How Much Capital would you need to start a Dealership?

[melted welly]

I know a dealer who looked into setting up a fendt dealership on a new site , he was looking at spending €10 million to do it right. But he changed his mind and gave up on the idea .

Did he set up a valtra one instead that only cost £8 and never breaks down?

 

[DrWazzock]

Some have set up businesses that specialise in certain makes and types without actually being franchised. I find that people very good on the whole being lean and keen without the manufacturer overhead and flannel.

 

[DrWazzock]

I have often thought why not set up as a specialist in something simple like paraplows. Refurb them properly, supply parts, help folk get the best out of them. Demand is limited but I am slow worker so that isn’t a problem. I have other things to do as well. Instead of that all we get is scrap off eBay with everything seized up. Nobody seems to refurb or set anything up properly yet wants a fortune for them. Must be scope somewhere.

 

[Sid]

dont you need to sell £100 million of jd machines per year to get a jd dealership ?

Only need to sell them on paper.
Know of a 12 months old tractor just sold as was registered by dealer to get the bigger discount!

I have often thought why not set up as a specialist in something simple like paraplows. Refurb them properly, supply parts, help folk get the best out of them. Demand is limited but I am slow worker so that isn’t a problem. I have other things to do as well. Instead of that all we get is scrap off eBay with everything seized up. Nobody seems to refurb or set anything up properly yet wants a fortune for them. Must be scope somewhere.

Dunns do that with ploughs down here.
Complete refurb and paint job

 

[towbar]

I have often thought why not set up as a specialist in something simple like paraplows. Refurb them properly, supply parts, help folk get the best out of them. Demand is limited but I am slow worker so that isn’t a problem. I have other things to do as well. Instead of that all we get is scrap off eBay with everything seized up. Nobody seems to refurb or set anything up properly yet wants a fortune for them. Must be scope somewhere.

Andrew guest with kuhn/accord - looks a good business model to me.

 

[7610 super q]

Suppose a Valtra dealership would be the cheapest to set up. No need for a workshop, no need to keep a stock of spares, no need to employ fitters/ service vans.......

 

[Netherfield]

Couple of keen young mechanics who lost their jobs when Ralph Turner screwed Case for a lot of money, set out in a rented commercial truck building, specialised for a while in DB Hydrashift gearboxes, then managed to get in with Valtra early on. Eventually put up a new building and seem to be doing alright.

Another indie started with Ursus, then Renault, then Same, then bought an empty car dealerships premises and got MF , which didn't last long before McCormick for the last 20 years.

 

[agri knives]

Did he set up a valtra one instead that only cost £8 and never breaks down?

No he’s already Valtra and Fendt wined and dined him trying to convince him to sell fendt, but he decided to just stay selling the better tractor of the two.

 

[DrWazzock]

Something else I have thought about is selling "systems" so a complete package of kit to do say the arable work on 1000 acres. Could be plough based, mintill or zero till. So you get all the kit you need matched up so it works together and suits your situation. You don't have to frig around with wheel track settings, tramline spacings etc, different guidance and recording systems. Complete package including the software.
That's how it worked when we sold power stations. We didn't expect the customer to buy a turbine from one supplier and a generator from somebody else and try to hitch them all together with a control system. All they did was sit back and wait till the system was in place, we trained their operators and they pressed the green button.
I suppose the big names do this to some extent but there is still a lot left to the "farmer" to sort out to make it all work together, which isn't really the farmer's primary concern. His concern is to get on and grow stuff.

 

[Robt]

Something else I have thought about is selling "systems" so a complete package of kit to do say the arable work on 1000 acres. Could be plough based, mintill or zero till. So you get all the kit you need matched up so it works together and suits your situation. You don't have to frig around with wheel track settings, tramline spacings etc, different guidance and recording systems. Complete package including the software.
That's how it worked when we sold power stations. We didn't expect the customer to buy a turbine from one supplier and a generator from somebody else and try to hitch them all together with a control system. All they did was sit back and wait till the system was in place, we trained their operators and they pressed the green button.
I suppose the big names do this to some extent but there is still a lot left to the "farmer" to sort out to make it all work together, which isn't really the farmer's primary concern. His concern is to get on and grow stuff.

I’m pretty sure every dealer has been trying to do that for about 20 years... but yes. You go right ahead and try

 

[daveydiesel1]

Something else I have thought about is selling "systems" so a complete package of kit to do say the arable work on 1000 acres. Could be plough based, mintill or zero till. So you get all the kit you need matched up so it works together and suits your situation. You don't have to frig around with wheel track settings, tramline spacings etc, different guidance and recording systems. Complete package including the software.
That's how it worked when we sold power stations. We didn't expect the customer to buy a turbine from one supplier and a generator from somebody else and try to hitch them all together with a control system. All they did was sit back and wait till the system was in place, we trained their operators and they pressed the green button.
I suppose the big names do this to some extent but there is still a lot left to the "farmer" to sort out to make it all work together, which isn't really the farmer's primary concern. His concern is to get on and grow stuff.

But lots of farmers prefer different brands for different machines so ud have to be fit to supply everthin to serve each farmer. Take grass equipment if a man prefers krone mowers,lely tedder,claas rake and mchale baler hows 1 dealer gonna cater for that. Or cultivation kv plough,lemken powerharrow,vaderstadt drill,vicon fertiliser sower and knight sprayer are u gonna cater for all that. Sounds good idea but in practise it wouldnt be so simple