Kioti has teamed up with Woods

RickB · Dec 16, 2016

EricTheOracle said:
Yes, Tisco. My bad.

Tisco | Home

Sitting on the shelves of every fleet store in America.

Woods and TISCO are both currently wholly owned and operated by Blount International. SMA out of Jonesboro AR recently announced the purchase of TISCO from Blount the deal is expected to close this month. Woods continues to be owned by Blount which is a large holding company that tried very hard to ruin TISCO in the 5 or so years they owned it. Woods so far has been left pretty much alone save some meddling which has led to increased Woods parts backorders especially in 2016.

SMA - Your Farm Parts Source

Tinstafl · Dec 17, 2016

Well in talking with my dealer he was going to have to look at whether he would carry Kioti implements or stay with the woods name. One of the reasons he was talking to me about it was the new pallet forks. The quick connect did not pin on my Kioti but did on the NX and Ck series. So we had to grind out a bit and on others he had to weld on Metal to give the proper fit. He says the tractor makers have slight differences year to year and model to model and sometimes woods making the part for all of them needs to get the area updated for the new tractor. This might help that problem.

ovrszd · Dec 17, 2016

Tinstafl said:
Well in talking with my dealer he was going to have to look at whether he would carry Kioti implements or stay with the woods name. One of the reasons he was talking to me about it was the new pallet forks. The quick connect did not pin on my Kioti but did on the NX and Ck series. So we had to grind out a bit and on others he had to weld on Metal to give the proper fit. He says the tractor makers have slight differences year to year and model to model and sometimes woods making the part for all of them needs to get the area updated for the new tractor. This might help that problem.

Good info. Different perspective.

So is he indicating he is going to have the choice? I would expect Kioti to push their dealers toward their branded equipment. :confused3:

Tinstafl · Dec 17, 2016

He said it would come down to how much he would have to purchase and the discount he would get. He has been a woods dealer for years and did not think he would switch over but he wanted to see the numbers.

countrybumpkin · Dec 17, 2016

Be interesting to see what he finds out, I can't remember for sure but think my local deal carried Taylor Way implements.

RickB · Dec 17, 2016

It's not like he has to make a choice. If he has contracts with Woods and Kioti in place, he can order what he wants.

His Woods discounts will suffer if he orders the same implements from Kioti, of course.

ovrszd · Dec 17, 2016

Tinstafl said:
He said it would come down to how much he would have to purchase and the discount he would get. He has been a woods dealer for years and did not think he would switch over but he wanted to see the numbers.

Very smart thinking on his part. I too am anxious to hear the results. This will tell us if Kioti is willing to pass some of the profit along to their dealers?

Turbys_1700 · Dec 17, 2016

I have a Woods PRD 7200 painted New Holland blue. They've matched manufacturers colors for some time now. Pretty savvy business move on Kioti's part. I guess Woods will be buying a lot more Orange paint in the future.

WM75Guy · Dec 17, 2016

When I was getting my degree in Business Management we were taught in every class the main objective of any business is maximize shareholder profit. So I imagine this is a good business move for both. Somewhere in the discussion Marketing was involved and the customer impact was researched. The question of whether or not an individual customer will benefit from this move was probably geared towards new customers, not existing owners.

engine29 · Dec 17, 2016

95% of this post has all been speculation, opinions, here-say and little fact. The info. provided about Blount is correct.
The reasoning that has been speculated mostly by ovszd is nothing but that, speculation.

I am providing facts and I still have disagreement.
As Oracle said, he as a customer didn't like going several places to get implements , now a customer wouldn't have to if his dealer stocks Kioti implements (or even another brand).
Let me add a few things:

1. It is up to the dealer, not required. If he has Woods now, he can stay w/ Woods. If he has LP, he can stay w/ them. There is no forcing. It is an option. I' m sure as time goes more dealers will jump on board but it will take a few years.
2. If a dealer orders Kioti imps., he can get floor plan like the tractors OR he can pay cash and get a little more discount.
Obviously, the order program will be written to be competitive w/ Woods, LP or the others. A dealer can choose to order a little of Kioti, Woods, LP or whatever else he wants. It is totally a dealer decision, not Kioti. Of course they will encourage but not force.
3. Again, this isn't a big money maker for Kioti, it is just offering another tool to help them sell tractors and take care of the customer w/ a one-stop shop.
4. A large majority of Kioti dealers are not small operations, there are many multi-line dealers and well capitalized dealers.
Stocking implements is a natural for them and does not pose a burden. Yes if you stock too much it can, because everything comes due at some point, but if kept at moderate levels that rotate through, it can be profitable.

Stop trying to find the underlying secret reason they are doing this. It's not a big deal.