John Deere want to copy Cat. I was at a dealer principle meeting 20 years ago when they first started talking about this. The JD management guys where drooling thinking about it.
At that time Cat sold three times the volume of JD in gross new equipment dollars. JD at the time had 2400 dealerships in the US. Cat had under 500.
That is what JD is driving for. Most of the farmers are going along for the ride.
Here is why I say this. IF two car dealerships are owned by the same person. They can't fix the price between the two stores. Meaning if I price a car at one store then go to the other one they can't share my deal/quote with the second store. It is called "price fixing". It is illegal.
Now JD has a program that ALL salesmen use at the multi store dealerships. It is called sales quote. So when you go and get a price at the one dealership in the chain of stores that quote is entered into the computer system. So if you go to the neighboring store and go to get another price/quote the original quote will be in the system already. The second salesman is not allowed in 99% of the stores to quote you a lower price. THIS IS real 'price fixing" but the farmers are not raising cane about it so it goes on every single deal.
I have not bought a single piece of "NEW" JD equipment since JD forced all the stores around me to combine or close. I still have good parts departments. SO I buy used at whatever store has the best bargain. That usually is a CIH or Agco dealer that ahs traded a JD piece in.
Just updated the one round baler. I sold the JD 567 and bought a one year old JD 569 with only 1500 bales through it.
It came out of MN. The fellow that owned it got burnt when his local dealership was forced to merge with a multi store chain. He traded in ten pieces of JD equipment on all CIH stuff. I called and talked to him. He did it after the owner of the multi store chain told him to his face that he would "have to deal" with him since he owned all the stores around the customer. The customer proved the JD dealer wrong. He will be totally red and blue in one more year, Kinze planter.
I really think JD is in for some tough times. The mega stores and large farm owners all are tied to the cash grain market. I really feel that the cash grain market is going to tough to make a profit in for the foreseeable future.
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