The keys to sales success in agricultural technology
Working as the head of the local branch of one of the banks, Anton Sidorenko hardly imagined that he would head the business of selling agricultural machinery, and his company would rather successfully compete with the market leaders. But it happened that way. Agrotehnika Mirgorod is a young company, but its founders already know well what is needed for the success of their business!
It all began in 2011, when a long-time client, Nikolay Pashchenko, turned to Anton Sidorenko for advice. He proposed to establish a platform for the sale of agricultural equipment in Mirgorod. The future founder and partner had established contacts with the manufacturer and distributor from Lutsk, and Sidorenko felt demand, knew potential customers, because he worked with them. With this synergy, everything started. True, the first three years worked as a “freelance”, without leaving the main activity. When in the difficult military year of 2014 the bank closed, Anton Sidorenko and Nikolay Pashchenko decided to give up all their time to this business and began to build momentum.
The product range of "Agrotechnics" - two dozen different positions, more than a hundred items. This tractor of various types, trailers, presses, units for tillage and care of plants, equipment for fertilizer application, spraying, equipment for gardening and even solid fuel boilers. Of the features - communal technology, which is rarely seen on agricultural land. All these are products of leading Ukrainian manufacturers, as well as Polish, Swedish, German, Italian. Consumables, spare parts, assemblies are also sold ... That is, everything that is necessary for the operation of sold equipment, repairs. Everything you need, nothing extra that stale and washes out the “turnover” is the key basis for the formation of the product range.
“Our business has a clear seasonal nature,” says Anton Sidorenko. - One more our successful decision is a selection of groups of goods so that this seasonality to level. Tractors are sold from autumn, after harvest, to field work in spring. Then in May-June there is a haying equipment and spare parts. Then begins harvesting of early crops, followed by harvesting straw ... All this continues until mid-August. Autumn is traditionally the season when communal equipment and consumables are sold. And you do not have time to rest, as the new season begins. The circle is closed. The most important positions are tractors, mowers, sprayers. Last last year they sold more than a hundred! Less equipment is sold - more parts are sold, this is interdependence.
The site of “Agrotechnics” is located on the edge of the city along the road, on which they drive to Khorol, Poltava, Kharkov ... This is no longer a coincidence: a well-considered location is in itself an advertisement, and also savings in construction and maintenance. The name of the company can be seen even a few kilometers away from the location - the banner advertising of this company works not only for brand recognition, but also for direct sales. Such “outdated” methods as advertising in local newspapers, urban and regional, also proved effective for the agroclient. More modern ones also worked: participation in domestic and foreign exhibitions, conferences, advertising on the Internet, creating a high-quality website and its promotion ...
The effectiveness of marketing channels is monitored: contacts of various managers are placed in different sources of information. In addition, customers are polled during the contact. Of course, as with most types of small businesses, word of mouth is the best seller. A variety of marketing channels is one of the keys to success. Thanks to them, the Agrotechnics Mirgorod clients are within a radius of 250 kilometers!
Competition in the market of agricultural technology is very tangible. The market is so full that it seems there is no point in entering new players on it. In addition to official dealers, online stores, there are such large networks as Tehnotorg, Ukrzapchast. They have a network of sites in Ukraine, including not far from “Agrotechnics”. This is a significant challenge for the company. We have to adapt, adjust the range and pricing.
“Today, any farmer or head of an agricultural company can find dozens of offers in five minutes of searching on the Internet, and compare prices in ten more. Any assortment, any region ... Of course, we also constantly monitor our competitors' offers, their assortment and activity. We react to this, we carry out some kind of "countermeasures". A tractor is not a pack of tea, you cannot make a winding to it. And the margin on the product is very small, close to Europe, not at the expense of what to dump. We give discounts on related products, free service, we hold promotions. Sometimes manufacturers help, provide some special conditions. There are final sales, ”says Anton Sidorenko.
So, being aware of what competitors are doing and reacting in a timely manner is another condition for success.
Nikolay Pashchenko, director of Agrotechnika Mirgorod, believes that the competitive advantage of their business is in efficiency and individual work. The manager of a large company working for the stream will pay so much attention and care only to individual “expensive” clients, and not ordinary ones. We are a small business, thanks to which we are more mobile than large salons and dealers. We can do it for yesterday, but big salons are not.
Attitude to customers is another key to the trunk with the success of the company, as well as its special feature. It manifests itself even at the sales stage - managers do not ring up potential customers, but sit in cars and drive around farms and agricultural companies. Doing this work and the leaders, they believe that in their own business there is no “dirty” work. Motivation plays perhaps the most important role in every business. And who, if not its leaders, the most motivated people? “We put our soul into the work,” say both founders. Among the clients there are those that any company can be proud of: the largest agricultural holdings of the country are Kernel, Astarta.
A lot of communication, understanding the customer helps to sell. And after-sales service - to keep it and make it permanent. Employees accompany the client from the first moments of using the equipment to the period when the client ceases to feel this need. Further contacts are often additional sales of “accessories”, minor repairs, adjustment of some options, organization of the warranty repair process, if something tangible has happened. By the way, Agrotehnika Mirgorod has only five employees. But with a well-established work, this is enough. All of the above contributes to the fact that farmers “hand over” company contacts from hand to hand. If a new tractor or mower appeared in the village, then there is a significant likelihood that other manufacturers from the vicinity will later come for the same.
The sales growth in the company was stable until 2019, but this year it stopped, especially in the small farmer-oriented machinery segment. One of the reasons is that this year, the farmers began to sell the harvest residues very late. The second is political. However, the founders hope that this phenomenon is temporary and pent-up demand will soon be realized. Would they like to expand the geography, open new sites for the sale of equipment. But so far they have taken a certain pause and decided to develop the company organically. “We will develop because we have excitement in business. We live for them, it inspires, the results - stimulate or grieve, but our business makes our life full and interesting ”- conclude the conversation founders.
Cooperation with Raiffeisen Bank Aval
“We chose this bank from the very beginning. I will say, as a former banker, this is today one of the best banks for a business - both in terms of product line and comfort. We and FLP, and LLC. We use settlement and cash services, overdraft. He helps us out in seasonal periods. In addition, there are such conditions with suppliers when a 100% prepayment is required, but the client has not paid us off yet. Or, due to overdraft, we can provide our good clients with a small delay. At the FOPs, which are retailing, we use POS-terminals. And at the partner of the bank, the insurance company Unica, we insure our equipment, ”shares the founder of Agrotechnika Mirgorod LLC, Anton Sidorenko, sharing a positive experience of cooperation.
