Rleonard
ArboristSite Operative
New press release just published in Lawn and Garden
Strong words near the end of the article
Bob
Special Report: John Deere & Stihl Form Alliance
Qualifying John Deere servicing dealers will now be permitted to sell Stihl branded handheld products in the U.S. and Canada.
Qualifying John Deere servicing dealers will now be permitted to sell Stihl branded handheld products in the U.S. and Canada. Joint marketing efforts between the companies are also anticipated as details of this new alliance begin to materialize.
Under the agreement, John Deere has designated Stihl as the preferred handheld product for its dealers. There are more than 500 John Deere dealers that are already selling Stihl in the U.S. and Canada. Servicing Deere dealers wishing to carry the line will have to qualify just as any other potential Stihl dealer would.
“All the terms and conditions to become a local Stihl dealer are in play, so there are no special deals or pricing,” says Fred Whyte, president of Stihl Inc. In those instances where a Stihl dealer already exists in a market area, a John Deere dealer could also be awarded the Stihl line—if that John Deere dealer meets the criteria set forth by the Stihl branch or distributor covering their area.
“The real nexus for us is that, under this agreement with John Deere, we do not violate our servicing dealer mantra,” Whyte points out. “That was paramount for Stihl, and is one of the reasons why this agreement does not include John Deere Landscape outlets or LESCO stores. John Deere servicing dealers are very sophisticated business people, and we’ve had great success with those we’ve already been doing business with. What this agreement allows us to do is broaden our base of quality servicing dealers—without selling through the box stores. And we still prohibit mail-order sales through catalogs and the Internet. In short, we can remain true to our school.”
A YEAR IN THE MAKING
Confidential discussions between John Deere and Stihl had been taking place for roughly a year before the agreement was solidified and made public on July 29. As one would expect, the news took some—especially dealers—by surprise.
“My fear is that joint marketing will force us into a role as a secondary Stihl outlet as opposed to being the primary outlet in our area, which we are now,” says a dealer in the Midwest. “But as for right now, we are in a holding pattern. Yes, I’m a little bitter. But if I attempt to remove my personal feelings, I see this as a wise move for both companies. John Deere will rule this industry one day.”
John Deere has been working to consolidate its dealer network for the past several years. The concept of “product line purity” has also been raised, meaning that John Deere dealers would only sell John Deere-branded product.
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Copyright 2008 Cygnus Business Media
Strong words near the end of the article
Bob
Special Report: John Deere & Stihl Form Alliance
Qualifying John Deere servicing dealers will now be permitted to sell Stihl branded handheld products in the U.S. and Canada.
Qualifying John Deere servicing dealers will now be permitted to sell Stihl branded handheld products in the U.S. and Canada. Joint marketing efforts between the companies are also anticipated as details of this new alliance begin to materialize.
Under the agreement, John Deere has designated Stihl as the preferred handheld product for its dealers. There are more than 500 John Deere dealers that are already selling Stihl in the U.S. and Canada. Servicing Deere dealers wishing to carry the line will have to qualify just as any other potential Stihl dealer would.
“All the terms and conditions to become a local Stihl dealer are in play, so there are no special deals or pricing,” says Fred Whyte, president of Stihl Inc. In those instances where a Stihl dealer already exists in a market area, a John Deere dealer could also be awarded the Stihl line—if that John Deere dealer meets the criteria set forth by the Stihl branch or distributor covering their area.
“The real nexus for us is that, under this agreement with John Deere, we do not violate our servicing dealer mantra,” Whyte points out. “That was paramount for Stihl, and is one of the reasons why this agreement does not include John Deere Landscape outlets or LESCO stores. John Deere servicing dealers are very sophisticated business people, and we’ve had great success with those we’ve already been doing business with. What this agreement allows us to do is broaden our base of quality servicing dealers—without selling through the box stores. And we still prohibit mail-order sales through catalogs and the Internet. In short, we can remain true to our school.”
A YEAR IN THE MAKING
Confidential discussions between John Deere and Stihl had been taking place for roughly a year before the agreement was solidified and made public on July 29. As one would expect, the news took some—especially dealers—by surprise.
“My fear is that joint marketing will force us into a role as a secondary Stihl outlet as opposed to being the primary outlet in our area, which we are now,” says a dealer in the Midwest. “But as for right now, we are in a holding pattern. Yes, I’m a little bitter. But if I attempt to remove my personal feelings, I see this as a wise move for both companies. John Deere will rule this industry one day.”
John Deere has been working to consolidate its dealer network for the past several years. The concept of “product line purity” has also been raised, meaning that John Deere dealers would only sell John Deere-branded product.
1 2 next
[Get Copyright Permissions] Click here for copyright permissions!
Copyright 2008 Cygnus Business Media
opcorn:
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