Dealer Best brand to start dealership? Branson / LS / TYM

   / Best brand to start dealership? Branson / LS / TYM #31  
I liked the fact that LS made their US corp office here in NC. Not the only company to do so.
LS has been top ranked by dealers as to their relationship with the manufacturer, support, quality of product, parts availability; it's as if they took a page
from Kubota and decided to do it in blue...enormous corporate backing, half of our appliances seem to be made by parent LG under some label anyway.
TYM did very poorly while Branson did well.

I was all set to start a local JD dealership, lawn mowers, UTV's etc only, not ag tractors, about 20 years ago. JD said they would approve me but closest dealer appealed and
it seemed I was 23 miles away and not 25 and they had given out protected territories. I had it all planned down to the minutiae and JD said my proposal was excellent.
Why did I pick JD? Because Kubota was big in the next big town over, the county seat, and in fact that's where I bought my L. Wonderful dealership, in hindsight would not have wanted to compete with them but would have done so in a heatbeat. Instead I bought the town's Radio Shack, tiny little business and built that into something bigger than most
Tandy corporate stores. Why? For the same reason my JD garden tractors and zturns would have sold. The area was way upmarket, folks drove luxury foreign cars and they wanted luxury
JD green machines on their front lawn. The area is saturated now with one and two million dollar five acre "farmettes" where each retired stockbroker feels obliged to get a SCUT or CUT
to play with.

You have to know your area and your market cold. It's irrelevant if you like it if it won't sell. Items have to turn multiple times each year or you'll usually lose money.
And all the hidden costs with loaner mowers, loaner tractors. You can't charge a first class price without first class service. And in my home town in PA folks buying equipment clearly typified the more money than brains concept. Except they were really very smart folks, phd's, brokers, but a lot of them came from the city and had no idea what they were doing.
A tractor was like a small Jeep that did tractor things...

I would have made a killing for JD, and instead the other dealer that soured the deal for me went bankrupt five years later and JD had no representation for almost 40 miles.
Water under the dam. So I did my other hobby, electronics, instead. Inevitably I wound back in insurance and finance to pay the bills, but I always wondered how that dealership would
have done. Probably would have worked myself to the bone. And have the same problem Messick's has trying to provide good service to most folks coming in the door. You just can't stock
everything for sure and you can't help everyone. But you try to be broad, and stock lines that can really be a problem.

For example, just today, my local Kubota dealer Service Manager was so frustrated with techs tied up fixing Cub Cadet lawn mowers and garden tractors that he
muttered under his breath he'd like to pile them all up on a barge and ship them somewhere. His background was ag tractor and dealing with price point MTD
equipment is a big switch. But you have to have a two thousand dollar mower in a store. You don't have to have the awful 999 clearanced every year at 899 Husky/MTD mower
that was probably wholesaled for 700 bucks. But it's shiny and new even if only cost 400 bucks to build and the dealer has to fix it under the warranty.
So important to pick the right company to get in bed with. And if you can buy it on Amazon, maybe pick another brand...

I sold my Radio Shack two years before Circuit City came to town. They would have put me out business. Timing can be important if you can get established before all the
late arrivers show up.
 
   / Best brand to start dealership? Branson / LS / TYM #32  
Daugen : where's your home town in Pa.?
 
   / Best brand to start dealership? Branson / LS / TYM #33  
Daugen : where's your home town in Pa.?

Bucks County, New Hope PA
Graduating class of 53 in my time, may be up to 100 by now.
Rated number two high school in PA.
Area attracts high income families who buy Toll Bros. $900K track homes.
I could not afford to retire in the area I grew up.
Taxes were nuts. I pay one quarter in NC.
Hopewell and Princeton NJ right across the Delaware River so lots of NJ folks bought
in the area to escape NJ taxes, which were even crazier.
Two income families, lot of disposable income.

Have the Dow tank down to 16,000 and see how many tractors you sell no matter what brand you carry.
Better have deep pockets.

Go forty to fifty miles North of New Hope and the economics change hugely. Get up into old coal country and much of that area is almost
impoverished, like many around my parts here. My farmer neighbor is trying to survive on 7500 dollars a year from SS and money from
collard plants he can sell. Mostly big ag in this area and then a lot of Northerners like me who have retired here, bet they are buying the smaller tractors for
their horse farms or occasional 5 series for hay baling. Otherwise it's straight up to 8 and 9 series JD in the fields here.
Kubota dealer downtown has done well. JD dealer outside of town mostly big ag and commercial Zturn sales to landscapers.

