John Deere's poor dealership decision making IMO.

[Industrial Toys]

Same thing here.

It's good that a dealer can draw expertise and inventory from various locations. Although more often I think it just becomes another cluster F$%$%.

But small (solid) dealers can weather a poor economy or Ag crisis better.

I just hope they keep answering their phones.

 

[MORRISONSTEEL]

OEM greed does not explain this phenomenon. The future of farming and the staggering amount of knowledge required is a pretty big deal and the dealers survival counts on them getting over that hurdle. I don't believe that a small store is better equipped to handle a really big downturn either. It's a group support system across multiple locations that keeps dealers in small towns not the other way around, imao.

 

[ovrszd]

OEM greed does not explain this phenomenon. The future of farming and the staggering amount of knowledge required is a pretty big deal and the dealers survival counts on them getting over that hurdle. I don't believe that a small store is better equipped to handle a really big downturn either. It's a group support system across multiple locations that keeps dealers in small towns not the other way around, imao.

I absolutely agree.

Kyle didn't say, but I'm guessing Ag-Power inc now owns his area dealerships? Ag-Power inc just purchased our local dealerships. I'm in Northern Missouri.

This consolidation by Deere started several years ago. This is the second generation. Our local family owned dealership was bought out 8 years ago or so. Immediately inventory improved. And more significantly parts availability improved.

I don't fear this. I've experienced it in the Deere Construction dealer network for 25 years. If we decide to purchase a new Deere road grader chances are Murphy Tractor has the one we want on one of it's many dealer lots.

 

[Industrial Toys]

I disagree that a small dealer in good financial shape can't weather a crisis better. Cut back a few hours, let a person or so go, cut expenses and dim the lights. Big place, it's go full throttle or crash in flames! In the big business model, if you even don't grow, you're in trouble already.

 

[ovrszd]

The electronic world we live in kills the small dealership. Sitting here on my computer I can find the equipment and/or parts I need. For parts I can have them in my hand within 3-4 days. The small dealer can't afford to stock that part that he may only sell one of in the next year.

The only chance of survival in hard times for the small dealer is if it's old family money and no debt. Even then he won't have a Deere sign in front of his store long because of his low sales numbers. He's doomed.

In good times he struggles to keep up because of the gigantic credit line needed to stock those 1/4 million dollar machines. Again, he's doomed.

 

[Industrial Toys]

In a sense, the electronic age is the ONLY reason little guys (me included) stand a chance. I can get a lot of information on line, unavailable before, and can have something not in stock, tomorrow, maybe!

With what I hear about a financial crash imminent, We're all doomed!

 

[ovrszd]

If enough people believe the sky is falling, it will.

 

[shooterdon]

JD is not going to do stupid things that affect their bottom line. At least not on purpose.

They will be keeping dealers that meet their expectations and those of their customers. If a small dealer loses his franchise, it is part of business.

Look at the demise of Pontiac, Oldsmobile, Hummer, Saturn, etc. It happens

 

[Oldoak]

With what I hear about a financial crash imminent, We're all doomed!

Not everybody would be doomed. It's all of what we would make of it. Now I would say almost all the millennials would be doomed. Those of us who were raised during tough times didn't forget how to survive on our own and can do it again if we had too.

 

[Industrial Toys]

If you mean the sky, are you talking that big plastic bubble? Like the one that lies shattered and broken on the surface of our moon?:cloud9:

I live in the boonies yet almost all my food and other needed supply ALL come from very far away. A trap that few would escape.