What does it take to become a Kubota Dealer?
- Thread starter JohnBoy45
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JohnMiller3
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/forums/images/graemlins/laugh.gif
Besides having a minimum $500K - 1 million dollar credit line available, location-location-location, an open Kubota territory, a ready modern building in place, with a well placed team of employees including yourself with minimal large equipment experience, and a never ending desire to succeed,etc. etc. etc....
I believe you'd get a more proper and correct answer to your question from Kubota Hdqtrs and Kubota successful dealers... than from "endusers" of the products... /forums/images/graemlins/wink.gif
Besides having a minimum $500K - 1 million dollar credit line available, location-location-location, an open Kubota territory, a ready modern building in place, with a well placed team of employees including yourself with minimal large equipment experience, and a never ending desire to succeed,etc. etc. etc....
I believe you'd get a more proper and correct answer to your question from Kubota Hdqtrs and Kubota successful dealers... than from "endusers" of the products... /forums/images/graemlins/wink.gif
SteveM
Gold Member
I gotta agree, to start from absolute scratch would be VERY difficult and capital intensive, ahem, meaning you better have big bucks sitting in the bank. No lender is going to finance an entire enterprise, especially run by an inexperienced owner. Usually these dealers we all visit are old, legacy businesses - started generations ago during simpler, ag intensive times. Most dealers I know used to survive quite well simply meeting the equipment/repair needs of local farmers. Now most of the farmers are gone, and they sell toys to the rich landowners. Anyhow, a strong brand like Kubota would be difficult to get into. Kubota Inc. would rather sell a territory to a proven dealer (of a different line) than a start up. If you want to be a dealer, you will likely have to start with a newer brand. Kioti would be a good example of a strong, newer brand. On the other hand, it is easy to become a dealer in a weak brand - I think it takes $10 and 5 Kelloggs box tops to become a Jinma dealer.... /forums/images/graemlins/wink.gif
Will_C
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Also, I can't imagine many open Kubota territories. It is fun to remember 20-30 years ago, Kubota dealers tended to be small operations, ran out of garages by part timers, and scoffed at by the major dealers. I don't know if the large dealers bought out the small dealers, or if Kubota started to require more investment, but the small dealers disappeared or switched to selling Kioti, Zetor, and Belarus, at least in this local area.
Will
Will
cowboydoc
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Also, I can't imagine many open Kubota territories
There are alot of open territories. There are virtually no dealers here in the midwest. Back home I have never even seen a kubota dealer. The dealer that was here in our area quit because there were no sales.
As far as opening a dealership I am in the process of possible opening a Sundowner horse trailer dealership. You are talking about a huge cash outlay. The one thing I've found is that anymore there is such competition that you don't make much off of sales. Even JD is doing this to the dealers. Everybody is cutting prices to keep up with the guy down the street. Just look at the auto industry. These guys used to make thousands over invoice. Now they are lucky to get invoice pricing. The same is happening with other mfg. They want you to make your money on the service end of things and selling used. That's alot of capital outlay for not alot of return. I really don't think I'd want to be a dealer in these times.
There are alot of open territories. There are virtually no dealers here in the midwest. Back home I have never even seen a kubota dealer. The dealer that was here in our area quit because there were no sales.
As far as opening a dealership I am in the process of possible opening a Sundowner horse trailer dealership. You are talking about a huge cash outlay. The one thing I've found is that anymore there is such competition that you don't make much off of sales. Even JD is doing this to the dealers. Everybody is cutting prices to keep up with the guy down the street. Just look at the auto industry. These guys used to make thousands over invoice. Now they are lucky to get invoice pricing. The same is happening with other mfg. They want you to make your money on the service end of things and selling used. That's alot of capital outlay for not alot of return. I really don't think I'd want to be a dealer in these times.
Will_C
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That's interesting, Doc. I guess i was speaking about my area only. I live in upstate New York, and have three dealers within 30 miles of my house.
40Kchicks
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Richard
I agree with Will C. in our area of Western Oregon there is a Kubota dealer every 30 minutes up the road. They sell a lot of tractors to the vineyard and orchard owners in the Willamette valley. They also must sell lots of CUT's to hobby farms because the parking lots are full of them. In the southern part of the valley I'm starting to see more farmers out haying with them.
I have always wondered why I have read several times that most farmers don't use Kubota when that really isn't true in this area. It must be area dependent. I can see being more interested in a tractor that has a dealership around.
One other note Two Massey dealers have gone out of business in our area in the last 5 or so years. The big three are defiantly JD, Kubota, and NH in this area.
Eric
I agree with Will C. in our area of Western Oregon there is a Kubota dealer every 30 minutes up the road. They sell a lot of tractors to the vineyard and orchard owners in the Willamette valley. They also must sell lots of CUT's to hobby farms because the parking lots are full of them. In the southern part of the valley I'm starting to see more farmers out haying with them.
I have always wondered why I have read several times that most farmers don't use Kubota when that really isn't true in this area. It must be area dependent. I can see being more interested in a tractor that has a dealership around.
One other note Two Massey dealers have gone out of business in our area in the last 5 or so years. The big three are defiantly JD, Kubota, and NH in this area.
Eric
cowboydoc
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Have you been to eastern oregon, idaho, and montana much Erik? I honestly can't remember seeing a single kubota dealer.
BillyP
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<font color="blue"> I live in upstate New York, and have three dealers within 30 miles of my house. </font>
It doesn't sound like you get a very big territory huh?
It doesn't sound like you get a very big territory huh?
Gary_in_Indiana
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<font color="blue"> There are virtually no dealers here in the midwest. </font>
I have one Kubota store just half a mile down the road, another probably 3-4 miles from my drive and a third maybe twenty miles (and one turn) the other direction. I think there's another one about that far in the other direction, too.
Based on my experience, I would have to say that not all of the midwest is bereft of Kubota stores. /forums/images/graemlins/smile.gif
I have one Kubota store just half a mile down the road, another probably 3-4 miles from my drive and a third maybe twenty miles (and one turn) the other direction. I think there's another one about that far in the other direction, too.
Based on my experience, I would have to say that not all of the midwest is bereft of Kubota stores. /forums/images/graemlins/smile.gif