Alta Equipment, XCMG & Industrial Machinery: OEM-Dealer Power Dynamics
Former Manager at JCB
inpractise.com/articles/alta-equipment-group-xcmg-and-global-industrial-machinery-market-manufacturer-dealer-relationship
Former Manager at JCB
Interview Transcript
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What do the power dynamics look like in these relationships? On one hand, the OEM needs the dealer to distribute their products. On the other hand, if you're a big dealer for Caterpillar or Volvo, they're supplying what you're selling. If you don't get their product, you can't sell. Could you elaborate on that dynamic?
On the other hand, when a dealer is performing well, they hold a lot of influence. For example, Alta in the Northeast is a well-established brand with a massive footprint. Many manufacturers would love to partner with them. Such dealers hold more sway than a smaller dealer from Kentucky. They can negotiate for more factory and commercial support and can exert more pressure on the OEM. Finding a good dealer is as challenging as finding a good OEM these days. There are many manufacturers, but not many dealers to bring online unless they are not currently an equipment manufacturer. Finding a good dealer that knows equipment and bringing them into an OEM's family is very tricky nowadays with so many brands in the US.
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