John Deere reducing dealerships

Andrew

Never Forgotten
Honorary Member
Location
Huntingdon, UK
I wonder what advantage they see in that, considering that they are already market leaders? Is it so that the dealers and the UK office staff can be drastically culled? Is it so that they can virtually run these dealers almost like holding them to ransom?
Or is there a big marketing advantage to them and a service advantage to the customers? Perhaps quality control and efficiency of service would be easier to monitor and improve as well as the 1st pick spares availability through each dealer having a massively bigger park of machines on farms relying on them?

To put this into perspective, some brands with less than one hundred total UK unit sales have more than eight dealers.

8 dealers with 10-12 depots built in the ‘Deere’ format, means those dealers are effectively tied to Deere , and cannot jump ship. JD can then screw their profits down, increasing their own.
Eventually they’ll force them under and take over the dealerships themselves. Full control with less capital outlay.
 

Cowabunga

Member
Location
Ceredigion,Wales
8 dealers with 10-12 depots built in the ‘Deere’ format, means those dealers are effectively tied to Deere , and cannot jump ship. JD can then screw their profits down, increasing their own.
Eventually they’ll force them under and take over the dealerships themselves. Full control with less capital outlay.
I don't believe they will let them go under but will pump some capital in to 'help' them with the intention of controlling their business while not having the capital requirement to hold new or, especially used stock. Those debts will be off their books and on dealer's books. Deere will effectively control those remaining dealerships while they are managed from day to day by proprietors who take all the pressures and who have massive financial commitments underwritten mainly by the Mothership.

That is my take on what drives the policy. The dealers will be 'driven' to succeed by overwhelming commercial pressure from above. Those that resist are eliminated.
 

vantage

Member
Livestock Farmer
Location
Pembs
I don't believe they will let them go under but will pump some capital in to 'help' them with the intention of controlling their business while not having the capital requirement to hold new or, especially used stock. Those debts will be off their books and on dealer's books. Deere will effectively control those remaining dealerships while they are managed from day to day by proprietors who take all the pressures and who have massive financial commitments underwritten mainly by the Mothership.

That is my take on what drives the policy. The dealers will be 'driven' to succeed by overwhelming commercial pressure from above. Those that resist are eliminated.
It’s the American corporate model, Smithfield Meats do it with the farmers who rear hogs/pigs for them.
 

SFI - What % were you taking out of production?

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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