Owning Tractor Dealership

[deerefan]

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. /forums/images/graemlins/confused.gif

 

[ScottAR]

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.

 

[MessickFarmEqu]

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.

 

[johndeere2210]

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. /forums/images/graemlins/frown.gif

 

[linpat]

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. /forums/images/graemlins/cool.gif

 

[ScottAR]

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.... /forums/images/graemlins/tongue.gif

 

[thcri]

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