Dealer Thinking of taking on a FarmPro dealership am I crazy?

[abcrepair]

I did not specifically mention any one particular brand. I don't think brand is a significant factor. I don't know of any CUT brand that is having a good year and in particular with the additional down turn in the economy. Even companies starting a new line like Bobcat did with the rebadged Kioti's are not going to do well.

I had several different stock advisors tell me in Sept/Oct that it was time to buy because of the bargains to be purchased. Did I buy? No way. I bought nearly 0 stocks this year. Even at the beginning of the year the volitility was starting. I think the time to buy will occur again. Lots of good established companies (ones not involved in lending) still out there doing ok, if the market can stabilize. Too many people singing about the doom and gloom at this time. It amazes me how much the media can hype the bad. Don't here them talk too much about gas being the cheapest it has been in over 4-5 years but they talked about it nonstop a few months ago.

I agree now is not a good time for selling anything. People are holding onto ther money, but you would have to think that sometime they will spend it. around here not too much has changed people are making the same money as last year and the price of gas and fuel oil is down. I am sure there is alot of households around here that will save 2-3000$ this year on heat bills.
Now some must tell me what a Cut tractor is.
Thanks Ed

 

[abcrepair]

Wow i am having alot of trouble posting on this thread. I have writen two different replies and lost them both.
so this a test.
PS what is a Cut tractor ?

 

[pete-mi]

A Cut is a "Compact Utility Tractor". Before you sign up with a company do some reaserch on a couple brands open for your area and narrow it down from there. There can be a lot of diferences from one brand to another for the dealer. Things like if they offer dealer floor planning or not. If they do is it through GE, Textron, their own company, or ?? as each has diferent programs. How many tractors to get at sign up. What do they require for the inital parts order. How fast can you get parts for warranty repairs if not in your stock. These are just a few of the things to take into consideration on choosing a brand to sell. Do some home work and you will see which one will work out best for you and you future customers.

 

[greg_g]

All this lofty "business model" stuff makes for nice boardroom talk, but some of you obviously have no idea of how many currently successful Chinese tractor dealers started in their garage or in a rented shed - assembling crate tractors and selling/servicing their neighbors. Some still do. They maybe bought one container of tractors, assembled/sold/serviced them - and ordered another container if the first one worked out. The next time they might buy two containers, some just quit and cut their losses. Yes, some have failed and folded up. That happens in any venture, it's Darwin's Theory applied to business.

There simply is no Chinese tractor dealer - or even support - infrastructure in North America. Every single dealer/seller today is an independent. Some of the bigger ones - Homier for example - might franchise. But I'm betting independents remain the majority for several years to come. Potential entrants to this new arena gotta be encouraged to start somewhere.

//greg//

 

[radman1]

There simply is no Chinese tractor dealer - or even support - infrastructure in North America. Every single dealer/seller today is an independent. Potential entrants to this new arena gotta be encouraged to start somewhere.

//greg//

Not exactly strong reasons to get into the chinese tractor market. Is there any warranty? If there is warranty, who/how does it get fixed? If there is no infrastructure or company support, buyer buys it on price alone? Belarus and Zetor started with that idea, didn't work out too well for them in my area. Same reason I don't own a japanese mini truck. No easy way to get parts, service etc in many areas. Having stated that, there are certainly niche buyers for such a product. If the OP wants to try a few tractors and can take the loss if it should happen, then congratulations. But if he wants to make a serious effort to support his son with this idea, then he needs to think it through.

 

[jmacshriver]

You need to talk to Bluechip. his company website is ARTRAC Company LLC: An Intersate dealer of Agriculture Equipment, Heavy Equipment, Lawn and Garden, Tractor, Lawnmower, Lawn Mower, Tractor, Utility Vehicle of Clarksville, Arizona. He is big on DFAM tractors.

Another guy to talk to is Bill Mayer. Mayer Farm Implements - New FOTON Tractors, Used Farm Equipment & More - Bevington, IA

Both of the guys import in tractors from China.

 

[dal929]

If FarmPro is approaching you, I'd push the limits of what they are willing to bring to the table to reduce your overal risk or exposure. I'd start somewhere in the ball park of you will let them put machines on your real-estate for you to sell. Low risk = lower commision. If this works then you put up more $$ on your end to increase your payout. In the end you're only increasing your customer base for service as you'll naturally have an increased amount of foot traffic at your shop. I would also suggest you get yourself a good lawyer, don't use a buddy or family, actually pay for a review of any contract, this is one area you'll pay heavily in the end by not paying the few hundred up front. I would also consider doing this all under your kids name, help him actually build something, give him drive and a sense of purpose, as well as protect your existing assests, providing your kids willing to play ball and understands the risks.

 

[mffarmall]

I would say that a good idea would be to go and talk to dealers JD,MF and remember that most of the money will come from quality friendly repairs and finance, not buying and selling. That capital is for next years tractor load. I would say that what is helpful is also being near other dealers. Most car dealer are located near other dealers. But it is a lot of money to get started and do. If your willing to be open on Sunday then there is money. If you listen to stupid questions from buyers and answer those questions gold can be made.

Buyers questions: Do I trust this place, am I welcome here? If they feel comportable it becomes their place. Don't forget about female influence. They like tractors too. And there are a lot of women that are living on acres alone.