Kubota forcing dealers out?

[radios1]

Haven’t read a real official Kubota stance on this thread yet. I live in a very rural area. The dealer I work with has full line Kubota and New Holland. They have opted not to handle parts of the Kubota line where there is a clear conflict with New Holland products for which they have built up a following. I’m talking about things like balers. They are selective in which of the many Land Pride and Great Plains products by Kubota they sell. They seem to be able to coexist. In the larger city 50 miles away (larger to us that is) there is a Kubota dealer that is strictly CUT or smaller. Nothing in the ag lineup. We have the same thing in JD dealers. I need to drive 100 miles to our nearest JD ag dealer but much closer I have JD small equipment dealers who can sell nothing larger than a CUT. They also service the big box stores controlling everything John Deere for sale at Lowe’s and Home Depot.

The Kubota ag dealer (Combined with New Holland like Messicks) sees the small product getting them through times like these where prices for beef and dairy are so low - this is a beef and dairy area.

John Deere dealers were getting to be so cutthroat that none could survive. To make the sale they were selling at a loss and trying to make it up in volume plus the rare customers who didn’t negotiate as hard. Transaction prices were down with quantity sales up. Dealers bankrupt leaving customers stranded. So they took the step of forcing sell outs to force dealers into being profitable.

you really think $6 a pound for beef is low?. I sure don't!!..

 

[widefat]

I visited a Mahindra dealer a few years ago when shopping for a tractor. In chatting with someone intimately knowledgeable about the dealership, they mentioned how they had 'blocked' a power equipment dealer about an hour away from being allowed to become a Mahindra dealer for two reasons - the market could not handle two Mahindra dealers an hour apart, and the wanna be dealer was not a real 'tractor' store.
I dont know about the market saturation, but the gent was imo spot on about the wanna be not being a true tractor dealer. Now, the wanna be is an LS tractor dealer. Salt on the wound?


PS- The Mahindra dealer I mentioned is a good shop. Wise move on Mahindra regionals part.

 

[EddieWalker]

Kind of off topic, but maybe relevant. I was at a sporting good store one time looking at some snow ski boots and a guy walked up to the salesperson and asked him what the best brand was? He replied with a brand that I don't remember anymore, and the person asking told him that he was a Sales Rep for the brand and for recommending their brand, he gave the guy $100 cash. This all happened out in the open, in the middle of the store, just a few feet away from me.

I have no idea if any other company, brand or stores do this. But I kind of guess that they do.

 

[Ford850]

Kind of off topic, but maybe relevant. I was at a sporting good store one time looking at some snow ski boots and a guy walked up to the salesperson and asked him what the best brand was? He replied with a brand that I don't remember anymore, and the person asking told him that he was a Sales Rep for the brand and for recommending their brand, he gave the guy $100 cash. This all happened out in the open, in the middle of the store, just a few feet away from me.

I have no idea if any other company, brand or stores do this. But I kind of guess that they do.

I worked at a mom and pop sporting goods store many years ago while I was in high school. Winchester ammunition had a promotion that they sent secret customers in to buy ammo, letting the seller choose the brand they would recommend. I was lucky enough to grab a box of Winchester ammo and the customer pulled out a $100 and handed it to me. They were as excited as I was, since they had been going to many stores and I was the first one they could surprise with the money.

Manufacturers do some creative things to encourage sales.

 

[radios1]

Kind of off topic, but maybe relevant. I was at a sporting good store one time looking at some snow ski boots and a guy walked up to the salesperson and asked him what the best brand was? He replied with a brand that I don't remember anymore, and the person asking told him that he was a Sales Rep for the brand and for recommending their brand, he gave the guy $100 cash. This all happened out in the open, in the middle of the store, just a few feet away from me.

I have no idea if any other company, brand or stores do this. But I kind of guess that they do.

Sears Craftsman?.

 

[Snobdds]

In any MBA school, students are taught about economies of scale and scope to drive the most profits out of a business. That theory dictates, it more cost effective for large brands to have mega dealerships where a cost per unit basis is cheaper to house and sell than at a smaller dealership. The scope part of it is having ancillary products on hand that drive traffic to bring people in that then can be up saled on large ticket items. It's a formula that works, but it destroys mom and pop business. From an ethical standpoint, I don't think it's right and I don't think it's right for large brands to dictate the terms on down the line.

 

[radios1]

In any MBA school, students are taught about economies of scale and scope to drive the most profits out of a business. That theory dictates, it more cost effective for large brands to have mega dealerships where a cost per unit basis is cheaper to house and sell than at a smaller dealership. The scope part of it is having ancillary products on hand that drive traffic to bring people in that then can be up saled on large ticket items. It's a formula that works, but it destroys mom and pop business. From an ethical standpoint, I don't think it's right and I don't think it's right for large brands to dictate the terms on down the line.

it's much cheaper to have products made in China, and other Countries that is destroying us too!!..

