A NOTICE TO OUR FRIENDS & CUSTOMERS

Smart move.  Sounds like my kind of dealer.

I wish all of their dealers would have the cahonies to do the same thing. Unless the management at Agco is entirely inept, they know why.  In light of the current situation, I suppose their ineptness could be debated. I hope my comments can be translated to German........

Thanks for all the great service you folks provide, don't know what I/We would do without you, can't imagine the day when we can't P/U phone and chat with the expert staff at SLI. Thanks for everything, Chris/CT

I was HONORED to meet the Sandy Lake crew at Canadiaga, NY several years ago.  I still kick myself for not taking a picture. 

Hy

I understand your situation. We were Allis-chalmers dealer since 1955 in Québec province. Canada.   March 3th  2007 at eleven o,clock the eastern Canada manager M...............give to us a letter, without any previous notice, that AGCO will close us as an AGCO dealer at the end of that month.

In 2005 we pay to AGCO 18 new tractors....that not bad.  We sold the last Gleaner Combine in Québec province. Since your closure there is not any new Gleaner Combine paid to AGCO  in Québec province.

One of the main reason for my closure is the fact that I fight Agco when they removed the St series, the Gt serie, the change from Orange to red in the Agco logo, etc..

If you look at the financial statement of AGCO you see the drop (-40% for the 4th quarter) of their sales in North America (Canada and US) and by closing the old Allis dealers and phasing out the orange tractors I don't think AGCO will succeed in the future in North America. In Eastern Canada Massey is very well accepted but in the midwest.....

Since  the  closure letter from AGCO, we supply parts and service to the community and we have a better living.

We also buy and sell  used Gleaner  and the life is good.

Michel Forest, Eastern Canada Dealer panel member in 1994-1985 and 1993-1994, seller of the first 7030, first 7080, first 8550, first N-5, first N-6, First R-70, last R-52  in Québec prov.  Excused my writing, I am a french speeking guy.

 

Your English is much better than my French!

Edited by redline - 26 Apr 2010 at 8:25pm

Michel,
I didn't know AGCO could do that but I wouldn't put it past them.  The only thing that really makes sense, (but is not right), with this orange drop is AGCO wants to realign and get rid of some dealers.  It is a sad thing to see but I agree with you that I don't think AGCO is going to succeed in North America.

Michel- Bienvenu!  n'ayez pas peur -  Votre Anglais est assez bon pour nous... et comme les autres, Votre Anglais est meilleur que mon Francais!


This simply goes to show that those directing the 'company' have violated the first and second foremost rule of business:

1) Never allow ANYTHING, or ANYBODY to be between YOU, and YOUR customer.
2) Make EVERY ONE of your customer's concerns YOUR HIGHEST CONCERN....

Because:  The CUSTOMER is the reason you exist.

What manufacturers are forgetting, is that a LOCAL dealership support  network IS necessary for business.  In the automotive business, car manufacturers can 'cull out' dealerships, and focus on the population centers, knowing that towtrucks can move vehicles quickly, and where people might have 'spare' vehicles, loaner-vehicles can take up the slack.  The simple fact that automobiles travel on roads, and move fast, makes even a distant dealership relatively 'local'.
 
BUT... In the ag-equipment business, REGARDLESS of the amount of equipment sales volume... and when the term 'LOCAL' is used, it is based upon the mobility of FARM EQUIPMENT... not on the ability of highway vehicles.

That means- if a farmer has an implement breakdown, they can either
1) rapidly drive the TRACTOR AND IMPLEMENT to a dealer for IMMEDIATE service (that means: 15mph or so, and under 20 minutes)

or...

2) Have the dealer's service truck there within 20 minutes to FIX IT IN THE FIELD.

WHY?

Because a farmer with a broken-down machine doesn't have the luxury of waiting... and when forced to make a decision, they'll vote with their wallet EVERY TIME.  Farmers shouldn't be treated with a 'general consumers' attitude... every farmer needs to be treated as a COMMERICAL CUSTOMER.  They'll totally throw the PURCHASE PRICE concern out-the-window, and buy based on what they can depend on, and that dependability really isn't so much the MACHINE, as it is the SUPPORT.  They accept the fact that FARM STUFF BREAKS.

The whole situation of closing dealerships is made for cost-cutting reasons- they're 'shedding' what their financial analysts consider to be 'economic dead weight'.  Nothing more than making accounting decisions where they simply don't belong.

When the environment changes, animals have three choices:  1) Move  2) Adapt, or 3) Die.

Same goes for business.  AGCO obviously can't manage the first two sensibly, so the third will prevail.  You Can't Fix Stupid.

SLI is MY dealer , there are 2 green and a new holland dealer'as well as 2 other agco which are as close but I bought a new tractor from them(wasn't orange!). I trust Bill and the crew at Sandy lake to keep me running. The Massey dealer which got Agco's favorite child treatment locally supplied parts for 2 balers but couldn't/wouldn't sell me a tractor for my fence business/farm.