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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?
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?