As some markets for precision farming equipment tighten due to saturation or components now coming pre-installed on new implements and tractors, dealerships are looking to extend their sales reach. 

Tapping into a distant market usually means investments in a new location, staff and marketing. However, by building a relationship with a precision subdealer, dealerships can gain access to distant or difficult-to-crack markets while avoiding some liability and upfront costs. 

Margins on precision equipment sold through a subdealer can be smaller than if sold directly by the dealership. But if the sales wouldn’t have been possible otherwise, the partnerships are worth consideration. 

Precision Farming Dealer caught up with several precision subdealers and dealerships to examine how the relationships are structured, what they offer and how to best avoid common pitfalls. 

Subdealer Structure

How are subdealers selected? Do they approach dealers to become subdealers or vice versa? What sort of agreement, contractual or otherwise, is set up between the two parties? 

These are the likely questions a dealer asks themselves before hunting for these sorts of opportunities and, as one might guess, the answers vary.