gc2310
Bronze Member
With the usual caveat's of what other dealers are around etc, etc, etc, Massey Ferguson [Agco]
Hypothetical question ??
- Thread starter skidoorider
- Start date
dqdave1
Veteran Member
In todays economy; why?????
EFC
Veteran Member
I agree, but with that industry leader comes a bag full of control and overhead. The manufacturer is not just going to let you ride on their coattails and enjoy their hard labor without a price.
I have friends that are dealers in the "big three" as we call it. They pay a monthly fee for the computers they are required to have plus a setup fee each time the computers are upgraded. lease on the sign out front (mandatory lease with maintenance fees).
Minimum flooring levels, which come with stipulations also. If you want so many of "x" model you have to order so many of "y" model whether it sells well in your area or not. 12 to 24 month pre orders on hot ticket tractors. ect.
If youre really successful all the minimums go up. Computers you have to lease, size of the sign out front and associated mandatory maintenance fees, minimum stocking levels and the new one that I relly like, forced partnerships. The manufacturer will force you to take on a partner of their choosing. They can also require you to increase the size of your building or make you build a completely new building and they also carry the loan for that.
Contrary to popular belief, manufacturers and dealers do not normally have a love/love relationship and it is not their goal to see you succeed. It is not to say you cannot have a successful long term business with Deere or the like but you have to realize they dont have your back, in fact I would never show them my back even on the best day.
Buck
wincher
Bronze Member
TYM!!! Built tractors for many others now I believe with the cat engine they are going to grow their own name fast.
WilliamBos
Super Member
- Joined
- May 1, 2004
- Messages
- 5,316
- Location
- Innisfil, Ontario, Canada
- Tractor
- MF 1635 12x12 Powershuttle
MF, full line, plus lots of short lines. More choices would hopefully translate in to more sales.
Wincher,
The CAT engine you speak of is actually a yellow Perkins. CAT bought Perkins since they do not have a clue on how to build a small diesel.
Wincher,
The CAT engine you speak of is actually a yellow Perkins. CAT bought Perkins since they do not have a clue on how to build a small diesel.
wedge40
Veteran Member
- Joined
- Oct 8, 2007
- Messages
- 2,195
If you're a good sales person (or politician or lawyer) it wont matter what brand it is.
Wedge
Wedge
WilliamBos
Super Member
- Joined
- May 1, 2004
- Messages
- 5,316
- Location
- Innisfil, Ontario, Canada
- Tractor
- MF 1635 12x12 Powershuttle
If you're a good sales person (or politician or lawyer) it wont matter what brand it is.
Wedge
Well said. If you can sell honey to bees, or crap to flies, you will do well!!
I would want to know what kind of dealers that are all ready in the area. If there is a lot of JD dealers, I might not want to be another JD dealer. How are the manufactures to deal with, will they support me and my needs as a dealer. What are the needs in my area, lots of large citys were smaller CUT and Subcuts are larger sales along with a standard garden tractor/Zero turn ect.. And yes the big three with name recognition is important as well. Getting and keeping a good parts inventory and good service tech, well trained is important as well.
Just my .02 worth
KC
Just my .02 worth
KC
Last edited:
PILOON
Super Star Member
In another world I had no choice but to carry the #2 brand as #1 was in a 'protected area'.
#2 was, or had been an equally good product but a bit undercapitalized.
Having no choice I went with #2 (maybe even #3)
Well with diligance, good marketing and good follow up I managed to almost outperform the dealer that carried #1.
Marketing stratagy, technical knowhow and customer service will always win out.
+ you really need to know your product! and understand your customers needs.
I never liked to oversell.
#2 was, or had been an equally good product but a bit undercapitalized.
Having no choice I went with #2 (maybe even #3)
Well with diligance, good marketing and good follow up I managed to almost outperform the dealer that carried #1.
Marketing stratagy, technical knowhow and customer service will always win out.
+ you really need to know your product! and understand your customers needs.
I never liked to oversell.
I'd buy a Case IH dealership and would add Antonio Carraro and Bobcat as specialty lines or some other offshore specialty tractor lines. An established Case IH dealership would likely already have a worthwhile existing customer base and business volume. I would also bring in some interesting implement lines from Europe and some of the niche implement lines made here in the USA. I'd also have the business geared-up so that each month it broke even on the shop work and parts sales. This would give the business a natural orientation towards good customer service. New and used equipment sales would be the owner profits.
As a young man, I worked for a successful commercial business machines dealer (typewriters, adding machines, cash registers) who ran his business to break even on the service and parts sales volumes. It kept the business close to and in-touch with its customer base. It also did considerable new product sales to its customers. Because the business carried itself on service and parts sales, the new product sales were very profitable and fell straight down to the bottom line. It has been my impression many successful tractor/implement dealerships utilize the same thinking as the above described business owner I worked for back in the 1970s. However, unlike typewriters which have become obsolete, the tractor business is alive and prospering with what seems to be a growing back to farming trend for small acreage (less than 20 acres) part-time farmers.
As a young man, I worked for a successful commercial business machines dealer (typewriters, adding machines, cash registers) who ran his business to break even on the service and parts sales volumes. It kept the business close to and in-touch with its customer base. It also did considerable new product sales to its customers. Because the business carried itself on service and parts sales, the new product sales were very profitable and fell straight down to the bottom line. It has been my impression many successful tractor/implement dealerships utilize the same thinking as the above described business owner I worked for back in the 1970s. However, unlike typewriters which have become obsolete, the tractor business is alive and prospering with what seems to be a growing back to farming trend for small acreage (less than 20 acres) part-time farmers.