Caterpillar is giving its dealers an opportunity to develop a three-year plan to recover lost sales by the end of the year or they may face termination of their dealership agreements, according to Reuters.
Caterpillar says its dealers are missing out on between $9 billion and $18 billion in potential sales. The Reuters report attributes these missing sales to dealers not taking advantage of available customer data, lack of communication among dealers, and inconsistent product and service offerings.
The company believes its dealers could capture additional revenue if they utilized diagnostic data from its machine to anticipate issues and increase parts and service sales. Dealers are also encouraged to work together to offer consistent solutions to customers who work with multiple Cat dealers.
Caterpillar CEO Doug Oberhelman says dealer terminations are "the last outcome and certainly not desirable," according to the report.