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Lesco Acquired by Deere

Discussion in 'Pesticide & Herbicide Application' started by tremor, Feb 19, 2007.

  1. tremor

    tremor LawnSite Bronze Member
    Posts: 1,476

  2. ampeg76

    ampeg76 LawnSite Senior Member
    Posts: 297

    wow, seems like this was mentioned before but many did not believe it was legit!

    it would be nice to see prices go down for the smaller guys like me, but i'm not going to get my hopes up!

    not everyone can spend "x" amount of dollars to get a price break!

  3. tremor

    tremor LawnSite Bronze Member
    Posts: 1,476

    DOWN??? Lesco has been selling below market prices all year.
  4. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    I don't think it has been a secret that Lesco has been in trouble for some time now. They sold off their Fertilizer plants a while back. The fact is, all of the fertilizer industry has been in turmoil. John Deere closed their Nursery in my area for lack of profit. So Deere has had their problems also.

    You jumped Ship from Lesco over a year ago. That goes with my theory that you can't hold a good man down, and you can't run a sorry one off with a stick.
  5. ampeg76

    ampeg76 LawnSite Senior Member
    Posts: 297

    depends on how much you buy from them, and i realize you worked for them, i'm just not crazy about the buying scales, seems to be quite a few tiers
  6. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    I missed your post by 2 minutes I was typing and then a long phone call.

    My local Lesco has not given me anything but full retail prices. You know me well enough to know I don't buy from Lesco at those prices unless I am in a bind for a product today. It had been well over 10 years since Lesco was my main supplier.

    Now that Lesco has sold off their Fert Manufacturing, they have nothing different than any other supplier. The fact is all of Lesco blends can be purchased from other suppliers now cheaper than from Lesco. I have never knocked the quality of Lesco products, Just the Price.
  7. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    What about the stock. Thru the roof? Big sigh of relief, I bet.
  8. tremor

    tremor LawnSite Bronze Member
    Posts: 1,476


    133M/322 stores = $413,043 per Service Center. Good buy John Deere!

    I'd have paid more for my old store!

    I'm surprised Deere got them for less than the value of their on-hand inventory unless a third party owns that too. Could the overhead burden really be that high? COGS is no longer their problem & they're virtually debt free so where is all of this weight? More importantly, what will Deere do about it?

    Never a dull moment in the Green Industry.
  9. GTP

    GTP LawnSite Member
    Posts: 57

    Don't be so sure the grass will be greener with Deere. They purchased an aftermarket parts distributor for outdoor power equipment parts and drove away a lot of customers.
  10. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    John Deere in my area are very proud of their prices. I don't believe you will see a price decrease on products to the Smaller operator, instead I believe they will raise retail prices to the smaller operator. Of course national accounts and large companies will get a price break so they can stay competitive. As stated before I got away from Lesco years ago because of high prices.

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