Kubota forcing dealers out?

/ Kubota forcing dealers out? #1  

rick480

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May 22, 2010
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I had two Kubota dealers within 20 miles of me, both handling primarily small tractors and lawn equipment. Both were forced out of business by Kubota supposedly for refusing to take on the full line of Kubota equipment including farm type equipment. Now it’s 50 miles or more to the nearest dealer to buy parts or get repair work done. I frequented both dealers for filters, UDT etc. Certainly not customer friendly to force these dealers out of business.
 
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/ Kubota forcing dealers out? #2  
Seems like John Deere was trying to consolidate smaller dealerships into mega-dealers a few years ago. There was a thread about it on TBN. One reason given was that with smaller, closer dealerships, customers were playing dealers against each other.
 
/ Kubota forcing dealers out? #3  
About 8 years ago the same thing happened to our local John Deere/Stihl Brand dealer.
He also sold home heating oil and garden supplies but without John Deere and Stihl chain saws, and other Stihl gas power tools, he finally went out of business.
 
/ Kubota forcing dealers out? #4  
It seems that it is getting to more routine for manufacturers to require certain standard requirements for dealers. We've seen that on a number of product lines such as motorcycles, many/most new car dealers, etc.. Dealers were required to meet certain standards such as displaying just about all models of a product line, allowing a specific minimum floor space, not allowing competitive products to be sold along with their product line.

In addition to making their product more prominent, a secondary effect is that it pushes out the small independent dealers. Usually, requiring standard sales area formats will end up with major cost for the dealers, eliminating the ability the smaller independent dealers to comply. Much, much larger inventory of parts is also practically required, which of course is yet another cost factor. Another, perhaps unintended effect, is that it eliminates non-standard pricing made possible for the small low investment dealers.

Sadly, this change kills the homey-like atmosphere of the small local dealers. No more having a friendly, sit down and have a cup of coffee type of atmosphere. It usually ends up feeling like an 'forget the friendliness, collect the money, and all business' atmosphere, which most of us definitely don't like. Before long I would not be at all surprised to see tractors and implements being sold only online like that Car-Vanna company sells cars basically out of a vending machine. For me however, buying a tractor or an implement takes a LOT more consideration than something like shoving a coin in a vending machine like buying a soft drink.

Their 'new' selling format make be great for them. But it's sure not for me.
 
/ Kubota forcing dealers out? #5  
I had two Kubota dealers within 20 miles of me, both handling primarily small tractors and lawn equipment. Both were forced out of business by Kubota supposedly for refusing to take on the full line of Kubota equipment including farm type equipment. Certainly not customer friendly to force dealers out of business.

Kubota was supposed to accept 25% product representation? Kubota bought the last Land Pride stock in 2017 and has recently bought a portion of Vermeer, mainline equipment producers.

Kubota's USA expansion plans are not primarily with lawn equipment, it is in 80+ horsepower tractors, implements for same and construction equipment. Kubota is supposed to accept an internal boycott, with the boycotter failing behind Kubota's aspirations and plans more every month?

Perhaps the closed dealers were chronically late bill payers.

Kubota has 50% market share in compact tractors in the USA. I trust the void in your area will not last long.




If your LOCATION was part of your T-B-N PROFILE your post perhaps would make sense to me.
 
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/ Kubota forcing dealers out? #6  
I was wondering about this. The local Kubota dealer had been here for decades, and then all of a sudden, the Henderson Kubota dealer took it over and then now offer Kubota construction equipment. Something that the original dealer refused to get into.
 
/ Kubota forcing dealers out? #8  
About 20 years ago, there was a Sears store in a small town near me. Not a full on store but a small local store that sold appliances, tools, clothing and some other items. The store was L shaped as it occupied a storefront area and a portion of the rear of an adjacent storefront.

Sears came in and said the store layout was unacceptable and had to be rectangular. The owner did not comply and Sears pulled their franchise. No replacement store ever opened.

DUMB!
 
