John Deere Closing Doors on Dealerships - The Combine Forum
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post #1 of 23 (permalink) Old 12-26-2005, 11:47 PM Thread Starter
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John Deere Closing Doors on Dealerships

I just got back from Christmas at my Uncles house (the Head Sales Manager from a Dealer in Oklahoma) and was told their dealership is being sold to a very large dealer in the state of Oklahoma. He said if/when they acquire their store it will be #10 in their chain of dealerships.

He told me that Deere believed that there were too many "Mom & Pop's" dealers running around, too many owned by only one or two people, and therefore no large dealerships and thus creating more paperwork for the large John Deere Headquarters. They believed that they now have the right amount of dealers to work with, so now in order to buy another John Deere dealer or to buy one yourself you simply cannot. You can however invest in one but you cannot buy one yourself, you must be a current John Deere Dealer now. That is why you are starting to see stores being grouped together under large Corporations of people owning large amounts of these dealerships.

This was believed to happen with the local cooperatives in the state of Kansas a few years back and it as since failed as they believed in 5 years (5 years ago) that only a few co-ops would remain and they would all be owned by a few others but instead it backfired and many of the largers ones went bankrupt and were again split into smaller companies. With size comes mis-management and bigger risks for loss. You know the saying "Don't carry all your eggs in one basket".... will this begin to happen with John Deere?

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post #2 of 23 (permalink) Old 12-26-2005, 11:55 PM
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Re: John Deere Closing Doors on Dealerships

Alex, you must be psychic! I just visited one of my long-time friends over Christmas who told me much the same thing. He does not own anything green, except for a few antiques and those are not tractors. It's really sad that when farmers need more dealers and local service the most, Deere is giving it to them the least. I really resent Deere's corporate policy on the dealership issue. In 20 years, I have the contracts deliberately pulled from long-time, well-established, "ma and pa" dealerships, only to consolidate sales to someone else's chain.

I'm really surprised more farmers and CH's are not just changing colors!







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post #3 of 23 (permalink) Old 12-27-2005, 09:06 AM
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Re: John Deere Closing Doors on Dealerships

Alex,

I'm just curious, but where does your Uncle work. I'm from western Oklahoma and both my parents work for a dealership whose network includes 9 stores in western Oklahoma and the Texas Panhandle. I have heard a rumor from a friend of mine at Oklahoma State who is from Medford asking me about the same thing. This was all news to me and your the second one I have heard make mention of it. In my opinion, 9 stores may be too many, but they seem to be doing well so far. I hope you had a Merry Christmas and have a Happy New Year
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post #4 of 23 (permalink) Old 12-27-2005, 12:02 PM Thread Starter
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Re: John Deere Closing Doors on Dealerships

I can kinda see why it would make things easier for peole having a few people to contact as they can call around their stores and see if they have it, but then again why not make a few extra phone calls, and end the tyranny of large corporations.

I felt the most sorry for them as their dad had just died this last August and they were told by Deere to either eat someone or be eaten themselves (Buy someone out or sell out themselves) and they choose the later as they're in no position to want another store as the two boys left are both farmers, and race horse owners, and several other endeavors that I'm sure are paying more than a dealership so they're getting rid of it.

They did have one really cool feature about the store however, they kept 3 of each toy EVER produced by ERTL for Deere since they owned the dealership (however long it was). They have the toys in the orginal box, and they have a semi-trailer that's inclosed they're boxing the toys up in 5' x 5' x' 4' boxes filled with toys, probably over 15 or 20 easy. They had a STEEL 6600 toy combine NIB for $7.00 when they were selling them, now what's something like that worth? Kinda interesting I thought, but 3 of every toy? There was 3 people in the dealership, I'm going to guess why they kept 3 of every toy, one for each one is my guess.
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post #5 of 23 (permalink) Old 12-27-2005, 12:16 PM
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Re: John Deere Closing Doors on Dealerships

That 6600 is worth at least $250 or more. There were those with a little metal chain for the reel instead of the plastic gear. I suppose those are worth maybe another $200 more by now. I had a chance to buy one back in 1978. It did not have the chain. Geesh, what a crude model, though! Not very realistic at all. Had I done it, I'd have a nest egg. It was priced at $15, which was a good chunk of money then for a min wage of only $2 something/hr.

I never got excited about any toy combines until the little bitty 1/64th ones came out. I did trade a 2-year subscription of my newsletter for a Joe Ertl Gleaner N6 back in 1985. Of course, I discarded the box [a crime I later found out. I also painted the reel bats silver and used black transfer film to make the realistic bands on the unloader shaft, painted the shiny silver screw heads white to match the cab. For years, my reasonably realistic N6 [the real ones don't have much resolution anyway] on my coffee table always with a binful of Hershey's kisses or mini Reese's cups.





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post #6 of 23 (permalink) Old 12-27-2005, 05:34 PM
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Re: John Deere Closing Doors on Dealerships

I work for a Deere dealership and there are 5 stores all together owned by one guy. He flies a helicopter(that he owns) to whatever dealership he will visit that day or may visit them all in one day. I'm in Kentucky. He bought his first dealership in '90. Now he could buy another one if one came up for sale and either keep it open or close it, I am not sure. But the small dealerships are being absorbed quickly.

I always found the small dealerships friendlier. Just my opinion though.
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post #7 of 23 (permalink) Old 12-27-2005, 06:31 PM
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Re: John Deere Closing Doors on Dealerships

I bet it is Western Equpiment in Oklahoma. Our next door neighbor owns 30% of that dealership we are very close freinds with them. They are becaming huge in the ownership of dealers, they also have bought out some large ones in the Texas panhandle.
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post #8 of 23 (permalink) Old 12-27-2005, 06:37 PM
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Re: John Deere Closing Doors on Dealerships

Sounds like it to me, too.





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post #9 of 23 (permalink) Old 12-27-2005, 06:37 PM
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Re: John Deere Closing Doors on Dealerships

Truth be told after dealing with cat, There is no need for a dealer every 20-30 miles. With excellent management, a mobile service tech can do anything to any equipment we have purchased from them in a more timely fashion than the red/green show 5 miles north of us..........Its now only the green show, Case shut down a 7 year old building 2 years ago. The local Deere will not be a familly dealer after the 52-54 year old brothers decide to retire. (their boys are my best friends and were told they never had a chance to run the store).

Its something we all will have to get use to, just like crazy land, Fert. and Fuel prices.
Good Luck to all!
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post #10 of 23 (permalink) Old 12-27-2005, 06:49 PM
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Re: John Deere Closing Doors on Dealerships

Deere wants their dealers to move to more service people working out of trucks instead of shops.

Brandon

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