John Deere weeding out dealerships

[froggy]

Thanks for posting the link to the article. It was interesting reading. Our local JD store is part of a five store dealership. It was started in Oklahoma and has spread into Cooke and Grayson counties.

 

[JDeereman]

Dutch445,

Here's a link but its a pay site. They offer a free 2 week trial offer. Pasting copyright material here is not allowed. Otherwise, check your PM.

John

Free Article - WSJ.com

Good article John. Thanks for posting it. None of us owners are very happy about this trend, but it is reality. We had best learn to deal with it. Good news I guess if the consolidated dealership is near you. Bad news when it moves 2 hours away.

Theo

 

[hemiguy]

Interesting. In my area (Rochester NY and northern finger lakes region) there are basically 3 dealers. First is a 5-store dealer that recently merged (3+2 = 5) and sells CUTs and commercial mowers. Second is a 3-store dealer that I think is much more AG oriented. Third is a single store that seems to just sell a few compacts and mowers but tons of other popular brand snowmobiles, 4-wheelers, etc. This last one seems to totally go against the trend unless they are really owned by one of the others.

I don't know who in my area now sells (or rents) Deere construction machines. One of the (2) dealers that merged used to rent skid-steers, mini-eX's, and CUTs but have since liquidated that business and no longer rent anything at all.

I'm wondering if Deere now forces each dealer network to specialize in only one of the three major product lines (consumer-mowing/AG/construction)and maybe that's why someone gets the cold shoulder if they ask about the wrong line???

 

[tinman955]

A company is only as strong as its dealer network period. Take that as you will but in my opinion dealers usually take care of themselves, as in they are self efficient in ways of marketing and servicing the products they sell. In my opinion the dealer not the manufactuar needs to control the market. Do JD dealers have dealer councels made up of say a 20 group? If not you guys should start and make the voice of the dealer strong. Over the years Ive dealt with long time owned dealers in various products, avt's, boats, auto's and equipment. My best experiences have been with smaller established dealerships with great service not big mega dealers who dont care about you after the sale. Again just my opinion, JD is a great company and offers great products I hope the best for all.

 

[MessickFarmEqu]

Problem is that farmers, who are Deere's real customer base, aren't going to be driving 45 minutes to the nearest mega dealer to get parts. They'll start buying from someone more local. As a "mega dealer" we know the advantages well, but I don't see it off setting the need for someone nearby.

 

[32Ford]

On paper, many of these concepts make a great deal of sense, and there are some very bright people who have spent many dollars learning these methods, and much time at computers optimizing the projected results. Unfortunately, people who are interested in using many products like to deal, and interact with others who share that interest, and some experience. These people are sometimes not inclined to spend hard earned money at places where there is no knowledge base, and on products that were designed more for marketing purposes than for actual use. I was involved in the firearms industry for many years, and saw the same things happening there, and also saw lower interest in products that some "expert" wanted to save $.03 per unit on. It takes the hard work of many people to build a strong company, and many loyal customers to support that. I find it amazing how fast these companies can forget the things that got them there the first time the quaterly reports don't meet growth expectations. Perhaps they should look back at what made those expectations possible? Efficiency is imperative to success in these days of severe competition, but often that only means doing things the right way the first time, and understanding the needs ( and perhaps more importantly the wants, and dreams) of your customer base. Consolidating your dealerships, for example, is a poor replacement for having a product recall, or problematic products in the field. Too bad that many companies won't invest as much in their people as they do in this kind of effort!

OK, I'm off my box now........
Chuck

Your observations are right on. I have been in several of the mega dealerships and while they may be impressive as heck I always ask myself, who is paying for all this overhead? It is the customer! For the BMW group this is probably fine, I personally feel more comfortable with a small dealership where I am known by name and I know the owner. Not saying what is right or wrong, just saying what works for me.

 

[Farmwithjunk]

Your observations are right on. I have been in several of the mega dealerships and while they may be impressive as heck I always ask myself, who is paying for all this overhead? It is the customer! For the BMW group this is probably fine, I personally feel more comfortable with a small dealership where I am known by name and I know the owner. Not saying what is right or wrong, just saying what works for me.

I'm thinking the reasoning behind the change might be about what's good for DEERE's bottom line. The "new ways" might be an inconvenience to some customers but in the end it's proving to be very convenient for Deere stock holders.

I miss "the old days" as much as anyone. Back in the day, the Deere dealer and the Massey Ferguson dealer I traded with were both small, family run operations. If they were really busy when I stopped in, I'd help myself, finding what I needed, then write everything down, leaving a note for the parts man or the sales manager. They'd write up a ticket and I'd sign it next time through. Now I sit and wait like everyone else. They knew my name, my wifes name, my kids names, our birthdays and anniversaries. We were friends and neighbors first, then customer and vendors next.

No, it's not for the best as far as we customers are concerned, but this is the way it is....take it or leave it....The "big box" retailer....

 

[Robert_in_NY]

Interesting. In my area (Rochester NY and northern finger lakes region) there are basically 3 dealers. First is a 5-store dealer that recently merged (3+2 = 5) and sells CUTs and commercial mowers. Second is a 3-store dealer that I think is much more AG oriented. Third is a single store that seems to just sell a few compacts and mowers but tons of other popular brand snowmobiles, 4-wheelers, etc. This last one seems to totally go against the trend unless they are really owned by one of the others.

I don't know who in my area now sells (or rents) Deere construction machines. One of the (2) dealers that merged used to rent skid-steers, mini-eX's, and CUTs but have since liquidated that business and no longer rent anything at all.

I'm wondering if Deere now forces each dealer network to specialize in only one of the three major product lines (consumer-mowing/AG/construction)and maybe that's why someone gets the cold shoulder if they ask about the wrong line???

Which Deere dealers are you talking about? Lakeland is around your area and Goodrich is not too far from Rochester and they are part of the Zahm and Matsen chain. I much rather deal with Lakeland in Avon then my local dealers.

 

[Robert_in_NY]

No one is mentioning the fact that most of these small dealers either don't have the resources or don't want to spend the money to set up their service department and train techs to work on these new Deere tractors. It isn't something like the old machines where when something breaks you just swap a part. You need the equipment and the techs to work on these new tractors. The large stores have the resources and desire to do this while the small stores can't justify the expense. This is why the small stores are being bought by the big ones.

Also, one thing I do like about Deere is their parts network. I can either go online to Deeres site or call my buddy at the Deere dealer in Avon and have the part I need at my door the next day. No messing around driving all over trying to order a part at the parts counter, they come either from the dealer or Syracuse and has saved me a lot of trouble and fuel.

 

[JDeereman]

No one is mentioning the fact that most of these small dealers either don't have the resources or don't want to spend the money to set up their service department and train techs to work on these new Deere tractors. It isn't something like the old machines where when something breaks you just swap a part. You need the equipment and the techs to work on these new tractors. The large stores have the resources and desire to do this while the small stores can't justify the expense. This is why the small stores are being bought by the big ones.

So in effect corporate is doing these longtime dealers a big favor by putting them out of business. Now I get it.

Theo