The relationship with Merlo has played a crucial role for a construction equipment business, significantly influencing its success and the satisfaction of end-users.
In an industry characterised by high-value investments and specialised equipment, building strong manufacturer-dealer partnerships is essential.
The importance is recognised by dealers such as Merlo specialist Capital Construction Equipment, located in the Riverina where it services both the construction and agricultural sectors. Its market spans northeast Victoria to southern New South Wales.
The company’s customers come mainly from agriculture — about 40 per cent — and the balance in construction-related activities. Agricultural applications involve many tasks, ranging from hay production and handling to machines for mixing wagons, silage and feedlots.
Tim Murray of Capital Construction Equipment said the business took on the Merlo range about seven years ago, a decision which has helped the business grow and develop.
“The brand already had a great reputation in the marketplace and is recognised as one of the world’s top material handling brands,” he said.
“The acquisition of the Merlo portfolio has been a great result for us. Timing was perfect, coinciding with the discontinuance of the New Holland telehandler range in the area.
“Having the Merlo range has really helped us expand our operations. Merlo thinks outside the box and is always producing information, advice, engineering solutions and innovations that keep the product ahead of the market and give us all the tools we need for success.”
For example, the exclusive Merlo dynamic load system is a proprietary regulated load system that allows its telehandlers to be de-rated to three tonnes to allow them to be used on any construction site in Australia under the AS1419 Compliance standard.
“This de-rating process can be performed by us at just the flick of a switch, allowing the telehandler to be operated on any Tier 1 site without the operator being required to have a non-slewing crane licence,” Tim said.
“An operator is able to drive the Merlo telehandler with a forklift licence.
“This gives the Merlo machine great flexibility being able to be used on any site and is a major benefit when demonstrating and selling the product,
“Feedback continually reinforces customers’ high level of satisfaction regarding the machines’ versatility, compact dimensions, manoeuvrability and meeting all safety standards.”
Also high on the comments list are the high responsiveness of the Merlos, ensuring the machines are not sluggish in performing tasks.
“Overall, our customers say Merlo machines are super-reliable and enable customers to meet their deadlines,” Tim said.
“Our large market share in other construction and agricultural products was a great base for taking on the portfolio.
“Merlo equipment has a high level of market acceptance and is an excellent complement to our other machinery and brands. Furthermore, the move has opened the door to an expanded customer base.”
A perfect partnership
Tim said that Capital Construction Equipment acts as a vital intermediary between Merlo and the users of the product.
“Our sales, parts and service technicians have significant local market knowledge and understand the unique needs and preferences of our customers,” he said.
“This insight allows us to provide tailored solutions, ensuring that customers are matched with the right machinery that suits their specific operational requirements.
“There is no doubt that effective dealer relationships foster customer loyalty and enhance brand reputation. From our point of view, Merlo is in good company as it joins the other leading brands that we have represented for many years.”
Strength in service
It was important for Merlo to appoint a dealer which had sophisticated facilities for service and support, as this formed a big part of brand loyalty and encouraging repeat business.
“Merlo was aware of the great reputation we had in respect of helping customers across our whole range of brands,” Tim said.
“A major contributor to our business success in our region is a great record of parts, service and field support.
“This includes four on-road service vehicles and comprehensive work shop facilities which enables us to give market-leading support.
“Customers really appreciate this service as it minimises down time and know they can totally rely on us when needed.
“We represent the entire Merlo machinery range. We have customers who have new applications or wish to upgrade their equipment therefore we are ideally placed to satisfy this need.
“At all levels we have an excellent relationship with Merlo. Their support for us is outstanding and this means we are well equipped to perform the distribution job to their satisfaction.
“Merlo is very attentive and highly responsive to anything we need to look after their interests and more importantly, to make sure that all Merlo customers are happy throughout the life of their equipment.
“If there is ever an issue with a machine that needs intervention by Merlo, we receive a solution or response virtually immediately. This high level of response goes a long way to building brand loyalty.
“A comprehensive range of fast moving parts are always available and if needed, we can access other parts overnight to ensure customers’ productivity is minimally affected.”
Tim said that Merlo had been a major part of Capital’s business growth, with a great environment of mutual respect and cooperation.
“Merlo treats us very well, including taking us to factory visits, seminars and training events to ensure that we have as much information as possible to represent the brand,” Tim said.
“For example, our attendance for a training seminar at Cuneo in Italy at the Merlo factory has been particularly important. Opportunities like these give us detailed insights into how the machine is made and makes it a lot easier to explain the benefits to customers.
“Understanding how the products are designed, engineered and manufactured gives us a great level of confidence. Merlo makes everything in-house so they have complete control over the supply chain and have quality assurance in place at every stage of the manufacturing process.
“Customers often comment about the fantastic attention to detail in the engineering performance and build of the machine and how every new model is better than the one before.
“Merlo is highly communicative and welcomes all feedback in comments whether good or bad. Any suggestions for improvements in the design or any aspect of performance is taken seriously by the company and we usually see these enhancements incorporated into subsequent models as they are released.
“There is no doubt that Merlo is one of the world’s best telehandlers in terms of reliability and being able to deliver what the customer wants. The price performance equation is extremely attractive for customers. Finance options are offered that make owning rather than renting an attractive proposition. You get a lot of machine for your money.
“The whole Merlo Australia team is fantastic and very professional in terms of their technical and marketing support, product knowledge and in every aspect that a distributor wants in a premium supplier.”
Tim said that any queries which could not be resolved by the Australian team would still “receive an answer almost immediately”.
“This is the level of support that makes our job a lot easier and makes our relationship with Merlo exceptionally smooth and professional at all times,” he said.
“As an active and highly engaged Merlo dealer, we also provide feedback on product performance and customer preferences, serving as a valuable resource.
“Such feedback helps guide product development, allowing Merlo to innovate and adapt their machines in line with market demands. In a competitive landscape, leveraging dealer insights can lead to improved product features and enhanced competitiveness.
“A robust relationship with Merlo has enabled expansion of the brand’s territorial reach. We are already embedded in our region and this has expedited the pace of entry and increased market penetration.
“Our relationship with Merlo is fundamental to our success. It facilitates effective communication, enhances customer satisfaction, provides Merlo with critical market intelligence and contributes to our overall business strategy. It drives mutual success in a challenging industry.”
For more information on the Merlo range, visit Merlo at: www.merlo.com/aus/en/
