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Discussion in 'General Industry Discussions' started by doobs41378, Jan 11, 2013.
I wonder what's up with this...
figures. that's what every big company does. they wanna go where the big bucks are not the local guy that sales a few tractors a year.
Id have a tough time buying anything green for that very reason. Growing up in a farm town, john deere was "the" machine to own. It was like a status symbol. Now they sell their crap at big box stores that aren't worth a crap. Once they went homeowner in quality, I figured they'd gone corporate and sold out on their name. I'm sure they still make some decent stuff, but I can't swallow buying anything like that. just rubs me wrong for some reason. it's a shame they dicked that dealer the way they did. hopefully he uses it to his advantage and gets lined up with massey ferg/case/cat or some other big name in the industry and does even better than before.
time to go kubota i guess lol.
we have john deere here. it's a huge place and sales nothing but john deere only. there are alot of farmers around here though.
we also have kubota dealer. they also carry gravely, new holland and a few other things. there is a cat dealer but it's about 1 1/2hrs away. it's not really farm equipment though. it's bulldozers, dump trucks, and such.
The article didn't give any details of why the split. I don't know the area or any details enough to have an opinion. The "didn't want to deal with the little guy" thing is a little to easy, there are plenty of little guys selling JD. If the problems have been going on for 10 years as the article says it makes me think it may have more to do with being an exclusive JD only dealer.
Read the articall. It said there was only one machine left in the lot when they left. That means the dealer was "behind" in his "floor plan" payments. It is happening a lot in the last few years with any brand. Every one wants thier money when due. I know I have droped customers in the past for bad payment praticeses and I'm sure others have also.
I agree with this 100%. The story seemed almost one sided and seemed like propaganda. I'd like to hear the other side of the story before I draw conclusions.
What a dissapointment... Looks like when the current green in the shed gets worn out, it'll be an all red fleet.
I agree, JD didn't yank his franchise for no reason.
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Recall what GM and Chrysler did with the auto dealerships. Many that did not meet minimum requirements were taken out of the system, dealerships closed (or revamped to other products). I suspect the same thing happened here. It costs JD $x,xxx to have a dealership in their network. If it is not profitable because it is not turning enough revenue, keeping the dealership is not good business.
This practice is common throughout any industry. A franchise requires a minimum set of requirements (e.g. xxx sq ft of retail floor space, showroom set up, xxx seats for an eatery, etc.). These requirements are established, so they are not subjective and a surprise to the business owner. I think of Stihl making some changes locally here a few years ago. A long-time dealer had the STIHL line yanked because the store owner chose not to comply with showroom requirements (his showroom for STIHL products was horrible and he deserved to have it taken away, regardless of longevity).
To be sure, it is sad to see a long-time dealer have the rug pulled. But, the dealer may have been unable to maintain pace with the times.