How do manufacturers choose dealers?

   / How do manufacturers choose dealers? #11  
teeravis1 said:
I inquired to a tractor company about how to start a tractor dealership, and what it takes to do it. I was half seriously thinking about it. Enough to make some calls anyway. I was told I had to own a building and the property with it, that was large enough for me to hold the inventory and such they wanted, and on top of that they wanted me to have $250,000 in quick cash assets for them to even consider seriously talking to me about it. At that point I kindly told them that we had no reason to converse any longer. We went on to talk and it was interesting cause we talked about how important handling used equipment is to a dealership surviving, because the new tractor prices or so competitive the profit margin isn't huge but you still need to make enough to support all your inventory, overhead and stock. Anyway, to start a dealership I thought it would be more like the tractor co. would look at your location talk to you and kind of invest in you a little bit and work with you a bit to help you get going since you want to sell their product, but apparently that isn't the case. So once again I learned something, and once again it was not as easy I thought it might be.

I appreciated reading your post! I wish more customers knew what you found out because a lot of them seem to think I double my money selling tractors!

Ken
 

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