AGCO's not the only stupid one
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Category: Allis Chalmers
Forum Name: Farm Equipment
Forum Description: everything about Allis-Chalmers farm equipment
URL: https://www.allischalmers.com/forum/forum_posts.asp?TID=10169
Printed Date: 22 Jan 2025 at 9:49am
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Topic: AGCO's not the only stupid one
Posted By: JohnCO
Subject: AGCO's not the only stupid one
Date Posted: 28 Mar 2010 at 12:14am
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I stopped in the closest (20 miles) JD dealer this morning for a couple disk parts. Got to talking to the parts guy, who has a financial interest in the store. Asked if they were still selling Hesston/MF stuff as the sign was down on the road. Said they were but the new road construction had caused them to take it down. He told me that the AGCO reps were telling them they were thinking of dropping them as they didn't sell many MF tractors, even tho they sell the heck out of Hesston hay equipment, almost as much as JD. They also wanted COD on tractors, no floor plan or 60 - 90 day grace. Looks like AGCO is trying to make the Corporate numbers look better. What nearly floored me was when he said he thought they would close up within a year before the JD suits changed their minds and decided not to drop their dealership. He said JD only wants one or two dealers per state but because of the economy they have backed off. This as a million dollar plus per year dealership with at least two stores. The smaller dealers are really griping about the heavy handedness of corporate headquarters. Seems like Kubota is the only one expanding dealerships any more. People will only drive so far to a dealer no matter how loyal they are to a color. Kind of like GM and Chrysler, close a bunch of dealerships and wonder why sales have dropped off. ------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Replies:
Posted By: LarryWC In
Date Posted: 28 Mar 2010 at 12:39am
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I think we'll see a bunch of companies do weird things this year though,,,cause they all are realizing finianical stability is not present for ANYONE right now ,,,or in the future!
Things overall are shaky everywhere!,,even where I work in the plastic industry there being REAL cautious about ANY expantions or capitol investments!,,can you imagin?!!!,,In PLASTICS?!!!! ------------- www.allischalmersmuseum.com |
Posted By: Lonn
Date Posted: 28 Mar 2010 at 12:45am
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When a Deere rep was into my Diesel mechanics class back in 1991 or 92 they told us it was a long term goal to have 1 or 2 dealers in each state and that the farmers would be their own parts and service stores with training for the farmers hired mechanics. He also said in addition to advanced technology they were also trying to incorporate the need for special tools into the service of their tractors in order to keep the farmers hands and the shade tree mechanics from working on the tractors. This would boost the profits of both dealer and manufacturer. ------------- -- --- .... .- -- -- .- -.. / .-- .- ... / .- / -- ..- .-. -.. . .-. .. -. --. / -.-. .... .. .-.. -.. / .-. .- .--. .. ... - Wink I am a Russian Bot |
Posted By: nowversatile
Date Posted: 28 Mar 2010 at 7:28am
| Meanwhile, Versatile is on a major expansion plan with a goal of dealers a minimum of every 60 miles. Guess who is going to grow? |
Posted By: steffensen
Date Posted: 28 Mar 2010 at 8:02am
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More info:
http://www.farm-equipment.com/pages/Mike-Lessiter-Michael-Libbie-Insight-On-Business-Video.php - http://www.farm-equipment.com/pages/Mike-Lessiter-Michael-Libbie-Insight-On-Business-Video.php
http://www.farm-equipment.com/pages/Industry-News-Deere-Drops-Schmitt-Implement-in-Iowa.php#comments - http://www.farm-equipment.com/pages/Industry-News-Deere-Drops-Schmitt-Implement-in-Iowa.php#comments
http://www.farm-equipment.com/pages/Industry-News-Former-Deere-Dealership-Celebrates-65th-Anniversary-with-New-Supplier.php#comments - http://www.farm-equipment.com/pages/Industry-News-Former-Deere-Dealership-Celebrates-65th-Anniversary-with-New-Supplier.php#comments
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Posted By: ToddSin NY
Date Posted: 28 Mar 2010 at 9:23am
| So what we are saying is we are going to drive 100-200 miles for parts? and have to pull a tracotr 100-200 miles to get work done on it?? HAHAHAHA!! Yea right! It would cost $200-400 just in trucking!! Ain't no way!!! |
Posted By: norm [ind]
Date Posted: 28 Mar 2010 at 11:24am
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it has been that way for quite of my customersTODD one tells me had to go 90mi.to get parts they do not have them when he gets there has to order and another trip
was easier for him to call me and order the parts it would save him 270mi. driving an he could have the parts in the same length of time another told me they were closing JD dealerships in kan all around him so what is the problem???? tttthis has been going on fo 4-5 yrs?????????? we had a speaker at our a-c meeting sat. was both an A-C an JD
DEALER AT THE SAME TIME he can tell you how these companies operate he sold out in 98 my 2 cents
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Posted By: Dale-OH
Date Posted: 28 Mar 2010 at 12:02pm
| As a Versatile dealer I will not be very happy if they put another dealer within 60 mile of me. There are some areas that will not support that many dealers. |
Posted By: nowversatile
Date Posted: 28 Mar 2010 at 1:37pm
This was a quote in a recent "Farm Industry News", I would imagine that each area will be considered on an individual basis. Unlike the AGCO dictator, most of us know that one size does NOT fit all. Good luck with Versatile, I think the future is very bright!
