Corporate's business model has changed, not the local dealer.
The dealer's priority has always been to represent/sell the line, provide service, and to maintain an adequate parts supply for both current and potential customers. Sidelines are available for dealers to service their customers' needs if their major line doesn't carry those items, or if a sideline offers a superior product. This holds true today. Yes, you can still do this at a single location.
Corporate's priority is now to eliminate any competition inside it's own ranks, and remove as many sidelines from dealer lots as possible. The "big 3" are the majority of what's left, and they want dealers to change the farmer's equipment color, not allow infighting between dealers of the same color who would dare try to undercut each other to cut a customer a better deal. The attitude seems to me to be that the customer is not the dealer's customer anymore. They are a customer of corporate that happens to have a dealer that the customer goes to, and they feel that customer will follow corporate anywhere, whether the dealer continues on with them or not.
One local red dealer was basically ignored into oblivion by corporate. Parts stock for new equipment back to the '40's was excellent. Service dep't. was excellent. Parts counter guys were the best. They did not move a bunch of new iron, but could service the newest peice of machinery available. New technology didn't phase them, but many of their customers shyed away from it. (These same customers aren't buying new equipment today, aren't going to buy new equipment tomorrow, and aren't getting out of farming, either.) They had one store, and were "competition" to a franchise that had multiple locations, one in the same county. Store was bought out and moved. Service dep't. is still second to none. Parts counter guys are still the best. Even though they do not "officially" carry the red line anymore their red parts pricing is still 5-10% less than the closest location of the mega-chain (and with much more expertise and less attitude behind the counter). Go figure.
Another local red dealer with a single location has only a parts contract until next spring. I can't imagine that they and the three others locally (two of which are together) not part of a mega-chain will last much longer as they are, and it won't be because of a lack of service and sales or inadequate parts stock for their customers. It's corporate's way or the highway. They feel you have to "move" so much money (eq. & parts) each year, mega-dealers with mega-facilities appeal to mega-farmers, and mega-farmers are where the money is at.
Why corporate thinks it's not good for their image for a farmer to travel 30 miles to see a single-location dealer when they can travel 30 miles to see a multiple-location dealer, sometimes in the same building with the same parts on the shelf, equipment on the lot, and employees/management in the building, is beyond me.
AG
This post was edited by AG in IN at 15:28:39 07/11/13 4 times.
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