Dealer out to lunch: John Deere Review  -- John Deere Tractors Discussion Forum and Review Dealer out to lunch: John Deere Review -- John Deere Tractors Discussion Forum

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Discussion Boards > Active Subjects > Messages as Posted > John Deere Review Forum

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 09-06-2006, 14:09 Post: 134022
lbrown59

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 Dealer out to lunch

JD Dealer out to lunch and ain't comming back.
I went to look at JD Garden Tractors and the dealer has went out of business.
JD sales must be way off.
---->>PS:
Say it's worse than I thought.
I went to the other local JD Dealer and they have closed up shop too.
JD must really be hurting.






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 09-06-2006, 14:50 Post: 134025
JasonR



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 Dealer out to lunch

Maybe the local dealers, but the corporation is doing rather well (NYSE symbol DE)...

My guess is the flood of Deere garden tractors at Lowes and Home Depot was the tipping point from profit to loss at a lot of Deere Dealers.

- Jason






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 09-06-2006, 21:48 Post: 134034
earthwrks

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 Dealer out to lunch

Maybe it's like what Ford Motor is doing by reducing the number of dealers nationwide so that less dealers make more money, as was reported in the news about two weeks ago. In Michigan after a New Holland dealer went out business, New holland got really pickey who they wanted to sell their product. In one case, after 47 years my dealer changed hands from one cousin to second cousins. That wasn't good enough. NH made the new cousins come up with $3.2 million in liquid assets to buy the franchise, which started at $300,000 when a grandson wanted the biz. 3 months later they upped the ante to $600,000. That's when the grandson backed out. In another case a NH dealer was bought by a big road building contractor who bought the dealership to buy his equipment at a discount. He did that and closed the biz. Reportedly, that's what started NH's bad taste in their mouth.
Nowadays, with big corporate bonuses one never knows what lurkes in the minds of those in boardrooms.






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 09-07-2006, 07:36 Post: 134038
lbrown59

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 Dealer out to lunch



The bad thing about it is it leaves all the local JD Owners out on a limb holding the bag.
I feel sorry for them and anyone trying to sell his JD.
Four of my next door neighbors have JD garden tractors. I hate it for them too.
I was considering buying a nice JD-G/T from a local guy but changed my mind as I don't want a tractor that I can't get local parts and service for.

----->>
......>>>
MY First Car
http://chevy.tocmp.com/chevyscrapbook/files/kamp50.jpg
Our First Car
http://www.hubcapcafe.com/ocs/pages01/chev6003.htm






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 09-07-2006, 07:48 Post: 134039
Art White



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 Dealer out to lunch

There will always be changes in business no matter what type it is. For older dealers it is hard to keep up with the continual adjustments that need to be done.






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 09-07-2006, 08:12 Post: 134041
Murf



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 Dealer out to lunch

It may be another case of related entities too.

A few years back a bunch of the JD dealers around here all got their businesses evaluated, then put them all into one new company, each former owner taking the percentage of the new company corelated to what his dealership represented in the percentage of the new combined company.

The theory was that one big company was much stronger than 6 small dealerships since they could share administration, reduce the number of field service trucks, etc., but the reality of it was that the whole chain got dragged down instead of just one or two stores.

Last year they filed for bankruptcy protection and closed two of the six stores.

Best of luck.






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 09-07-2006, 09:17 Post: 134043
DRankin



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 Dealer out to lunch

Around here Deere is pulling their stuff from any dealership that also sells Kubota.

They have taken everything Green away from Gold Country Tractors across the line in KalyFORnia (Arnold-speak). Last I heard the dealership had to sue to get back deposits and such.

The local Kubota/Deere dealer is also under fire from Deere but is holding out.

Both places sell 20 Kubota's for each Deere sold. Deere doesn't like that and blames the dealers for not pushing the Green Machines.

My view: Kubota just sells itself and Deere is running way behind because of quality and marketing problems.






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 09-07-2006, 09:37 Post: 134044
kwschumm



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 Dealer out to lunch

I'd expect the dealer to push the product that is most profitable for them. Maybe the price/profit ratio of JDs isn't competitive. If that makes it harder to sell against Kubota then JD has some work to do. Their prices are high and we all know lower prices make for an easier sale. I'm not sure quality is an issue.






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 09-07-2006, 09:50 Post: 134045
Murf



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 Dealer out to lunch

Of all the local dealers around here the only one making any money is doing so because he branched out big time into turf care equipment, he told me recently at an industry party that he makes more money on a $10,000 commercial mower than he makes on a $75,000 farm tractor.

Dealers will sell whatever makes them the most money, for the least work and aggravation.

Best of luck.






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 09-07-2006, 10:09 Post: 134046
kthompson



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 Dealer out to lunch

It is not just JD. Agco has done some of that recently. Pulled their line from one dealership becaused he also carried another brand (was told it was one brand or the other), but left their product with the Kubota dealership. Amount of notice, same day. So often you just don't know the truth. Based opon the amount of product I see around the dealership who lost the Agco sold more than the one who was allowed to keep it. Both sold Agco, just different labels.






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