John Deere dealers

Discussion in 'Machinery' started by Teejay, Jul 30, 2015.

  1. texelburger

    texelburger Member

    This is the trouble with American companies,they have no comprehension or care for our ways.Many strong relationships have been built,over the years,with Farmers and their local dealers only for the hierarchy from JD to dictate that they are surplus to requirements. They want the super, multi depot dealer . I'm not sure they are making the best decision in this instance.
    Times are hard at the moment for dealers of all marque's and they obviously think the super dealer is the way forward with their efficiency of scale,I'm not so sure.I quite like the personal relationship a small dealer can offer.
  2. David.

    David. Member

    J11 M40
    Deutz were not much worried about the small man when they sacked Charlie Rollason.
    Jim B and Mad For Muck like this.
  3. james ds

    james ds Member

    Jd think we are all out in Texas where the nearest shop is 100 miles away , and think we will drive 100 s of miles to a dealer , doesn't work that way in these isles , where local service and friendships are valued . I know of one Irish jd super dealer who is getting it hard to keep going , opened new branches near the dealer who lost the agency but is doing no trade , the customers didn't move . Some drain on the system to carry a branch losing money.
  4. Cowabunga

    Cowabunga Member

    Big brands tend to put a lot of pressure on dealers to move metal and 'perform' for the brand. Make no mistake about that. Or either, that it is any different today to how its ever been when it comes to rationalising dealers. During the halcyon days of the 1950's and 1960's there were a couple of tractor main dealers in every small rural town. The manufacturers only want to deal with a few higher-volume dealers who can sell at a lower margin while having an adequate number of well trained staff at all levels. I think that the long term aim might be to have dealers with a minimum of £10 to £15 million Pound sales in today's terms, for similar reasons as to why farms are getting bigger in some respects.

    Caterpillar, the earthmoving company, which is very similar to agricultural equipment manufacturers in many ways, now only has two dealers covering whole continents. Another reason for doing this is that they have immense power over their dealers, without actually putting in any capital or even risking any.
    Dealers are forced to choose between investing heavily in their franchise or selling up to their neighbouring dealer or indeed just being given notice of the end of their dealership if they don't actively manage it in the way Big Brother demands.
  5. Cowabunga

    Cowabunga Member

    Actually they don't want less depots usually, just fewer dealers running those depots. They will insist on whatever dealer covers the area, performing in sales and service within that area. They monitor their dealers and sales performance in detail over all areas of their territory at least quarterly using data for registrations bought from the DVLA. Not only their own, but they will know exactly how many and where their rivals are selling and performing as well, and will use this data to put pressure on their dealers to improve their relative performance.

    They are running big businesses in a seriously competitive sector. From the dealer's perspective, the pressure to perform relatively and absolutely can be immense.
  6. snowhite

    snowhite Member

    strange thing here i see guite a few farmers going to jd after being with fendt , don't know wy the move to jd again
  7. BFF_Lurker

    BFF_Lurker Member

    I think JD like to deal with managers not owners. They want yes men who toe the corporate line, not hands on owners who tell JD area managers where to stick it, when JD tell them they are doing it wrong.

    There is a lot forum buzz with John Deere trollers on here but the fact remains that JD are still out selling any other single brand by some considerable number, so the dealers must be doing something right.
    Last edited: Jul 31, 2015
    Brisel, Hanspree, Timbo and 1 other person like this.
  8. bravheart

    bravheart Member

    scottish borders
    Heard JD dealers only get 12 months when they renew their franchise, that puts a lot of pressure on them and stifles capital investment in the business imo.
  9. Cowabunga

    Cowabunga Member

    12 month's notice period is fairly standard and is what most dairy farmers have. Oddly this does not seem to stifle investment.
  10. Mad For Muck

    Mad For Muck Member

    Been lost without them for same parts ever since
  11. Northdowns Martin

    Snodland kent
    Heard the news a few days ago about Bells losing JD. It's comes as a big disappointment as many prefer dealing with them. Rumors are that Burdens are opening a branch in the Ashford area.
  12. BBC

    BBC Member

    Burden Bros Expand Sales Area

    John Deere dealer Burden Bros Agri Ltd will be expanding its agricultural machinery business in the south-east of England this autumn, by taking on the sales area currently managed by Bell Agricultural of Romney Marsh in Kent.

