races. He enjoys traveling and has
visited six of the world’s seven continents.
Data And Technology In
The Dealership:
Managing Risk And
Customer Expectations
In A Changing Legal
Environment
Lance Formwalt, Seigfreid
Bingham
Technology and the ability to collect and use data have created exciting
opportunities for both dealers and customers. But these opportunities also pose
significant new risks and legal obligations that need to be understood and
addressed by dealerships and their employees. In this session, learn about the issues
involved when services and products are offered that rely on technology and data
collection, understand how relationships with vendors, manufacturers, customers
and employees are impacted and discuss steps to take in a rapidly changing legal
environment that allow you to take advantage of the opportunities and manage risk
at the same time.
Lance Formwalt and his firm, Seigfreid Bingham, serve as legal counsel to the North
American Equipment Dealers Association and many of its affiliated associations in
connection with industry issues, and also represent many individual equipment
dealerships. Lance assists dealers and equipment dealer associations on a wide
variety of topics, including the negotiation of dealer agreements and related
financing arrangements, drafting and enforcement of fair dealership statutes,
merger and purchase/sale transactions between dealerships and succession
planning. Over the past 18 months, Lance and members of his firm have worked
closely with dealer associations and dealer advisory groups to develop legal
agreements, forms and instructional and training materials designed to address the
legal issues related to the collection, security and use of customer data.
Financial Side Of
Farming®
Jim Faulk, Agricredit
In this session Jim will cover the following topics:
• Why should a customer lease equipment?
• What are the primary Tax Advantages of a
lease versus a loan?
• How do IRS Penalties impact financing
decisions?
• How can leasing help manage equipment expenses?
• How can leasing improve Cash Flow?
• How leasing can give your customers more options in purchasing equipment?
• How can leasing reduce the risk in purchasing decisions?
Jim has eleven years with Agricredit Acceptance as Director of Knowledge. He has
30 years in training where he has successfully presented more than 1,250 state-ofthe art seminars on a variety of subjects including Principles of Selling, Customer
Service, The Financial Side of Farming ®, Understanding Human Behavior (The
Psychology of Selling), and more.
James has worked successfully with Ag equipment sales groups in 22 countries.
The Leadership Difference:
Seven Secrets To Leading A
Retail Team
Doug Fleener, Dynamic Experiences
Group, LLC
In this program, Doug shares the key characteristics and behaviors that separate
extraordinary leaders from the rest of the pack. His seven secrets are not hard-toapply theory, but practical advice you can put into action immediately.
As the Director of Retail for Bose Corporation, Doug was instrumental in developing
the unique and engaging retail methods that have become the industry's
benchmarks for experience-based retailing and superb customer service.
In his ten years at Bose, Doug grew the Retail Direct Group from 4 to 100 stores and
was instrumental in developing Bose’s unique and engaging retail methods. Prior to
Bose, Doug worked for the Sharper Image and owned his own specialty store. Doug
is president and managing partner of the retail and customer experience consulting
firm Dynamic Experiences Group, LLC and is the author of numerous articles on the
topics of retail, employee motivation, and customer service. Doug’s expertise has
been cited in The New York Times, Entrepreneur, Inc., Shopping Centers Today and
numerous newspapers, magazines, and blogs.
Doug is a regular columnist for many publications including Christian Retailing, Cape
Business, and Baby Shop Magazine. He also publishes a popular blog The Retail
Contrarian.
Doug is the author of The Profitable Retailer: 56 Surprisingly Simple and Effective
Lessons to Boost Your Sales and Profits. Doug also publishes several industry
newsletters including the popular Weekly Retail Experience.
NAEDA Update
Rick Lawhun, CEO NAEDA
Richard E. “Rick” Lawhun is president
and CEO of the North American Equipment
Dealers Association (NAEDA), a position he
has held since January 1, 2014. In this capacity, Lawhun oversees the day-to-day
operations of the association and its foundation, including activities involving
manufacturer relations, regulatory compliance, education, advocacy,
communications, and marketing.
Prior to joining NAEDA, Lawhun served as president and CEO of the American
Concrete Pressure Pipe Association (ACPPA), a 501(c)(6) trade association located
in Fairfax, VA. During this time, he also served as secretary of the American Water
Works Association, Standards Committee on Concrete Pressure Pipe, and
participated on a variety of other committees and councils with the American
Society of Testing Materials, National Association of Manufacturers, American
Society of Civil Engineers, American Society of Association Executives, and U.S.
Chamber of Commerce.
Prior to joining ACPPA in 2007, Lawhun served as vice president of professional
development for the National Association of Insurance and Financial Advisors and
director of the Construction Institute, American Society of Civil Engineers. He holds
a Bachelor of Science degree in Civil Engineering from Virginia Tech and worked for
many years in land development in the Washington, D.C. area before becoming an
association executive.
Lawhun resides in St. Louis with his wife, Ping and cats, Cooper and Sylvie.
Precision Ag, Drones,
Regulations And The
Dealership
Ryan Jenson, CEO
HoneyComb
Drones, drones, drones. Everybody wants one. Amazon, to deliver packages,
Hollywood to shoot movie scenes, agriculture interests to monitor crops. And
everyone is waiting for the FAA to issue regulations as to how commercial drones
might be allowed to operate in the U.S. In 2012, Congress told the agency to get on
with it and set a deadline for final regulations by September 2015.
According to sources, the FAA is considering requiring operators of commercial
drones to get a license; the drones could be flown only as far as the operator could
see them, and only in daytime.
