John Deere's poor dealership decision making IMO.

[RickB]

It is pretty sad that otherwise intelligent people continually rant on dealers for parts price gouging. Some do, but by and large most dealers have modest margins on parts, certainly any dealer with a significant online presence has to be competitive with other OEM parts sources.

On more than one occasion I have told a customer that if I sold him (the part in question) for what the dealership had to pay for it he still would not be happy. Parts pricing starts with the manufacturer, not the dealer. Dealers manipulate parts prices in a narrow band around MSRP, usually at or incrementally above it.

 

[Diggin It]

I don't rag on my small, privately owned dealer for their prices. Some prices are quite decent, others are high. That's all on the manufacturers and the price tiers they offer based on volume. My dealer does what they can including customer appreciation events. They can't help what they have to charge for filters if that's what LS tells them to charge. I'll buy from there until the 6 year drive train warranty ends.

 

[5030]

It is pretty sad that otherwise intelligent people continually rant on dealers for parts price gouging. Some do, but by and large most dealers have modest margins on parts, certainly any dealer with a significant online presence has to be competitive with other OEM parts sources.

On more than one occasion I have told a customer that if I sold him (the part in question) for what the dealership had to pay for it he still would not be happy. Parts pricing starts with the manufacturer, not the dealer. Dealers manipulate parts prices in a narrow band around MSRP, usually at or incrementally above it.

EXACTLY. If a dealer expected to survive on tractor or implement sales and over the counter replacement parts, they probably would not. The profit margin isn't there. Where a dealer makes money is on service. and they are, after all, in business to make money. Last time I checked, no dealer was listed as a non-profit.

I always buy my filters and parts from my dealer and they handle all the work I cannot do or lack the experience to do. I want them to stay profitable and in business.

 

[5030]

My closest Kubota dealer, 40 miles away, is a family ran store that's been in business since the early 70's. Started as an AC/Gleaner dealer. As times have changed they have too. Whatever it takes to stay afloat. They now sell MF and Kubota. The Kubota line saved them. They also are dealers for several AG Equipment manufacturers.

I'm very proud of them for their survival instincts.

One good deal I have is the parts manager (for my dealership) lives 2 miles from me so if I require anything, I call him (at the dealer) and he drops it off here at the farm and they send me a bill and never a delivery charge either. I don't think the 'new modern glitzy' dealerships would do that. Maybe they would but I doubt it.

 

[ultrarunner]

On the automotive side the dealer discounts can be substanchial... so far have not found the same on Tractors... unless part of the purchase negotiations...

 

[Industrial Toys]

I don't begrudge anyone profit and have defended business hundreds of times given their unending costs. But when a dealer can sell a generic item at reasonable cost, like a draw pin, or items like filters that have competition, but then really put the screws to you, for an item you need and can't get anywhere else, plus companies like JD control the price across the nation, that's gouging, in my opinion. And not just gouging a little, but a lot! And I think it speaks volumes about what the corporation values, and it's not satisfied customers. I think if John Deere didn't have that revered "GREEN" paint, they know many aspire to own, it would be a different story. Fool me once, shame on me. . . .

 

[ovrszd]

So where did the philosophy of "revered Green Paint" come from?

 

[fried1765]

So where did the philosophy of "revered Green Paint" come from?

The "revered Green Paint" philosophy likely came from the fact that they make/sell quality machinery.
That "philosophy" however, does not entitle any manufacturer to rip people off for parts.
Another company that comes to mind, with the same rip off parts philosophy, is is named..... Mercedes Benz.

 

[Industrial Toys]

Seems to me, many people, especially with no equipment knowledge at all, think the Green Paint is the cats meow. Premium Price, so that's the one to aspire too. The one you want your neighbors to see.

 

[Kyle_in_Tex]

I don't begrudge anyone profit and have defended business hundreds of times given their unending costs. But when a dealer can sell a generic item at reasonable cost, like a draw pin, or items like filters that have competition, but then really put the screws to you, for an item you need and can't get anywhere else, plus companies like JD control the price across the nation, that's gouging, in my opinion. And not just gouging a little, but a lot! And I think it speaks volumes about what the corporation values, and it's not satisfied customers. I think if John Deere didn't have that revered "GREEN" paint, they know many aspire to own, it would be a different story. Fool me once, shame on me. . . .

Every brand has "gotcha" parts. Every brand.

This thread is not a brand warfare thread.

It is whether or not you are onboard with Father Deere's forcing smaller dealers out of business.

 

[Industrial Toys]

I think it's part and parcel of a corporate mentality of PROFIT, PROFIT, PROFIT! It doesn't need to be that way. There are compromises that are kind to the customer and still make profits. Maybe even more in the end, with more happy customers.

 

[ovrszd]

Please show me a list of Corporations that don't focus on profits? Please!!!!

 

[Industrial Toys]

Goodyear. lol

 

[ovrszd]

Goodyear. lol

How is that working out for them?

 

[Industrial Toys]

I won't be buying their tires any time soon.

I guess it's a sign of the times. Maybe like Apple, You loath the company and yet love their products so you support them. It's not always terribly smart to cut off your nose despite your face. I'll show them!

 

[two_bit_score]

I think it's part and parcel of a corporate mentality of PROFIT, PROFIT, PROFIT! It doesn't need to be that way. There are compromises that are kind to the customer and still make profits. Maybe even more in the end, with more happy customers.

How many charity dealerships should JD, NH, Kubota, Mahindra, etc, etc have?

Kindness to the customer? To me that usually equates to good quality, dependable products at a fair price, and sold by knowledgeable sales staff, with a superior service department in a pleasant environment. What does it mean to you?

 

[ultrarunner]

Some corps are better than others when it comes to philosophy.

3M has gone after dealers for hoarding and price gouging... If it was only about profit why would they care?

 

[ovrszd]

Some corps are better than others when it comes to philosophy.

3M has gone after dealers for hoarding and price gouging... If it was only about profit why would they care?

Uh, because they want to preserve their reputation?

Certainly not because they don't care about profit.

 

[Diggin It]

There is a difference between balancing customer service with profit and loss and corporate level concerns over the stock price above all else.

.

 

[ultrarunner]

Uh, because they want to preserve their reputation?

Certainly not because they don't care about profit.

Maybe they are focused on the big picture and in it for the long haul as in decades to come?