Counties Mow Off Opinion

Discussion in 'Lawn Mowing' started by puppypaws, Dec 21, 2007.

  1. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,945

    My Hustler dealer just call me and said "I thought you may be interested in this, the county bought 3 more new Hustlers from me this morning". He said they were running JD for the most part but decided in 2007 to buy and run Exmark, Ferris, and Hustler with the John Deere's for a comparison of dependability, cut and productivity.

    While this is fresh on my mind from what my dealer told me told me, Scag is on a little shaky ground for some reason and Toro just went factory direct on their mower sales because their distributor filed bankruptcy. He said Gravely bought Great Dane and Everide but before this is all over there will be more changes.

    I asked him why the county didn't try Scag or Kubota and he said the Scag dealer in this area lost his dealership. They said Kubota was more expensive and they did not think it would hold up to their abuse and the amount of mowing they do each week.

    They bought 2 new Super Z's with flex forks on both an the new flex seat on one in the spring of 2007. The 3 new ones they bought this morning had the flex forks and flex seat on each of them, he said the boys would argue over the mower with the flex seat and it made so much difference to the operators they purchased the flex seat for all the Hustlers. They said the Hustlers sold themselves by being the most productive, comfortable and with no problems during the 2007 cutting season.

    He told me the JD's were not holding up to their applications and warranty work took to long, they bought the Ferris from the JD dealer and said it was in the shop 4 times since they purchased it. They said the Exmark gave a good cut but was not as productive and comfortable as the Hustlers.

    This is nothing I am involved with, just information passed to me from my dealer.
     
  2. wnccutter

    wnccutter LawnSite Member
    Posts: 122

    In the FWIW department:

    Monday, December 17, 2007
    Submitted by Transylvania Times
    December 17, 2007
    Coye Consultants Is Going Out Of Business

    Coye Consultants, Inc., a Brevard-based distributor for The Toro Company, is going out of business. The business, headed by Linda and Ed Coye, is located at 210 East Main St. Fourteen people will lose their jobs, according to Mark Burrows, county planning and economic development director. Business conditions in the landscaping business have been poor this year because of widespread drought conditions, Burrows said. But company founder Linda Coye said the bigger issue is that Toro has changed its business model and is going directly to its customers. That, not finances or drought, was the major factor, she said.
     
  3. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Well, the good days are gone.

    The economy has declined along with rising inflation, and the days of multi-step distribution are just gone. There is just no more room left for their cut of profit. The market just won't bear it.

    All of the MFG's will eventually have to convert to factory-to-dealer direct in order to remain competitive in retail pricing... and that's just the way it is.

    Few people ever understood that the shorter distribution chain was the reason Lesco mowers were cheaper. There was no distributor to tack on his profit into the cost of the machines.



    All of the US MFG's need to do what they can to cut out uneeded added expenses increasing the retail prices. The reality is that they will eventually have to compete with imported commercial products... and the imports WILL eventually reach the level of becoming dead on comparable and they will cost much less. They are just lucky Japan never jumped into the market or they would all already be in trouble.........
     
  4. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,945

    I agree, what is the reasoning for a distributor when they can go directly from the manufacture to the dealer. I would think it would only run the cost to the end buyer up, what exactly does a distributor do to earn their keep anyway?
     
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Excellent, it's about time hell yeah that's what I'm talking about!
     
  6. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    What has happened is a few things...

    At one point they used to be a beneficial resource for all parties...
    A middle-man for everyone.

    A lot of them just turned into comfortable leaches.
    Just someone else that handles the product and drives up the cost.
    Bad move to get comfortable considering the leaps and bounds we have made in communications!


    Also it has came to the point between economic decline and rising inflation... that the market just won't continue to bear their nice profit margin. So even those distributors that are not in financial trouble have to see the writing on the wall.... I would hope.
     
  7. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,945

    I have always known this, I just wanted you to word it because your grammar is better than mine. It has always been a fact, the more hands a product travels through, the higher cost to the consumer. I have never agreed with the middle man scenario and if America starts cutting the corners it needs to; the middle man should become extinct, why do you want to pay people for doing nothing.
     
  8. Rhett

    Rhett LawnSite Bronze Member
    Posts: 1,071

    My mechanic recently became a dealer for Toro. He has no show room and carries no inventory. Except for basic parts. You want a mower he orders it and usually it is there in a day or two. He assembles it and delivers it at a fraction of the cost due to a low overhead. Last week he sold a diesel Z for 8500 dollars. The prise was supposed to be a little over 1100. He made over 400 for assembly. Other end is my exmark dealer who will sell me a walk behind for a little over 4000 but will sell them to valley crest for less then three.
     
  9. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,945

    That is exactly what we are talking about and this is an excellent way of doing business for you and anyone classified as a consumer. I've never agreed with someone generating profit because a product passes through their hands with no added value.
     
  10. chuck bow

    chuck bow LawnSite Senior Member
    Posts: 701

    This is first i heard of Scag being on shaky ground? Can someone enlighten us Scag owners , Make me nervous as i have 4 of thos babys sitting in the stable
     

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