• Please be sure to read the rules and adhere to them. Some banned members have complained that they are not spammers. But they spammed us. Some even tried to redirect our members to other forums. Duh. Be smart. Read the rules and adhere to them and we will all get along just fine. Cheers. :beer: Link to the rules: https://www.forumsforums.com/threads/forum-rules-info.2974/

Corriher's New Holland

That is old news.... it has been for sale for a while. Anyone with that amount of money can well afford to start their own dealership without buying one. :rolleyes:
 
Near my wife's uncle, in Lenoir, They also have Corriher Kubota and John Deere.,. We browsed around those two dealership and the one down the street from them, called Tarheel, Wonder if they go with the New Holland package.
 
PineRidge said:
Heard a rumor that Tarheels was an ex-employee although I don't know if it's true or not.
Click to expand...

Yep... I dealt with the current owner of Tarheels back when he was at Corrihers when I bought my mower.

Ted Corriher once said in a TBN post that he felt betrayed by teaching him everything he knows about selling on the interent, and then he left and started his own company right down the road.
 
We had an employee do this as well, he opened another store about two miles from us. He was in business for quite awhile, but just dropped the tractor part of the business a few months ago.
 
messickfarmequ said:
We had an employee do this as well, he opened another store about two miles from us. He was in business for quite awhile, but just dropped the tractor part of the business a few months ago.
Click to expand...


Neil, honest question here, but if it happened to Corrihers and it happend to you, then how easy it is to get into the tractor business?

Can you tell me what brands of tractors do NOT require you to stock parts? Or do NOT require a service department? Other than Jinma! But to seriously open a legitimate dealership for say Branson, Mahindra, Kioti, Zetor, etc, what does it take to get into business and what do the brands require of the dealers?

Then give us just a little bit of a comparision to what a JD/Kubota/CNH dealer might be required to have. And what does it take to get Cub Cadet?
 
It really varies by company. The local guy here did it with Agco. I know its about impossible to get a Kubota dealership. They require that you are good for at least two million in assests to support your venture - that is only if they are willing to add another dealer to the area. There recently was a contract that opened up north of us (the guy had dirty books and went under) and they had twelve applications within a few days. Its not as easy as you would think from there, you need to be adapt in most area's of business to manage your inventory and control expenses.

Now If you want one of the minor brands any joe can open shop. There was just one here the other day who would sell us inventory at cost with no requirement to continue, contracts to sign, parts to stock or anything. As a dealer you have limited parts support and basicly no business infructructure from the manufacturer - you get help by calling them and seeing who you can get on the phone.
 
B_Skurka said:
Then give us just a little bit of a comparision to what a JD/Kubota/CNH dealer might be required to have. And what does it take to get Cub Cadet?
Click to expand...

I am likely completely talking out my ass here, but...

Our local Deere dealer recently re-located one of his stores, and the construction cost alone for his buildings (land was free because of the swap that prompted him to move in the first place) was over a million and a half. He already had the inventory but since he is supporting a very large ag economy in this area, I would guess that he easily has $5 - $10 Million in hard equipment. Now granted, this is full scale corn and soybean cash crop production planting and harvesting equipment so it is a little different from the compact utility market, but I think it shows that to do it right and to do it reputably takes a significant investment (just like any business venture does :D).

Dave
 
From the Deere web site:


Minimum Equity Requirements


Investment in a John Deere dealership can be both rewarding and challenging. It requires someone with strong management skills and keen business acumen. Understanding of the retail business trade is a must; retail management experience is preferable. Other requirements include excellent people skills, a strong work ethic, and sound communication skills.
In addition, a dealer candidate should have adequate financial resources to assure successful operation of the business. The amount of capital required for consideration varies depending upon the product line. In general, minimum equity requirements are:
  • $1-3 million for a Commercial and Consumer equipment dealership
  • $3-5 million for an Agricultural equipment dealership
  • $10-30 million for a Construction & Forestry equipment dealership
Silent investors, of course, are always welcome.
 
Its very costly, you'll find that most large dealerships have multiple investors. We have about 15 million in inventory at any given time, 1/3 of that is parts - the rest wholegoods. Its really important to balance and control the costs of having all this around. We get a few months to pay for most of this, its really important to control the floor plan costs of this much equipment.

All this to say that its pretty hard for a little guy to really build a dealership with staying power without some substantial assets to begin with.
 
You must log in or register to reply here.
Top