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Tractor Talk Discussion Board

Re: Nearly 40 years of nothing but green coming to a close


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Posted by JD Seller on August 06, 2018 at 20:08:05 from (173.215.45.26):

In Reply to: Nearly 40 years of nothing but green coming to a close posted by philip d on August 06, 2018 at 17:54:58:

JD is stacking the deck to favor the mega dealerships. The biggest way is to have all the stores in one pot so they build sales volume together. While a single location has to go it alone. Then JD makes the level of sales be larger to receive a volume payment at year end. So the mega dealer may get as much as 10% of his total sales volume back in a volume check. The single location would be lucky to get 4-5% back. Then JD plays with the market share requirement as well. So lets say that there are 20 100 HP tractors sold in your county. JD says that 50% of them should be JD tractors. So you have to sell 10 100 HP tractors to meet your market share goal. If you don't JD will cut your volume even lower. So if your in a county with other brands like CNH and MF you may not be able to sell that high of a share.

As far as part availability that is largely dealership driven. Around here even the mega stores are close enough they run a shuttle van between the various stores to help cover needed parts at different stores. I can look up my parts on line. I then can look to see if my local store has the parts I need. If they do not I can look at the other stores in that chain to see if any of them have it. If I call and let my local store know what parts I need before 9AM they can get the parts from the other dealer locations. I can usually pick the parts up after 2 PM that same day. Here in North-East Iowa they get stock orders three days each week. So even if non of the other dealer locations have it I can usually get the part freight free in a day or two. If I absolutely have to have it I can get Machine down parts the very next day. I have to pay the freight. IF I want to drive to Milan IL. I can go pickup the parts there seven days a week. The local dealer has to order them and set it up for customer will call but you can do it.

So around here none of the other brands is even close in parts availability.

The trouble is I have three different Mega store chains to deal with. There are no locally owned stores left. If your buying new equipment your not going to get much competition on that new sales quote. It is pretty much take it of leave it. JD enforces that too. There are always unpublished discounts. They are only good to customers in that dealership's sales territory or for customers out of that territory that the dealership can prove a prior sales history with. So if your thinking you can go three states away and get the discount it will not happen.


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