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Tractor Talk Discussion Forum

So is everybody saying.....?

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rrlund

01-27-2008 09:46:37




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Reguarding my post the other day about opening a farm store. Is everybody saying then,forget the feed and a new building,just get a dealership through A&I and sell some parts? We've lost all of our dealerships and have a huge needs for SOMEBODY to handle bearings,chain,hydraulic fittings,things like that. I can do that from the buildings that I have. Somebody said don't quit your day job. Don't really have one,I farm full time. That's my biggest problem with this whole thing. I milked cows for 33 years,sold them 4 years ago and like the new found freedom. I really DON'T want to be tied down to a store. I'd been thinking I'd just buy more parts that I need myself,put the word out around that I have them. Write the price on every box and let whoever is home handle it if somebody drives in wanting something when I'm not here. D@MN,I wish that pin head that ran the feedstore in to the ground had taken my advice and put some parts in there and made something out of that place! He has an excellent location,HAD a good customer base to start with. Could have had it made. I DON'T want to be the one to have to do this!

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JT

01-27-2008 16:28:42




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
One of the biggest problesm you will encounter trying to sell parts locally, is the internet. As ong as someone is not in a hurry, they will buy it off the internet, and a lot of these "tractor dealers" that get set up, do not have a store front, do not have any overhead, no employees, nothing, stock no parts, they ship orders direct from their distributor, and never see your parts,so they will cut prices to 20-25% gross profit, you cannot compete, canoot survive at that low margins,you have bills to pay, so you will not get the standard common parts business, you will get the guy that only calls you when he needs some odd, obscure part, then when you do not have it, you will get the reputation of not stocking anything. I see it all the time, people ask where to get parts, instaed of looking local, they shop all over the USA, thinking they are saving money. So due to that, parts business is not as good as it used to be, then everyone wonders why there are no more real parts men left anymore.

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J Schwiebert

01-27-2008 15:52:24




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
Rick: I don't know about your aera. Here you would starve on both accounts. Now it is winter time. I would draw a circle on a good may that would cover a 20 mile radius. I would find out what 90% of the equipment is in that radius by brand and age and see where they shop. If you talk to them see how much of a committment they would make to shopping with you. Also to start with can you talk to them on preseason stocks. We always stock filters, and the boys have a Deere no till drill so we always have 4-8 spare bearings on the bench. This is not hay country, more straw than hay so I don't know about baler parts..

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J Schwiebert

01-27-2008 15:58:39




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 Re: So is everybody saying.....? in reply to J Schwiebert, 01-27-2008 15:52:24  
That should be MAP not may. Also FYI the local dealer has a salesman that gos around and sells Filters to local small trucking firms and it is on a year contract. Some things to think about. Furnish them parts for a year and have a contract to back it. The local feed company that has 4 stores is down to 3 and maybe 2 Plus the one with the best potential is the one that closed. When I judged 4-H projects last year it was very interesting on how and where these kids with hog project purchased feed. Good Luck >J

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335LP

01-27-2008 15:23:16




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
It will be hard to make it work mostly likely as rural America is slowly dying but if you have enough customers and can price things to sell you might break even if they buy and don't just come to drink coffee. All you can do is go for it and do it and plan your building so if you don't make it can sell it for something else later or turn into a bar giving that other guy competition lol. No matter who you go with A&I or others if they want to tell you what to buy and stock don't go with that as they don't know what sells in your area and will just end up with lots of dead stock you'll have to put on clearance sale at cost or below once or twice a year.

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ArleninOr

01-27-2008 15:16:38




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
I own a feed store and sell some tractor stuff mostly used not a lot of money to be made because you can never have what someone wants all of the time.If you could carry everything for any kind of machine would cost you big time money.If all you wanted to carry was the basics ie: tuneup kits, plugs, hoses things like that to begin with, no problem as long as you have an idea of the tractors in the area. Otherwise you end up with inventory that will just sit and cost you money.Have been in this store off and on since 1984.Have owned it the last 9 years and can tell you I am not getting rich. Helps pay bills but my custom farm work pays better.Wouldn't build a new building if you already have one that will work and like they always say Location,Location,Location!!! Good luck whichever way you decide.

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hayray

01-27-2008 14:41:14




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
Wish there was just a farm general store around me like you are describing. Stupid me went to TSC thinking I could buy heat tape. Would you guys believe that 5 people there had no idea what heat tape is? Then the manager who tried to act like he knew what it is said that heat tape is a seasonal item - I said it is January, what season do you sell it - he said September. How stupid is that, I already gave up on TSC for almost so much other stuff because it just is not worth the time to drive there and find out they ran out of a part they are suppossed to have but never re-stock it. Anybody with half a brain could do better then that.

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Walt Davies

01-27-2008 14:04:57




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
The local feed store has changed hands more times than a Hollywood actress changes husbands an now is closed. I wouldn't touch that kind of business with a ten foot pole.
Walt



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bob18

01-27-2008 13:06:02




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
Not to be a sour grape but speaking from experience heres the main problems you will face.1. people wanting credit (your good friends will disappear when you make them pay their bill)
2. without sinking a lot of money you WILL NOT be able to carry enough parts, bearings, chain, misc. to have what someone else breaks. then when they can't get it the first time they won't come back. I just closed a small parts store and in all honesty i think i could have made more money being a "go-pher" for parts rather than stocking them myself. IF you are really serious about this then why don't you approach a near by parts shop and see if they wopuld want to set up a satelite store and you could work off of their inventory?