    Burden Bros Agri currently has two outlets, at Stockbury in north Kent and Framfield in East Sussex, and employs 45 staff in total. Existing arrangements for sales and customer support of John Deere and other product franchises in south Kent will continue until further notice; Burden Bros Agri plans to open a new outlet in due course to ensure continuity of supply and service to John Deere customers in the area.

    The change is part of John Deere’s ongoing Dealer of Tomorrow strategy, which is designed to strengthen the European dealer network and provide long-term stability for both dealers and customers.

    “We are delighted to have been asked by John Deere to expand our services and facilities to cover the Kent and East Sussex region and parts of Surrey,” says Burden Bros Agri dealer principal Dale Burden. “This ties in well with our plans to grow the business and to be the partner of choice for the products we deliver.

    “We are committed to building on the high levels of service and after-sales back-up that customers in our new trading area have been accustomed to receiving from Bell Agricultural. We look forward to maintaining a healthy and successful business relationship with the farming community throughout the south-east of England.”
  13. Wooly

    Wooly Member

    Romney Marsh
    Bells are not going to cease trading, they have just lost their jd franchise.

    They are a great firm to deal with, so if they take on a rival brand I'm sure several farmers will follow them
    Matthew Britton likes this.
  14. Daniel

    Daniel Member

    You'd like to think Mr Burden feels some remorse at having stolen the independent dealers franchise, but I doubt it.
  15. Cowabunga

    Cowabunga Member

    I doubt whether either dealer had much choice. JD have publicly stated that they need to reduce dealership numbers to create bigger dealer groups. I think the minimum turnover figure was something like $12million of metal per dealer per year.
  16. Sebastian

    Sebastian Member

    What is the reasoning behind this?
  17. What about Simon ? Still selling same/deutz parts
  18. Lincsman

    Lincsman Member

    Reduce inter-dealer competition.
  19. Cowabunga

    Cowabunga Member

    The reasoning covers a multitude of advantages for JD and its dealers. As said above, as volume sales fall and horses rise, there is more and more inter-dealer competition which has the potential to sour relations between dealers and with customers.
    Biggest issue is to provide for stronger more efficient dealers with a good cover of skilled specialists in their group to cover all eventualities.
    Also bigger dealers are more able to stock a full range of the brand's equipment.
    They are more able to sell at a lower margin, partly as a result of increased efficiency, especially in the specialist monitoring of their staff's performance in terms of meeting and exceeding targets.
    JD can employ less staff that deal with fewer dealers.
    JD can virtually control these bigger dealers because they have already been proven to be the ones that walk the line to get where they are and are probably deeply committed in more ways than one, allowing the Mothership to dictate the running of every facet of the business. That might well suit these bigger dealers with that professional mindset bent towards mutual success and growth, but doesn't go down well with the dealer that has built up a business from nothing for the love of the job and wants to continue running things with an iron hand with no delegation or negotiation in major decision making. They are out.

    The dealers left at the end of this reorganisation will be 110% committed to doing things the JD way, with a consistently high standard of service and a dominant market share in each depot area, and growing. Every aspect of their business will be monitored and controlled by The Mothership

    Johnny Cash sang these apt words

    I keep a close watch on this heart of mine
    I keep my eyes wide open all the time
    I keep the ends out for the tie that binds
    Because you're mine, I walk the line

    I find it very, very easy to be true
    I find myself alone when each day is through
    Yes, I'll admit that I'm a fool for you
    Because you're mine, I walk the line

    As sure as night is dark and day is light
    I keep you on my mind both day and night
    And happiness I've known proves that it's right
    Because you're mine, I walk the line

    You've got a way to keep me on your side
    You give me cause for love that I can't hide
    For you I know I'd even try to turn the tide
    Because you're mine, I walk the line

    I keep a close watch on this heart of mine
    I keep my eyes wide open all the time
    I keep the ends out for the tie that binds
    Because you're mine, I walk the line
    Royal Blue likes this.
  20. BFF_Lurker

    BFF_Lurker Member

    Trying to be Dylan Thomas incarnate Duck ??
    Andrew K likes this.

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