When they do come out, the FAAs proposed regulations will start a lengthy
comment and debate period, with industry, privacy and other interests likely to
weigh in. It may eventually fall to Congress and the White House to sort it all out and
decide how restrictive drone policy should be.
HoneyComb’s CEO is Ryan Jenson. Ryan is an entrepreneur and accomplished
engineer with a strong history of technology development. His role as CEO at
HoneyComb leverages his expertise in strategic business development, aerospace
systems, and high performance computing. He received a BS in mechanical
engineering and minor in electrical engineering at age 19 before completing his
masters degree while working with NASA and astronauts aboard the International
Space Station. Over the past decade he has worked with NASA, DOD, DOE, NSF, the
Royal Navy, Fortune 500 companies, and small businesses, and fast‐paced startups.
Welcome Buffet Reception
Tuesday
February 17th
6:30 – 8:00 pm
New this year is the Welcome Buffet Reception. There will be enough
food, so you will not need to make alternative dinner plans.
Texas Hold’em & Casino Night
Wednesday, February 18th
After dinner
PACIFIC NORTHWEST ASSOCIATION
111th Owners’ & Managers’ Annual Conference
February 17-19, 2015
Registration Form
No refunds after February 10th
Embassy Suites Hotel - Portland Airport, Portland, Oregon
FIRM NAME:___________________________________________________
PHONE_________________________________
STREET ADDRESS & POB #____________________________________
EMAIL__________________________________
CITY, STATE, ZIP__________________________________________________
CONTACT______________________________
List first and last name of each person who will attend the Annual Conference.
Attendees (please print)
Spouse/Guest
Make copies of this form as needed
Registration Policy & Fees:
o Everyone attending the conference must register and display their name badge to attend the
business sessions. Meals are purchased separately. Registration is $250 per person for the first
two attendees from a member dealership. After the first two people from a member dealership
the registration is $225 per person. Nonmember dealership registration fee is $550.00.
EVENT
REGISTRATION First two people from member dealership
REGISTRATION Each additional person from member dealership
REGISTRATION nonmember dealer per person
Meal Tickets For Registered Attendees:
Tuesday Casual Reception
Wednesday Dinner & Casino Night
Thursday Lunch
Meal Tickets for NON-Registered Attendees
Tuesday Casual Reception
Wednesday Dinner & Casino Night
Thursday Lunch
PAYMENT METHOD
□ Check payable to: Pacific Northwest Association
PO Box 17819
Salem, OR 97305
Please charge to:
□ Visa Card
Price
Each
X
$250 X
$225 X
$550 X
Number
Attending
=
=
=
=
$40 X
$40 X
$25 X
=
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$70 X
$62 X
$32 X
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TOTAL DUE
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FAX RETURN TO ASSOCIATON
@
888 686 6271
□ Master Card
Card Number_____________________________________________________ExpirationDate____________
Cardholder Name (print)____________________________________________________________________
Total
Pacific Northwest Association Owners and Managers Annual
Conference
Room Reservations
$139.00 +tax/night
Call 1 800 821 5879
Be sure to mention the Pacific Northwest Association
Reservation deadline is February 3, 2015
or
Reserve a room online at
https://resweb.passkey.com/Resweb.do?mode=welcome_gi_new&groupID=31192139
Annual Meeting Notice
To the Members of the Pacific Northwest Hardware & Implement
Association
NOTICE IS HEARBY GIVEN to all current paid members of the Pacific
Northwest Hardware & Implement Association that:
The Annual Meeting of the Pacific Northwest Hardware & Implement
Association will be held on Thursday, February 19, 2015 at 12:30 pm, at the
Embassy Suites Portland Airport, 7900 NE 82nd Portland, Oregon to consider
and act upon the following matters:
a)
b)
c)
Report from the Chairman of the Board,
Committee reports.
Elect the directors of the corporation.
Every member is invited to attend the meeting in person.
Submitted this day December 16, 2014
Ronald F Moore
Secretary
Pacific Northwest Hardware & Implement Association
Reap the Benefits of Your Association Membership
One of those benefits is access to PNA Financial Services – a leading
financial services provider in the Agricultural industry!
As a member of your association, you have a
dedicated team of sales and credit professionals
ready and willing to assist you in structuring
retail finance deals!
• N eed a quick quote or have an urgent question?
Contact a member of the inside sale team at (800)
873-2474 / Option 1. We can send over a payment
quote or help you submit an application right away!
• N eed someone to help you with a customer call or
need assistance with structuring a payment?
Contact one of your sales representatives listed
below. These sales professionals have many years
of combined experience in the agricultural market,
and can help you close the deal by bringing finance
to the front of the sale.
• Do you want to sign up to be a dealer?
Call dealer services at (800) 873-2474 Ext 5155 to
assist you in submitting a dealer application or
go to www.agricredit.com and click on “Become
a New Dealer.”
Call your PNA Financial Services Representative today:
Randall Hill - Retail
(360) 980-9277
Greg Rupp - Retail
(800) 873-2474
John Sugden - Flooring
(682) 777-1225
14F&A280_PNA 3/14
Driving Efficiency Forward
Pacific Northwest Association Introducing the 2015 Lobbyist
for the Pacific Northwest Association
Your Association monitors state governmental affairs and legislation in Washington, Oregon
and Idaho. Pacific NW Association monitors legislation being introduced, introduces legislation
when necessary on behalf of our industry and works with the government agencies on your
behalf. This year the Association has lobbyist in Idaho, Washington and Oregon working for you
demonstrating our commitment to be a viable industry advocate. Here are your lobbyist for the
2015 state legislative sessions.
