Opening a second farm implement and lawn equipment dealership in the midst of a recession might not seem like the best idea in the world.
But Russ and Michelle Stigge of Omaha, owners of Bennington Equipment, believe it is the right time and the location near the Gretna exit off Interstate 80 is the right place.
“You've got to know the market and believe the American economy is going to deliver,” said Ray Van Voorhis, general manager.
The company's current John Deere store in Elkhorn is about 20 miles north of the Gretna site. The locations are far enough apart that they will serve customers in different parts of Omaha and the surrounding area, Van Voorhis said.
The Elkhorn store's main body of customers is in the north toward the Blair and Tekamah areas, Van Voorhis said. The Gretna store will serve areas south and west toward Lincoln.
“The south is a whole different market,” Van Voorhis said.
Moline, Ill.-based Deere & Co. wanted another store in the Omaha area because an Iowa dealer bought the John Deere dealership in Plattsmouth and is in the process of moving it to Glenwood, Iowa, Van Voorhis said.
Deere & Co., which also makes construction and forestry equipment, has struggled along with many manufacturers, posting a loss in its fourth quarter ended in October and lower profits for the full year. The company laid off hundreds of people in 2009, and it expects equipment sales to be down about 1 percent for fiscal 2010.
However, the agriculture side of the company has done comparatively well, said Barry Nelson, a spokesman for Deere's North American marketing center in Lenexa, Kan.
Sales in the agriculture and turf division were down about 14 percent for the fiscal year, compared with 45 percent for the construction and forestry side.
Dealership activity has been strong as well, partly because dealerships have consolidated to ensure that they have enough volume in their trade areas to make an adequate return on investment, Nelson said.
Van Voorhis said Bennington Equipment's store in Elkhorn and the Gretna store will offer everything from lawn trimmers to push and riding lawn mowers to large combines. The Gretna store, however, will emphasize lawn equipment and smaller agriculture machinery, while the Elkhorn store's focus will be large farm implements, he said.
Stigge said the Elkhorn store was the first dealership in the world to offer John Deere merchandise like clothes, books and iron toys. The concept is called John Deere Place, and the Gretna store will offer similar goods, he said.
“They came out with the concept and we said, ‘OK, we'll do it,'” Stigge said of the Elkhorn store's design when it was built about four years ago. “People from all over the world have come to look at it.”
About 40 people work at the Elkhorn store, and 19 of those employees are in the service department. Service technicians work in the dealership's shop and they make house calls, even for push mowers, Van Voorhis said.
The Gretna dealership will have about eight employees when it opens Monday, four of whom will be service technicians, Van Voorhis said.
“Our whole intent is to grow,” Van Voorhis said. “In this business, you grow through service.”
The agriculture sector weathered the early part of the recession pretty well, Van Voorhis said. In addition, the Elkhorn store promoted its service, worked with customers' finances to make certain they could afford equipment when they needed it, and began renting equipment, particularly to lawn service companies that couldn't afford to buy their own, Van Voorhis said.
At one point, the Elkhorn store bought 400 surplus lawn mowers from John Deere and sold them close to cost, Van Voorhis said.
“We didn't hardly make a dime off that, but the traffic stayed.”
Serving people well during hard times helps bring more business during good times, Van Voorhis said.
People who buy John Deere equipment receive reminders about regular maintenance of their equipment, service trucks that are visiting area farms and neighborhoods, and the availability of a semitrailer truck to pick up larger pieces of equipment that need servicing, Van Voorhis said.
Bennington Equipment works on equipment made by other manufacturers, as well.
“We would work on other things, but you need to let us know,” Van Voorhis said.
Contact the writer:
444-1117, joe.ruff@owh.com
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