buckeyefarmer
Epic Contributor
It’s just down the road, can’t see them keeping the old place.
I would put it at 30 million.I bet that new place cost 10 million
The only problem is you can't purchase equipment from Messick's unless you are in their territory so guys like us who live in the less densely populated states will still be beholding to the small mom and pop dealers which isn't always a bad thing.While interest rates are trending up, they're still pretty darned low. If Messicks was smart/lucky, they will have secured financing a while ago at even more favourable rates, and hopefully secured some tax incentives too. In other words, that $10/30mm/whatever may cost them much less than one would think on a yearly basis.
I also think Messicks is onto something with the whole mega-dealer, strong parts channel, internet presence, strategy etc. I really like my small local dealers. But their turnover is not huge at all, and it's actually a very inefficient sales model. Precisely how it will percolate through the commercial arrangements of dealer <- manufacturer I don't know, but I expect economies of scale in the dealership will become more and more important. Sooner or later, we as customers will benefit and small local dealers will suffer.
Automobile and heavy truck sales went the mega dealer route years ago, as did Deere and Cat, among others.While interest rates are trending up, they're still pretty darned low. If Messicks was smart/lucky, they will have secured financing a while ago at even more favourable rates, and hopefully secured some tax incentives too. In other words, that $10/30mm/whatever may cost them much less than one would think on a yearly basis.
I also think Messicks is onto something with the whole mega-dealer, strong parts channel, internet presence, strategy etc. I really like my small local dealers. But their turnover is not huge at all, and it's actually a very inefficient sales model. Precisely how it will percolate through the commercial arrangements of dealer <- manufacturer I don't know, but I expect economies of scale in the dealership will become more and more important. Sooner or later, we as customers will benefit and small local dealers will suffer.
Oh geez….believe me…Messicks was no “mom & pop dealer” before the move, either.Automobile and heavy truck sales went the mega dealer route years ago, as did Deere and Cat, among others.
The mom and pop dealer is rapidly becoming extinct, just like the local auto parts or corner grocery.
Messick sees the handwriting on the wall, and chose to participate, rather than wither.
Messick and Tractor Tim both published videos of TT (from somewhere else maybe Indiana?) doing a road trip to Penn to buy an LX3310 from Messick.The only problem is you can't purchase equipment from Messick's unless you are in their territory....
That’s what happened in the car, truck, and construction equipment business.Messicks purchased a few smaller dealers near me a few yrs back, so they are now local to me.