Dealer Lost A Deere Dealer Today

[gamble77]

From what I have heard from Deere dealers here is the story....

If you are a current Deere dealer and have more than 1 brand under your roof then that is fine, nothing can be done about that.

If however, like in this case, ownership changes hands and new contracts have to be signed then Deere is going to come down hard and say "Its either Deere all the way or no Deere." There may be some exceptions to the rule, but for the most part this is correct.

Now here is where it gets crazy, if a father owns a Deere dealership and retires and gives it to his son then Deere wants a new contract...well you get my drift.

Oh...and Deere has made it PERFECTLY clear that they want large multi chains stores, and they want it SOON. So if your a "smaller" dealer with one location and no plans to expand Deere is not your friend these days.

It think this will all lead to Deere dealerships being Deere owned one day...then they won't be anyting but glorified box stores.

 

[JDGREEN4ME]

</font><font color="blue" class="small">( So if your a "smaller" dealer with one location and no plans to expand Deere is not your friend these days.)</font>
I will not argue that point however I will add that my JD dealer is a third generation family owned and operated business with no plans to expand but year in and year out continue to be one of the top sellers of residential and light commercial equipment. I imagine that as long as they continue to sell there will not be any problems. JMHO /forums/images/graemlins/smile.gif

 

[MessickFarmEqu]

</font><font color="blue" class="small">(

It think this will all lead to Deere dealerships being Deere owned one day...then they won't be anyting but glorified box stores. )</font>

Yea. I think they all envy Cat's distributorship arrangment. Let them do it, if they all fix their pricing it will be easier to sell against them.

 

[MessickFarmEqu]

</font><font color="blue" class="small">( you have probably heard of these guys through your Abbottstown shop:

Finch Services
)</font>

Oh yes, we know them well. Infact they are the reason why our A-town store can't get a contract with Kubota.

 

[Cliff_Johns]

</font><font color="blue" class="small">( Oh yes, we know them well. Infact they are the reason why our A-town store can't get a contract with Kubota. )</font>

It's those sort of area restrictions that enable Kubota dealers to price fix and make those Kubotas high priced so other dealers can compete better against them. /forums/images/graemlins/grin.gif

Cliff

 

[plowrup]

Don't completely agree here-have a Dealer buddy who runs a Store about 150 miles from me, took on Branson last year when he was having trouble against a no profit "other brand" Dealer-Deere didn't do anything, and there are rumors of other Dealers (Califormia) doing the same thing-I have taken on the Walker Mower line (extremely popular in my area) and Deere did nothing-now, we used to be a NH Dealer also, and, we ran that business out of seperate building, so Deere couldn't do a thing.

I can understand what Deere is trying to do(don't necessarily agree however)-ShareHolder pressure is mighty, and they are trying to decrease expenses-they want financially strong Dealers who can cover a large geographical area (less cost for Deere-less Field Reps), don't have to have as much Flooring expense-also, prior to everyone's opinion, this is not a highly profitable business for many (as one of my collegues' said "it is a lifestyle"), so Deere (and other Mfg's) have had some problems recruiting Dealers-who is the easiest Customer? Your existing Dealers!

 

[JDGREEN4ME]

</font><font color="blue" class="small">( if they all fix their pricing it will be easier to sell against them )</font>
Wouldn't that all depend on what that "fixed" price is? Has fixed pricing hurt Saturn sales? I don't know just asking. /forums/images/graemlins/confused.gif

 

[jcmseven]

Uptaker,

James River Equipment might be who he is speaking of in his original post.

John M

 

[hunterridgefarm]

Sorry, been extrenely busy the last couple of days and have not had time to reply. We make parts for a new armored security vehicle going to help out in middle east.

John,
You are correct, James River is the one who told me this guy would lose the JD line 6 months before it happened.

My dealer is a large Kubota dealer maybe around 50 units on the lot. Deer tractors were around 5-10 on the lot. Gators and JD lawn mowers/garden tractors were around 20-25 on the lot. HE was a JD dealer for many years and I think it had to do with 2 owners changing to 1, new contracts, and the fact he did not stock as many deere tractors. But he did stock about as many as James River in Hickory did...?

 

[rdln]

90% of Jd dealers near me have only JD tractors. Adding a twist to this topic the nearest JD dealer cant sell Bucks cause he sells Polaris and another huge dealer farther away cant sell Bucks cause there is a Bomardier dealer across the street.