John Deere dealers

db9go

Member
Arable Farmer
Location
Buckinghamshire
Happed up here a family firm with one yard lost JD then another dealer opened a new depot five miles away within in a week or two nobody saw that coming rumour had it the new dealer knew six months before the sacked off one so he could get premisses sorted etc
This has happened before and it is starting now on the smaller groups who have to step up or get out. There is no sale value in the franchise as you have no right to sell it as the manufacture only gives 6 or 12 month rolling and they can give notice any time or reason. The older ones on here will remember Dalgety for one they had depots every were. And were are they now
 

Teejay

Member
Arable Farmer
Location
Romney Marsh
It was a very enjoyable event, lots of people, definatly need a TFF badge, there was a sense of deja vu as the site was a Deutz dealership 35 years ago. Nice to see a lot of Deutz staff in attendance as well as other suppliers. Good luck to Bell.
 

Speedstar

Member
Location
Scottish Borders
Happed up here a family firm with one yard lost JD then another dealer opened a new depot five miles away within in a week or two nobody saw that coming rumour had it the new dealer knew six months before the sacked off one so he could get premisses sorted etc
Has that JD dealer not just paid off a good few people this last week.
 

Badshot

Member
Location
Kent
You have to remember that until we walked through the arch it was all a top secret, and until now I didn't know you were the Agrosky expert so I wasn't really looking for you. I was looking for someone who can't shoot and he found me!!
Good to catch up Simon. I had no idea the deutz GPS was topcon either.
 

principal skinner

Member
Arable Farmer
Location
Bedfordshire
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.

I was told a figure closer to double that by an ex JD dealer
 

Cowabunga

Member
Location
Ceredigion,Wales
Apart from the turnover, Deere require this from any prospective dealer….

https://www.deere.com/en_US/corpora...s/doing_business_with_us/dealers/dealers.page

Minimum Equity Requirements


Investment in a John Deere dealership can be both rewarding and challenging. It requires someone with strong management skills and keen business acumen. Understanding of the retail business trade is a must; retail management experience is preferable. Other requirements include excellent people skills, a strong work ethic, and sound communication skills.


In addition, a dealer candidate should have adequate financial resources to assure successful operation of the business. The amount of capital required for consideration varies depending upon the product line. In general, minimum equity requirements are:


  • $10 million to $30 million for an Agricultural equipment dealership
 

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