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gene bender

01-27-2008 11:55:31




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
There must not be enough demand for the stuff to make money as i have seen in the last 3o pluss yrs how much the farm type stores have changed their inventory when you realy stop and think about overhead and floor space it takes lots of money to keep going.



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1 Dollar

01-27-2008 11:28:58




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
This my be completely out there. But, bearings would probably fit in vending machines. Those machines may be able to be modified to dispense other smaller things as well. Put the machines in a secure place and maybe something along these lines would work. No human needed to sell things.

Probably completely impractical but it popped into my head and thought that I would share.



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RodInNS

01-27-2008 10:52:42




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
I don't think I'd want to drop a pile of money on a building, store etc in this day and age. You do have to stop and consider that there are reasons why the rest of them went belly up. I doubt they were all poor manangers...
I know that around here that just wouldn't work. It might be different where you are, but here... the CooP has most of the market on that type of stuff although they don't deal in parts to any degree. There was another outfit that tried a feed store and I don't recall that it lasted very long.

I have thought like you that there could well be a market for parts here though. There is a lot of tractors around; mostly old Fords.... and most of the old guys that own them have no idea where to begin to find parts now that the nearest dealer is 250 miles away. I've toyed with the idea of buying a pile of inventory in that I need myself, but I don't really have the time either. If I had more help around it would be another thing. I think that could work though... Don't tie a pile of money up in it and see what happens.

Rod

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tractorsam

01-27-2008 13:48:56




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 Re: So is everybody saying.....? in reply to RodInNS, 01-27-2008 10:52:42  
I'm also in NS, down in the Annapolis valley and have been wondering similar things about parts supply for older machines (maybe even servicing as well?), not Fords specifically though. Around here there are a number of the regular tractor dealers who deal in aftermarket parts so I don't know if it would be really viable. I'll send you an email later on as I've got a few idea that I'd be interested to know your thoughts on. tractorsam

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Ray

01-27-2008 10:39:50




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
A&I is owned by john deere,they sell parts for about any model through any JD dealer,hard to compete with.



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135 Fan

01-27-2008 13:18:17




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 Re: So is everybody saying.....? in reply to Ray, 01-27-2008 10:39:50  
I never heard that JD owns A&I before. The problem with stocking parts is that you still have to pay for them and how do you know what you'll need? You could have shelves full of parts that you thought would sell, but instead are just collecting dust. You might want to look into becoming a mail order depot for parts. People could order the parts from you after paying for them and you could take care of all the shipping hassles, so they wouldn't have to. If you did enough business, one of the carriers might give you a better deal. Doing this wouldn't require you to lay out a lot of money. Once you know the common parts people need, then you could have some in stock. Dave

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Ray

01-27-2008 16:56:16




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 Re: So is everybody saying.....? in reply to 135 Fan, 01-27-2008 13:18:17  
I've had an account with A&I for several years.
Polk runs a warehouse for them in indiana.I got a letter from A&I probably 2 years ago saying John Deere was buying A&I.It didn't say if it was 100% ownership,but JD dealers sell from A&I books now.



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MSD

01-27-2008 13:32:41




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 Re: So is everybody saying.....? in reply to 135 Fan, 01-27-2008 13:18:17  
I too have heard JD owns or at least is a part of A&I. You can take orders and A&I will ship it right to your costomers door with your business name on the box.



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Gun guru

01-27-2008 10:17:22




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
Are you close to retirement age?



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rrlund

01-27-2008 11:16:46




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 Re: So is everybody saying.....? in reply to Gun guru, 01-27-2008 10:17:22  
10 years. As for the John Deere post above,don't care much about their business. Two nearest dealers are JD. About 35 miles either way from here. Those guys will drive. There are a lot of everything else around here because we had dealers for everything else at one time,Oliver,Allis,Case,IH,Ford,just to name the ones that were within 10 miles. That stuff's still around,a lot of frustrated owners wanting to keep those old horses running.Myself included. The big thing though,is the small stuff. Bearings,chain,flanges,simple things that everybody needs to keep on hand. But when you have a bearing go out at 4:30 in the afternoon,trying to bale hay and have to drive an hour one way for one bearing,or a chain link that you're out of and haven't had time to replace,THAT'S FRUSTRATING!

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RayP(MI)

01-27-2008 09:49:54




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 Re: So is everybody saying.....? in reply to rrlund, 01-27-2008 09:46:37  
I sure don"t have the funds to stat something like that. But you"re right about the need!



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rrlund

01-27-2008 09:55:15




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 Re: So is everybody saying.....? in reply to RayP(MI), 01-27-2008 09:49:54  
That's the heck of it Ray. I don't need the money and I don't know if it's worth the agrivation. Why don't you go talk to those guys in there where Crooks used to be and get them to get in to the ag parts business in a big way? I'm hoping to see Scott when I go to the stockyard tomorrow and see if he knows who bought Sacketts building. I got a flyer from Meidema that said it sold. If Janson bought it,problem solved and I can sleep again.

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