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Kubota pulls rug out from under first Memphis dealer

B

blue_tractor_man

Member
My Kubota parts man called me to tell me that afer 45 years, they are pulling the dealership from the Kalb brothers. Their dad built the dealership and his sons have been doing a fine job for the last 20 year. Their parts man Scott is the best I have ever seen.
Kubota just put a letter in the mail.
They really have no idea why they lost the dealership.
There are other dealers, but not within 30 miles, none others in Memphis.
How about that?
 
Well Kubota want to be a LARGE equipment brand. So I guess they are going to have to be like JD and CNH and only have mega dealerships. LOL

Truthfully There is some thing behind the scene going on. Money issues or sales volume/market share for the area. Lots of smaller dealerships do not grow enough to serve a large population area if their brand gains market share.

A friend of my Father had an Easy Go gulf cart dealership in AZ. The area he was in exploded as a retirement mecca in the 1980s. He was older and only wanted to sell 50-70 carts a year. Easy Go pulled his dealership for poor market share numbers. The replacement dealer was selling over 500 units per year in less than 5 years later. So some times the company's reasons is just business.
 
That?s exactly what New Holland did with our local tractor dealer that was a long time family owned business that sold Ford?s for many many years and after Ford was taken over by NH they continued in business until NH baled out on them, seems like they no longer wanted the family owned businesses selling their brand. The local dealer still in business today now selling LS tractors....
 
Blue Tractor Man There are 7-8 Kubota dealerships within the Memphis area. One of them is less than 10 miles north of Klab. I did notice that all of the dealerships are mainly Lawn and Garden dealerships. Since Kubota is becoming a more full line brand I am wondering if they are thinning out some of the lawn and garden dealerships. Then have a more Ag related dealership that would sell Kubota's larger tractors and hay equipment.
 
Does the dealer sell another main line brand. When a local dealership sold out they got told by Kubota they could only sell Kubota and had to drop Cih or loose their franchise. They decided to keep Cih and drop Kubota. I don't know if there is any truth to that it's just what I was told by a couple people who work there. Personally I think they should've kept Kubota but just my opinion. Ironically the dealership that bought them out also carries Kubota and NH.
 
If I had to guess, it may be because they won't build a big shiny building on the highway. They are off the beaten path. You have to know where to look to find them. But they do sell a lot of tractors and parts. It seems like all of the local governments buy there.
They do not sell anything else that competes with Kubota.
I thought it was real crappy that they notified them by letter. Kalb used to be a Massey dealer, and dropped Massey to pick up an unkown little orange Japanese tractor with a funny name-Kubota.
I would not be surprised if lots of manufactureres come courting. Maybe Mahindra.
 
I live a rock throw from them and go by there a lot. I hate to see them leave but like me and everything else they're trying their best to get the he!! out of Memphis probably. I hope to move back to Fayette county next year where I'm from. Where are you located blue tractor man?
 
The Kubota dealer about a mile from our farm was told they did not have enough land and building space, so they either had to move and build a big new setup or lose the dealership. This family has run tractor dealership there since about 1950. It is crowded with no room for expansion.
They just bought a place about 7 miles away near town and near the JD dealer. Will start building soon I hear.
They have been doing a high volume business and have a great couple of parts men.
The place they are in started as an AC dealership.
Richard in NW SC
 

Local Bota dealer just went hog wild moved into a nice building on a main highway... I know the dealer personally he was out of room and looking to relocate I am sure Bota was pushing him on it.... Its an impressive set up $$$$ HD did the same thing to there dealers.

The good old boy system it gone...
 
Well I can not say too much BUT.... One they were warned YEARS ago they needed to move out East we have a dealer in West Memphis, second and the big reason they refused to get qualified, ie shop and mechanics to sell heavy equipment, like skid steers and excvators and several other reasons but this was not a spur of moment decision for KUBOTA.. You are going to get a first class dealer, trust me will just take a few days.
 
I do know with New Holland you have to sell a certain amount each year in order to be a dealer. You don't sell the amount they want per year, you loose being their dealer.
 
Now that I have read some of the comments I will say the following. Kubota is paired up with New Holland in this area so if Kubota is serious about its dealers wearing big boy pants that presents a problem for this dealer. Kubota is most likely a rain maker especially now with big item ag sales being down so they need Kubota to keep the place(s) open but if they let NH go then they miss any future rebounds with the big farms. If they keep NH but let Kubota go there are no assurances that the mega-Case dealer will not push to grab the rights to NH especially with increasing overlap in the lines. Mega Case has demonstrated time after time over the decades that they don't care if somebody else needs to make a living. Nearest Kubota-NH store has trimmed payroll to the bone already. My guess is that this dealer already knows the plans by Mega-Case and will fight as long as possible but the day is coming that NH will no longer be a part of their lineup. Further, Kubota will probably have them tweak their location plan to be more proximate to Rochester even though there are a couple of small independent dealers there.
 
In the past, mfgrs we are all familiar with in the truck & auto business have more or less forced dealers to shape up their operation to meet their "model". Nothing new here.
 
Even Deere learned it from Caterpillar, one dealer per state. You want a deal on a piece of equipment? Bwaa Haaa Haa!
 
Kubota should also be noted for having bought Kverneland. Kverneland's beginnings were in moldboard plows but have been working on products for modern farming practices including its CTC line. The Kubota guy at the farm show a couple of years ago indicated it would be a slow transition from Kverneland red (and green) to Kubota orange in North America but it will happen over time. Kubota will no doubt increase pressure on its dealers to forgo competing lines as Kubota fleshes out its line in North America.
 
Exactly, lots of family mom and pop operations want to stay small, no risk, no extra effort. Big corporations and major brands can not be handcuffed (limited by) retirees that see the world as the way it was and want to gear ddown. The mom and pop groceries are mostly gone...killed not by a big corporation but by changes in demographics. I bet the termination letter the parts manager heard about is the last step in a long series of meetings, prior letters and unsuccessful negotiations.
 
My guess is that Kubota appears to be expanding into big farm class the past 5 years, and want their dealerships to grow into at least mid sized. They have purchased a lot of hay and tillage lineups, and are working on 150hp and bigger tractor models these days.

They need dealers to sell and service these items, and I would guess they will push to find dealerships to go all in on this or get out of the way.

I hope they are willing to keep the smaller lawn and garden type places in locations suitable for those shops as well.

Paul
 
Chevy dealer in Farmersville was told to shape up or ship out. He now has OK used cars, paint and body shop, courtesy van, re did the appearance of his
place and all back when the feds had GM by the nads. I bought my 2011 from him at that time. Best truck I ever owned.....thank you big brother......got that
right.
 
Wrong word is family owned. Many big big family operations in..cars, trucks tractors are doing well and embraced by manufacturers.

It is the we are little, want to be little, don't want to grow, we must find a job for Billy that flunked out of Jr. college (lets try him as sales manager), sissy is the bookkeeper if her arthritis isn't acting up, Dad is here a lot in the winter when the golf club is closed.

Those are the ones on the bubble.
 
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