Deere & Company: Spare Parts Aftermarket Control & All-Makes Threat
Former Business Manager at John Deere
inpractise.com/articles/deere-and-company-spare-parts-aftermarket-control-and-all-makes-threat
Former Business Manager at John Deere
Interview Transcript
This is a snippet of the transcript.Contact Salesto get full access.
Didn't you tell me that Hy-Gard was something farmers couldn't do without?
Yes, so Hy-Gard, we would target Shell, Chevron, and Mobil's best tractor hydraulic fluid. We would target Hy-Gard to be in the 10% to 15% premium range because it was so exclusive and such a good oil compared to the others. We could easily get a 10% to 15% premium over others in the marketplace with good quality. Now, there's a lot of what was called yellow bucket hydraulic fluids out there, which was just somebody dumping oil in a bucket. We didn't care about those. But for good quality Shell, Chevron, Mobil, and so forth, we aimed for a 10% to 15% premium.
This is a snippet of the transcript.Contact Salesto get full access.
How big was the Hy-Gard revenue line?
The oil business globally for Deere was about a billion dollars. Hy-Gard was about half of that, so about $500 million globally.
This is a snippet of the transcript.Contact Salesto get full access.
How profitable was it? I would imagine that's more profitable.
Very, very profitable. The bottom line was probably 40% margin.
This is a snippet of the transcript.Contact Salesto get full access.
Related Content
Deere & Company: Spare Part Business Economics
Former Business Manager at John Deere
Deere & Company: See and Spray Ultimate & Autonomy
Formere Deere & Company Director
Deere & Company: Software Vertical Integration
Former Senior Director at John Deere
Deere & Company: Dealership Economics
Current John Deere Dealership Owner
Copyright Notice
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2025 IP 1 Ltd. All rights reserved.