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fourthgeneration 
Bronze Level
Joined: 03 Jan 2017
Location: ohio
Points: 170
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 Posted: 22 Oct 2018 at 11:11pm |
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AGCO may not want to put a chicken in every pot but if their actions tank the resale value of used equipement by screwing up brand loyalty.... Then they are hurting their long term viability. It’s bad enough that a guy that wants to buy a new 110 hp tractor is so unsure of what he is getting that he looks at other red tractors or even green. I have some loyalty at the dealer but I have two other brands in my area and one is very good and closer.
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JohnCO
Orange Level
Joined: 11 Sep 2009
Location: Niwot Colo
Points: 8992
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Posted: 22 Oct 2018 at 11:39pm |
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The last independent JD dealer in Colorado got bought out by a multi state corporation. I walked in and didn't recognize the place, nobody there that I knew , needed an o ring for an injector pump and they did have it but had to check on the computer to see if they had it, even though it was right there in the drawer. Most of the Case IH Ford dealers are gone, now there is one new one with lots of inventory south of Greeley, don't know how their parts department is. Seems like the only brand with growing dealerships is the other Orange brand, Kubota.
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"If at first you don't succeed, get a bigger hammer"
Allis Express participant
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DougG
Orange Level
Joined: 20 Sep 2009
Location: Mo
Points: 7943
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Posted: 23 Oct 2018 at 6:38pm |
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Just an opinion and observation, but, isn't the shop of a dealership the actual heartbeat of the whole thing? I realize selling new equipment now can be rough, but in the shop the clock keeps ticking and rates are by the hour,
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tbran
Orange Level
Joined: 14 Sep 2009
Location: Paris Tn
Points: 3238
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Posted: 23 Oct 2018 at 8:13pm |
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The term is call 'absorption rate'. The overhead of the dealership should be paid by the profit from parts and service, good luck with that. It takes it hitting on all 8 to get the job done. IF the interest and paid inventory gets too high it becomes a super drag on any business. Farm implement dealerships are one of the most capital intensive businesses there is.. high dollar inventory per unit and slow turn vs say an AUTO dealership.
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When told "it's not the money,it's the principle", remember, it's always the money..
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Ky.Allis
Orange Level
Joined: 31 Jan 2010
Location: Kentucky
Points: 963
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Posted: 24 Oct 2018 at 5:31pm |
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I've worked at two dealerships in the past. NH-4yrs. and JD/Kubota-10 yrs. The one thing that stands out that will absolutely bankrupt a dealer is used inventory especially if it on a floorplan and your paying interest on it. The second thing that stands out is that the customer is usually lying as he describes his trade-in. It may not be this way everywhere but is sure is here in Kentucky.
Edited by Ky.Allis - 24 Oct 2018 at 5:33pm
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