John Deere's poor dealership decision making IMO.

[oldballs]

You got me??? We have all these people with Business Degrees, Political Degrees, Philosophy Degrees and Theology Degrees, and it all seems screwed up to me. But my local tractor dealer seems to be functioning okay.....except for the service guy. My local Church Parish seems to function according to my standards and my local govmint likewise. Guess I can't complain too much.
Cheers,
Mike

 

[ultrarunner]

Too big too fail or market share is the business plan... same in medical, automotive, etc...

 

[CincyFlyer]

On the one hand it sucks, on the other hand, many of these small dealers are struggling so something is better than nothing.

Yep. My local Mahindra dealer went under, so instead of two miles to get parts, it's now fifty. Yay.

 

[Kyle_in_Tex]

I could maybe understand yanking the carpet out from under a small dealership, that carried just a few things, but our dealership was fully stocked with tractors that could be sold locally.

If there is not enough of a market for a 'few model tiny dealership', I don't see how a huge conglomeration could hope to sell more units in the same area.

 

[RickB]

Everyone is ignoring a primary reason for manufacturer driven dealer consolidations. The cost the manufacturer bears for servicing and supporting each dealer. The mfg’s customer is the dealer, not the end user. Selling more product to fewer accounts requiring less aggregate support helps the bottom line. Larger dealership organizations require less marketing, technical and IT support than small single store entities.

 

[Turbys_1700]

RickB hit the nail on the head...
I remember years ago when Agco was consolidating...
We've got local farmers here who have Gleaners that source parts from the nearest dealer that is several hundred miles away...
Most of them have used parts supplies...
Lot of those older units still working and some of the newer R series...
Several of the bigger farmers have switched to Deere for support and service...

 

[Turbys_1700]

After two buy outs I still know all the employees on a first name basis. We visit about the weather, kids, grandkids, the teenagers leaving black marks on the hiway, the future of farming and many other topics. Excellent stock of parts and machinery. If they don't have it, they will in a couple days.

I've saw no downside.

That's a great outcome ovrszd...
In our area there is not a lot of large acreage farming done...
Bigger farms typically are in the 200 to 500 acre size with most of that rented...
Lots of smaller farms in the 20 to 50 acre range thus the popularity of Kubota's in the 30 to 50 HP range...
I have a Deere dealership 30 miles away, an excellent New Holland/Kubota/Mahindra dealership 15 miles away, and another smaller Kubota dealership about 12 miles away...
West End is Kioti and they are 30 miles away so I am fortunate to have these options...

 

[Kyle_in_Tex]

Everyone is ignoring a primary reason for manufacturer driven dealer consolidations. The cost the manufacturer bears for servicing and supporting each dealer. The mfg’s customer is the dealer, not the end user. Selling more product to fewer accounts requiring less aggregate support helps the bottom line. Larger dealership organizations require less marketing, technical and IT support than small single store entities.

You are right....but, it will influence my purchasing decision the next time I buy a tractor. Deere sales might go down 1, and another color might go up 1.

 

[Diggin It]

I can go to a JD dealer 20 miles away. Or one 40 miles away in another direction. Or one 80 miles away in a different direction. Or one of any of 5 or 10 others within 150 miles in any direction. But they all have the same name. All owned by the same franchise. So, I get 10 or 15 choices all of which are exactly the same.

Which is a big part of why I'm looking at other colors.

 

[Ritothebull]

I remember when Ringhaver started buying up all the Cat dealers down here about 30 years ago, that was the end of price shopping for Cat parts and machines in Florida. Guys got pissed and started going out of state for large purchases, some folks just like to feel like their getting a deal I guess.

 

[buckeyefarmer]

"Bachman Turner Overdrive"?

.

Taking care of business....

 

[RickB]

You are right....but, it will influence my purchasing decision the next time I buy a tractor. Deere sales might go down 1, and another color might go up 1.

That痴 fine, they really don稚 care. If they did this thread would not exist.

 

[ovrszd]

Everyone is ignoring a primary reason for manufacturer driven dealer consolidations. The cost the manufacturer bears for servicing and supporting each dealer. The mfg痴 customer is the dealer, not the end user. Selling more product to fewer accounts requiring less aggregate support helps the bottom line. Larger dealership organizations require less marketing, technical and IT support than small single store entities.

