Shughie McFee
Member
like taking candy from a baby 
rea valley
- Thread starter nelson
- Start date
my neighbor has 4 he only has 1 deere left!
Enry
Member
- Location
- Shropshire
John Deere global sales $44billion...... - there will be some panic when someone swaps to a Fendt/NH/Case because they're in a huff re RVT
Flatland guy
Member
- Location
- Lincolnshire
The way I look at things is the manufacturer (JD) are trying to get as much as possible for the sale of their machinery and trying to squeeze the middle man and frankly who can blame them, all dealerships have a choice if the terms alter. The manufacturer is in the driving seat as ultimately they decide the terms, and going forward are possibly interested in the most margin selling direct. As a successful manufacturer if a dealership of your product is making plenty of money only logical to think about squeezing/ leveraging as much as possible until your are ultimately in total control of sales of your products, Claas in the UK use this model, and other large manufacturers too. I often think a manufacturer selling through a dealership as similar to a farmer instructing a grain pool to sell their grain, your business is dependent upon the sales of someone else. I have heard dealerships supposedly moaning about their terms but never once want to become a manufacturer and dictate the terms.
Some dealerships have taken on other brands etc, but there is no telling in 5 /10 years that them other brands do not alter the ways they sell like JD are doing.
Some dealerships have taken on other brands etc, but there is no telling in 5 /10 years that them other brands do not alter the ways they sell like JD are doing.
One of our neighbours is just taking the remaining 21 tractors out of a 60 tractor deal ,
4 million plus deal ,
- Location
- Cumbria
Future proofing any business is important, changes come along, some embrace them and move forward, others fight change and stay still or even worse, go backwards.
John Deere has always been bold in embracing change, and if you look at there results over the last 30 years, they are doing something right.
However, loyalty to brands gets a bit of a smack in the teeth during a change period, it should act as a reminder, a Tractor is a tool to do a job, a lump of metal and plastic, as is a Combine, or Sprayer, don't get to hung up on brands.
Remember, there is vanity and sanity, vanity being the big new lump of metal and plastic, sanity being a nice healthy bank account.
John Deere are ensuring their bank account stays healthy.
John Deere has always been bold in embracing change, and if you look at there results over the last 30 years, they are doing something right.
However, loyalty to brands gets a bit of a smack in the teeth during a change period, it should act as a reminder, a Tractor is a tool to do a job, a lump of metal and plastic, as is a Combine, or Sprayer, don't get to hung up on brands.
Remember, there is vanity and sanity, vanity being the big new lump of metal and plastic, sanity being a nice healthy bank account.
John Deere are ensuring their bank account stays healthy.
Timbo
Member
- Location
- Gods County
I agree almost with that above, JD aren't shy in rocking the boat to move forwards, they are incredibly hungry for business- but the UK is a different market compared to the US where they operate in a different manner - where the brand is way of life that people aspire to and want to buy into - JD merchandise is a massive thing out there as big as the machinery they sell.
NH have cottoned on to this and are shaking things up. Some folk will adjust to RVT changing colour, but more and more are very brand loyal, they wont change colour ever.
- Location
- Montgomeryshire
Don’t like change.
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
As I understand it, Thiis change of direction is of Rea Valleys own planning, It would seem JD have put pressure on them to drop JCB and RVT have taken the decision that when push comes to shove JCB is a more important part of their buisness than JD. No doubt that’s a decision that will surprise many but I very much doubt it’s a decision made on a whim, but will have been made after careful consideration. Only those at the top of RVT will know just how profitable the JD franchise was to them but reading between the lines it looks like it may well have been a lot of work for little reward, I suspect the directors of RVT have made this decision as they believe it’s the best way to ensure their bank account stays healthy .
The fact they have come to this decision would seem to indicate to me that JD are squeezing their dealers until the pips squeak
Pistonbroke
Member
Seem to remember RVT falling out with JD years ago over exporting hire tractors or something and inflating their sales figures Maybe they had been on a yellow card
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
Onlly the name remains of the original Rea Valley, the founders of Rea Valley sold out after JD came down hard on them for exporting new or virtually new tractors. The Rea Valley buisness was bought out by the owner of AIS I think it was called, the depot at Sudbury and from them on was all run under the RVT banner.
Chae1
Member
- Location
- Aberdeenshire
Same as what happened with Sharmans then.
JD wanted them to drop JCB, but they had customers wanting high speed tractors and telescopic handlers. Both of which JD don't manufacture.
End of the day some people are bound to be disappointed for various reasons, but if manufacturer and dealer cant agree something has to give.
Maybe shows that the customer isn’t ways the first consideration in these matters.
On a side note as NH dealers only covering relatively small areas how long will it be before Websters and Townsons get swallowed up by one of the bigger outfits?
Maybe shows that the customer isn’t ways the first consideration in these matters.
On a side note as NH dealers only covering relatively small areas how long will it be before Websters and Townsons get swallowed up by one of the bigger outfits?
Homesy
Member
- Location
- North West Devon
I know someone who works for RVT. I think people would be surprised at how tiny a margin they were making on selling a new tractor.
- Location
- Shropshire
70-30 split in favour of jcb sold out of welshpool depot I was told
borderterribles
Member
- Location
- South Shropshire
No small degree of irony then that the founders of RVT (or some of thems) current business ie Severn Farm Machinery, looks like being very severely impacted by the current RVT owners decision to go blue!
solo
Member
- Location
- worcestershire
Parts and servicing is where the money is made. Very little margin on sales I believe.
startinghandle
Member
Heard this afternoon but it could have been mentioned that teme valley tractors in Welshpool have finished with New Holland all sales, warranty work and servicing must go to RVT who have finished with JD
Cowabunga
Member
- Location
- Ceredigion,Wales
TVT are to lose the franchise one year from now, after their notice expires. There is a post about this further back. See #138
Tarw Coch
Member
- Location
- Bottom of Wats Dyke
Presumably 12 months being the length of time NH are required to give a dealer notice they’re losing the agency.
Think it’s also been mentioned that RVT are taking on NH from the end of this year so it looks like Welshpool will have two NH dealers for the first 6 months of next year.