Idaho
Roger Batt
President, Batt Associates
Roger Batt is a private consultant and lobbyist, and serves as President
of his own firm - Batt Associates. Batt has served in these roles since
2000. His clients include agricultural commissions, associations,
councils, coalitions, and committees. Batt also conducts work in the
Natural Resource arena dealing with surface and ground water policy
issues, water rights and water quality standards. Batt also conducts the
Public Relations work for the Idaho Weed Awareness Campaign, a
statewide education and outreach effort on the awareness and control of
Idaho’s noxious weeds. Batt has degrees from Boise State University in
Finance and George Fox University in Management and Organizational
Leadership. He served four years active duty in the United States Navy
and played a military role in Operation Restore Hope in Somalia in
1993. He serves on numerous Committees and Boards and is actively involved in church
activities. Roger’s wife, Gayle, is a State Representative in the Idaho Legislature. Roger and
Gayle received the honor of Farm Family of the Year in 2007 by the Nampa/Caldwell Chambers
of Commerce and the Young Farmer and Rancher Award for Advocacy in Agriculture from the
Idaho Farm Bureau Federation in 2006.
Washington
Grant Nelson
True North Public Affairs, LLC
Grant Nelson has over 22 years of legislative and regulatory experience
and a solid history of advocacy, performance and winning outcomes.
During this time, Grant has served as a legislative assistant and chief of
staff in the Washington State House of Representatives and
Washington State Senate, and as Director of Government Affairs for
the Association of Washington Business (AWB).
In October 2011, Grant founded True North Public Affairs, a lobbying
and political consulting firm based in Olympia, Washington that specializes in representing
private sector employers before the Legislature and regulatory agencies.
Grant conducts public relations work for Washington Rural Electric Co-Op Association, Toy
Industry Association, Washington State Motor Sports Association, Northwest Motorcycle
Association, and a worldwide technology corporation.
A graduate of Washington State University, Grant and his wife Stacey have two young boys and
enjoy a wide variety of competitive sports and outdoor activities in the great northwest.
Oregon
Roger Beyer
RW Beyer Enterprises, Inc.
Roger is a lobbyist for Oregon Dairy Farmers Association, Oregon
Seed Council, Oregon chapter of the National Association of
Insurance and Financial Advisors and Independent Insurance
Agents and Brokers of Oregon (2008-present), Oregon Small
Woodlands Association (2010-present), Oregon Blueberry
Commission (2012), Oregon Raspberry and Blackberry Commission
(2012). He has also served as the Oregon Seed Council Executive
Director, 2008- present and has served nearly 12 years in the
Oregon legislature:
Oregon State Senator 2001-2008
•
Senate Republican Leader, 2003-2004
•
Deputy Republican Leader, January 2003 – July 2003
•
Co-Chair, Senate Rules Committee, 2003 Session
•
Chair, Senate Business, Labor and Economic Development Committee,
2001 session
•
Vice chair, Senate Judiciary Committee, 2007 Session
•
Vice chair, Senate Commerce Committee, 2005 and 2007 Sessions
•
Vice chair, Senate Agriculture and Natural Resources Committee, 2003 Session
•
Environment and Natural Resources Committee, 2007 Session
•
Land Use Fairness Committee, 2007 Session
•
Environment and Land Use Committee, 2005 Session
•
Business and Labor Committee, 2003 Session
•
Natural Resources, Agriculture, Salmon and Water Committee, 2001 Session
Oregon State Representative 1997-2001
•
Chair, Business and Consumer Affairs Committee, 1999 Session
•
Chair, Commerce Business Subcommittee, 1997 Session
Roger is the manager of Beyer Tree Farm, a family owned Christmas tree and Timber
Company in Clackamas County and central Oregon, 1983-2008. He and his wife, Barbara,
have five children ages 18 to 29. Roger graduated from Oregon State University, with a
Bachelors of Science in Horticulture in 1983.

The Lame Duck Home Stretch: Waiting On Senate Extenders
Package Approval
In one of its final accomplishments of the 113th Congress, the Senate is expected to approve the
Tax Increase Prevention Act (H.R. 5771) in the coming days and President Obama is expected to
sign the bill.
Once enacted, the bill will reinstate dozens of tax provisions that expired at the end of 2013,
including 50 percent bonus depreciation and increased Sec. 179 expensing levels ($500,000
with a $2 million phase-out cap). These retroactive changes will only apply to 2014 and all the
normal rules apply (including the requirement that customers take possession of the new
equipment to qualify for bonus depreciation this year).
Rest assured that PNA and NAEDA are as frustrated as you are that Congress has waited until
the end of the year to act. While your Associations and others encouraged lawmakers to extend
bonus depreciation into 2015 and permanently increase Sec. 179 expensing levels, politics got in
the way of good policy. Currently, it is unknown when or whether Congress will take up the tax
extenders issue in 2015.

Drones, Drones, Drones
Everybody wants one. Amazon, to deliver packages, Hollywood to shoot movie scenes,
agriculture interests to monitor crops.
And everyone is waiting for the FAA to issue regulations as to how commercial drones might be
allowed to operate in the U.S. Those regulations are supposed to come out by the end of the
month.
The FAA has been struggling to write the rules for unmanned aircraft for several years. In 2012,
Congress told the agency to get on with it and set a deadline for final regulations by September
2015.
According to sources, the FAA is considering requiring operators of commercial drones to get a
license; the drones could be flown only as far as the operator could see them, and only in
daytime.
