John Deere's poor dealership decision making IMO.

[Cahaba Valley Farm]

It's important for any purchaser of any product to take into account "operational" costs of producing and marketing that product.

In regards to a dealership. Sales has to be profitable. Service has to be profitable. Parts have to be profitable. Service has the highest operational costs. So the difference in the hourly rate paid by the customer will be large when compared to the wage paid to the mechanic.

In my particular case, Sales improved because of increased inventory, Service improved because of increased sales, Parts improved because of increased Sales/Service and resulted in improved stocked inventory.

Our current corporate JD dealership better serves the community than the previous family owned small dealership. I saw Randy (previous family owner) the other day. Visited with him briefly about selling the dealership. With a big smile said "best thing I ever did".

In his case he wasn't forced out. He was dictated by JD to grow or they would not support him as a JD dealership. He wisely sold.

Hey ovrszd, I have read many posts over the last couple of years by you so it's great to actually say something to you for a change. By the way, I enjoy reading your posts and you have been very informative on some of the threads that I have read.

Here's what I think you are missing. Yes when a dealership consolidates, things like parts and shop service can improve and gives the consumer more service options but the problem is staffing competent people. It goes without saying that no one is going to care about a business as much as the owner will and the owner is 10 steps removed from the dealership at that point. And the best and brightest are not looking to go sell tractors so the labor pool that your left with is less than choice and consequently so is the customer service/experience. It inevitably becomes like Target or Best Buy or worse Walmart.

 

[Cahaba Valley Farm]

My opinion is that is why tym ls kioti and Mahindra are getting a good foothold in the compact tractor market here in the Midwest. Not everybody wants to buy from a megadealer. These brands around here are sold by smaller dealers and you usually deal with one of the owners for sales and service. JD dealers for a three hour radius are all owned by the same holding company. Prices for sales and service are fixed so unless you change brands there is no competition.

Well said. In the end it just screws the consumer.

 

[Cahaba Valley Farm]

This is just a question and I'm not looking to pick a fight.

To those of you who lament the loss of your local small family owned dealership (of any kind), do you support them with your business? Do you buy incidentals such as oil, filters, belts, batteries etc from them or do you seek out the lowest price at your nearest big box auto parts store or discount department store or on line?

Not supporting your local dealer is part of the problem, no?

That's a fair statement.

 

[Cahaba Valley Farm]

Your implication that it痴 just Deere that is doing it or that they do it in some malicious, nefarious manner is simply wrong.

You might want to consider investing in Deere. It痴 a well run company and their stock closed at $193.10 today.


.

It's also a very greedy company and has horrible customer service.

 

[Cahaba Valley Farm]

I did not imply that it is just John Deere. Others of the major manufacturers do similar things, probably modeled after the successful JD business model. I do not like the practice, it is malicious as viewed by the small dealer whose family and himself have busted butt in the business for 78 years. Try telling them it is not malicious. Deere does it slowly enough and insidiously enough that it slides into the past over a period of time longer than the life of many of the businesses and often long enough for the older dealer to have died. Certainly over a period of several generations of corporate management. They have stuck with the plan. I would apply the term unethical and on a personal level, cruel, more so than nefarious. So far as I know they are within their legal rights to execute the plan under their business model as they obviously are. That does not make it a good and right thing to do from a human and ethical standpoint. To deny their plan operates as it does is wrong. I'm sure you don't deny it. We all know it is and continues to be. And frankly my dear, I don't give a **** what their stock prices are. 'Well Run' is your subjective conclusion, true in some ways and false in other ways.

The most insidious thing about Deere is they esteem these so called "core values" that they claim guide the company but I can say from first hand experience that is a lie. Their only core value is to do what benefits Deere at any expense to the customer and the dealers.

 

[Cahaba Valley Farm]

Grandfather started in the car business back in the 20's and throughout his career well into the 1970's he insisted his sales staff list home phone number on business card saying it was all about trust... he personally also listed his home address... about as old school as you can get...

That is when you know they're honest!

 

[Cahaba Valley Farm]

If there was some kind of contract that you would sign, between dealer and customer, that guaranteed you something in future, for supporting, their higher prices today, but there isn't and besides, that's unrealistic. So People, will largly seek out the lowest prices today.

I like John Deere, but when a 6" splined shaft for an E-GAtor Axle costs $1200.00 (Or something like that), and a two dollar bearing costs forty, forgive, me if I don't have warm and fuzzy feelings about my local Dealership (Or any other). They are gouging the customer for every penny they can get.


I only use OEM filters. No guarantee that just because a filter fits, it meets the right filtration standards. Also, I have seen some utterly attrocious filter disections of some name-brand filters. GARBAGE, pure and simple!

Fortunately, filters at dealerships are not that expensive, probably only because of the competition. If it were not for that, they would probbly cost five times as much!

Well said and another great point.

 

[Cahaba Valley Farm]

One good deal I have is the parts manager (for my dealership) lives 2 miles from me so if I require anything, I call him (at the dealer) and he drops it off here at the farm and they send me a bill and never a delivery charge either. I don't think the 'new modern glitzy' dealerships would do that. Maybe they would but I doubt it.

What you have is a good relationship with your dealer and that's priceless. You and him are both looking out for each other and that's a beautiful thing.

 

[Cahaba Valley Farm]

I think it's part and parcel of a corporate mentality of PROFIT, PROFIT, PROFIT! It doesn't need to be that way. There are compromises that are kind to the customer and still make profits. Maybe even more in the end, with more happy customers.

I completely agree :yes:

 

[Cahaba Valley Farm]

I won't be buying their tires any time soon.

I guess it's a sign of the times. Maybe like Apple, You loath the company and yet love their products so you support them. It's not always terribly smart to cut off your nose despite your face. I'll show them!

In Apple's case I hated them so much I just couldn't bring myself to give them another dollar of my hard earned money.