messick buy another storePeterman Power of Carlisle, PA

ohio farmer04 · Feb 8, 2012

messick Peterman Power of Carlisle, PA

psdx · Feb 8, 2012

Just like the John Deere dealers, Kubota is driving a lot of consolidation. In some cases the dealer doesn't want to sell but is forced to do so. If you're Messicks you buy a store when you have an opportunity to expand your franchise area, but if you're the little guy that would prefer to stay small and stay in business....

The equipment manufacturers benefit by having fewer business owners to deal with - more consistency for them no doubt, and lower cost as a result. But for the buyer, it can't help but reduce competition.

MessickFarmEqu · Feb 10, 2012

Yea, we've been busy folks over the last 6 months.

The senerio with 2 of the last 3 stores we've purchased has been the ownership retiring (the 3rd went out of business). Its not a vendor encouraged consolidation. I've never had the impression that Kubota has encouraged that, Deere does.. and CNH does by some of their corporate policys. There are laws that protect dealers from vendors pulling their contacts and bullying dealers at will. Deere seems to get away with alot of things others say they can't do legally, they've also put up a huge lobbying effort against legislation to extend further protections to dealers reguarding brand purity.

psdx · Feb 10, 2012

Most of what I've seen relates to John Deere - true enough. And some of what I've heard appears to be a bit strong handed. But I do have first hand knowledge of a very small Kubota store where the owner has talked about pressure from Kubota to sell out. Some things are subtle, like increased difficulty in getting product allocation, and other things are more overt.

My guess is that Kubota is after the same thing as "green" and "blue", but are trying much harder to stay below the radar than John Deere. At the end of the day, the Kubota retail consolidation will happen.

And of the three stores just picked up by Messicks, two were due to retirement and one went out of business. Who's to say they didn't get some subtle pressure to help their decisions?

. I don't blame the big dealer with momentum from buying these stores. I'm just saying it's likely part of an orchestrated plan - no different than John Deere, just a slower pace and lower profile approach.

RickB · Feb 10, 2012

psdx said:
Most of what I've seen relates to John Deere - true enough. And some of what I've heard appears to be a bit strong handed. But I do have first hand knowledge of a very small Kubota store where the owner has talked about pressure from Kubota to sell out. Some things are subtle, like increased difficulty in getting product allocation, and other things are more overt.

My guess is that Kubota is after the same thing as "green" and "blue", but are trying much harder to stay below the radar than John Deere. At the end of the day, the Kubota retail consolidation will happen.

And of the three stores just picked up by Messicks, two were due to retirement and one went out of business. Who's to say they didn't get some subtle pressure to help their decisions? . I don't blame the big dealer with momentum from buying these stores. I'm just saying it's likely part of an orchestrated plan - no different than John Deere, just a slower pace and lower profile approach.

This reads long on speculation and short on fact.

JOHNTHOMAS · Feb 11, 2012

RickB said:
This reads long on speculation and short on fact.

So it could be mostly fiction?

It could be like relating a personal experience that doesn't have much interest so one has to spice it up to keep the listeners/readers attention. Course when those stories are retold they can become even more exciting until it can become pure fiction.:laughing:
Who wants to hear facts, they are usually so boring. I'll always take fiction over fact.

psdx · Feb 11, 2012

RickB said:
This reads long on speculation and short on fact.

I would not waste my time fabricating something to post on here. It's a trend that's been written about previously, the local John Deere dealer has bought 6 or so stores and told me about it, and the Kubota dealer I mentioned is someone I've known for 20 years, and i believe him. Look at Messicks post below also. A response that says it's all speculation with nothing to refute what I posted isn't credible in any way. If you know something that sheds light on what I said, and points to an error, then post it so we can be enlightened. Otherwise it's just a random comment...

MessickFarmEqu said:
I've never had the impression that Kubota has encouraged that, Deere does.. and CNH does by some of their corporate policys. There are laws that protect dealers from vendors pulling their contacts and bullying dealers at will. Deere seems to get away with alot of things others say they can't do legally, they've also put up a huge lobbying effort against legislation to extend further protections to dealers reguarding brand purity.

RickB · Feb 11, 2012

psdx said:
I would not waste my time fabricating something to post on here. It's a trend that's been written about previously, the local John Deere dealer has bought 6 or so stores and told me about it, and the Kubota dealer I mentioned is someone I've known for 20 years, and i believe him. Look at Messicks post below also. A response that says it's all speculation with nothing to refute what I posted isn't credible in any way. If you know something that sheds light on what I said, and points to an error, then post it so we can be enlightened. Otherwise it's just a random comment...

Your description within that very post as a guess more or less makes my point. Your words, not mine.

psdx · Feb 11, 2012

More random comments with no facts offered - a waste of electrons

. Why not say something like... I disagree, and don't believe John Deere is trying to consolidate retail stores because of x, y, and z? What's the point in just saying I'm wrong with nothing to substantiate it? It's pointless to hide an inability to add facts to a discussion with empty rhetoric. I thought the point of the forum was to express thoughts and observations, not to simply disagree without anything insightful to say.

Back to the subject at hand - good for Messicks for figuring out how to scale their business profitably. It's nice to see others succeed!

RickB · Feb 11, 2012

psdx said:
More random comments with no facts offered - a waste of electrons. Why not say something like... I disagree, and don't believe John Deere is trying to consolidate retail stores because of x, y, and z? What's the point in just saying I'm wrong with nothing to substantiate it? It's pointless to hide an inability to add facts to a discussion with empty rhetoric. I thought the point of the forum was to express thoughts and observations, not to simply disagree without anything insightful to say.

Back to the subject at hand - good for Messicks for figuring out how to scale their business profitably. It's nice to see others succeed!

I never said you were WRONG. I said you were speculating. You can look both of those words up. You called it guessing. That is about the same as speculating. Neither suggests right or wrong.