Here are comments from dealers participating in our web poll in the February edition of Farm Equipment. The question asked dealers how much pressure they’re feeling from manufacturers to consolidate with other dealerships. A majority said they’re facing moderate or heavy pressure.
“We just completed purchasing a neighboring two store dealership, so AGCO isn't pressuring us at all.”
“We are a large company already, but before this we were a small to medium company of 7 and now are 22 and growing.”
“We are being told it will just be a matter of time. Market share is the name of the game. Multi-store dealers will be able to buy at a better discount. They will beat you on a trade. We can only buy so much of market share. We are not able to print money — only our government can do this. You big guys better watch your over allowance. You are not too big to fail.”
“Deere isn't applying direct pressure anymore as they can get in legal trouble for doing that. So they now have essentially laid an "economic siege" around single stores, forcing dealers out of business or to consolidate. or together.”
“The pressure we’re getting from our major is not even justified. We just don't fit the perfect mold they would like to see.”
“We were an AGCO dealer, prior to that White and Oliver. So we get to change colors once more. Can't really agree but it's a done deal. What else do you do? We are a true AGCO dealer, that's our major. We don't have anything else to fall back on. Deere is making more competition for themselves also. Seems like every dealer they close, AGCO snatches them up. And probably some GOOD dealers too. The earth doesn't revolve around multi-store dealerships. I still believe a single-store dealer, that does a good job for their customers, still has a place, but it’s getting rough. I remember the days when we would get a decent volume check of $30,000 to $40,000. Now the minimum is so high you’re lucky just to make it. That's the worst thing about a single-store location.”