dealerships

Ive always been into farming and loved the people involved with it. I am a pretty smart kid as well. (Although still very young) I have quite a bit of experience with tractors and farm equipment. What kind of opportunities are their in a tractor dealership? Is it a decent career option? Do you make enough? All responses would be appreciated.

and not to start an argument but what brand would you reccomend? I would think JD, Case IH, MF or AGCO. Not really a big Kubota or New Holland fan. But, obviously you have to sell the small tractors so Kubota would be an option.

If I had a son looking to start a career diesel mechanics school would be a great starting place. They make a great wage and the demand (as with most skilled trades) is huge. If you don't go to school and simply become a helper in a garage your wage potential is very limited.

well im definetly going to college. Im in high school and i take all honors courses and am already going to college to take courses half the day. I am just looking at options because i love farming and all the people involved in it.

and i have strongly considered becoming a diesal mechanic. I know i will have plenty of diesal things to work on when i grow up so i better know how to work on them! (cummins truck, tractors)

Ithink if you have a boatload of money behind you, you could have most any kind of dealership you want. If you don"t well lots of luck to you. You see the market for farm equipment is growing smaller and smaller as the farms become larger and fewwer so do the dealers.

I worked in many tractor dealerships and they never paid what I would of been making as an auto mechanic in a car dealership. Last Deere dealership I worked in was around 1991. Maybe things have changed, but I doubt it. I was the highest paid guy there (in the service department) and got $12 per hour plus lots of overtime, one month vacation if I took it in the winter. Also got profit sharing, but during the last couple of years, there wasn't any. Earlier I sometimes got an extra $5000 per year.

I was offered a job last year to run the parts counter and service department at a newly opening Deere dealership in a rural area. They offered me $10 per hour plus half my family's health insurance. I suspect I could of done as well stocking shelfs or driving a truck for Walmart.
Needless to say, I didn't jump at the offer. Good thing. They're already out of business.

My advice is, forget it unless you really love tractors. At least when I worked at dealerships, we did all our own head work, water pumps, injection pumps, cylinder heads, piston-pin fitting, piston knurling, etc. So, it was a great learning experience. Now? What do you get to learn? How to send parts out to get done elsewhere.

I don't want to put ideas in your head. But, I've got two sons that joined the Navy, got great tech training in the nuclear program. When they got out, they had several companies waiting to hire them. None nuclear based. They just wanted to hire live-wires that could think. Both have been doing great ever since. Both make more money then I ever dreamed of making. Both in engineering fields but more tech, and less "grease-monkey" work.

From what I've seen and heard, many companies are much more eager to hire well trained military people than those who have only college degrees. It's a shame, but most college degrees now adays are a "dime a dozen" unless very specialized. I've certainly never used any or mine for actual work. Lot's of PhDs flipping burgers or bartending in today's world.

I worked at a farm equipment dealership from 1972-1984. I did everything from parts inventory once- to small engine repair(lots of lawn tractors and chainsaws) to set up and delivery work, to all kinds of mechanical/welding /electrical work. Except for the owner, I was the only one there who had a handle on where everything was in all departments. I definitely wanted into the business. The owner had other plans. I became very disillusioned. I turned down the offer of shop foreman. I walked away from a fully furnished company vehicle, full health benefits, paid vacation,etc. and started farming from scratch. And almost starved. Now 25 years later I doubt I could find anyone I'd like to trade places with.
So be careful. Take advantage of all the education you can stand. I've never seen anyone who gets dirty working for someone else ever have much more than a job. Maybe it's different now. I don't mean to be discouraging, but want you to achieve your full potential, AND enjoy life. So, again, be careful, and proceed with your eyes wide open. Best of luck.

