Kubota forcing dealers out?

[TractorGuy]

The Kubota in our town is Kubota only I think. I know of at least 3 Kubota/New Holland dealers in S. Ga.

Our JD dealer is an 84 location conglomerate. The one in our town also sells Stihl.

 

[Industrial Toys]

I thought ours with two or maybe four locations were too BIG! lol

 

[ruffdog]

After the move to fewer mega stores, there will be NO brick and mortar stores. Order on-line with no test drive and call a 1-800 number for warranty work.

 

[Tractor Seabee]

I recently heard that the AE appliance repair organization (they contract with Sears and other appliance dealers for their warranty work) has eliminated store front businesses. Everything is done on site by mobile mechanics even outdoor and yard machines. I had them once on a warranty call on a refrigerator. The tech was very open about all the bad appliances of the 20 or so brands they work on.

Probably that business model is catching on to eliminate expensive brick and mortar shop space. A number of tractor dealers around here now offer field service with their mobile shops.

Ron

 

[JOHNTHOMAS]

You buy a machine and you are paying for ALL the inventory to sit there. You buy a part and you are paying for ALL the parts to sit there. That is an economic reality. That stuff isn't there magically for free.

Mostly, Kubota owns all the new machines, mostly. Tractor franchises are not the same as car/truck dealers. The dealer probably does own and pay for all the stocked parts and of course their land, buildings and staff.
Kubota basically is the trend setter and king of the sub compact and compact tractor world but they are and have been for a few years making serious strides into the bigger tractor and machinery business. A dealer that just stocks a few of Kubota owned big selling Zs and subs and compact tractors is skimming off the cream of the crop in sales where a larger dealer is trying to sell the full line of machines and maintain a service staff, location and building(s) and parts while competing against Mom and Pop who have a tiny, tiny investment and are selling the high volume machines. Big dealers also have to maintain and stock parts for the smaller high volume sellers. It's business guys and the bottom line is competition between brands and between dealers with high priced investments and daily risks while trying to get a fair return on ones investment. I like going in and taking with Steve Barlow but the many custlomers and phone calls make it difficult some times. He likes to take time with customers but it is a work when the demand calls that determines business success or failure and working interferes with socializing sometimes. Most of his customers want to come in, get their part or buy a machine and get out. Most customers are in a hurry and are not there to socialize and want a full choice of machines on site and want their parts immediately. It's a sad world for us socializing shoppers.

 

[Sysop]

Here's that thread about Deere's consolidation. ("A few year's ago" was actually 12)

https://www.tractorbynet.com/forums...-weeding-out-dealerships.html?highlight=Deere

In tractor-talk, 12 years is nothing. :laughing:

 

[Sysop]

I would think those small Kubota dealerships would be prime candidates for Yanmar, Kioti or LS dealerships - lemonade out of lemons and all.

It is kind of hard to start selling something new to your customers when you've spent the past 20 years as touting something else as better than everything else.

 

[Diggin It]

^^^^ But, but, but ...... it's all about the dealer, right? Shop the dealer for their support and reputation, isn't that what we see on all of these threads asking about which to buy? So why can't Pat's Super Orange Tractor Emporium become Pat's Cool Blue Tractor Emporium and still provide that same great level of service they became known for? If customers ask why, they tell them .... honestly. 'Well, this is what Orange did to us .... "

Or perhaps there is a Gag clause? And maybe a non-compete clause ... 'you can't sell our stuff any more, but you can't sell any other color either!!'

 

[Ford850]

The Kubota in our town is Kubota only I think. I know of at least 3 Kubota/New Holland dealers in S. Ga.

Our JD dealer is an 84 location conglomerate. The one in our town also sells Stihl.

84 locations, sounds like ours is part of the same giant. 84 locations in 7 states from Ohio to Florida to Texas. A giant green monopoly.

 

[js5020]

This business model cost JD a sale, closest dealer became 40 miles away. I have a Yanmar dealer 3 miles away but Yanmars in the market out of the market back in the market indecisiveness cost them a sale. The old mom and pop Kubota, Mahindra, JD dealer sold out and became a regional Mahindra distribution center and a multi location dealer picked up Kubota and located closer to me, it was for the better, I always thought the mom and pop were high on pricing with new equipment anyways and wouldn't deal, I think they still do Mahindra sales across from the distribution center most likely pricing full msrp and refusing to budge a dime, didn't waste my time going through the door. The new multi location Kubota dealer was reasonable on pricing treated me well and wanted to sell equipment, deal, so there is a Kubota in the shed. I'm sure the whole thing works opposite 40 miles away for the JD dealer.