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From Dealer Voices to Program Changes: The Evolution to CAD2.5
One of the most important things we do at the Certified Agriculture Dealership (CAD) program is give our dealers a voice in what we do, and how we do it. Unlike so many Dealer Councils, we actually listen and act on what our Council says. In fact, some of the biggest adjustments we’ve made to this program over the years, especially during COVID and supply chain disruptions, originated from within our Dealer Advisory Council.
FAQs
How does it work, and what does it cost?
For all intents and purposes it works the same as CAD2.0 (including the annual $1,500 Marketing Fee), with the three adjustments outlined here:
- Dealers will be charged a $500 per month Program Operations Fee (POF). To be fair with our actively participating dealers, we offset that monthly fee by then crediting the initial $500 Certification Fee (CF) on each dealers first sale, that month. This refund completely neutralizes the POF for dealers who use the program to sell vehicles, and defers any potential operating gains we may realize to the second truck sale each month. It is important for our dealer partners to understand that our only revenue comes from the truck sale itself. We don’t earn anything from AgPack®, the Marketing Fee or AgTruckTrader®. We front the entire cost of running this program until the Certified Agriculture Dealer (CAD) makes a sale. If a dealer is not actively selling with this program, we’re not earning. Which weakens the program for all our dealers. The $500/month POF simply covers the basic operating expenses of The Certified Agriculture Group.
- The agriculture truck customer will be empowered to submit their own AgPack® claim, in the event their dealer did not at the time of purchase. The unfortunate reality is that we have had some dealers consciously choose to not give their customers the AgPack® they were expecting, in order to avoid paying the CF that keeps this program active and improving. In fact, we learned of one dealer that actually offered to give agricultural customers an additional $500 discount on the truck if they chose to not take their AgPack®. This is deceptive, denies the customer the complimentary benefits they were promised, and falsely implies that AgPack® is a paid benefit. By empowering the customer to submit an AgPack® claim, we can determine if the dealer accidentally overlooked the submission, or if it was intentional. If a pattern of not submitting customer AgPack® numbers emerges with a particular store, the Certified Agriculture Dealership program reserves the right to charge additional fees, and/or expel the dealer from the program.
- Exclusivity. When we went OEM neutral in 2022, we also eliminated any exclusivity. With CAD2.5, we are bringing the pendulum to rest in the middle. Any dealer who wants BRAND EXCLUSIVITY in a specific geography will be given that opportunity, under specific circumstances. In short, each exclusivity request will be reviewed by members of the Dealer Advisory Council and senior CAD leadership. If approved, the approved franchise(s) will be required to pay a larger annual marketing fee, as well as a larger POF based on geography, which will be fully credited with an equal number of CF’s each month so it is cost neutral. Geographic considerations will include: maintaining a reasonable amount of distance for customers to travel; how the marketing fund will be impacted by how many potential enrolled stores will be excluded; and dealer(s) commitment to a relevant, local, agricultural marketing campaign.
What do I get?
The auto industry’s only agriculture marketing and sales solution. We satisfy all the major criteria farmers & ranchers use to determine where they will do their truck business. In addition to improving new & used sales, our turn key program also gives participating dealers the tools they need to significantly improve agricultural revenue in parts, service and F&I channels with tools like CADFi and CADProtect.
Do I get extra inventory?
Not directly, BUT we are currently working with a major truck upfitter to design and build the ultimate ag-capable truck. To be introduced later summer 2024, the truck will be agriculturally named, branded and badged, so the customer can display their “Ag Pride” while driving the most advanced, purpose built, ag-capable truck in the world.
The upfitter has agreed this truck will only be available to Certified Agriculture Dealerships.
How many farms/ranches do I have in my area? What is the realistic opportunity?
One our recruitment team members would love to answer using actual county level data from the United States Department of Agriculture. Give us a call at (866) 293-0885 or email us at Dealers@CertifiedAgDealer.com to discuss further.