 

[Industrial Toys]

And then when the economy turns, these mega dealerships have mega mortgages, mega taxes, mega utilities and mega payroles to meet that they suddenly can't. A little. paid for, mom and pop dealership, can cut back employee hours and turn the lights down to weather the storm.

 

[Scook222]

you really think $6 a pound for beef is low?. I sure don't!!..

. It might be $6 a pound in store but with corn prices being cheap, even though there is hay shortages and flooding in areas, beef and dairy cattle growers still aren’t making much, if any with live cattle prices. Maybe the slaughter house and feedlots are, but not the growers. Last ones we sold brought marker and had good calves, but still barely turned a profit, if any.

 

[crazyal]

One of the larger Kubota dealerships bought out a couple of the others in about a 60 mile radius. They closed one that was smaller while just changing the name of the other. Have no clue if Kubota had any hand in it or if it was just at the dealership level.

 

[Tomtint]

One of the larger Kubota dealerships bought out a couple of the others in about a 60 mile radius. They closed one that was smaller while just changing the name of the other. Have no clue if Kubota had any hand in it or if it was just at the dealership level.

Same thing happened here in Mass.

 

[MossRoad]

Same thing happened with local Deere dealers around here a few years ago. The smaller non-AG Deere dealers have closed and one mega-non-AG Deere dealer with only a few locations now.... which I could see happening. Back around 2001 when I was looking at tractors, it was like pulling teeth to get a salesman to help you at some of those small dealers. They kinda had the attitude that the tractors sold themselves, or something. Out of about 6-7 of them that I went to, only a couple were helpful. All of them are closed up now. And I doubt anyone misses them. The new mega-dealer seems to have a good thing going with a good following, so good luck to them.

 

[radios1]

. It might be $6 a pound in store but with corn prices being cheap, even though there is hay shortages and flooding in areas, beef and dairy cattle growers still aren稚 making much, if any with live cattle prices. Maybe the slaughter house and feedlots are, but not the growers. Last ones we sold brought marker and had good calves, but still barely turned a profit, if any.

it's a shame, but SOMEONE is making overly large profits on both beef and dairy, unlike the way it used to be. beef and dairy used to be very profitable for a very long time!. maybe way too much is exported?.. that would make it seem like a shortage, and the prices would rise..

 

[MossRoad]

it's a shame, but SOMEONE is making overly large profits on both beef and dairy, unlike the way it used to be. beef and dairy used to be very profitable for a very long time!. maybe way too much is exported?.. that would make it seem like a shortage, and the prices would rise..

First, you say someone is making overly large profits on beef and dairy, like it's a bad thing.

Then you say beef and dairy used to be very profitable for a very long time, like it's a good thing.

What point are you trying to make here???

 

[Industrial Toys]

I thought I was just still half asleep.

 

[radios1]

First, you say someone is making overly large profits on beef and dairy, like it's a bad thing.

Then you say beef and dairy used to be very profitable for a very long time, like it's a good thing.

What point are you trying to make here???

from the farmers's prospective, they are not making the profit they used to, someone else is taking that profit away.. who wants farmers to suffer?.. beef and dairy used to be very profitable for FARMERS, THAT is why they got into it!..

 

[Diggin It]

^^ The Middlemen .... errrr Middlepeople. (That doesn't even look right).


The farmers aren't getting it. We the shoppers are taking it in the shorts though. The puff all goes to the various levels in between, transportation, processing, marketing, packaging and so on. Somewhere between the farmers and my shelf, somebody is driving a new luxury SUV each year. Or maybe a bunch of somebodies.

 

[Diggin It]

Our JD dealer used to be a family owned landscaping company. They carried most of the line below the Ag stuff. Everything the homeowner or small farmer needed. One day about 10 years ago that all stopped and the new glitzy glass and chrome regional distributorship took over. Then the big box stores started selling green.

I don't know if the family owned landscaper gave it up voluntarily or if it was taken from them.

 

[airbiscuit]

I still see smaller Kubota dealers that seem to be doing well. My guess is that Kubota (just like any other organization) eventually breaks ties with sales outlets that just don't perform - that consume more energy and resources than they return.

I remember a story years ago about a couple of hardworking brothers that built a thriving auto parts distribution business. The problem was that they were too hard working, and their wives said cut back on their business or else. So, they "fired" 25% of their customers. They picked those that caused the most problems, consumed the most energy, delivered the least. They sent them a letter, thanked them for their business, gave them the names of three of their competitors, and wished them the best.

The next year, they made more profit and they spent more time with their families!

 

[Industrial Toys]

Funny, I have been watching a lot of "Fifteen Things Videos" One particularly interesting one was fifteen things you have to give up if you want to be rich. Friends and Family were two. In fact, most RICH people have 1.8 close friends!