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John Deere reducing dealerships
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<blockquote data-quote="Andrew" data-source="post: 6683568" data-attributes="member: 93"><p>OK so if JD bins all dealers they would need to employ a huge number of fitters to do warranty work, servicing, breakdowns etc. </p><p>These fitters would be based at Langar, where the main UK parts depot is. There would be a stupid amount of miles covered per day by fitters.</p><p></p><p>They would soon realise it’s better to have regional bases for the fitters. This would reduce travel time, getting more useful work out of a fitter, therefore less fitters needed - less wages - pays for the depot. Then they’d have to stock parts at the depot for the fitters and employ a parts man. </p><p>Then they may as well have a few courtesy / demo tractors there and a salesman. All of a sudden they have ‘dealerships’ but with full control and a lot of investment.</p><p></p><p>JD don’t want the investment, but they want the control. So they force the dealers into bigger and bigger outfits, with all the depots built to look the same. Makes it really hard for the dealer to switch brands, then JD can screw there profits down and down. They have full control, maximum profit, with minimal money tied up.</p></blockquote><p></p>
[QUOTE="Andrew, post: 6683568, member: 93"] OK so if JD bins all dealers they would need to employ a huge number of fitters to do warranty work, servicing, breakdowns etc. These fitters would be based at Langar, where the main UK parts depot is. There would be a stupid amount of miles covered per day by fitters. They would soon realise it’s better to have regional bases for the fitters. This would reduce travel time, getting more useful work out of a fitter, therefore less fitters needed - less wages - pays for the depot. Then they’d have to stock parts at the depot for the fitters and employ a parts man. Then they may as well have a few courtesy / demo tractors there and a salesman. All of a sudden they have ‘dealerships’ but with full control and a lot of investment. JD don’t want the investment, but they want the control. So they force the dealers into bigger and bigger outfits, with all the depots built to look the same. Makes it really hard for the dealer to switch brands, then JD can screw there profits down and down. They have full control, maximum profit, with minimal money tied up. [/QUOTE]
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