Hypothetical question ??

/ Hypothetical question ?? #1  

skidoorider

New member
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Oct 14, 2008
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15
If you were looking at becoming a compact/sub-compact tractor dealer, what brand would you like to represent and why???

RB
 
/ Hypothetical question ?? #2  
Hypothetical answer: It depends on if there are any other dealers in the area and what brand of tractor they sell. Who is my competition, how are they perceived in the community? What is my expertise in the tractor field. I think that all of the major players have a good line of CUT's. A lot would depend on your advertising, sales and service.

Kubota
John Deere
New Holland
MF
Case

My personal hypothetical opinion it would be JD and Kubota.:D
 
/ Hypothetical question ?? #3  
You have to believe in what you sell! If you cannot look a potential sale in the eye and tell that someone that this is the absolutely the best product you will ever find.......then you will not have the success that an ownership will demand.

In my former life I was in construction sales.............half the battle was having confidence in the installed products. Once you have that comfort level you are able to sell with confidence!

You must decide which brand you like and why you like it. Then you can look at how that brand fits into your surrounding area and competition.

You have to believe in what you sell!:D
 
/ Hypothetical question ?? #4  
This may surprise many, but my answer is Kubota. There is only ONE dealer in central Kansas. He has the market cornered and prices his tractors accordingly. He is also located in an off the beaten path town.
 
/ Hypothetical question ?? #8  
I would look at one of the new brands, find one that is worth selling. be ahead of the curve and sell something new. but make sure it worth putting your name on. Koiti, Bobcat, mahindra, etc. it will be tough at first but...
 
/ Hypothetical question ?? #9  
I am not a dealer but I think there are several things to look at. First I would check and see if there were no compete areas within a brand. John Deere might not let you open a dealership if there is one within x amount of miles from you. That will be the start of what you can do. 2. Contact several of the brands and see what the markup and what they pay for warranty work. 3. go in the various categories on here and talk to some of the dealers and see what they say about their brand. 4. Check with some of the manufacturers and see if there is a dealer that is going out of buisness near you. Just being able to save on transportation of equipment would be a big savings.
 
/ Hypothetical question ?? #10  
Always go with the industry leader, best of breed. That way you can sell with confidence and never have to make excuses. Service is as important to the health of the customer as is the comfort of the original purchase. If you deliver these consistently you will likely be successful.
 
/ Hypothetical question ?? #11  
With the usual caveat's of what other dealers are around etc, etc, etc, Massey Ferguson [Agco]
 
/ Hypothetical question ?? #13  
Always go with the industry leader, best of breed. That way you can sell with confidence and never have to make excuses. Service is as important to the health of the customer as is the comfort of the original purchase. If you deliver these consistently you will likely be successful.

I agree, but with that industry leader comes a bag full of control and overhead. The manufacturer is not just going to let you ride on their coattails and enjoy their hard labor without a price.

I have friends that are dealers in the "big three" as we call it. They pay a monthly fee for the computers they are required to have plus a setup fee each time the computers are upgraded. lease on the sign out front (mandatory lease with maintenance fees).

Minimum flooring levels, which come with stipulations also. If you want so many of "x" model you have to order so many of "y" model whether it sells well in your area or not. 12 to 24 month pre orders on hot ticket tractors. ect.

If youre really successful all the minimums go up. Computers you have to lease, size of the sign out front and associated mandatory maintenance fees, minimum stocking levels and the new one that I relly like, forced partnerships. The manufacturer will force you to take on a partner of their choosing. They can also require you to increase the size of your building or make you build a completely new building and they also carry the loan for that.

Contrary to popular belief, manufacturers and dealers do not normally have a love/love relationship and it is not their goal to see you succeed. It is not to say you cannot have a successful long term business with Deere or the like but you have to realize they dont have your back, in fact I would never show them my back even on the best day.

Buck
 
/ Hypothetical question ?? #14  
TYM!!! Built tractors for many others now I believe with the cat engine they are going to grow their own name fast.
 
/ Hypothetical question ?? #15  
MF, full line, plus lots of short lines. More choices would hopefully translate in to more sales.

Wincher,

The CAT engine you speak of is actually a yellow Perkins. CAT bought Perkins since they do not have a clue on how to build a small diesel.
 
/ Hypothetical question ?? #16  
If you're a good sales person (or politician or lawyer) it wont matter what brand it is.:D

Wedge
 
/ Hypothetical question ?? #18  
I would want to know what kind of dealers that are all ready in the area. If there is a lot of JD dealers, I might not want to be another JD dealer. How are the manufactures to deal with, will they support me and my needs as a dealer. What are the needs in my area, lots of large citys were smaller CUT and Subcuts are larger sales along with a standard garden tractor/Zero turn ect.. And yes the big three with name recognition is important as well. Getting and keeping a good parts inventory and good service tech, well trained is important as well.

Just my .02 worth

KC
 
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/ Hypothetical question ?? #19  
In another world I had no choice but to carry the #2 brand as #1 was in a 'protected area'.
#2 was, or had been an equally good product but a bit undercapitalized.
Having no choice I went with #2 (maybe even #3)
Well with diligance, good marketing and good follow up I managed to almost outperform the dealer that carried #1.
Marketing stratagy, technical knowhow and customer service will always win out.
+ you really need to know your product! and understand your customers needs.
I never liked to oversell.
 
/ Hypothetical question ?? #20  
I'd buy a Case IH dealership and would add Antonio Carraro and Bobcat as specialty lines or some other offshore specialty tractor lines. An established Case IH dealership would likely already have a worthwhile existing customer base and business volume. I would also bring in some interesting implement lines from Europe and some of the niche implement lines made here in the USA. I'd also have the business geared-up so that each month it broke even on the shop work and parts sales. This would give the business a natural orientation towards good customer service. New and used equipment sales would be the owner profits.

As a young man, I worked for a successful commercial business machines dealer (typewriters, adding machines, cash registers) who ran his business to break even on the service and parts sales volumes. It kept the business close to and in-touch with its customer base. It also did considerable new product sales to its customers. Because the business carried itself on service and parts sales, the new product sales were very profitable and fell straight down to the bottom line. It has been my impression many successful tractor/implement dealerships utilize the same thinking as the above described business owner I worked for back in the 1970s. However, unlike typewriters which have become obsolete, the tractor business is alive and prospering with what seems to be a growing back to farming trend for small acreage (less than 20 acres) part-time farmers.
 

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