JD Tractor buying

[Spudm]

What's going on with so many JD dealerships, that they won't sell you a tractor if you don't live within their jurisdiction of a particular dealership?

 

[DGinVT]

It's probably because they have franchized out certain areas to certain dealers so that no one can cut out another.

 

[Spudm]

I don't think anyone likes being told how & where to spend their money....

 

[Mike M]

A lot of that going on.
Tachahuci sp? is really strict on you taking it back to where you bought it for warranty work is what I've heard.

 

[Dick2]

And that is illegal in the U.S.! If JD is enforcing that and gets caught, they will be paying more hefty fines to the U.S. government. The management at JD must be pretty shady characters with all the things that they are doing that I'm hearing about lately. Might be time to dump your JD stock.

 

[Mike M]

Or do what the customers do to me here at work we are to refer to local dealers for parts. They call in and lie and say they are from Ohio. (where we are) We will sell to anyone who stops in so if they want to drive come and get it. No reason you can't do that too.

 

[jeremy in NE]

It's there way of controlling prices on all equipment and trying to force you to use that dealer. I think it will bite them sooner than they think especially in the current farm economy. I personally have started looking at other brands.

 

[Mike M]

Are you positive ? In certain instances dealers are paying for exclusive rights to territories so selling into those areas may just get you a fine.
You would have to consult a local attorney to be sure.

 

[Spudm]

So I look on the internet, find a tractor advertised at a JD dealership that is 50+ miles away, call about it, and the first thing they want to know is where do I live, only to be referred back to my local JD dealership....

 

[NY 986]

I've never heard that said about anybody around this region. I do know some dealers will let you know that there is somebody closer but in the end they will sell to you. They just want to keep the blockman off their tail if a complaint is made to the regional office.
I would also point out that in situations where a dealer was recently acquired by another dealer that even though the sign out front does not say it that in fact that dealer and the local dealer may have the same owner. In that case there would not be a legal issue even if it went against your wishes in terms of who you want to do business with.

 

[jeremy in NE]

Jdseller explained it in a previous post. They want one price quoted no matter where the piece of equipment is.

 

[Jim PA]

The government does a pretty good job of telling me how to spend my money and just where to send it.

 

[johnlobb]

Harley Davidson does the same thing. My buddy bought a new HD from a dealer down in or near Mansfield, OH where he was born and raised. He lives in Michigan now in a suburb of Detroit and a HD employee called him up and ranted and raved at him wanting to know why he did not buy from his neighborhood HD dealer. He told the guy to go scroo himself, it was his money and it was up to him where he was going to spend it..

 

[rrlund]

There's a good chance we'll meet face to face some day,so don't take this the wrong way,I'm not being condescending or anything. Knowing all you know about Deere these days,why are you even still considering one?

 

[Spudm]

Yea, but when a private company tells you where to go to spend your money, what does that sound like to you?

 

[ditchwitch]

I second that. Ill spend my money where ever the heck i want. My town your town it dont matter. If its the better deal of what im wanting then im all in. Kinda like tonight i been looking for a equipment trailer 18 foot fendered with ramps on the back. Around 5 tons. Found one brand new for 2790.00 around here where i live you cant find one like that for no less than 3500.00 and dont want to even deal with you. But thats ok that man 50 miles down the road said come on down. So heading after work to pick it up.

 

[vscummins]

The same reason tsc-cnh won't sell me a key for my boomer 25 compact tractor because it's a contract violation

 

[vscummins]

My Local tsc-cnh dealer that is

 

[vscummins]

What would you suggest tsc-cnh ? Or Massey Ferguson buy Ferguson See how much longer until they drop parts for your beloved brand just like they have the allis name the white name and the basically the Heston name ?

 

[rrlund]

I'll tell you the Gods honest truth in this instance. Everything that spudm has talked about in the past makes me assume he's still talking about a mid sized utility. Those tractors seem to be an afterthought for Deere,CaseIH,New Holland and Agco,leaving the only choice Kubota. I've never owned one,but I've never heard or read a complaint about them either. Seems like just buying one and closing the door on the subject would be the smart thing to do.

 

[Bill VA]

I can't imagine that would happen - not saying it doesn't.

If the JD dealer told me he couldn't sell me a tractor - from the next county over and I had to buy from my local guy. If I liked the local guy and he matched the price, I'd walk away from the dealer that said he would sell (he deserves to loose a sale) and buy local. OTOH if it is a franchise with multiple stores and that was their policy - I'd walk away from JD and go visit MF, Kubota, NH/CIH.

The way I look at - I'm the one paying for the tractor (or implement) with my hard earned $$$'s - paying for EVERYTHING, tractor, profit, commission, set-up, taxes - EVERYTHING.

So if you want my business - it's pretty simple. Offer a product I want, be respectful and not a ripoff on price.

Else - I'll shop elsewhere - and sometimes do.

Bill

 

[Ray]

I was told that back in 2002 when I was looking for a new jD skid loader. The JD dealer told me he could sell me a new one, but they couldn't give me there best price. They had to give a cut to a closer dealer. I told them I could buy a new Holland. He said go ahead, john deere didn't consider me a loyal customer so they didn't care. So,i bought a new Holland.

 

[Spudm]

Well that's just it. Prices are all over the place on compact utility tractors. It's frustrating when trying to determine fair market value.

