Posted by oldtanker on December 30, 2014 at 07:55:16 from (64.118.3.75):
In Reply to: AGCO rant posted by Bob Bancroft on December 30, 2014 at 05:32:28:
Quoting Removed, click Modern View to see
Bob, when IH started closing down dealers (very early 70's not late) it had nothing to do with dealer profitability. It was costing IH money to deliver parts on a daily basis to each store. Simple solution, reduce the number of stores. That reduces the number of delivery trucks and drivers needed. We moved onto the farm in 72, I was 16. There were a lot of very angry farmers here in the area because now they had to drive 20 miles for parts when before it was 6-7 miles. I remember it well. It taught me that as long as several companies produce a reasonably priced similar quality product, brand loyalty goes out the window if the customer feels like the company isn't loyal to the customer.
Here it was kinda funny in 72. Almost everything newer was Farmall/IH yet the closest 2 dealers were JD and Ford. The JD dealers was a poor dealer who wasn't very interested in taking care of his customers and most of his business was parts. The Ford dealer was a car dealer who had, because of location been forced by Ford to carry the AG stuff. He didn't want the AG business at all unless they were buying a farm truck. By 72 the small IH dealers here were gone in this area. By 78 the JD dealer had passed and another dealership picked them up. In 78 it was shocking just how much new equipment around here was green. I worked for one guy in 72-3 who was IH, everything was IH to include a tractor he got new in 71. By 78 everything he owned was JD. But that didn't kill IH. Heck the last 2 years IH outsold JD. What killed IH was trying to operate on too small of a profit margin.
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