That's a lot more restrictive than commercial groups want. But John Villasenor, a senior fellow
at Brookings Institution who teaches at UCLA, says the FAA is in a tough spot. "If they come out
with rules that are not protective enough and then there's some sort of an accident then they will
be criticized for not having been more careful with this technology," he says.
"On the other hand, if they come out with rules that are viewed as overly restrictive in the name
of safety then they are going to be criticized as impeding the growth of the industry, so it's a very
difficult balancing act that they have to navigate.
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In fact, the industry does think that, based on the initial reports, the FAA rules are unrealistic.
Take for instance the line of sight requirement. Michael Drobac is executive director of the Small
UAV Coalition, which includes companies like Google and Amazon. Drobac says technology will
allow drones to be operated far from where their operator is based, making use of tablets or
mobile phones to control them. "The reality is that the technology is there but the FAA doesn't
necessarily know it or spend enough time with it."
Right now, commercial drones are being tested at six FAA-designated locations across the U.S.
Drobac says companies don't much like that restriction either, because companies are in the
process of designing their drones, "and they certainly do not want to share their proprietary data
with others." He says the testing at the remote locations is also expensive for companies. "It's
illegal for companies to test outdoors near their headquarters", Drobac says "and so they can't
bring their entire teams."
Meanwhile the FAA is dealing with another drone issue. The agency says it's receiving about 25
reports per month from pilots who have seen unmanned or model aircraft operating near their
planes. The consequences of even a small drone colliding with an airplane or getting sucked into
its engine could be catastrophic. Everyone from an Alitalia flight landing at New York's JFK
airport to NYPD police helicopter pilots have reported seeing small drones near their aircraft.
The New York incident led to the arrest of two men on reckless endangerment charges.
When they do come out, the FAAs proposed regulations will start a lengthy comment and debate
period, with industry, privacy and other interests likely to weigh in. It may eventually fall to
Congress and the White House to sort it all out and decide how restrictive drone policy should
be.
Sign up to attend the Association 211th Annual Conference for the most up to date information
regarding the rules and regulations as the pertain to drones and agriculture and you dealership.
HoneyComb’s CEO is Ryan Jenson will be with us at the conference and providing the most
current information.

Take My Agronomic Advice…
Are you at risk for precision ag liability claims?
It’s no secret that today’s business world is firmly planted in the land of technology and
information. New developments happen nearly every day, seemingly at breakneck speed.
The farm equipment industry is not isolating itself from data and electronic
advancements. Quite the contrary—it is seizing the opportunity to turn these exciting
developments into valuable new services for customers.
Precision agriculture, the farming management concept based on observing, measuring,
and responding to data and variability in crops, is becoming increasingly commonplace.
As more types of data become available and their quality improves, harvesting value from
that data is the ultimate objective.
As the scope of dealers’ involvement in their customers’ operations continues to expand,
many may have already found themselves providing quasi-agronomic advice or even fullscale agronomy service to farmers. An equipment dealer’s role in providing technological
expertise in precision agriculture may be very different today than it was just a few short
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years ago. Providing precision agronomic services can create additional risks. Therefore,
some best practices may be helpful for protecting your dealership from liability claims.
Understand Professional Services
Individuals who have specialized knowledge in a particular field, such as agronomy, and
provide opinions and make decisions, by their very nature expose themselves to what is
commonly referred to as professional liability. These individuals are expected to have
the required minimum skill and competence as others in their respective field.
Otherwise, when errors are made, the result may be financial harm to others.
Employee Roles
Be intentional when you define each of your employees’ roles. Many may have the
opportunity to “render professional advice,” but it is the advice itself, not necessarily the
employee’s designated role, which determines professional liability. Identify which
individual(s) in your organization are authorized to provide such advice and direct your
customers to them.
Know Your Expertise
Time can diminish knowledge. Actively following and understanding developments and
changes in the industry will help keep knowledge and skills current. Having,
understanding, and utilizing the required level of competence can help avoid allegations
of professional negligence. Where appropriate, get and maintain independent
professional certifications and registrations.
Clarify Expectations
When providing agronomic advice, have a clear understanding of each party’s role and
expectations. This is an essential ingredient for building strong, cooperative business
relationships. Open communication with your customers and careful attention to detail
from the beginning can help you avoid misunderstandings and mistakes, which could
lead to costly claims and potential litigation.
Put It In Writing
A written agreement or contract outlining roles and expectations benefits all invested in
the relationship. It fosters a clear understanding of what is expected and allows parties
to accept that responsibility. Use caution, however. Complicated arrangements can
easily erode clarity and add confusion. Qualified legal counsel should be consulted for
help developing documents of this type.
Record Keeping
Although it can be time consuming, detailed records related to your business and
professional practice can be valuable risk management tools. They can help clarify
expectations and prove each party’s fulfillment of those expectations. Be thorough and
committed to identifying, classifying, preserving, and securing both your paper and
electronic records.
Risk Transfer
Completely eliminating all possible risk in business is simply not realistic. It is,
therefore, important to protect your dealership from potentially harmful exposures. A
general liability policy is designed to provide coverage for third-party bodily injury or
property damage, and typically does not include professional liability exposures.
Carrying specialized insurance coverage is a feasible option, which can help protect
beyond a standard commercial general liability policy. Consult with your insurance
advisor to ensure you have the proper protection in place.
So, what’s my advice? Be aware. Understand your responsibility in providing agronomy
advice. If your dealership views it as a potential liability, you can manage and lessen your
exposures to prevent and reduce losses.
