Thirty seven years. That’s right, 37 years. That’s how long The Cannata Report has been conducting its Annual Dealer Survey. Some of our readers, including one of our interview subjects for this month’s CR-Connect Dealer Tour feature, Mitchell Mawby, weren’t even born when our first Survey launched in 1985. And some of us, including myself, weren’t even in the industry yet. In 1985, I barely knew what a fax machine was or that there was an independent dealer channel, or that there were companies outside of Xerox that sold copiers. I’ve learned much since then. I’ve learned even more since joining The Cannata Report in 2016 when I first began writing much of the Annual Dealer Survey analysis.
Looking back over 37 years of Survey data, one can track the evolution of the independent dealer channel and the technology that has been so critical to the channel’s longevity. One can also trace the impact of trends such as the emergence of mega dealers and how acquisitions by companies such as Alco Standard, Danka, and Global Imaging Systems reduced the number of independent dealers. That trend continues today with the influx of private-equity money into the channel as big dealers continue to grow.
Although the number of independent dealers has shrunk by as much as two-thirds from the glory days of the mid-1980s, the channel still survives and thrives. Nowhere is this more visible than in the Dealer Revenue section of our Survey. In the first Survey, before the emergence of mega dealers, average dealer revenues were approximately $5 million. Since then, that figure has grown astronomically, buoyed by dealers with revenues of $100 to $400 million a year. Turn the page to the Survey section to view this year’s exact number. However, without giving too much away, average dealer revenues are higher than before the pandemic.
Our Survey helps readers better understand how their dealerships perform against their peers across the country. Your participation and input are valuable to ensure that the Survey remains relevant. Each year we tweak the Survey to keep pace with changes in the channel and the industry. The plan is to overhaul the Survey within the next two to three years to make the data and analysis even more valuable to our readers. Suggestions for improving the Survey are always welcome. Please email me at scullen@cannatareport.com. I’d love to hear from you.