WELL I,LL WADE IN.. FIRST YOUR LAST POST.. MY OPINION TODAY THE ONLY DEALERSHIP I WOULD THINK ABOUT HAVING IS A KUBOTA.. WYH THEY ARE LIKE
CO-COLA AND BUDWISER BEER, THE MARKET IS THERE.
THAT SAID JUST FINISHED 28 YEARS AND SOLD OUT FOR BIG BUCKS..YOU WILL FIND THAT BETIME YOU GET ENOUGH MONEY UP TO BUY A DEALERSHIP YOU PROBABLY WANT THINK THAT IS WHAT YOU WANT TO DO. REQUIRMENTS FOR A PURCHASER OF AN EXISTING KUBOTA (AND ABOUT THE SAME FOR DEER) ARE YOU HAVE TO HAVE ENOUGH CASH ON HAND (NOT ACCES TO CREDIT) TO COVER ABOUT 6 MONTH SALES.. THESE MANFACTURES HAVE BEEN BURNT BU PEOPLE SKIPING OUT WITH HUGHE FLOORPLAN SHORTAGES SO THING ARE REALLY TIGHT. EVERY BODY I KNOW THAT HAS AN AGCO-MASSEY DEALERSHIP WOULD LOVE TO SEEL, THEY ARE JUST A HARD COMPANY TO DO BUSSINESS WITH..
DEER FORGET IT UNLESS YOU CAN AFORD TO BUY 4 OR 5 DEALERSHIPS THEY ARE CLOSING ALL SMALL DEALERSHIPS AND PUSHING FOR BIG REGIONAL DEALERSHIPS..I HAVE BEEN PARTNER IN A IH THEN CASE IH AS WELL AS INTREST IN FORD AND MASSEY AND KUBOTA IS MUCH BETTER COMPANT TO WORK WITH
AND THEY ARE NOT PERFECT.. RIGHT NOW JUST HAVE A LOT OF GROWING PAINS.

I don't have the answer you are looking for, but if your local dealerships only have young kids working for them, they have an employee turnover problem. If the guy isn't getting a decent wage, he goes elsewhere when he has a little experience.

Thats very interesting. I will certainly look into that. How smart are your kids? Of course you think they are smart but i guess i mean how did they do in school? 4.0? Did they graduate in the top of their class?

sounds to me like you already have to be a true "business man" and have money available before you even start. I just see guys on here always talking about how their really arent that many good dealers out there. Its sad. Parts take to long.

Anyone with your attitude and capabilities is going to do great no matter what you choose to do. No dis-respect intended, but I doubt that you know anything about farming.........for a living. Around 'here', farming is a business, a big business; not at all unusual for a farmer to have an operating loan of $500,000 to $1,000,000.

im really not interested in farming as far as the huge farms go. I have always loved the muscle era tractors 60's through 80's. It has always seemed to me that the big farmers

1.are in debt up to their eyes
2. have nice equipment that they cant afford
3. dont seem to like it. They seem so stressed all the time. Which im sure they are.

I would love to hobby farm becuase most the tractors i like are older and not very sufficient on big operations.

jm: Caps are always offending.

the only way to get make a little money in farming is..

To start out with a lot of money.

Otherwise work you butt off, and be happy in doing something you like.

To who? When you get my age it makes for easy reading. Sorry if it bothered you..My typing
is awfull so I hate to reply but he seem like a nice young man and was just trying to give him
the advantage of my 89 years,,, Have a good day.
Jerry

I put in 15 years at dealerships- green and red. Each definitely has its own "culture". Like any career, there were parts I loved and parts I hated. Loved being part of the excitement of the changing seasons, loved being around all those cool new machines, loved rubbing elbows with all the big operators and helping out the Little Guy. Loved the mechanical challenges. Enjoyed the respect and appreciation of a few loyal regulars. Liked hearing all the latest jokes.

Hated having to start up with the first Wild Man Early Bird and slog on through until the last Stragglers stumbled across the finish line. Hated being on call for always the same guys who didn't care that maybe you had a personal life. (I once got a call from a guy asking me to stay open for him. Shows up with family all washed and dressed to go out to dinner. He bought two cans of paint.) Hated being told when I could take vacations. Quality of health care in small towns can be pretty dismal.

I firmly believe it's in our national interest to keep farmers afloat during bad years with whatever bailouts are necessary, but those bailouts do nothing to help the implement dealer (or other support industries, for that matter).

