Kubota forcing dealers out?

   / Kubota forcing dealers out? #1  

rick480

Bronze Member
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May 22, 2010
Messages
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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? #7  
Companies will do what they think is best for their business. And you can bet the bigger dealers want the smaller ones gone.
 
   / 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.
 

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