Heavy Equipment Business Simulation –
A Management and Leadership Development Course for Heavy Equipment Dealerships.
The heavy equipment business isn’t child’s play! Excavators and backhoes aren’t toys, and running a dealership is not simple. In fact, it’s like running many different businesses – equipment sales, parts, service, finance and insurance, and rentals – all at the same time!
In Test Drive, Teams are challenged to lead and manage a dealership in competition with other Teams. They must order and price new and used equipment, incentive sales, invest to develop an appealing retail space, advertise, providing financing, establish and staff their service department and set shop-rates, and run both their parts and equipment-rental departments.
But watch out for unintended consequences – like having too much inventory, staff attrition, or lost sales!
As they run their companies, Teams analyze Income Statements, Balance Sheets, and Cash Flow Statements, and manage their Short-Term Debt, Long-Term Debt, and Distributions. To inform their decision-making, they also analyze key dealership metrics including Net Profit, Department Absorption, Return on Assets, Return on Equity, Service Proficiency, Working Capital, and Customer Satisfaction and Lifetime Value.
The Test Drive course can be run as a live or virtual class over 2-4 days.
Learn by Doing
At the center of this course is the Heavy Equipment Business Simulation – Test Drive™. In Test Drive, participants will be immersed in a learning activity unlike any they have experienced before. Over a period of several simulated years, teams will be challenged to manage a struggling dealership and compete for customers and qualified employees.
At the end of each decision period, teams will receive performance feedback in the form of financial and industry reports. Participants will learn how to use these performance barometers to grow the business and improve bottom-line performance.
“I found the PriSim Class outstanding; it gave great insight into the areas of a company that I do not have a daily interaction with. Understanding how an entire company is tied together was a benefit beyond my expectations.”
Equipment Management Consultant and Emissions Specialist, Large Heavy Equipment Distributor
Our Course is Specific to Your Industry
Hands-On Heavy Equipment Dealer Simulation Dashboard
- Equipment Sales by product type including pricing, profitability analysis, and inventory forecasting
- Parts and Accessories/General Merchandise management including ordering, inventory forecasting of slow and fast-moving products, lost-sales analysis, and profit forecasting
- Market Segmentation analysis including demand, price and experience sensitivities, and other demographics
- Service Department analysis and management including shop-rate, capacity, and staff assignments
- Financial Statement analysis of Income Statement and Balance Sheet
- Financial analysis including department absorption, gross profit, overheads, inventory turns, and ROE
- Customer Satisfaction analysis including CSI and customer lifetime value
- Staff Incentive Management throughout the simulation based on equipment sales, parts sales, technician proficiency, inventory accuracy, and F&I penetration
- Finance and Insurance sales including pricing, incentives, and penetration analysis. Manage accounts receivable. Dealership valuation.
- Equipment Rental analysis and management including break-even analysis, pricing, movement of rentals to sales, and advertising
- Facility Investment in merchandise showroom, service environment, and showroom space allocation
- Staffing levels, pay, and utilization by department
- Training including skills development and time-blocking by activity and by department
“It was not only challenging, but competitive and fun! You did a great job of facilitating and moderating the entire class. And, I learned how different areas of the dealership can impact one another and the importance of aligning one’s strategy with day to day decisions.”
National Accounts Manager,
Regional Heavy Equipment Dealership
Equip Your Team for ALL the Challenges of Dealership Management!
Participants Will Learn:
- A “Total Dealership Perspective” on decision-making
- How to apply proven business and management topics to dealer operations
- How to think strategically
- How to analyze complex business issues
- How to use sound judgment in decision-making
- How to develop effective business plans
- The importance of customers and their “lifetime value”
- How to read and interpret financial reports (Profit and Loss, Balance Sheet)
- How decisions in each department impact the total dealership and other departments (integrated decision-making)
- How to measure success using financial & operational ratios
- How to establish effective group decision-making roles and processes
“The value of the Test Drive course is to provide a broader experience to those in our organization with a narrower departmental focus. It illustrates how various departments influence each other. The experience also shows how different actions influence the bottom line as well as our customer’s satisfaction index. In a condensed time period you can give an employee the benefit they would receive from rotating through several departments, with the end result of a better understanding of how the entire dealership works.”
The Berry Companies
Financial Statements for Vehicle and Equipment Dealerships
Financial Metrics and Ratios for Vehicle and Equipment Dealerships
“I thoroughly enjoyed the class. It made you think outside of your own day to day world. You actually got to see what effect your decision in one department did to all of the other facets of your business. We were given a better understanding of how company financials work. The board game was a great eye-opening tool to see the flow of an individual transaction, and all of the areas that just one transaction hits. The Instructors were very helpful and insightful with tips throughout the process to make you think.”
Dealership Operations Manager,
“The Prisim Insurance Challenge was fantastic for all participants here at Accident Fund. In a controlled environment, all of the teams were able to determine the mission, objectives, strategies, and tactics that led to a successful insurance company and agency force. In this collaborative process, key members from different departments were thrown in a room together, each bringing individual experiences and strengths to the table, and in the end came out with new perspectives and skills. In addition, this experience has strengthened the relationships between the individuals involved, which will have a lasting and powerful impact on our company going forward.”
– Supervising Actuary