RELATIONSHIP TROUBLES?
How is yours with your suppliers?
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

I mentioned a couple of weeks ago in this blog, how the News pages of this Weekly Update have been kept busy both with the ongoing saga of the Briggs & Stratton bankruptcy plus with the myriad of show cancellations.

 

Well you can now add to that, the shuffling of the John Deere dealer pack!

 

Today's news that Double A is to buy Nairn Brown and that Burden Bros is to sell to P Tuckwell, follows on from the changes with Netherton taking over from HRN also in Scotland, plus Smallridge Bros extending their Cornwall area after CFM relinquished their territory.

 

There feels like there's a difference with today's news from Scotland though. With those previous two changes to the network, the dealers no longer staying with Deere subsequently released statements clarifying the move from their points of view (which you can read again here and here).

 

From the outside however, the story north of the border today seems different to those changes with Nairn Brown saying how lucky they have been to have held the John Deere turf dealership in the west of Scotland for 25 years. Nairn is quoted as saying, "I would like to thank John Deere for their staunch support and help over this time - it has been a pleasure dealing with them."

 

What these differing styles of statement highlight, is just how important the relationship is between dealer and supplier. It has of course always been at the very heart of how the industry operates, but perhaps with the events of this year, plus with what's to come (ongoing Covid restrictions combined with Brexit), this relationship will be brought into sharper focus - and possibly put to the test more than ever before.

 

I have been conducting some research amongst dealers around the country for an article I'm putting together for the upcoming issue of Service Dealer magazine. One of the areas I've been interested to hear about from the dealers I've spoken to, is this idea of how they view the support they've received from their suppliers as we've moved through 2020.

 

You'll be able to read in full when the November/December edition is published, but one phrase that I've had repeated from multiple sources when asked how their suppliers have performed this year is that it's a 'mixed bag'. From what I've heard anecdotally some have stepped up to the plate and gone above and beyond - perhaps the smaller players especially. Whilst some of the others . . well, there have been some disappointments.

 

An area of concern which has been mentioned is suppliers putting key dealer contact staff on furlough. Not having that crucial support available at the end of the phone, during what's been an incredibly stressful time, wasn't ideal. Also there's talk of some suppliers coming back up to speed quicker than others.

 

Clearly there is an understanding by the dealers voicing concerns as to why these things happened - but it has caused frustration nonetheless. 

 

Another concern I've heard, which I have to admit led me to using a thesaurus, is the concept of 'disintermediation'. This is apparently a trend which is being seen increasingly by high street retailers during the time of Covid. Basically it's manufacturers cutting out the middleman and supplying their goods directly to the consumer, mostly via their own websites.

 

There's no doubt that lockdown encouraged online shopping to increase across the board. We've had people say to us they believe that online retail has come on five years in the space of a few months. And dealers have been quick to make sure their own online offering is performing as it needs to. But do more dealers, especially those of domestic machinery, believe this disintermediation concept is one that offers cause for concern? Is it something you feel poses a threat to your business?

 

It'll be interesting to hear the views of more of our readers today. How do you view your current relationship with the suppliers you represent? Have they been there for you during these unprecedented times? Or have you felt they could have done more to support your business?

 

Let us know your thoughts in the comments below.

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In this issue
EDITOR'S BLOG
RELATIONSHIP TROUBLES?
NEWS
DOUBLE A TO ACQUIRE NAIRN BROWN
BURDEN BROS TO SELL BUSINESS
AG TRACTOR RESEARCH SUMMARY REPORT RELEASED
HELP SHAPE THE INDUSTRY'S FUTURE
DAIRY SHOW 2020 CANCELLED
HAYTER & TORO APPOINT
WINNER OF ALLETT'S CREATIVE LAWN STRIPES COMP CROWNED
VANMAC BECOMES UK DISTRIBUTOR OF BROUWER KESMAC
GRILLO AGRIGARDEN ANNOUNCE NEW FRANCHISEE
ETESIA ANNOUNCE NEW FINANCE OFFER
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