hayden
Elite Member
- Joined
- Sep 23, 2000
- Messages
- 2,549
- Location
- VT
- Tractor
- Kubota L5740 cab + FEL, KX121, KX080, Deere 6120M
So what's the solution? I think this is a big part of why we see these dealer conglomerates emerging. Even if an owner isn't looking to retire, it can start to be pretty attractive when a check is waved in front of you that will fund your otherwise empty retirement account.
Hay Dude
Epic Contributor
- Joined
- Aug 28, 2012
- Messages
- 25,532
- Location
- A Hay Field along the PA/DE border
- Tractor
- Challenger MT655E, Massey Ferguson 7495, Challenger MT555D, Challenger MT535B Krone 4x4 XC baler, 2-Kubota ZD1211’s, 2020 Ram 5500 Cummins 4x4, IH 7500 4x4 dump truck, Kaufman 35’ tandem 19 ton trailer, Deere CX-15, Pottinger Hay mower, NH wheel rak
Damn right….
ArlyA
Super Star Member
- Joined
- Mar 18, 2016
- Messages
- 13,580
- Tractor
- Outlander1000 6x6, Ego lawn mower and shopping for tractor
Our BRP/Polaris dealership changed hands on November 1st from one corp to another. Both owned around 5-6 shops but the new owner has the John Deere franchise. One is better?
WM75Guy
Elite Member
Hopefully another will spring up. For some businesses it is cheaper to start a new dealership from scratch rather than pay for an existing dealership. He probably wanted money based on past sales but there is no guarantee that sales will continue, especially in today's economy, so why pay for it. Also, Polaris has to approve you as a dealer, so just buying the old dealership doesn't mean you get to continue to sell Polaris products.
https://www.polaris.com/en-us/become-a-dealer/
Torvy
Super Member
Probably the other way around. Dealer conglomerates make tougher competition for the independent ones. A new buyer has to get the OK for a franchise and the conglomerates will use their weight to encourage the oem to limit the competition.
The existing small dealerships have a tough time, but they already have the franchise and most oems won't just yank it without good cause. Once they sell, all bets are off.
I don't mind small dealer groups (3-5 stores). Big ones eliminate competition and tend to increase prices and decrease service.
Rdrcr
Platinum Member
- Joined
- Feb 25, 2021
- Messages
- 877
- Location
- WA
- Tractor
- Kubota L2501 HST 4WD w/ S2T Turbo Kit = 35 PTO HP (Current), Cub Cadet Pro Z 560 S KW (Current), B2601 Kubota (Sold), E170 John Deere (Sold)
You also posted that your local Bobcat dealer is closing in your area. Is this one and the same dealer?
Has market conditions changed in your area? Any competition moved in? Economic decline?
Mike
Mtsoxfan
Veteran Member
How do dealers make their money? My best guess is on service. How many on here, or people you know, do as much service on their equipment as they can, or look for less expensive alternatives, like an independent repair shop?
Dealerships are in a position where they have to work on warranty items, sometimes for less than the factory reimburses them for, franchise fees, mandatory repair tools, training/travel expenses, marketing tools, wages higher to keep quality personnel, while independents can pick and choose what they work on. Point is, they have higher expenses, resulting in higher prices on repair side, which can cause customers to shop around.
Not like the 70's when anyone could work on any vehicle, and competition kept prices lower.
Dealerships are in a position where they have to work on warranty items, sometimes for less than the factory reimburses them for, franchise fees, mandatory repair tools, training/travel expenses, marketing tools, wages higher to keep quality personnel, while independents can pick and choose what they work on. Point is, they have higher expenses, resulting in higher prices on repair side, which can cause customers to shop around.
Not like the 70's when anyone could work on any vehicle, and competition kept prices lower.