My last stint was with a guy who was pretty proggresive- 401k and all- but that was rare, especially in small-town USA.

If you want to go into ownership, expect to answer to the deep pockets of an investor (perhaps more than one).

Think about it like you were going into dairying with all its time commitments. Only instead of cows, you've got a herd of people- good and bad.

"Smart" and "good in school" are two different things. But both are smart. One was very good in school and skipped a grade. But, he dropped out of college - not because of intellect, more because he just wasn't ready for that environment and lack of structure. He found it in the Navy although he always said he hated it. Every time he was ready to get out, the Navy would offer him a $10,000 or $20,000 bonus to re-enlist. So, he fell into that trap a few times and finally left. When he got out, he was offered a high school teaching job with NO college degree. He tried it, and had a certain time to get a degree. But hated teaching. So, he then got an engineering job, again with no degree. Then over the years with the GI bill, he got a BS and MS.

The other kid did OK in school but was bored and didn't work at it. "Luckily" he got into legal trouble and the judge agreed to let him off if he joined the Navy. He did great and basically, enrolled in the same nuclear tech programs as his older brother. His biggest complaint in the Navy was there was little incentive to do a good job on anything, or work hard. He was given an engineerning job (aerospace communincations) as soon as he got out, even though he's never been to college. Now he's got the GI bill to help pay and he'll be going to go an get a degree - just to have it. Not sure when. He had been stationed in Japan and Korea and married over there. Brought his wife home, then got divorced, etc. So, he was a bit preoccupied for awhile.

I know a few other kids in the area who did just as well, and one I used to think was an idiot. Who knows? Main thing is - you need to get into a good tech program so you actually learn something that will be marketable later.

I've got three adult sons. One avoided the military and went to college for his BA and MA. He works for IBM and makes the least, as compared to his two younger Navy-trained brothers. Also has the least secure job.

By the way, they also made a lot of money while in the Navy. The military has certainly changed a lot since the 60s-70s.

I have two sons. Oldest has his BS in international agriculture and econ. He works for corporate John Deere. He is halfway through his MBA Deere is giving him $15,000 a semester towards his schooling. He commented that they never can get enough good, trained "techs"

The youngest is starting year # 4 in the Navy. He is an EN (engine man), Works with the diesels, AC, damage control, refueling and on the VBSS team (Visit, board, search and seizure, Pirate hunter)

The Navy is giving him an early out since he is enrolled in a John Deere tech training school. He will get a two year Associates degree from Pittsburg State (KS). In conjunction with this, the John Deere school is just up the road. He had to get a John Deere dealership to sponsor him. When he is not in school, he will work at the dealership. The Navy is paying for the schooling. If it all works out, he will have his Associates degree and be a certified John Deere tech.

So both boys will work for Deere, just took different routes.

You might look into the Deere tech program. Although if you are looking towards a 4 year degree in ag., then consider looking into the AFA, Agriculture Future of America. Based in Kansas City, Mo. A philantrophy of United Missouri Bank. The AFA gives scholorships ($3,700), leadership training, and summer internships to students enrolled in 4 year ag programs. They are mostly in the midwestern states. AFA is a tremendous program. The oldest boy was involved in it all 4 years of school. Sure helped with the bills. Got some great internships and met tons of important folks in the ag. industry.

Do a Search for AFA, that applys to anyone with kids looking at ag school.

Good luck, Gene

I worked for a dealership briefly and had other exposure to the farm equipment business. I will say the opportunities are there but you will most likely have to consider relocation. Salaries for those not a part of ownership will range from 8 to 11 dollars per hour with minimal benefits. You will have to figure out if you can live on that by yourself.
I would expect with the boom on commodity prices fading away (already gone with dairy) dealerships will again be re-evaluating employee compensation like they did in the 1980's (after the 1970's boom) and when a lot of consolidation happened in the 1990's (at least here in NY). I think there will be fewer employees being paid over 10 dollars per hour as dealers will be again looking for ways to enhance profit for ownership. Supply and demand. There are plenty of qualified individuals to fill the relatively few dealer positions available. Used to be you could have a leg up if you trained on the newer technology but for anybody to survived this long as an employee probably means they have done the same.
I felt the same as you going into college 25 plus years ago but I don't think the future is promising in it.