/ Kubota forcing dealers out? #9  
Everyone is doing this now. Agco (Massey) closed a bunch of small mom and pop dealers and in my trucking world, Mack and Freightliner/Western Star are making you have 3 or more locations to be a dealer. So you either go big or you close your doors.

I'm surprised my one store Kubota dealer can also be a John Deere dealer. Guess maybe it depends on location and volume?

But they sell a lot of Kubota, and the full line, including the Kubota construction equipment. In John Deere they only sell the lawn tractor to ag line.
 
/ Kubota forcing dealers out? #11  
Ah, so that's why the Kubota dealer closest to me started selling Vermeer hay equipment. Hope it works out for them - nice folks. The only place in town I can buy a new Honda Goldwing, leathers, Husqvarna chainsaw, RedMax trimmer, Husqvarna mower, Kubota mower, RedMax mower, Kubota Tractor, Honda Generator, Kubota UTV, Honda UTV, Honda ATV, Landpride box blade, all without leaving the showroom.
 
/ Kubota forcing dealers out? #12  
All the Family run and dealerships around here are GONE. GM, JD, and others I don't deal with. I feel I owe the big multo-location dealerships nothing, and go to them only as a last resort. I do buy filters and oil from them, especially oil during the January Lube sale.

I have not seen the trend around here as much with Kubota.
 
/ Kubota forcing dealers out? #13  
Ah, so that's why the Kubota dealer closest to me started selling Vermeer hay equipment.

That, and because Kubota previously had an agreement to sell the Vermeer hay equipment before they started selling their Kubota branded hay equipment.
 
/ Kubota forcing dealers out? #14  
/ Kubota forcing dealers out? #15  
All types of companies are doing the same. It's the corporate mindset where it's more important to please share holders than it is to service customers. ..it's cyclical and when customers are no longer being serviced well by the big box dealers..they will change brands/ dealers..
Unfortunately in this Walmart world we live in... it gets harder and harder every year to be successful based on providing exceptional service.. price is 99.9 % of the time..the most important factor.
 
/ Kubota forcing dealers out? #16  
It's kind of how things go. When they enter a market, tractor companies need to find anyone they can to open a dealership - so mom and pop organizations suit their needs. As market share and sales volumes grow, so do most dealerships, but not all. As that happens, the tractor companies want their dealers to have skilled mechanics, a more robust parts inventory, and more new inventory on the lot. Customers want those same things.

At some point, too small is too small, and dealerships are forced to close or consolidate. I actually like the smaller dealers better (I think John Deere got too big), but that's the way it is. I would think those small Kubota dealerships would be prime candidates for Yanmar, Kioti or LS dealerships - lemonade out of lemons and all.
 
/ Kubota forcing dealers out? #17  
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.
 
/ Kubota forcing dealers out? #18  
As a company is successful it will realize which of their products is profitable and which are not. They will work to develop or enlarge the profitable product and exit the less or even unprofitable product. However as say JD exits a market another company may look at the product line or size or what ever JD left and say, we can be profitable in that market and thus we see such as LS and other brands move in. Same with stores such as Sears, Walmart and Dollar General. Ten years ago who would have thought Walmart was worrying about say Dollar General but bet they are watching them.

Sears sadly went from top of the mountain to the bottom all due to their attitude of the customer.
 
/ Kubota forcing dealers out? #19  
I think SEARS was giving the public something that could not be afforded anymore. Bright, bricks and mortar stores. I was always struck at how HOT those stores wee with the insane amount of lighting. Not dimly lit warehouses with exposed steel lattice joists! Or no bricks and morar at all! Plus lots of customer service.
 
/ Kubota forcing dealers out? #20  
I had two Kubota dealers within 20 miles of me, both handling primarily small tractors and lawn equipment. Both were forced out of business by Kubota supposedly for refusing to take on the full line of Kubota equipment including farm type equipment. Now it痴 50 miles or more to the nearest dealer to buy parts or get repair work done. I frequented both dealers for filters, UDT etc. Certainly not customer friendly to force these dealers out of business.

Everyone is doing it.

SDT
 
 
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