I read the article. While I feel bad for the small dealers that get pushed out, I think this strategy makes perfect sense for Deere and for its customers. I bought from one location of 6 with common ownership. I got outstanding service from everyone there; the manager appears to be the prior sole owner, and he was wonderful, as were all his staff. They can afford semi-trucks with tilting deck trailers to pick up and deliver my tractor, qualified mechanics, and a parts inventory. If I had a combine and it broke down, I'm sure they could pick it up and repair it. If I want to buy a used baler at some point - which I might - they have them on the lot and I'm sure they could repair them too. They stock the stuff I need, and if it's not on their lot it may be on one of the other 5 lots in the same chain.
In comparison, when I shopped Kubota, two of the three local dealers were mom and pop shops with little inventory or capital. They were nice enough, but their prices were too high, service was poor (even just shopping), and at least one of them relied on a 3/4-ton pickup with flatbed trailer for moving tractors. Ok if it's a CUT, not ok for something like an M125X. I doubt he sold any of those, even though his family had a real farm a mile down the road. It clearly was mostly a lawnmower and SCUT type place, they just happened to have a
M7040 around. Not sure how he would have delivered the
M7040 cab on the lot if I had wanted it. Smaller dealers are fine for lawnmowers and basic SCUT type models, but for those wanting bigger stuff and timely repairs, size is important.
The other Kubota dealer near me is real ag, also carries NH and some of the AGCO line, as well as CUTs and riding mowers. I wouldn't hesitate to buy there if I wanted any of those lines (and I have bought implements there). Guess what, their prices and hours are better too, and they are just as pleasant. While I haven't checked out their truck fleet, I'll bet they have the same semis and tilt-deck trailers and can actually move disabled large equipment from your property to their shop. Try that with a 1-ton pickup and a flatbed utility trailer. In a similar vein, the only MF dealer anywhere near me was a tiny mom and pop operation that mostly sold Kubotas. No way I would consider buying there; they had one single MF tractor on the lot. Not confidence inspiring. Would you buy green from a dealer that only had one or two JD tractors on the lot? Would you buy a computer from a store that only had two in inventory?
) models were available at Home Depot for around $1,500. I remember feeling very frustrated by that development. I am sure pride and ego were at the heart of the matter, but it just didn't seem right. Nevertheless, as a business person, I could completely understand their reasoning. The reality is that you must have a way to bring product to market and move it if you plan to be profitable in the long term. Sentimental business decisions are often unprofitable--as difficult as that is for us to accept some times.