It's hard to recommend to anyone to pursue that kind of business based on discussion or a liking of equipment. I think some of the important aspects revolving around dealing in tractors, new, used etc. have been mentioned, maybe not all, but in short, dealing in this kind of equipment can be a risky business venture, because of the potential low profit margins, markets and many other serious considerations detrimental to success.

We had a Ford Tractor dealership, late 60's-70's, I was a young kid at the time, but the tractor line was pretty good, ag equipment maybe not so good compared to competitors, also not to forget industrial and similar models, like LCG tractors for mowing by local municipalities and highway maintenance departments, we sold 3500-6500 series industrial tractors/backhoes, with a decent margin and a viable market for same, the power company was a big customer. This was the largest ford dealership in the area and was well established a good 25+ years prior, 3 full time mechanics, 2 parts counter guys, a clerk and I remember a few others at times. I found a payroll book in our old house, years back, boy the wages they earned were meager to say the least.

The hardships I recall, were more franchise like and or related to Corporate HQ, I mean you owned what was on the lot, meaning you financed it, they tried to dictate what you sold, we wanted to push the industrial line, they wanted us to push ag, and it was hard times then for farmers too, + beyond tractors, competition probably offered better equipment. Our dealership sold 29 backhoes to the power company, corporate people wanted the other dealership to sell those, they tried to sour the deal by imposing some odd financial arrangements, kind of playing us like a puppet.

We had an extensive shop, and 2 stories of parts inventory, I have some photos of the old place, years after it was defunct, sure was a nice shop, but in those days you were well equipped, and boy was the parts inventory something, there was quite a bit on hand.

In short, that's just an example, there are lots of things to consider, we got out of it, but I firmly believe that we could have diversified and found another line or mfr/mfr's to sell, industrial, construction etc., because of the leaps and bounds to what we have today, the years in between could have provided a means to get there. I have seen success stories with several business's, because the market was there in addition to other things that will contribute to success in that business. Contractors, construction and industry was not too bad around here, some outfits did well in those markets.

I can't say for sure what all the secrets are, hard work, dedication, you have to have a market and a good line, be able to support parts and service, and be able to turn around repairs when a customer needs something asap.

There's a lot of turf to cover when considering something like this. Our old competitors son, picked up the AGCO/Challenger line in '04, then M-F, 2 branches, back to one now and I don't see the inventory on hand when he first opened, and have recently heard his health and or economic times have put a damper on business, he may have closed, maybe thats a silly rumor too. He also carried a rental line of CAT equipment, with some pretty good deals, sold used, and although his fathers original business is still going, they sold off the biggest branch in '90, nice auction too, they now carry New Holland, years after Ford merged, they took Ford when we got out.

As I think about this now, it is a bit perplexing to consider getting into that business without a really well thought out plan, in addition to matching up a mfr line to a potential market. On the old site of our competitors, there is 2 equipment dealers, one Kubota, the other heavy equipment, mostly used CAT and it's really a branch of a large heavy/highway construction outfit, providing a way to dispose of equipment no longer needed, neither the kubota dealer or the used heavy equipment dealer seem to be moving equipment rapidly, though the Kubota dealer always has a lot full, + sells Stihl and other things, there sure is a lot to consider, you need a place to set up shop, one that is visible, all the financing, customer base, repeat business etc. etc.

Not sure if any of this is of any real help, nothing wrong with pursuing this, just beware, many a success story has overcome huge obstacles, might be very difficult at times, no different than most business ventures, really have to be a meticulous manager, have a good business sense and be able to sell, and sell at a profit.

Looks like they are still going, kind of a recent start up, hard to say what the bottom line is a the end of the day.

http://www.earthwormequipment.com/

jm if you have eye problems,asI do.You should have an option on lower right of moniter to enlarge the print ,up to 150 percent.