Whooopppsss,,, everyone isn't ignoring that point. I've made that point several times in different verbage.

 

[ovrszd]

I can go to a JD dealer 20 miles away. Or one 40 miles away in another direction. Or one 80 miles away in a different direction. Or one of any of 5 or 10 others within 150 miles in any direction. But they all have the same name. All owned by the same franchise. So, I get 10 or 15 choices all of which are exactly the same.

Which is a big part of why I'm looking at other colors.

Do you see an advantage? Availabilty maybe?

 

[ovrszd]

Most brands, other than JD, suvive today because of consolidation. I'm not talking about consolidating dealerships. I'm talking about brand consolidation. JD will survive this without being bought out. Name a major brand of a full line of equipment that can say that?

 

[Wagtail]

I can go to a JD dealer 20 miles away. Or one 40 miles away in another direction. Or one 80 miles away in a different direction. Or one of any of 5 or 10 others within 150 miles in any direction. But they all have the same name. All owned by the same franchise. So, I get 10 or 15 choices all of which are exactly the same.

Which is a big part of why I'm looking at other colors.

So what is the "reputation" of the individual branches of the same franchise? Are all of them a 'cookie cutter' version of the other. Is this the same situation for the other colour dealerships/franchises?

I'm only asking because, living on an Island, there is only one dealership per colour here... although a few of them have 2-3 'locations'. The reputation of those dealerships are what makes-or-breaks them in such a closed market.

 

[KNOWITALL]

All kidding aside, I believe Deere might end up selling only large stuff and combines...If this is the case, they could close half the dealerships.

Our dealership is dependent on hay farmers and stuff mostly smaller than 125HP.[/QUOTE]

I'm expecting the exact opposite, large stuff and combines are not where the slacks and sweater vests see returns on their investments. The big stuff is not an easy sale, margins are low, and you almost always have a trade that demands more dollars than most of us take home in a years time. These guys are educated buyers that know what they are talking about and demand a vendor that does as well. Knowledgeable help costs money, plain and simple. That does not fit sweater vest boys business model of cutting operation costs while maximizing profit. His model entails not paying employees, stupid high shop rates, parts matrixes, and screwing your customers over on their trade value, sweater vests are not risk takers...not by a long shot. Being vest guy in the know, undoubtedly he is an internet shopper therefore why wouldn't Fred the farmer do the same. I mean no brainer, who wouldn't buy a 30' folding finishing disk from amazon.

With an ever depressed commodity market and continued fragmentation of property the corporate farms have begun their rise. This crowd is likes to costs also and demands volume discounts set forth by the manufacture with only a small kick back to the fall out guy. The quick dollar with no risk involved is the 40 hp compact utility, zero turn, and a UTV to the 63 year old with 3 million in his Merrill Lynch account. These guy wont use the tractor 30 hours a year they wont slow pay but you can make the overpay. All that said, I'd like to thank Ethanol and everyone involved. Not only have you kill my weedeater, but you are to blame for the sweater vest take over. Don't believe me, just wait, the starbucks sipping patagonia vest king is coming to your town soon enough....and he drives an audi.

Yea, I ranted a little there, my bad. And for the record......i work for a j-off that wears a sweater vest

 

[ovrszd]

So, with your philosophy, why is Ford discontinuing car manufacturing in the U.S.?

There's way more profit in high end product.

 

[atsah]

I don't consider my 44K Taurus SHO a low end product nor do I think a Fusion top of the line at 38K is low end. They sell way more SUV's and trucks than they do cars so why not use the plants they build cars in for trucks and suv's..

John Deere will be around for many years to come, they make good products plain and simple. There is just something about seeing a Deere that I don't see in any other color, and for many, that's the way it will stay..

I bought my Massey because it was a great deal but I wouldn't buy another one because I have no dealer support and parts are hard to come by.. I will buy green from now on, I like them and there biggest dealer in the Northeast is not far away along with several others..

 

[KNOWITALL]

Most brands, other than JD, suvive today because of consolidation. I'm not talking about consolidating dealerships. I'm talking about brand consolidation. JD will survive this without being bought out. Name a major brand of a full line of equipment that can say that?

ummmmm.....these guys​

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