When I bought my only new tractor I researched the market carefully, figured out there was an approx 30 point margin in new equipment, and
you wanted to get 15 percent off, and if you were a really good customer, 20 percent off. I bet Messicks wishes the old margins still existed so that
quality service is not an issue, less trucks on the road, less competitive salaries. Locally two mechanics went to work for the local municipality, perhaps the State, fixing school buses.
Said it paid at least ten grand more than the competitive mechanic rate paid by dealers plus the benefits were way better. So somewhere between fifteen and twenty grand
more compensation. Hard to keep employees where that is around and about. And they leave of course the week before the harvest tractors come in.
 
   / Best brand to start dealership? Branson / LS / TYM #35  
I liked the fact that LS made their US corp office here in NC. Not the only company to do so.
LS has been top ranked by dealers as to their relationship with the manufacturer, support, quality of product, parts availability; it's as if they took a page
from Kubota and decided to do it in blue...enormous corporate backing, half of our appliances seem to be made by parent LG under some label anyway.
TYM did very poorly while Branson did well.

I was all set to start a local JD dealership, lawn mowers, UTV's etc only, not ag tractors, about 20 years ago. JD said they would approve me but closest dealer appealed and
it seemed I was 23 miles away and not 25 and they had given out protected territories. I had it all planned down to the minutiae and JD said my proposal was excellent.
Why did I pick JD? Because Kubota was big in the next big town over, the county seat, and in fact that's where I bought my L. Wonderful dealership, in hindsight would not have wanted to compete with them but would have done so in a heatbeat. Instead I bought the town's Radio Shack, tiny little business and built that into something bigger than most
Tandy corporate stores. Why? For the same reason my JD garden tractors and zturns would have sold. The area was way upmarket, folks drove luxury foreign cars and they wanted luxury
JD green machines on their front lawn. The area is saturated now with one and two million dollar five acre "farmettes" where each retired stockbroker feels obliged to get a SCUT or CUT
to play with.

You have to know your area and your market cold. It's irrelevant if you like it if it won't sell. Items have to turn multiple times each year or you'll usually lose money.
And all the hidden costs with loaner mowers, loaner tractors. You can't charge a first class price without first class service. And in my home town in PA folks buying equipment clearly typified the more money than brains concept. Except they were really very smart folks, phd's, brokers, but a lot of them came from the city and had no idea what they were doing.
A tractor was like a small Jeep that did tractor things...

I would have made a killing for JD, and instead the other dealer that soured the deal for me went bankrupt five years later and JD had no representation for almost 40 miles.
Water under the dam. So I did my other hobby, electronics, instead. Inevitably I wound back in insurance and finance to pay the bills, but I always wondered how that dealership would
have done. Probably would have worked myself to the bone. And have the same problem Messick's has trying to provide good service to most folks coming in the door. You just can't stock
everything for sure and you can't help everyone. But you try to be broad, and stock lines that can really be a problem.

For example, just today, my local Kubota dealer Service Manager was so frustrated with techs tied up fixing Cub Cadet lawn mowers and garden tractors that he
muttered under his breath he'd like to pile them all up on a barge and ship them somewhere. His background was ag tractor and dealing with price point MTD
equipment is a big switch. But you have to have a two thousand dollar mower in a store. You don't have to have the awful 999 clearanced every year at 899 Husky/MTD mower
that was probably wholesaled for 700 bucks. But it's shiny and new even if only cost 400 bucks to build and the dealer has to fix it under the warranty.
So important to pick the right company to get in bed with. And if you can buy it on Amazon, maybe pick another brand...

I sold my Radio Shack two years before Circuit City came to town. They would have put me out business. Timing can be important if you can get established before all the
late arrivers show up.

Branson isn't that far from you, Rome, Ga.
 
   / Best brand to start dealership? Branson / LS / TYM #36  
   / Best brand to start dealership? Branson / LS / TYM #37  
Why not consider MTZ tractors (formerly known as Belarus). Tier 3 engines are stil available for a few years.

I'd be concerned about lack of sophisticated hydrostatic models with comfortable cabs, seems to be what folks are buying. Always a market for what you describe, for basic row crop farming, utility tractor, but you need a broad model line to make a go of it. Not necessarily stock every model but have access to it, even from another dealer. And they still make tier III, but you can't import them into the US or maybe even EU, right?
 
   / Best brand to start dealership? Branson / LS / TYM #38  
I never heard anyone brag that they owned a Belarus:)
 
   / Best brand to start dealership? Branson / LS / TYM #39  
MTZ tractors with the simpler Tier 3 are legal for sale in USA and Canada

this is surprising. Are they using up old stock, calling these 2014 models or similar?
I have a Tier III and a TierIV interim, and I'm happy nothing newer.

428hp shows Belarus is competing against the heavies. With CIH, NH, Deere, Versatile, Massey, Challenger, , etc in that segment, not sure of advantage to switching.
The larger the farm operation it seems usually the more loyal they are to one color, if only for service, or like JD, you are wedded to their software.
Most of us are hobby farmers or homeowners.
 

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