Results 1 to 7 of 7
  1. #1
    Veteran Member deerefan's Avatar
    Join Date
    Aug 2005
    Posts
    1,617
    Location
    louisiana
    Tractor
    1952 8N, 2005 JD 5103

    Default Owning Tractor Dealership

    Quick question...what does it take to own a tractor dealership? Where do you start? The reason I ask is a JD/kubota dealer is desperately needed close to my place. I have the ideal location on the main drag. Everyone is towing their tractors an hour or two away to be repaired. This place would be centrally located to all the farms close by. I have the means, just do not know where to begin. [img]/forums/images/graemlins/confused.gif[/img]

  2. #2
    Veteran Member
    Join Date
    Jul 2002
    Posts
    1,598
    Location
    Greene Co, Arkansas
    Tractor
    JD 1050 2wd, Case 580D 2wd

    Default Re: Owning Tractor Dealership

    Contact Deere... The tractor companies have their own requirements for starting a dealership.

    Cat for example, wants you to generate a certain amount of money selling another brand before you can start with them. They want to see you can be a viable, stable dealer.

    Then, theres a potential territory dispute but I'm not sure Deere has one like Cat does.

  3. #3
    Elite Member
    Parts Supplier
    MessickFarmEqu's Avatar
    Join Date
    Feb 2004
    Posts
    4,965
    Location
    Lancaster County, PA

    Default Re: Owning Tractor Dealership

    Its going to vary depending on what brand you want. The 3rd tier brands will give a dealership to anyone. Top brands like kubota, Deere, CNH require that you have 3+ million in credit available - stock parts, send guys to training schools, etc,etc.

  4. #4
    Gold Member johndeere2210's Avatar
    Join Date
    Sep 2004
    Posts
    347
    Location
    Nebraska
    Tractor
    John Deere 2210

    Default Re: Owning Tractor Dealership

    Yes Deere has AOR just like Cat. Used equipment can be sold anywhere, but new equipment has to be in your Area Of Responsibility, and you can loose a lot of incentives if the AOR is not adhered to. [img]/forums/images/graemlins/frown.gif[/img]

  5. #5
    Silver Member
    Join Date
    Nov 2005
    Posts
    162
    Location
    PA

    Default Re: Owning Tractor Dealership

    there r other good tractor companies out there. i have been researching this for the last 3 to 4 months. i am also looking to bring on a tractor line for my rental store. i have found that the so called 3rd teir lines r just as good or slightly better. i have narrow it down to kioti or tym. i looked at the weight, specs on the loader, how u seat on the tractor do u have room. warranty, if parts r available. these 3rd teir companies even make the tractor for JD, MF, NH, they also have training schools. the big differance is the big names have the name awareness the others need to get there. if u would like to talk of line u can e-mail me at linpat9@yahoo.com. i also have rented a compact tractor for the past year it says it is and allmand, tym built it for allmand and than the decided to get out of the tractor line. very nice tractor every 1 who rents it says they love it. [img]/forums/images/graemlins/cool.gif[/img]

  6. #6
    Veteran Member
    Join Date
    Jul 2002
    Posts
    1,598
    Location
    Greene Co, Arkansas
    Tractor
    JD 1050 2wd, Case 580D 2wd

    Default Re: Owning Tractor Dealership

    I saw a real world example of dealer territory once while putzing around J.A. Riggs Cat dealer. A potential buyer wanted a new 345 excavator (big'un!!!) and the salesman couldn't sell it to him because we were in Arkansas and the buyer was in Missouri where Fabick Cat has the territory...

    The salesman was visibly sick.... [img]/forums/images/graemlins/tongue.gif[/img]

  7. #7
    Elite Member thcri's Avatar
    Join Date
    Jan 2003
    Posts
    4,672
    Location
    Minnesota SE
    Tractor
    New Holland TC29D, 2001

    Default Re: Owning Tractor Dealership


    You might be surprised when it comes to the top 3. Even though there isn't a dealer in the area maybe someone already has the territory. In our area there isn't a kubota dealer for 45 miles. There use to be an out of area dealer that moved in, but he was told to move back out because someone already had the territory. So as successful as he was, he moved back out and stayed in his home town. The dealer that has the area hasn't sold anything in our area that I have ever seen.

    The top 3 also require so many units per year. In other words your not coming in to just buy a few units per year. And inventory gets high, so make sure you have plenty of green stuff laying around, and I'm not talking John Deere Green paint.

    You may be forced to drop down to one next lines down, prove yourself and you may find one of the big three coming to you.


    Good luck in what ever you do.


    murph

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
© 2014 TractorByNet.com. TractorByNet is a registered trademark of IMC Digital Universe, Inc. Other trademarks on this page are the property of their respective owners.