 

[farmer boy]

That is the case, at least here in Ontario. I don't agree with it, and think that if a would be customer were to make a big issue out of it, it would end. I can't see how it's legal. It seemingly violates anti-trust/anti-competition laws. I don't have a problem with Deere selling a contract and saying that this is who you can seek to do business with(meaning that a salesman can't drive into another dealers area to seek to do business with a customer in said area.) If I don't want to deal with dealer X who has the contract for my area, I should be able to go to dealer Y and seek to do business with them if I so choose. If I'm looking at buying a GMC truck, I can shop as as many different GM dealers as I like, get as many different prices as I want. If I don't get along with my local dealer, all that means is that I won't be buying a Deere. I know regarding parts and service, the same thing isn't true, at least 'here' The local dealer services equipment well into other dealer's territory. If I want to buy parts, I can go anywhere I like.

 

[jm.]

WRONG Nothing wrong with having assigned dealership[ areas, Catapillar has been doing it for years. From what I am being told is this if a JOHN DEER dealer sells out side of his assigned dealership territory he has to give 3% of the profit to the dealer in who area the sale belonged. Now they have had this in place on construction machinery dealer agreements for several years but just year started enforcing it on new ag contracts. Bob Cat has been like that for years very protective of dealer territories.

 

[tim s]

jm. is correct,, a friend of mine fell out with the local dealer and found out about the possibility of that dealer getting 3 percent anyway,, he set up an address with a relative in the other area,and bought a new combine, it's all in how you fill the paper work out...

 

[Ivan in Mich]

About this time last year I went tractor shopping. JD was my first stop as this is what I wanted. I then checked NH and Massey. I really liked the Massey but one problem, the dealer was 50 miles away and I had to deal with AGCO. My tractor that I traded in was a White and the only reason for replacing it was parts which came from AGCO. I went back to Deere but the dealer ship had changed hands and there service sucked big time from what I was told. The Deere I looked at I was told you take what the factory put on it and it was not much. I went to NH and they thought they were made of gold so that Left Kubota. I went and they showed me all about them as I had never looked at one. I drove one with a Hydro tran. and one gear trans. It is has an all steel body and controls are nicely located. They delevered it 2 days later and with the rebates on it I saved almost 5000.00. I got the gear drive one as it fit my needs better. I really like how it handles and I should have got one sooner. My White I bought new over 30 years ago and I figured any repairs that I did it that time cost me 18.00 a year. I had over 3000 hours on it

 

[Dick2]

Back in the days when I was a District Manager, that was totally illegal. I doubt very much that Congress has changed the law. Maybe somebody should complain to the Justice Department! Maybe you can get a good percentage of the fine.

 

[Traditional Farmer]

James River probably covers your area if you go to VA Tractor and buy a Deere James River
will get most of the profits from the sale because you live in their area. So it won't pay VA Tractor to sell you one.

 

[newfarmer9]

It's because success of a dealer is measured on market share, ie. what percentage of new tractors sold in that dealer's area is their brand vs the other brands. If a dealer sells a tractor out of area they do not get credit for that tractor in their market share. I can't speak for John Deere but I know other brands corporate entities will give better incentives and programs for sales in territory vs out of territory. So if you live out of area they can price it to you but they are wasting their time because they are going to look stupid when the local dealer comes in and beats them by say 5% to 10%

This is not illegal or "price fixing" because John Deere dealers all receive their retail contracts from John Deere. They can't be forced to compete with each other. If a John Deere dealer and say a Case dealer were colluding on price then that would be no good.

 

[jm.]

NO The word fine has never been mentioned. What the CONTRACT the dealer agreed to is this IF he sells OUTSIDE his defined territory into some one else territory he agrees to give that dealer that has that territory a percent of the profit. Keeps him from cutting prices on some one buying on the phone from 800 miles away. Seeks to level the field on all this internet shopping. Is good or bad I don,t know just something you are seeing more and more in the equipment business. Like I said nothing illegal because Caterpillar has been doing it for several years and it is enforced very tight.

 

[newfarmer9]

Also forgot to mention most retail contracts lay out specific areas that are "protected" to give every dealer a fair chance at new sales. Dealers that sell a piece of equipment out of area can face fines.

 

[newfarmer9]

jm. is right sorry should have said profit sharing instead of fines

 

[Bill VA]

I guess for me the bottom line is - if a sale is to be made, it's going to be on the terms I'm in agreement with. What happens with the money once it leaves my hands and who actually gets it, it's not really a concern of mine.

My brother bought a JD from the same dealer I bought mine. I got terrific treatment from the dealer, my brother got the tractor he wanted, but the whole experience for him was terrible IMHO. We both agree that the deal is where you find it. Dealer loyalty is a two way street IMHO.

I've been dropping hints to my wife that when I retire, it might be a good idea to add a cab tractor to the fleet. She ain't buying.... ;-)

But if she were, I kind of like the looks of New Holland these days. Can't say we've got a Kubota dealer I'm ready to work with - yet.

 

[Ted in NE-OH]

It is called "Restraint of Trade" and is illegal. It keeps JD dealers from competing with each other like the car dealers.

 

[David G]

Bobcat does the same thing, will fine a dealer if he sells inside another territory.

 

[farmer boy]

I don't think there's any doubt that JD management is sketchy. They have been giant bullies that do as they please for years and years. There's a book about the fight that Kinze had with them over the years.

 

[vscummins]

I think I would still go with one of the big 2 even on a compact tractor we have a blue one not sure who its parent company is anymore but it's supposed to be a new holland if there's such a thing as new holland anymore it's a dang good tractor

 

[Spudm]

Thank you and everyone else for the explanations!

 

[newfarmer9]

At the end of the day it is to help protect dealers. If there wasn't any protection the smaller local/independent dealers would get undercut by the big multi-store dealers who sell on high volume and low margin and receive volume discounts from the supplier. Eventually the big dealers would drive the small dealers out of business, and then you'd really have no competition within a certain brand.

Just remember if you like having a local dealer, you have to support them by buying equipment and parts.

 

[ss55]

A franchise is worth much more if its sales area is protected from sales by other dealerships.