Dealer Local Deere Dealership Sold

/ Local Deere Dealership Sold #1  

lacamo

Bronze Member
Joined
Jun 14, 2004
Messages
58
Location
East Ryegate, VT
I've been a loyal customer of a local JD dealership for almost 20 years and, over that time, have purchased everything from tractors to haying equipment to mowers and brush cutters, along with grain and other livestock products. They are a family owned business and their sales and service staff have been excellent. Now I've come to learn that some billionaire has bought them out along with practically all the other JD dealerships in New England and upstate New York. Nobody has revealed exactly who this is -- it's been said he's a Silicon Valley billionaire, but who knows? I had planned to purchase some new equipment this season, but now am reluctant since it no longer is a local family business and I'm not sure how I'll be treated since the new owner(s) don't know me from Adam. Any clues as to who is scooping up these dealerships? If so, does anyone have experience with them as a customer?
 
/ Local Deere Dealership Sold #3  
It's happening all over. I worked for the local family owned Deere dealer here back around 95. They had two or three dealerships in the tri state area. They changed the name from the family name to Green South then it changed to Ag Pro. The story I heard when it changed to Green South was that Deere no longer wanted family names on dealerships. I figure that story was a cover for new ownership but that's just a guess on my part. The Ag Pro conglomerate has 90 dealerships in 8 states.

With all that said the guy that was service manager back in the 90s is still there and is now the general manager. Most conglomerates will try to keep things as they are if they are profitable. The last thing they want to do is lose the locals that have kept the business they bought going for years.
 
/ Local Deere Dealership Sold #4  
Actually the Northeast is the last bastion of dealer consolidations. I read a bit ago that one outfit owns every Deere forestry dealership in Canada. I didn’t care enough to verify the story, but it is certainly possible.
 
/ Local Deere Dealership Sold #5  
Not much different than what happened to the auto industry. The manufacturers don’t really want to deal with the mom and pop dealerships anymore. They are too expensive to support. Larger, better financed dealerships are better equipped to handle sales and service training, modern computer systems, and financing.

I worked for a major ag equipment manufacturer (not Green) back in the last century, and there was a big push even back then to modernize and streamline the distribution and service network.

Remember going to a rural dealership in Minnesota to put new prototype pistons and liners in a customer’s 60 hp utility tractor. The service department still had dirt floors. The goal even then was to have large dealerships with multiple sales outlets.

The mom and pop days are long gone. Remember, we’re dealing with companies with billions of dollars in sales here.
 
/ Local Deere Dealership Sold #6  
Reflecting on it for a while, one other reason corporate wanted fewer dealerships, but with multiple outlets was price protection. Corporate needs dealers with strong balance sheets to survive business downtowns and nice facilities to attract customers. Having multiple dealerships in a given market region promotes cutthroat pricing competition within your own dealer organization. Short term, that’s good for the customer, on face value. Long term, nobody makes money.

Friends and business associates at Ford put it this way many years ago: corporate world rather have a few good strong dealers fighting the competition than many marginal dealers undercutting each other.
 
/ Local Deere Dealership Sold #7  
This is at least part of the reason I chose the brand I did. Still a locally owned, family dealership.
 
/ Local Deere Dealership Sold #8  
Fernandez Holdings.....they say the deere dealer is "locally owned" but is really owned by unnamed people in a investment firm. Yeah...ok.
 
/ Local Deere Dealership Sold #9  
I was in there about 6 weeks ago looking for a good used 3pt snowblower and had to grab a few things. Same people. When did this happen? Budget lumber and now Blackmount?
 
/ Local Deere Dealership Sold #12  
Those huge corporations Deere Kubota are forgetting that it was the mom and pop small guys that built them up to where they are today. Bigger is not always better just my .02
 
/ Local Deere Dealership Sold #15  
Been that way in the Mid South for some time. Greenway has most of Arkansas and a lot of Missouri. Tennessee Tractor has of course Tennessee. Wade in Mississippi.
Deere pushed it. Either sell to the conglomerate or Deere drops you in some cases. CaseIH did the same.
 
/ Local Deere Dealership Sold #16  
now standby for price increases, and poor service..
Another mind reader.Sigh..Might mean lower prices also, bigger service department more folks employed.
 
/ Local Deere Dealership Sold #17  
We have three JD dealerships within about 40 miles of me. Each has different ownership but none are a Mom and Pop business. The last one to be in my opinion was best thing to happen to it when it was bought be a larger company. Inventory was poor, attitude of owner was take it or leave it. Tried to do business there and it was a real turn off. Since have bought few parts from them, very good attitude and the workers I have met are all, believe this or not, local.

You have to realize there was a reason or many the owners sold. Maybe JD was pressuring them. Maybe they were tried of the business, poor health, no family to continue the business. There is many reasons. If it was good dealership no doubt they walked away with a good retirement.

No expert on any of brand but less take JD, NH and Case and Kubota. They have a large product line. Varying by company from lawn mowers to hundreds of hp tractors, combines, balers, planters. You get the point. Then there are some brands that only have from lawn mowers to say 60 hp compact tractors. Way way different in inventory of just tractors between say JD and Yanmar or Mahrinda. Same for the service and parts department and yes the mechanics and sales people. Not saying the small tractor companies dealers will not send a mechanic to your house, farm or ranch but the true farm tractor brands often have a full stocked truck and mechanic or more than one who are totally on the road mechanics. Totally different economics.

I am not throwing off at Yanmar but looked at them few weeks back for a 60 hp compact tractor. I also looked at LS and some consideration of Kioti and just chuckled at the newest Mahrinda dealership which is a use car lot here. ( I know there are many who love each of those brands, not brand bashing.) But Yanmar, JD and Kubota were only ones I really considered for MY reasons. You can take any of these brands and NO ONE other than JD and Kubota had more than a dozen tractors on their lot, the JD and Kubota dealership had at least 40 on each lot their product line is that large. The resources needed are so much different between many of the compact brands and the full product line companies it is beyond belief.

There is also the buying between the two. I could visit five different JD dealerships web sites and know the inventory on probably 50 dealerships. Some were within 60 miles of me and others couple of hundred or more miles away but no hours or days of searching. Not possible with the mom and pop dealerships. Also if they have what you want on one location most will move it to their lot for you with no price or obligation of signed contract.

Do I like to do business with locally owned business, sure do. I am a locally owned business and compete with the chains in my industry. We are like the brand who only sells compact tractors. Our product line is narrow and we do an excellent job there. We don't pretend to be anything else and will refer to other narrow line locals who offer product we don't.

Great news, we still have a choice in the USA on many things. We still are a very "blessed" Nation.
 
/ Local Deere Dealership Sold #18  
Not sure which JD dealer your mentioning, JD dealer South Royalton VT. and there other dealership in Hartland VT were purchase from someone from Texas.
 
/ Local Deere Dealership Sold #19  
Now if you have a disagreement with one, you're mud at all of them. They all have your picture at the till.
 
/ Local Deere Dealership Sold #20  
Same thing happened with small pharmacies many years ago. They couldn't compete with the chain pharmacies and closed. Then we'd see the local pharmacist working his last few years before retirement behind the counter at the chain store. I asked him what happened. He said "Life." Fight it and you die bitter. Accept it, and you can still make a decent living, see your favorite customers, and best of all, he didn't have to worry about managing the place anymore. He made the lemonade from the lemons.

As for Deere Dealerships, same thing happened around here over the past decade with greemark equipment. 17 locations.

Locations - Greenmark Equipment
 

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