John Deere weeding out dealerships

[BTI]

In a sense we have all asked for it.
Alot of people curse the big box stores........
But the numbers are there......we as a country LOVE the Big Box store.
Everyone just thinks of Wal-Mart when they think Box store.

Lowes and Home Depot are Box stores also....
The little guys are gone or going.......

BTI

 

[Robert_in_NY]

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

Theo

No, if Deere is like CNH then the dealers have to have techs trained for the model of tractors they sell. They have to have tools and equipment to service these tractors. And this is not cheap. A small dealer will not usually spend the money on this to be able to take care of these machines while a large dealer will and does spend the money. What Deere is doing is providing a better "service" to the owners of these machines.

I think it cost around $10k for a New Holland dealer to sell the TG line of tractors. Is this worth it if your a small dealer and only sell one or two of these tractors a year? And when they have updates your techs need to be updated as well costing more money. A large dealership can have techs that rotate between stores making this much more cost effective. If you have a problem with a large frame 7000 series Deere they send the tech for that tractor out. My NH dealer has techs for the TC's and the TN's, the other store sells more of the TL's, TS's and TM's as well as some TG's so those techs are there for the most part unless they need them down here. But then they have some wrench turners also to work on the older tractors.

Another advantage to multi-store dealers is they have a better parts network and usually have trucks running back and forth between stores so you can get parts fairly quick without having to drive to the other stores yourself.

Weeding out the dealers that can't afford to or refuse to keep up with the technology is best for the customer and Deere corp. How would you feel if you have a $200k tractor at a dealers shop who doesn't have the equipment or tech to find out what is wrong? The dealer is just a go between between Deere and their customers. If they can't perform to Deere's requirements then they are gone. You wouldn't keep an employee if they couldn't perform would you?

And also, I seem to recall Deere gave them the option to merge or sell their stores. Deere doesn't just pull up and load all their tractors up and drive away. The dealers have the power to keep their shop if they want to.

 

[MessickFarmEqu]

I think it cost around $10k for a New Holland dealer to sell the TG line of tractors.away.

PER YEAR!

There are several electronic tool kits for these tractors that have software maintenace plans costing $5000/year per kit per model line. Our store has 3 kits for some of the lines... it gets real expensive, real fast.

 

[Robert_in_NY]

PER YEAR!

There are several electronic tool kits for these tractors that have software maintenace plans costing $5000/year per kit per model line. Our store has 3 kits for some of the lines... it gets real expensive, real fast.

Thanks. I thought that number was what I was told but I couldn't remember for sure.

 

[hemiguy]

Robert,

The dealers I was taking about are Ontrac/Bob James Equipment (3+2 =5 merger), Lakeland(3), and T-Nelson(1). After the merger Ontrac (now) got rid of all rental business. As far as I can see all they sell is CUT's and residential and commercial mowers. T-Nelson (in Ontario) seems to have the same lines and is the single dealer I mentioned. I know Lakeland sells a lot of large Ag equipment and maybe CUT's and mowers, but how much construction equipment?

No, I didn't include Goodrich because they're closer to Buffalo than Rochester and I know nothing about them.

I do very much agree with what you said about John Deere parts. They have a great setup online and at the stores and I can always get what I need either in stock or within a couple of days. Hopefully they won't mess that up.

 

[Robert_in_NY]

I am trying to remember as I don't normally look for construction equipment when I go to the dealers but I do think Lakeland in Avon had Skidsteers and Mini Excavators. But I do know they sell lawnmowers on up to the newest combines. They are a full ag dealership and the Avon store has a great toy selection also if you have a little one with you

 

[MJackson]

Can somebody email me the Wall street Journal article, I realize it's free but I don't like signing up for the freebie stuff because then they hammer me with emails to subscribe. thanks

 

[EasyEd]

Hey All,

You can see the article here.

http://www.italianfarmmachinery.com/news_detail.asp?id=153

It's happening all over. Energy, farming even musical instruments - look up Gibson some time and their line of authorized dealers. I believe the trustbusting days of Roosevelt and Taft will come again - but why do we have to suffer what the people who lived in the years before Rooseveldt and Taft had to suffer before they do?

G K Chesterton once wrote...

"Too much capitalism does not mean too many capitalists, but too few capitalists."

Of course we live in a world where...

"The whole modern world has divided itself into Conservatives and Progressives. The business of Progressives is to go on making mistakes. The business of the Conservatives is to prevent the mistakes from being corrected."

I always thought this applied well to "tractor people"

"None of the modern machines, none of the modern paraphernalia. . . have any power except over the people who choose to use them."

-Ed-

 

[Ramairfreak98ss]

sucks, my simplicity dealers are going south too, just poor support in the last couple years now.. It seems most big/well known and reputable brands cant compete against the "junk" in the marketplace of 2007 no matter how good of a product they sell :/

 

[HPXDEEREDEALER]

In our area here in north carolina, I have nearly 100 percent of Ag market share. we are a one store dealer that has been in business for 50+ years. We are approximately 15-20 million a year. We are surrounded by conglomerates such as James River, East Coast, and Southeast, yet they aren't putting a scratch in our business. It seems that it depends on the dealership, the people running it, and how they treat their customers.

I dont appreciate the comment about single stores not having resources to work on newer tractors. I have several customers in Florida, due to our other company which is a Claas forage harvester/Lexion combine dealership. He bought an 8230. His dealer, (Everglades) couldnt fix the transmission problem, yet my technicians could. Its all a matter of how much you are willing to invest and in what way. We have better service equipment, better delivery/transportation equipment (3 new kenworths and Landoll lowboys, 3 rollbacks) Its all about cutting costs and eliminate competition. Somewhere, i believe it is in that article, maybe another, that big conglomerate in Deleware/Maryland, only had returns of 1% last year, while my good friend's company Taylor and Messick, seems to be prospering

Deere is babying the C&CE side, and conglomeration works, but they are forgetting the Ag customer, their previous bread and butter.