So while the overall number of dealers in the under $5 million revenue block has shrunk, the number of single line dealers in that group almost doubled. In 2020, no single OEM line dealers had sales over $10 million, while 61% had revenues up to $5 million and 39% had revenues of $5 million to $10 million.įrom 2016 to 2020, single brand dealers have represented an increasing percentage of all dealers in the $0 to $5 million revenue band - from 11% in 2016 to 20% in 2020. In the under $10 million group, 52% had revenues of 0-$5 million and 48% had revenues of $5 million to $10 million. In 2018, 86% of single OEM line dealers had revenues under $10 million, but 14% reported sales of between $10 million and $100 million. In the under $10 million group, 78% had revenues under $5 million and 22% had revenues of $5 million to $10 million. In 2017, 72% of single OEM line dealers had revenues under $10 million, but 28% reported sales of between $10 million and $100 million. It is also increasingly clear that single OEM line dealers have a shrinking revenue ceiling while our annual surveys show average dealer revenues consistently increasing. The average number of brands carried went from 2.6 in 2017 to 3.5 in 2020. The decline in single OEM line dealers is one outcome from a longer-term trend of dealers adding more OEM brands to their line cards.
By 2020, of the 49% under $10 million, 66% were in the under $5 million group and 33% were in the $5 million to $10 million group.Īs the number of smaller dealers has shrunk over the years, the ranks of single OEM brand sellers taking the survey has declined even more. In 2017, about 65% of all dealers surveyed reported revenues of $10 million or less by 2020, that number was down to 49% – a 24% decline.īPO Media’s surveys split the under $10 million group into “up to $5 million” or “between $5 million and $10 million.” In 2017, of the 65% under $10 million, 76% were in the under $5 million group, and 24% in the $5 million to $10 million group. This is particularly evident in the shifting demographics of the 2020/2021 Market Trends survey, which shows small dealer numbers are shrinking. While it’s been a tough year for all dealers regardless of revenue size or the number of brands they carry, it has perhaps been even tougher for these dedicated dealers, many of which have revenues under $10 million and meet the general profile of a local small business – businesses that have suffered greatly during the pandemic.īased on BPO Media’s annual surveys, a consolidating imaging industry dealer channel has drastically thinned the ranks of all smaller dealers. This is particularly true for a certain type of dealership that can usually count on their OEM brand to be supportive - single OEM brand shops. Additionally, over the last year, they may be focused on their own survival.
You may not be getting the best available price or support from your OEM because their attention is often drawn to aiding their largest dealerships win that big state contract. It ain’t easy being a copier dealer these days – especially if you are a smaller operator.
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