Photo credit: Sharpeshots
That s designed to ensure they can
deal personally with customers and so
they can adjust their focus to cope with
local problems and opportunities, which
helps give their outlets the feel of locally
owned establishments.
At times, fear of losing local autonomy
has fostered some resentment among producers
faced with the takeover of a local
business by a dealership chain. In practice,
though, networks are being called the best
hope for the survival of many local franchises,
Read Also
Riding the tariff rollercoaster
Farmers are accustomed to roller-coaster years. But the current geopolitical windstorm is something else entirely. On his cattle operation near…
that cannot compete as a single outlet.
Consolidation is the only thing that
will keep stores in the smaller locations,
says Gordon Pries, managing partner of
Maple Farm Equipment, a seven-store
chain based in Yorkton, Sask.
Customers might think consolidation
will cause them to lose their location
in small towns, Pries says. But it s
exactly the opposite. It s what is going
to keep it there. All the infrastructure
needed to run that place can be spread
over a much larger base.
In fact, by tapping into economies of
scale, many small dealerships may return
to profitability.
Another fear is that multi-store outlets
limit competition and farmers choices,
to the Internet and numerous advertising
publications give potential buyers an
unprecedented amount of information
on where to find machines. It also allows
them to compare prices, although they
may burn a little more fuel in the process
of checking out potential purchases.
The focus on choice
Additionally, Pries says, producers are
being offered better service from multi-outlet
dealers. His dealership network
now employs more service people than
the combined number that worked for the
original franchises, and their total inventory
of parts and equipment is bigger too.
According to Schmeiser, CWEDA s
dealer members report that most producers
have now adapted to the new retail
environment. Customers have gotten over
their concerns about multi-store operations,
on the part of producers that
chains do, in fact, provide a good service.
A key element in providing that service
is getting the right people behind the counter,
and Pries is confident that the quality of
employees his firm has been able to attract
is now better than ever. As in other sectors,
he explains, potential employees who have
the best skills and motivation see advantages
in working for larger companies.
With the intense technological
demands being placed on dealers, that
expertise comes at just the right time.
It was an unexpected benefit (of
growth), Pries says. It also pays dividends
for customers. They receive better
sup-y