This article provides only general information and recommendations regarding risk prevention. The
information should not be considered legal or other expert advice, nor is it guaranteed to reduce losses,
lower insurance premium or eliminate any risks. The information herein may be subject to regulations and
restrictions in your state. Qualified counsel should be sought regarding questions specific to your
circumstances. © 2014 Federated Mutual Insurance Company. All rights reserved.

Amazon May Move Drone Testing Overseas
Amazon.com told US regulators that it has begun testing
deliveries by unmanned aircraft, or drones, in other
countries and will divert more research abroad if the
government doesn’t let it conduct such tests locally.
In a Dec. 7 letter to the Federal Aviation Administration,
Amazon, the largest Internet retailer, urged the agency to
quickly grant the Seattle-based company permission to test
drones outside of laboratories in Washington state. The company proposes to fly the drones on
private property in a rural area, supervised by trained pilots, according to the letter, which was a
response to questions from the FAA.
Amazon, which unveiled plans to use drones last year, said it wants them to deliver light
packages to customers in 30 minutes or less. In July, Amazon sought permission to test the
drones outdoors, based on an FAA request for comments on possible exemptions to its ban on
commercial drone operations. The latest letter expressed concern that the FAA may be impeding
technology innovation in the US.
‘‘In the absence of timely approval by the FAA to conduct outdoor testing, we have begun
utilizing outdoor testing facilities outside the United States,’’ Paul Misener, Amazon’s vice
president of global policy, wrote in the letter. ‘‘It is our continued desire to also pursue fastpaced innovation in the United States, which would include the creation of high-quality jobs and
significant investment in the local community.’’
In September, the FAA granted permission for seven Hollywood production companies to use
drones for filming through the same program under which Amazon is requesting a waiver.
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Those are the only commercial drone users permitted in the continental US. Two oil companies
were also previously granted permits to use drones in Arctic regions of Alaska.
The FAA said it’s reviewing Amazon’s letter.
‘‘The agency has designated an inspector to work closely with representatives from Amazon on
its request for an experimental certificate to conduct research and development of unmanned
aircraft,’’ the agency said in an e-mail. ‘‘The FAA is currently waiting for additional information
from the company to complete the application. Since 2005, the FAA has issued over 200 initial
and recurrent experimental research and development certificates to unmanned aircraft
operations.’’
Amazon’s proposed deliveries won’t be permitted initially in the US, according to a Nov. 7, 2013,
FAA document outlining the types of commercial drone flights it expects to allow. The agency
said it wouldn’t permit commercial drone flights without a pilot at the controls, and Amazon has
said it wants to have its package-delivery drone fly automatically.
Be sure and sign up for the Association 211th Annual Conference for the most up to date
information regarding the rules and regulations as the pertain to drones and agriculture and you
dealership. HoneyComb’s CEO is Ryan Jenson will be with us at the conference and providing
the most current information. Bloomberg News December 09, 2014

After 37 Years Vashon True Value Soon To Become Part Of
Ace Hardware
“As times change, you have to change with them to remain relevant,” said John Yates, a coowner of the business. “Ace gives us a better opportunity to keep our business strong.”
The decision has been a long time in the making, Yates said, as Ace Hardware has been talking
to Yates and co-owner Doug Snyder for more than a decade. In the past year, Yates said, he and
Snyder thought about the idea more seriously and made the final decision in October.
Ace Hardware is a strong company with a strong vision for growth and solid programs to assist
retailers, Yates and Snyder said, while True Value has struggled in recent years. Both companies
are member-owned buyers’ co-ops, and Ace, as the stronger, larger company, has a little more
buying power than True Value. Ace also advertises nationally and locally, which True Value has
not done in many years, making the Ace brand more recognizable. This brand recognition factor
could help sales some, but Yates said on Vashon, that likely will not matter a lot.
“People come for the friendly staff,” he said. “They’ll still be here.”
Customer service is a priority at the hardware store, Yates noted, and one that aligns well with
Ace Hardware. Indeed, according to J.D. Power, Ace Hardware has ranked highest among home
improvement stores in customer satisfaction eight years in a row, drawing particularly high
marks in the staff and service categories.
Vashon True Value first opened in 1977 as a 4,000-square-foot store and was owned by
Snyder’s parents, Al and Laura Snyder. Since then, the store has grown considerably and is
approximately 10,000 square feet, with the True Value Service Center adding another 4,000
square feet. Business is strong, Yates said, but like many businesses on Vashon, further growth
is limited by the space in the building and the number of people who live on the island.
“Our goal is to maintain our strength as a viable, ongoing business,” Yates said.
Making the transition to Ace, they say, will help them do that, but changes will not be dramatic
for customers.
The store’s last day as True Value will be Dec. 27, though it may take a bit longer to change the
signage, Yates said. Early in the new year, the store will do some remodeling, including installing
all new shelves, as many of the current shelves are as old as the store. The interior work will take
about three weeks, and the store will maintain its regular hours throughout the process. The new
layout will allow for an extra aisle, Yates noted, enabling the store to carry additional products in
many of its departments.
Beyond the store’s new look, customers will find the same types of items, though many will be
made by different companies.
“The products won’t change but for the labels,” Snyder said.
Some of the brands that the store will carry will be quite familiar to people, Yates said, as Ace
Hardware has developed partnerships with companies with well-known brands. As Ace, for
example, the store will carry such stalwart brands as Sears’ Craftsman tools and DieHard
batteries, Valspar paints and Husqvarna products. The store will also carry a large selection of
Ace’s own products, including Ace paint, which was ranked number one in Consumer Reports
last year.
