I think CIH just dropped another of our local dealers recently. I have yet to get down there and see for myself, though. A year ago at their annual consignment auction the dealer announced that CIH told them the end of their decades-long business relationship was probably coming, and they had been cut back to a parts contract. They had a single location and older, but more than adequate facilities.
There was another Deere dealer mega-merger just the other day locally. One more independent, single-location dealer is no longer so. These mega-mergers are always advertised as being beneficial to the customer. More parts supposed to be stocked, better quality and faster service is supposed to be provided, .... I'd sure like to see one that worked out that way.
CNH, Deere, AGCO, etc. don't want their dealers competing with their dealers. Multiple locations under the same umbrella of control reduce/end competition between dealers for sales, service, and parts for the same color of machine. The mfr.'s want to see (large) levels of growth in equipment and parts sales each year from each dealer. They have $$$ figures. If you don't meet them, your time is limited/up. They want to see the most modern of facilities. If you don't have facilities that meet their demands, your time is limited/up. Some of these castles that they call dealerships that have been built in the last 5-10 years and are being built today may start to be on the chopping block soon. If not by the end of decade probably by the middle of the next one. They just may not be modern enough to please the mfr.'s. It wouldn't be a bit of a surprise if the "Big 3" start moving toward a "company store" format where they control everything.
This may all blow up in JD's, CNH's, AGCO's, etc.'s faces eventually. That's for a CEO or two down the road to worry about, though.
When NH and Ford got together, they crap-canned our local NH dealer. Small town, piddly little location, wouldn't update the facilities, blah blah blah, etc.. 40+ years of representing the line, good sales levels, and excellent service, and they wouldn't renew their contract. The year they lost NH, they had the highest level of sales of both round and square balers in the sales district that year. On combines they came in 2nd. They didn't even have a full year to pull that off.
Adirondack case guy said: (quoted from post at 14:59:03 02/16/14) I would go out and demo., and convince a customer to buy a Red tractor, and then once I gave him the price and all the specs. he would shop every other Rde dealer in two stated for the best price. If I didn't meet the price, I was a SOB, and when the unit needed service and we told him he would have to wait till those that bought from us were serviced, we were SOBs again. Don't put all the blame on the mother co. or the BTO dealers.
Loren, the Acg.
There are alot of people that don't value the quality and timeliness of service their machine may need from the dealer when buying that machine. There are alot of (potential) customers that will throw a dealer under the bus for one tenth of one percent of a difference on both parts and equipment pricing. Sad, but true.
But, what about the guy who buys from the local dealer, and that dealer is dropped by the mfr.? Mfr. tells the guy to go to a another dealer (who can more than handle what's entering their shop currently, but maybe not another 50%+ of that) and that guy is now put in the back of the line behind their existing customers when service is needed. He might just happen to get screwed around a bit if (because) he didn't buy the machine there. There is alot of truth in what you said, but it can and does work both ways.
AG
This post was edited by AG in IN at 07:32:16 02/16/14.
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