"The way the story goes, Grandpa Abe started selling farm wagons under the tree in his front yard." - Dan Krieder, Kuhns Equipment, talking about the origins of the family business

Today, we visited Kuhns Equipment in Arthur, an implement dealer selling Fendt, Massey-Ferguson and Gleaner tractors and combines. Dan Krieder (yes, our Broomtown Cafe co-owner), also works for his wife's family business, now in its third generation.

While Grandpa Abe once sold wagons under a tree, Kuhns Equipment now has two locations in Central Illinois. In fact, we learned today that many implement dealers are closing locations because they have too many too close together. That's not the case with Kuhns, who operates in Arthur and Gibson City, about 60 miles apart, giving each location a 30 mile "sweet spot" without overlapping.

Krieder also walked us through the evolving advertising in a farm implement dealership. Yes, they still run print advertisements in farm equipment sales flyers, but they also advertise online. The combination attracts buyers from Texas, Nebraska, Missouri, and all over the Midwest.

So, why Fendt implements? In the 1970s and 80s, there were 7-8 major implement brands for sale in the United States; but, by the 1990s, that pool had become shallower - mainly John Deere, Case-IH, and a few others. Fendt is a German brand, considered by many to be "the Cadillac or Porsche" of tractors. Fendt, a company part of the AGCO brands (including Massey-Ferguson, Gleaner and GSI), has been around for 100 years, but Kuhns Equipment started selling them about 5 years ago.

Fendt has disrupted the implement industry by offering 3 year warranties, and by including routine preventative maintenance (like oil changes) in the price of a tractor. Standing by their product and emphasizing their reliability has helped Fendt grab more of the market share dominated by "the other red and green".

Kuhns Equipment is really 3 businesses in 1: sales, parts and service. Krieder says that sales may sell the first tractor, but it's really parts and service that sells the second. Like many other businesses, ag implement sales relies on relationships, often long-distance.

During our visit, Krieder also explained inventory turnover, Kuhns's hiring process, and busy seasons.

Oh, and students were able to drive a tractor - not our typical day at CEO.

Thank you to Dan Krieder and the entire team at Kuhns Equipment in Arthur for taking us behind the scenes at an implement dealership that we drive past almost everyday. We learned a lot, and now have a better idea of what is going on in the fields around us.