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Dale-OH wrote:Posted By: JohnCO
Date Posted: 28 Mar 2010 at 11:33pm
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I'd sure like to see the future very ORANGE!
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: JohnCO
Date Posted: 29 Mar 2010 at 12:27am
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Wow, after watching and reading the links Steff posted above, it looks like AGCO is using the same playbook as JD. I can't help but see a great future for short lines like Versitile, McCormick and Kubota, to name a few. Do these big companies really think we will be all that loyal when we have to drive a hundred miles for parts. There are some really upset former and currant JD dealers out there. This is really getting interesting!
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: steve
Date Posted: 29 Mar 2010 at 7:47am
| Kubota will be a big winner. They are everywhere. Maybe they can pickup a few smaller impliment companies as partners for hay. Lotts of under 100hp tractors are sold. |
Posted By: naylorbros
Date Posted: 29 Mar 2010 at 8:06am
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I think that they are talking about one or two owners of the dealerships in each state, not one or two locations. The local Deere dealer I use in Utah is Greenline Eq. (owned by Arizona Machinery) has three locations spaced between 70 and a 90 miles apart along the I-15 corridor. Now that my Cat dealer is out of AGCO it is about 80 miles one way to get Hesston parts. Most of the time the parts I need are not in stock and will have to be ordered so I have them drop shipped to my home. If they have to be shipped, why pay for the shipping and then have to drive another 80 miles to pick the parts up when they can be sitting on your doorstep in the same amount of time. Thanks Ken
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Posted By: skipwelte
Date Posted: 29 Mar 2010 at 10:07am
| I work for a deere consturction dealer here in Iowa. The consturction stores are about 100mi apart, this company has 16 stores in 4 states. they just bought 6 more stores in Ohio. This is the way the ag line is headed too. Heck I remember when there were over 200 dealers in Iowa, now there is probably 50 or 60, back in the 70s and 80s they were talking one dealer in every county, preferably the county seat. now its down to about every 100 miles. Get used to hauling machines, its the wave of the future!! |
Posted By: JohnCO
Date Posted: 29 Mar 2010 at 11:21am
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I agree with the last two posts but I do think that companies that have close by dealers are going to pick up market share. The bottom line is, well, the bottom line. If the Big three and Cat think they can make more money with less dealers and locations, so be it. If the smaller brands go the other way and pick up the crumbs they may be happy. I'm wondering how far a person will go to buy a new machine, will it all be on the internet? Somewhere there still needs to be the personal contact. How far will you go to buy a new car or pickup. GM has dumped both Chevy dealers in my county, expecting people go drive to Denver or north 50 miles. Chevy sales have dropped since the dealers started closing a lot more then Ford and Chrysler. Who Knows what to think.
------------- "If at first you don't succeed, get a bigger hammer" Allis Express participant |
Posted By: D17JIM
Date Posted: 29 Mar 2010 at 12:54pm
| The statement that this is a Millon dollar store would be a small store. As far back as the early eighties a store for CaseIH in northern Indiana ordered over $500,000 just in combine parts to start the fall season. If a dealer is selling large farm equipment it doesn't take very many combines, tractors and planters to make a several million $ store in sales plus all the parts and service. Jim |
Posted By: Dale-OH
Date Posted: 29 Mar 2010 at 3:43pm
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I am sure that as Versatile keeps growing that in the end they will become ruled by Corporate people who have lost almost all connections to the end user. |