Deere strategy

   / Deere strategy #1  

BTDT

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Sep 17, 2006
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2,209
Location
North Texas
Tractor
IH M Farmall-propane powered, H Farmall (father-in-laws), Ford 1300 diesel
Was trying to find some info on side mounted trencher/ditcher, and accidently came across this. Interesting read.

Italian Farm Machinery USA
 
   / Deere strategy #2  
Interesting article - thanks for sharing.

We live in tough times with our "world economy" and all - maybe Deere has the right idea.

Time to buy some stock....??
 
   / Deere strategy #3  
The more I read about John Deere, the less I like the company. I think I will scratch them as a utility vehicle candidate.
 
   / Deere strategy #4  
Good article, gives a bit more insight into what corporate America has evolved into too maintain it's position in the Global Market.
I have always purchased John Deere, because my grandfather told me how bad times were for farmers during the depression. He related how farmers lost their equipment during those times, except for those that had purchased John Deere equipment. Seems that John Deere was the only company that refused to foreclose on the farmers, and repossess their equipment.
It may not be the same today, but it has kept my business til now!
 
   / Deere strategy #5  
I read the article. While I feel bad for the small dealers that get pushed out, I think this strategy makes perfect sense for Deere and for its customers. I bought from one location of 6 with common ownership. I got outstanding service from everyone there; the manager appears to be the prior sole owner, and he was wonderful, as were all his staff. They can afford semi-trucks with tilting deck trailers to pick up and deliver my tractor, qualified mechanics, and a parts inventory. If I had a combine and it broke down, I'm sure they could pick it up and repair it. If I want to buy a used baler at some point - which I might - they have them on the lot and I'm sure they could repair them too. They stock the stuff I need, and if it's not on their lot it may be on one of the other 5 lots in the same chain.

In comparison, when I shopped Kubota, two of the three local dealers were mom and pop shops with little inventory or capital. They were nice enough, but their prices were too high, service was poor (even just shopping), and at least one of them relied on a 3/4-ton pickup with flatbed trailer for moving tractors. Ok if it's a CUT, not ok for something like an M125X. I doubt he sold any of those, even though his family had a real farm a mile down the road. It clearly was mostly a lawnmower and SCUT type place, they just happened to have a M7040 around. Not sure how he would have delivered the M7040 cab on the lot if I had wanted it. Smaller dealers are fine for lawnmowers and basic SCUT type models, but for those wanting bigger stuff and timely repairs, size is important.

The other Kubota dealer near me is real ag, also carries NH and some of the AGCO line, as well as CUTs and riding mowers. I wouldn't hesitate to buy there if I wanted any of those lines (and I have bought implements there). Guess what, their prices and hours are better too, and they are just as pleasant. While I haven't checked out their truck fleet, I'll bet they have the same semis and tilt-deck trailers and can actually move disabled large equipment from your property to their shop. Try that with a 1-ton pickup and a flatbed utility trailer. In a similar vein, the only MF dealer anywhere near me was a tiny mom and pop operation that mostly sold Kubotas. No way I would consider buying there; they had one single MF tractor on the lot. Not confidence inspiring. Would you buy green from a dealer that only had one or two JD tractors on the lot? Would you buy a computer from a store that only had two in inventory?
 
   / Deere strategy #6  
I read it too...sad...
The sooner you folks push your federal reps and senator into heavy tarriffs on imports from our enemies (China)...the sooner America can go back to work
 
   / Deere strategy #7  
Reality sucks. Their stock is doing well. I hate to see the small guys pushed out. I am happy to say my JD shop has 2 locations and they do a great job. I hope they are making JD happy, but I sure am as a customer.

D.
 
   / Deere strategy #8  
How well it all works out will be a matter for their customers to decide.
 
   / Deere strategy #9  
Jim...how's the weather down there, I really miss it. Went to college at Bryan. Almost got back permanently last summer when the wife and I tried to buy a farm out west toward Pikeville off rt 30.
 
   / Deere strategy #10  
Yes, it's kind of sad. You hate to see people who have been loyal to an organization treated that way, but profit and the shareholders seem to be the overriding concern. It seems like every company I have worked for during my career has been much the same way. Doesn't matter how long you've been there or how well you have done. When somebody up at the top needs to improve performance, they always seem to choose downsizing over increased sales. In JD's case, I guess they feel like bigger is better. I hope it works for them.
 

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