Which brand would you sell?

[Farmwithjunk]

If I was thinking about becoming a dealer, my choices would be based on a LOT more than what my favorite tractor color is. I'd have to see what sort of return on my investment we were looking at. Which manufacturer was willing to put me in the best position to operate a successful business. Simply being "popular in the area" isn't a gauranty of a good bottom line.

Look at PAST sales in an area. Will there be a decent parts business for the oldies? While NEW tractors do break, and do need service, there'll be more cash flowing if a brand has 50 years worth of "product" in the field.

Look at FUTURE sales. Is a brand on the rise? Are they stagnant? Or are they falling off the face of the earth?

How does a certain brand help an upstart dealership get their foot in the door. Are they willing to be flexable or is it "My way or the highway"?

Without an informed look at all these details, no one should simply pull a name out of the sky and say "This is the one!"

IMHO, the question of which brand I'd want to invest in as a dealer has very little if ANY corralation with "what brand would I buy/own"? I'd sure LIKE to sell a brand I like, but business is business.

Knowing what I know about the area I live in, the little I know about how certain brands work with dealers, what I see as the future marketing strategies of certain brands, the numbers of older tractors in the field, and the dealer competition in MY immediate area, I'd tend to favor MF/AGCO at this point. That's NOT based on the fact my favorite OLD tractor is an MF. (I own several Deere's too) It's about what I'd suspect would cash flow and succeed IN THIS AREA.

 

[Wayne County Hose]

I deal with a large tractor dealer in my area that carries the Agco line. He tells me that Agco is a sinking ship and they are slowly pulling away from them. I'm not saying that they are going out of business, just that they are not what they once were. And that is coming from their dealer.
There is a dealer a little further away that carries Kioti. He is definately growing far faster than any other dealer in the area. His customer service has a lot to do with that also. I see quite a few people in my neck of the woods that drive 10 miles further and right past at least 4 other dealers to buy from the Kioti dealer. I think that more important than the color tractor is how you stand behind it.

 

[ihcubs]

BTW: We are located in NC and the JD, NH, and kubota lines are taken. We sell a lot of lawn and garden equipment, but we don't sell any tractors. Kinda hestitate to get in the tractor business, but considering it. Thanks so far for all of the responses.

 

[Farmwithjunk]

I deal with a large tractor dealer in my area that carries the Agco line. He tells me that Agco is a sinking ship and they are slowly pulling away from them. I'm not saying that they are going out of business, just that they are not what they once were. And that is coming from their dealer.
There is a dealer a little further away that carries Kioti. He is definately growing far faster than any other dealer in the area. His customer service has a lot to do with that also. I see quite a few people in my neck of the woods that drive 10 miles further and right past at least 4 other dealers to buy from the Kioti dealer. I think that more important than the color tractor is how you stand behind it.

Maybe that dealer is sinking his own ship too. AGCO is doing VERY well in this area, and Massey Ferguson branded tractors are doing EXTREMELY well worldwide. Funny thing is, I heard almost the same claims, regarding John Deere, almost word for word, from a failing Deere dealer that's a few miles from here. The only Kioti dealership with-in 40 miles of here closed their doors and disappeared from the map Jan. 1st. That dealer claimed Kioti was a dying entity. Individual dealer success or failure very often has next to nothing to do with corporate success or failure.

 

[kozak]

BTW: We are located in NC and the JD, NH, and kubota lines are taken. We sell a lot of lawn and garden equipment, but we don't sell any tractors. Kinda hestitate to get in the tractor business, but considering it. Thanks so far for all of the responses.

Sorry, mis-interpreted your Post. If your going to go up against the BIG 3, Massey Ferguson would probably be your best choice. HOWEVER, this is just a personal feeling. FarmwithIncredibleJunk brings up some really good points from a business perspective which I have literally zero experience in. You would really have to do your homework & investigate all the angles as FWIJ has indicated.

Vic

 

[Robert_in_NY]

I deal with a large tractor dealer in my area that carries the Agco line. He tells me that Agco is a sinking ship and they are slowly pulling away from them. I'm not saying that they are going out of business, just that they are not what they once were. And that is coming from their dealer.
There is a dealer a little further away that carries Kioti. He is definately growing far faster than any other dealer in the area. His customer service has a lot to do with that also. I see quite a few people in my neck of the woods that drive 10 miles further and right past at least 4 other dealers to buy from the Kioti dealer. I think that more important than the color tractor is how you stand behind it.

As Bill said, usually when you hear a dealer talk poor about the brand he is selling it is usually because he is either changing lines or the brand is forcing him to sell his store to a larger chain. Agco is doing well right now so I would not worry about what your dealer told you.

 

[albmn10]

In my area, the Kioti is doing the best among your listed brands.. The local highway departments are no longer using Kubota from what ive seen, Kiotis are doing most of thier work. There is only one Massey dealer and he is way overpriced. Mahindra opened locally about 3 years ago and is no longer here. Kioti moved in locally about 3 years ago as well, they have done so well hes opend a second dealership pretty much in the same area. I asked this dealer how is sales were going said they were doing very well.

 

[ToadHill]

IH Cubs: The place I bought my Kioti from was a dealer just like you and when he decided to take on a tractor line he said Kioti offered the best bang for his buck.

 

[Wayne County Hose]

Maybe that dealer is sinking his own ship too. AGCO is doing VERY well in this area, and Massey Ferguson branded tractors are doing EXTREMELY well worldwide. Funny thing is, I heard almost the same claims, regarding John Deere, almost word for word, from a failing Deere dealer that's a few miles from here. The only Kioti dealership with-in 40 miles of here closed their doors and disappeared from the map Jan. 1st. That dealer claimed Kioti was a dying entity. Individual dealer success or failure very often has next to nothing to do with corporate success or failure.

You may be 100% correct. I only know what the dealer told me. But, they are by far the largest dealer around. I think I read that MF is the largest seller worldwide, correct me if I'm wrong.

 

[drivadesl]

Similar to what FWJ pointed out. Perform a market survey and market analysis. You can hire someone, or read up and perform your own. Determine which dealers are in your area, and where you sit geographically amongst them. Who is your target clientelle. What type of machinery are being used in the area. Are there more professional farmers, or hobbyfarmer/homeowner types. Narrow down your choices and analyze each company in terms of what they will offer you as a dealer, and how it affects your startup and operating costs. Applying basic marketing techniques will go a long way to help you make an informed decision. You probably already know this, but I thought it may add to the discussion. Best of luck to you, this country is built on small business'.