Lessiter Media Reports on Kubota Brand Purity Drive
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George Russell, founder of Machinery Advisors Consortium and collaborator on the Big Dealer report, points to a movement by Kubota toward Kubota-only branded stores and dealership groups with scale. 鈥淜ubota is in with a lot of other brands鈥 dealers, but (corporate) is really pushing to have Kubota-only stores. What you鈥檙e seeing here is a lot of that; the effect of that emphasis is Kubota-only stores.鈥
Alex Woods, senior vice president, sales operations, supply chain & parts at Kubota, said the rise of Kubota-only dealerships was not a brand purity attempt but rather an organic response to the company鈥檚 improved equipment offerings.
鈥淗istorically, there鈥檚 been a high percentage of our dealers who have had another major-line, but that鈥檚 been changing over time,鈥 he says. 鈥淚 think this has been happening largely organically. Because if we can provide the dealer more products to sell, we get a bigger share of the wallet. We鈥檙e able to cover more of the total operating expenses of the dealership, so we鈥檙e able to earn that ability.
鈥淲e are not about brand purity; we aren鈥檛 demanding that of our dealers. We think if we can continue to get a bigger share of the wallet, then brand purity is naturally moving our direction. We hope to keep that moving.鈥
Woods did say this Kubota-only dealer trend could slow down in the future, as equipment supply chains continue to struggle across the industry.

