John Deere making move to become one-stop shop

Golf Course News, Dec 2001 by Overbeck, Andrew

ALPHARETTA, Ga. - John Deere closed its acquisition of Richton International, the parent company of Century Rain Aid, in October adding the final piece - for now - to its newly created John Deere Landscapes division. The formation of the new division began with the buy out of McGinnis Farms earlier in the year.

The company's bold moves bring it closer to becoming a single-source supplier for the golf course industry. In addition to its primary business as a manufacturer of turf care equipment, John Deere has instantly acquired the commanding position as the largest distributor of irrigation supplies in the country and now has a significant interest in providing golf courses with landscape supplies, fertilizers, chemicals and seed.

While John Deere Landscapes' president Dave Werning is working on consolidating Continued on page 27 and combining the business, he does not rule out more acquisitions.

"We think that if we get ourselves to understand what superintendents need in terms of irrigation, nursery stock, fertilizer, seed and pre-emergents we can make it easier for them to do business," he said. "As they identify other things that they want us to supply we will put that under consideration. This is going to be more of a customer pull, not a product push."

ADDING MORE?

However, Werning is excited about the prospects of adding to the business. "If I am a superintendent, do I want to manage accounts with multiple companies? If we can provide quality service and products and all they have to do is call one place, manage one relationship, and pay one bill it would make their lives easier," he said.

Aaron Wetzel, national sales manager for John Deere's golf and turf division, also recognizes the opportunity to expand its presence in the golf market. "If that [more services] is what the customer is looking for and the business makes sense for us, then there is no place to stop," he said. "Can you do that in today's environment? No. But in the future, who knows."

Adding more services and becoming a larger player in the golf market is contingent on John Deere's ability to capitalize on its new position and provide quality products and services at a value price, said Werning.

SUPERINTENDENTS SET THE BAR

Superintendents have already set the bar for John Deere Landscapes.

"We have already gotten feedback," Werning said. "They are very interested in the options John Deere Credit will provide and our new abilities to assist the needs of the golf courses. But they want to have expertise in each area.

"We can't send out one guy who has to know about seed and fertilizer, the layout of the new irrigation system and then has to fix an engine on a mower," he continued. "We'd love to see that guy, but we need to make sure the expertise is still there. We are working to figure out the best way to approach that."

Werning said the majority of staffing and location issues have been sorted out. The company will have 215 locations across the country, and is planning to continue its growth in 2002 with 10 locations set to open in the spring.

However, how the landscape, irrigation, golf and turf equipment and credit divisions will work together is an ongoing process.

"We are in the discovery phase right now," said Werning. "We are talking about all the possibilities, but we want to do it in a way that makes it easier for courses to run their business." He expects to have everything sorted by the GCSAA show in February.

LEVERAGING FINANCE POSITION

The opportunities are especially strong when it comes to John Deere Credit, the financial arm that paved the way for the company's strong entrance to the turf equipment market.

"John Deere Credit played a major role in expanding the equipment business and it could do the same here," said Werning. "There is no timeframe on that, but we are working to put a package together that would make sense for golf courses."

While new construction is potentially a big money maker for this new venture, the company will also focus on renovation work.

"There are a lot of courses where John Deere already has a strong customer relationship and in some cases those courses are already using John Deere Credit," Werning noted. "If they are looking to do irrigation renovation work or buying landscape products on an annual basis, we might be able to expand that existing relationship."