Customers will likely see True Value products on the shelves for awhile; the store owns the
products and can sell them to customers or to another True Value, Yates said, noting those
details have not yet been sorted out. Ace products will be available after the first of the year.
Looking ahead to the transition, Yates said he and Snyder are excited.
“The more we find out about Ace, the better we feel about it,” Yates said.
While they were in the decision-making phase, he added, they considered what Al Snyder, a
thoughtful, deliberate man, would have done in this situation. They decided he would have made
the same decision. Still, Yates acknowledged, after 37 years, roots run deep.
“People are still going to call us True Value,” Yates said. “That is OK."
Vashon-Maury Island Beachcomber Reporter

Walmart CEO Doug McMillon: We'll Do Away With Minimum
Wage Pay In New Year
Back in October, Walmart CEO Doug McMillon announced future plans to boost the lowest of
wages at the big box giant so that no worker is paid the federally mandated minimum of $7.25
an hour. (See map below for those states with a minimum wage equal to or less than the
federal minimum wage.)
In an interview on December 10th, he appeared to have set himself a deadline of early 2015 for
this salary hike.
“We’re going to make changes in a few months that will create a situation where no Walmart
associate in the United States makes federal minimum wage,” McMillon told ‘CBS CBS -1.08%
This Morning’ co-host Charlie Rose in a rare, fairly wide-ranging sit-down discussion. “We’ll be
ahead of that with our starting wage.”
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McMillon, who at 48 is the youngest CEO of Walmart since founder Sam Walton, agreed with
Rose’s assertion that the perception of Walmart — as a low-wage, dead-end employer,
doubtlessly — differs from the reality of the business he runs.
“In the world there is a debate over inequity, and sometimes we get caught up in that, and retail
does in general,” he said.
McMillon’s announcement will come as welcome news to the Walmart associates who, along
with their allies in the labor movement, have been protesting working conditions and wages at
the world’s largest private employer for the last three years.
This past Black Friday weekend, like the one before it, saw workers striking and walking off the
job as part of a push for a $15 an hour pay hike at Walmart.
This year, workers took part in sit-ins during the days leading up to the annual sales bonanza,
with the United Food and Commercial Workers union helping them organize. A two-hour sit-in
at a Los Angeles area Walmart resulted in 23 arrests when the striking workers moved out into
the streets and blocked traffic.
Doug McMillon’s appearance on ‘CBS This Morning’ on Wednesday coincided with a senior
personnel announcement at the retail chain — an unusual move right in the middle of the allimportant holiday shopping season.
Walmart announced longtime employee Judith McKenna’s promotion to the role of COO,
making her responsible for the company’s 1.3 million workers in the U.S. Her predecessor Gisel
Ruiz has been appointed head of the company’s international HR division.
The map below, prepared by the U.S. Department of Labor, shows all U.S. states and territories
with minimum wages higher then, the same as, and lower then the Federal Minimum Wage. In
any state with a minimum wage lower than the Federal Minimum Wage, the Federal Minimum
Wage takes precedent.
Employee Quits Are Up: Is It Time To Raise Wages?
Bill Conerly
The number of employees quitting their jobs is the highest it has been
since early 2008, when the recession was just getting started. The number
of vacant jobs is the highest it has been since 2001. The unemployment
rate continues to fall. Only one thing has not changed: wage inflation. Is it
time for companies to raise wage rates?
A year ago I noted the upswing in quits and wrote about the 7 Employee
Retention Strategies Your Company Must Have. That article talked about
ways to keep good employees that did not involve higher wages. Before
considering higher pay, every manager should review those retention strategies. If you are
missing several of them, then work on the non-cash aspects of management first.
However, it may be time to raise wage rates. I met a very successful plant manager who wants
entry workers to be reliable, pass a drug test, do basic math, communicate clearly and get along
with co-workers. For minimum wage, she is frustrated by not finding enough good job
applicants. Okay, maybe it’s time to offer higher pay.
Some companies post job openings at
low salaries, then ask current
employees to cover for the open
positions. This is fine short-term, but if
it lasts too long, the company will burn
out its best workers. When they bail
out, the vacancy problem just gets
worse.
Wage rates have risen by 2.2 percent
over the past 12 months, not much
different from last year, or even from
2010. Between increased productivity
and higher product prices, the average
company can cover the cost of
somewhat higher wages. That’s not
really the point, however. Companies
should not pay higher wages simply
because they can. They should pay higher wages when they need to recruit and retain vital
workers. That seems to be the case in many companies. Business leaders should evaluate their
own labor needs and consider wage hikes.

Business Groups Express Serious Concerns Over EPA’s
Proposed Power Plant Rule
As a part of the Partnership for a Better Energy Future (the Partnership), ABC and other
business organizations representing more than 80 percent of the U.S. economy, submitted
comments to the Environmental Protection Agency (EPA) arguing that its proposed power plant
rule, also known as the Clean Power Plan (CPP), is not compatible with numerous practical and
technical aspects of America’s electricity system.
In order to foster continued growth and take full advantage of our nation’s energy potential, the
Partnership urged EPA to withdraw the rule and instead use a comprehensive energy approach
to support the continued provision of reliable and affordable electricity. The comments also
stated that the CPP would vastly expand the agency’s regulatory reach into the authority held by
states and other federal regulatory agencies.
