There’s a certain allure for customers to buy direct from the manufacturer, but as two recent news stories show — the grass isn’t always greener when customers bypass the dealer.
Two implement companies — Everything Attachments and Leon’s Manufacturing — have been in the news for not delivering paid for products and long delays. Both are organizations that sell direct to the customer, although Leon's does also sell through dealers. In addition, Everything Attachments appears to be in some legal troubles.
Is there a lesson to share with your customers based on these stories below?
According to a Feb. 21, 2024 report by the Statesville Record & Landmark, a judge has granted a temporary restraining order against the owner of Everything Attachments, a direct to customer implement manufacturer who does all its selling online. The motion was filed after Fidelity Bank sought a restraining order and temporary injunction against the company earlier in the month.
The report says Fidelity is seeking $7,883,293.57 plus interest on a construction loan to be paid in full. Fidelity is also seeking more than $1.5 million due on a line of credit. On top of that, county tax records list the company delinquent on a $52,152 tax bill, according to the paper.
A number of message board and social media groups are full of comments from customers who ordered equipment months ago and have not received products they have paid for. Customers have reported that the voicemail box for the company is full.
Frustrations have also boiled over for unsatisfied customers who ordered equipment directly from Leon’s Manufacturing in Yorkton, Sask.
Leon’s Manufacturing has been the subject of multiple complaints about its sales and delivery (or lack thereof) practices, as covered by Karen Briere in a recent Western Producer article.
Leon’s CEO John Malinowski tells the Western Producer that the company is well aware of these complaints. He blames the problems on supply chain issues that started before COVID and says that his staff is doing their best to keep dealers and customers updated.
“A lot of our equipment is also tied to a lot of third-party suppliers and there’s just been inordinate issues both during COVID and coming out of COVID that we’re still dealing through,” Malinowski says.
One farmer tells the Western Producer that he thought buying an 8-yard scraper directly from a Leon’s sales rep would be cheaper than going through a dealer.
“He said, 'If you pay for it, it will be ready in 4 weeks and we’ll deliver it right to your yard,'” the farmer says. “He gave me the price and it was quite a bit cheaper.”
The farmer put $31,000 down. 4 weeks went by with no sign of the scraper. After some back and forth with the company, and more waiting, the nightmare ultimately ended with the farmer hiring a lawyer and getting a full refund.
“I got what I had put down back, but I paid about $3,500 in lawyer fees and I never did get a scraper."
The unsatisfied customer is 1 of 7 farmers and dealers who have filed an official complaint against Leon’s Manufacturing to the Alberta Farmers’ Advocate office, according to the Western Producer. Keith Rasmuson, farm implement inspector with the office, started hearing complaints about the company over 2 years ago after many customers waited months, and in some cases years, for delivery. Only 1 of the 7 farmers and dealers who contacted him have received the product they ordered, he says.
The Saskatchewan government is aware of the complaints and has issued a letter to Leon’s reminding the company of its duties to the customer, according to the Western Producer.
Consider these cautionary tales for those customers who are thinking about bypassing your dealership to buy directly from a manufacturer. Have any of your customers shared similar experiences with you? Let me know in the comments below or shoot me an email at Nnewman@LessiterMedia.com.