I have worked for the same dealer for 22 years. We were an AGCO dealer. The tractors weren't selling to good, New Holland came available so we now sell them too. We have service techs that can work on all brands. We also work on trucks. In order to keep up with the work the shop has been add on to. As far as making enough money I do aright. I have a number of benifits.

i know nothing about dealerships from the inside-- id find a good paying career-- and fix tractors at home at nite and weekends-- find a career to make a living with and a side job that you love to make your fortune, so to speak. i have no tractor newer than 1964-- D-17 IV -- i will buy one or two each year and do some repair-- you have to buy them right if you are going to repair properly and make any money-- i have one guy who twice a yr tries to sell me a JD 520--id love to have it- but he wants $3500 for it and it needs tires and hasnt run in th 8 yrs that i know of. learn a skill that is in the forefront and it will give u and niche that will give you the edge- good luck and i think you have a fine future as you are thinking about it now and asking advice-- but you maybe should consider what it has cost you--nothing

Get into government it is growing in leaps and bounds !!!! or otherwise known as hope and change.

I've been working in parts departments for years and you just can't get ahead. Hard to make ends meet. But I have always had a job which is better then 1/4 of the people out there today.

i spent about 25 years of my life working for various Ford/Lincoln Mercury dealers...not management really other than a short stint as service manager that i hated...anyhow with prices the way they are these days i wouldnt even attempt to open a dealership of any type without about 10 million in reserve if you want biz to survive...hope you got some rich relatives or get a tip on lottery.
good luck

i agree and i want to thank you for your advice. The navy certainly is an intriguing possibility to say the least. The farmer i worked for over the summer was in the army before he started farming. He told me the Army helped him make some money to buy some land and a 4020. Now hes over 60 still going strong farming 2000 acres. He has helped me a lot. Its nice having people help out and care that dont necessarily "have" to. There arent enough people like the people on this forum in the world.

i dont know if i could neccesarily "live with myself" if i worked for the government. I know there are opportunities there but i jus prefer to work with different people.

thanks gene. I certainly have a lot to think about. I think being a John Deere tech is definetly an option for me.

thanks Jim for the compliment and the advice. With todays times it is definetly important to choose careers wisely. I appreciate the reply.

With mergers, consolidations, and changes it really doesnt matter so much about the brands. With Case/IH and New Holland now under the same roof, and mostly owned by Fiat who knows. From the cheap seats where I sit around here it looks like the Deere dealers which also carry a Kubota franchise are the ones making money. Im friends with several of their shop guys. Most of them start at a shade over 10 an hour and top out in the mid 20's an hour. The Cat techs are the ones who seem to be making the most. With over time a lot of them will make 50K a year. Especially the ones who also have underground certification to work on underground mining machinery.

Sales guys, just guessing since I know a lot fewer of them seem to be making in the mid 30's to mid 50's a year average. The money in sales in in yellow equipment. A couple of the Cat sales people I know well were bringing home low 6 figures before the economy tanked. They are still doing ok, but not making what they were. With sales, it seems that location and territory are everything.

As for diesel mechanics, dont just think ag and yellow equipment. Railroads employ a bunch of them, so do trucking companies.

Of course, with your grades and honors courses, why not branch out? Why just fix them when you can design them? Mechanical engineering perhaps?

the guys with their own shops seem to do pretty well in my area. they have no employees and fix everything under the sun. I know one had a real job as a JD tech for many years. The other i'm not sure how he got started.
Things are changing so much it seems that advice that was good even 5 years ago is complete bull today, and even common sense won't guarantee career success.