Additional arguments made by the Partnership in opposition to the rule include:
•
The U.S. needs an “all-of-the-above” energy strategy
•
The CPP will increase energy prices
•
Reliability concerns will be exacerbated by EPA’s regulations
•
The administration’s approach to greenhouse gas (GHG) regulations will drive
manufacturing to less efficient countries and potentially result in an increase of global
emissions
•
Will have additional global implications, including increased costs, while failing to
meaningfully reduce carbon emissions
•
The proposed regulation sets a troubling precedent for future regulation of other sectors
•
Recent polling indicates Americans across the nation do not support the EPA’s approach
The Partnerships comments to EPA can be read in full here and more information about the
EPA’s Clean Power Plan can be read online.
Source: Associated Builders and Contractors, Inc.

The Danger Of A Big Customer: G T Advanced Technology's
Bankruptcy
Bill Conerly
The bankruptcy of Apple supplier GT Advanced Technologies (GTAT)
offers lessons to all vendors to large companies. Whether supplying a
physical product or a service, smaller companies selling to larger
companies have to be cautious.
Selling to a giant, such as Apple or Walmart or Bank of America, offers the
potential for tremendous revenue. However, selling to a whale risks
having no other customers to sell to.
Some companies have succeeded with one customer, but it’s a dangerous business model. The
key is not having any competitors. If, on the other hand, you are one of several suppliers of a
particular product, and you don’t have any other clients, you’re extremely vulnerable. The buyer
is likely to play off one vendor against another, ensuring that none of them make much money.
And if one of several suppliers goes bankrupt, that’s not a big problem for the buyer.
Thus, the first rule of thumb for selling to a big buyer is don’t go overboard. Maintain
strong relationships with other customers. That may require your company to turn down some
business from the whale, but sometimes turning down business is the key to long-run success.
The second rule of thumb is to be ready to produce other products. Some equipment
is highly specific to one customer, while other equipment is more flexible. Flexible is good. This
was part of GT’s problem.
For an example from another industry, think about French Fries. A McDonald’s fry is not the
same as a Burger King fry, which is different from a Wendy’s fry. Differences include size, shape
and coatings. The cheapest way to make French Fries is to buy machinery specific to one
customer. That’s generally the way to get the lowest unit cost—specialize.
In the frozen potato industry, however, companies have been investing in just the opposite
direction: more flexible equipment. They accept higher cost to get the ability to produce for one
customer in the morning and a different customer in the afternoon. What they lose in cost per
fry they make up by better utilization of their equipment. It’s easier to keep general-purpose
machinery busy than highly specialized machinery.
It’s easy for me to tell someone else not to accept that big order from a whale of a corporation.
It’s hard to look at a huge potential sale and not do everything possible to win the order. That
leads to the third rule of thumb: think through maximum customer share ahead of
time. Difficult decisions are always easier to make when they have been anticipated. How big a
share of your total sales will you allow your largest customer to be? Think about that now, talk
about it with the senior management team, then try to follow your rule.
You may end up with a higher concentration if you lose s smaller customer. That would be a
signal to dial up sales effort for other smaller customers. Your big customer may ask for more of
your product. I hate to turn down sales, but when your biggest customer wants so much that he
will exceed your maximum, take the order but don’t reach for it. By not reaching, I mean don’t
offer better pricing or guaranteed volumes.
The problem of the large buyer is a challenge. It’s a better challenge to have than no buyer at all,
but it does require careful attention. GT’s bankruptcy is an illustration of how great the problem
can be.

Knowing & Understanding your Aftermarket Opportunities
Information provides the framework from which a dealer develops his strategy
to increase aftermarket volume, profit and market share. Inadequate
information means an inadequate framework and an unworkable strategy!
It was a little over twenty years ago that we wrote these words in one of our first articles of our
monthly series of articles. Unfortunately, little has changed. Every year both manufacturers and
associations calculate and pinpoint product market share and can accurately indicate to their
dealers what their particular market share was for specific lines of product. Surprisingly
however, if you ask parts or service managers for their market share, they would be hard pressed
to come up with anything but a “wild guess”. In the typical equipment dealership the overall
market plan and/or budget plan for parts and service is little more than a simple percentage
increase of last year’s performance.
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make more
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a few workshops that can help.
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customized training, coaching or consulting for your organization.
Workshop dates and location are subject to change. Visit Spader.com for the full workshop calendar.
We know of several manufacturers and dealer groups who are breaking out of this mold and
developing specific information for their dealers to use in order to understand what the dealer’s
specific unrecognized opportunities really are. These manufacturers/suppliers are
attempting to take the guess work out of establishing goals for both sales and profits. See our
recent article: What do you know about your service Market Potential? We also feel
that kudos is due to numerous computer system suppliers who are showing their customers how
to use this information.
Parts and service sales are tied directly to the amount of equipment sold by the dealer to the end
user. Every piece of equipment sold by the dealership should represent a parts and service sales
opportunity. Most Industry Cost of Doing Business Studie provide dealers one formula for
measurement of their performance in product support. That formula is Contribution to Total
Sales, and while this is a bit of a measurement it falls short of pointing out to the dealer what
percentage are or are not buying the dealers service and parts. In other words what is the
dealer’s “market share” in product support sales? Also it is obvious the Contribution Formula,
goes up dramatically when equipment sales go down and the reverse when equipment sales drop
off.
Knowing your specific market for product support sales is an area of great vulnerability with
most manufacturers and dealers. Without first knowing your “true” market potential, it is
impossible to plan expenditures for: inventories, service facilities, training, hiring, advertising
and promotions.