I work for an aftermarket auto parts store & make 9/hr after 6 years fulltime. I got into the discussion against college at work one saturday with a customer. He knew me growing up and seemed disappointed that i was working there knowing i went to a prestigious 4 year school for the area (i get that alot actually)...long story short, another customer piped up when i said i decided tech college is the way to go. he said he was an electrician that started as an apprentice and that many of the trades and vocations still offer the traditional apprenticeship training, so you basically get paid to learn and when your training is done, you have more experience than a tech college grad. you will be more favorable to be hired. You will have zero debt for education (tools and such you will likely pay for). He said the high schools will never tell you this because college recruiting and education is big business.
I believe the guy as I had never heard about apprenticeship as an option in the USA. And look at the price of any college times # of students--more money than oprah!

there's a lot out there but you gotta find it yourself. Go talk to people doing what you think you would like to be doing. You might get a chance to do a job shadowing or short internship, and maybe get school credit for it as well.

good luck
karl f

Been there, dreamed just like you. I went to 2 years of diesel mechanics and got a job at a Case IH dealership. I stayed there for a bit over a year, leaving due to a pricky owner. From there I bounced to an Agco dealership and fixed their small engines. Believed the ownerships word and he didnt keep any. 9 months later I bounced to a Deere dealership where I thought I was going to spend my working career at. Last spring I was nearing 3 years of service. I got a pay raise, bought a house and a month later got let go without much for reasons. I applied at 7 different dealerships and never got re-hired into a dealership. To say you have experience means nothing, I guess.

The farm equipment dealership scene is at times weird and clicky. John Deere preaches they cant find enough good techs, but dealerships in this area constantly hound and hound their techs causing alot of guys to quit or get fired. Alot of times your success in the dealerships has nothing to do with your performance, its how the boss find you in his eyes. Kiss butt and the raises/job security will come. Do I miss working in the dealership scene? Yes, I do, but the politics of the dealership I do not. I now hold 5 different jobs, including a repair business out of my garage and farm equipment buying and selling on my own. I now can do what I want without having to be looking over my shoulder.

If you want to get into the dealerships, good for you. I just wanted to say my experiences from someone that was in the inside, since from the outside it always used to look so promising. Good luck!

Are you wanting to work for a dealer or have your own? Only 'new' dealer I know of to open around here the last 15 years had a real hard time getting off the ground and closed after two years and the old man who opened it with his own money after wanting to own a dealership all his life was flat broke. If you are just wanting to sell stuff, start peddling some small used stuf. Easy to to and don't have to have a great deal of money to get started. I have a buddy who started jockying a few things a year and got to where he has a pretty fair used lot and is now a Salford dealer.

If you are wanting to work on stuff, stay in school and then get a job at a dealer. Save your money and you can open your own shop some day. There are two guys close to me who have gone on there own the last few years. One has a nice big pole barn shop and stays backed up just working on tractors. The other has a service truck with welder and all. He works on every thing and stays backed up a few weeks but works in urgent work in the spring and fall.

Government is only as good as the people who work there. We need more employees who strive to tell the truth. More who work by & with the laws. For almost 36 years I worked a public service job. It is NOT easy.

i was thinking about owning a dealership. Certainly not anytime soon. But I was looking at it as a possibility.

Go to the best Engineerning school that you can get into.Engineers are always in demand. Then you can design the equipment of the furture. How much satisfaction do you think is in looking at something and knowing that you desiged it. Any monkey can be trained to work on things.A degree in engineering will open more doors then you could ever think of.

Seems that engineers certainly are in high demand. But, not so sure about the satisfaction, though.

I've got three engineers in the family and all have the same complaint. They rarely get to see the end product and how well their input may of helped. That because much is departmentalized, or put into small sub-groups. That incudes a Ford engine systems engineer, a magnetic imaging engineer, and an aerospace communications engineer.

On the other hand, my wife's sister chose an obscure "packaging engineer" major in college. Had her BS engineering degree in four years. She designs boxes for Colgate-Palmolive for stuff sold all over the world. She really likes it, except for the travel requirements.

Also have a good friend who has a Masters Electrician's License and ran his own business for years. Got bored out of his mind and went to school to get an electrical engineering degree. Finally got it and hired for several big jobs. One was running a nuke plant. He hated it all and was even more bored. Finally quit and started his own commericial wiring business again. He's much happier working with his hands.

Moral of the story is - everybody is different.