An accurate Dealer Product Support Sales Analysis or Customer Profile is vital to the
success of your parts and service marketing program. As marketing professionals you must
visualize both equipment owners and types of equipment they own. If this information is not
available to you through your manufacturer, then it can be pulled from either your sales and/or
rental departments.
Establishing an average worth in parts and service sales for a piece of equipment is what you
should be searching for. You would certainly recognize that a piece of equipment used in a
foundry three shifts a day, or in a rocky abrasive soil is going to consume more parts and service
than the same piece of equipment used one hour a day in a relative “clean operation”. There are
averages to be computed and these averages will show you where you are today in market
penetration and where you can go with your market planning.
Where do you start? We suggest you ask your manufacturer or supplier whether or not they
have information available as to the worth of a particular piece of equipment in parts and service
sales. If your dealership operates a rental fleet, you will have your own records as to parts and
service usage for these units in operation.
In other words, you are attempting to determine: What is the average tractor, combine,
mower, trencher, sweeper, lift truck, loader, backhoe, grader, crawler or skid steer worth in parts
and services sales yearly to your dealership.
With a listing of your customers, the number of pieces of your equipment they own, and the
average number of dollars they should spend with you versus the actual dollars they did spend
with you, it is possible to determine your market share by customer. You will be able to quickly
determine which customers are using your services completely and which customers have a
tendency to go elsewhere for those same service and parts. You will then be able to focus on
those customers who offer you the opportunity for increased parts and service sales.
This entire process can be difficult or simple, based upon your record keeping methods. A
computerized system may provide the information in a matter of hours. Most systems today are
capable of tracking customer sales in parts and service and you will certainly want to begin
developing your product support sales and profitability of those sales through the computer.
Read our article: It is right in front of you!
If the immediate task proves to be too difficult due to the high number of customers, limit your
audit to the top15/25 customers unit wise. However, if you initially work in this manner, do not
fail to complete the entire audit as soon as possible. You will find many “sleeping giants” in this
over all profiling project.
Don’t neglect to develop into you profiles what we call Product Emphasis or Maintenance items.
These include, but are not limited to: oil and lube, filters, seats, paint, batteries, contact tips,
bearings, hoses, tires, forks, teeth, buckets, blades, brushes, brooms and undercarriage. What
are these product lines worth yearly to your dealership’s product support sales?
As an example: Statistics and surveys indicate that the typical farmer will spend over $1,100 a
year on oil and lubricants. Therefore, if a farm dealership had 300 customers, their oil and lube
market would be $330,000 in customer sales. If last year the dealership sold $33,000 in oil and
lube, they achieved only a 10% market share. Oil and lube is a very competitive market, no
dealer will get all of the business. But by knowing what their market potential is, they can
visualize their unrecognized opportunity and set goals and programs to achieve a higher
market share, and that is what it is all about!
All customers are not the same! Average is the best of the worst and the worst of the best. This
has nothing to do with customer satisfaction or customer retention. It has to do with the fact
that certain customers, because of the amount of your equipment they own, will offer your parts
and service department greater opportunity for both increased sales and increased profits.
We have always recommended that in developing Customer Profiles you begin to code the
customer as to their profit opportunity to your dealership. You may want to use an ABC or 123
type coding. This coding will rank your customers by potential and you will then want to direct
your efforts to those customers who will give you the greatest chance of sales increases and
profitability. This coding works particularly well for dealerships that have Product Support Sales
Personnel. The salesperson is better able to set up their call schedule based upon this coding.
Completion of this Product Support Analysis on all of your customers will provide your
dealership with a complete listing of your customers who are or are not using your afterm0arket
services. The backbone of any successful dealer product support marketing strategy is solid,
accurate and usable information!
Because of demand we have extended our special offer on our manual: FOURTEEN STEPS
TO MARKETING & SALES SUCCESS WITH PRODUCT SUPPORT! Email us your
request with the name and address of your dealership and your position within the dealership
and we will email you this document and you will be invoiced $14.99 payable only if you are
satisfied. Email us at [email protected] .
AFTER MARKET SERVICES, CONSULTING COMPANY, FORT MILL, SC (U.S.A.)

November 2014 Flash Report
United States Unit Retail Sales
Copyright, AEM. All rights reserved. If data is referenced, please acknowledge AEM as the source.
2014
2013
%Chg
2014
2013
%Chg
Beginning
Inventory
Nov 2014
< 40 HP
4,996
4,807
3.9
102,317
93,964
8.9
56,814
40 < 100 HP
3,490
3,304
5.6
54,317
50,845
6.8
31,929
100+ HP
1,546
2,289
-32.5
28,830
32,907
-12.4
12,240
10,032
10,400
-3.5
185,464
177,716
4.4
100,983
4WD Farm Tractors
253
523
-51.6
4,685
6,069
-22.8
1,385
Total Farm Tractors
10,285
10,923
-5.8
190,149
183,785
3.5
102,368
284
643
-55.8
7,234
9,479
-23.7
1,566
November
YTD - November
2WD Farm Tractors
Total 2WD Farm Tractors
Self-Prop Combines
These data are, in part, estimates that are subject to revisions when final detailed data become available. Because of the seasonal nature of
the industry, comparisons of monthly data from one period to another should be done with extreme caution. These data represent the
machines in each product category being sold at retail in the fifty states and District of Columbia by most, but not all, of the manufacturers.
Restricted Information from the Association of Equipment Manufacturers
Farm_Flash_Trade_Press_With_Chart_PreRelease
Run at 12/9/2014 4:44:33 PM CST
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