South Dakota dealership built on foundation of innovation.
Jan Busse didn't plan on representing the 3rd generation to run his family's implement business, Pioneer Garage, now in its 120th year in South Dakota.
However, after operating the business for 32 years, he takes
pride in what he and his employees have accomplished.
Hard work has paid off with the addition of two locations
and growth in sales to $50 million from less than $1
million.
Foundation of Innovation.
Busse's step-grandfather, William Yeandle, started business in 1884 in downtown
Highmore, SD. Yeandle ran a blacksmith shop and sold plows and other farm
implements. Yeandle also holds a place in agricultural history as the
inventor of the Yeandle plow (on display at the Ford Museum, Detroit, MI)
Busse's father, Clarence, took over the business in 1950.
In 1972, about the time Jan graduated from South Dakota State University with a
degree in Civil Engineering, his brother Daniel, was killed in Vietnam.
"He probably would have been the one in the business," Busse says. "My
dad's health was a problem and he asked me if I would be interested in owning
Pioneer Garage. I thought it sounded great to own my own business and I
decided to come back to Highmore."
Busse took over Pioneer Garage in 1972. Three years later he built a new
building in Highmore where he sells CASE IH and New Holland ag equipment and
Ford automobiles.
In 1984, he bought a New Holland dealership, Hand County Implement, in nearby
Miller, SD and continues to sell New Holland equipment there.
In 1992, he purchased a Case company store in Pierre, which operates as Pioneer
of Pierre and sells both Case IH and New Holland equipment.
The three towns are located in the center of South Dakota, all on Highway 14.
Highmore - the smallest of the three with a population of about 900 - is in the
middle. State capitol Pierre, with a population of about 16,000, lies
about 48 miles west of Highmore. Miller, population 1,800, is about 23
miles to the east.
The area's diversified agriculture - corn, wheat, soybeans,
cattle - helps keep the ag equipment business steady,
according to Busse. Typically, when grain prices are
down, cattle prices are up, "We cover a pretty big area in
sparsely populated country," Busse says. "We reach out
150 to 200 miles in most every direction."
Busse says "Customers come to Pioneer Garage to do business
because of my employees, our selection of inventory and our
prices and services. We try hard to provide customers
with everything they need to make a wise buying decision."
One-stop shopping
Over the years, the dealership has become known for its inventory on hand and the number of shortlines it carries.
"We try to buy in quantity so we can pass on the savings to
the customer." Basse says. "We probably have more
invested in inventory, both new and used, than the average
dealer. That's why people will travel a distance to
our store. Instead of having 2 used balers, we'll have
40."
The dealership sells about 25 different shortlines.
Having all that variety available allows Busse to offer his
customers one-stop shopping. "If a farmer or rancher
wants a piece of equipment, we can fix them up without their
going someplace else for even the small items," he says.
Ford automobile sales compliment ag equipment sakes at the
Highmore location, where Busse's father started selling
Studebaker cars along with Minneapolis Moline farm equipment
in the 1950s.
"In the fall when farm equipment sales start slowing down,
the auto season picks up," Busse says. "Auto sales
give us contacts with people we might not see on a daily
basis. Somebody might drive 150 miles to buy a pickup
and then see what else we have."
There aren't many other combination auto-implement dealers,
maybe a half dozen int the Farm Equipment Association of
Minnesota and South Dakota. Busse says the combination
has worked well for him, however, as another way to meet his
customers' needs plus bring business to the dealership.
"Our business is more than just selling equipment.
We have to show the benefits. Customers are depending
more on the dealers for information to help them make their
buying decisions."
Customer growth fuels more demands
As his farm
customers have been growing in size and efficiency, as well
as in demands and expectations, Busse has been striving to
develop stronger parts and service departments. "We've
got a ways to go but we're getting there, slowly but
surely," he says.
Today he offers more on-farm service. He develops
better-qualified technicians through training. He
takes advantage of manufacturer's schools so employees can
stay on top of technology changes. He runs more
service clinics and specials on service jobs, and promotes
the parts and service business more than he used to.
"Our motto is that we can't afford to lose one customer."
Busse says. "We spend a lot of time and money so we
can show the benefits to our customers. Our business
is more than just selling equipment. We have to show
the benefits. Customers are depending more on the dealers
for information to help them make their buying decisions."
Busse echoes a concern he hears from other dealers as well.
He wants to know that manufacturers are working as hard to
take care of their dealers as dealers are to take care of
their customers.
Pioneer turns hunter
Like most implement dealers, Busse
sometimes finds the hunt for employees to be a challenge,
particularly when he's looking for qualified technicians.
"It's sometimes harder to get employees to come to smaller
towns, but I feel like I've been fairly successful at that,"
he says.
His strategy is to negotiate deals with promising local high
school students: he'll pay their tuition and send them to
college in exchange for an agreed-upon number of years of
work after graduation. It's a system that has been
successful for Busse.
Pioneer targets the next frontier
Busse looks
forward to being able to provide better service for his
customers in the Pierre area with a new building, scheduled
to be ready at the beginning of December. "We'll have
a bigger and better service area." he says. "We'll be
located on the edge of town, near the John Deere dealer's
new facility."
Busse also hopes to expand the service center at his
Highmore location next year.
With no family member interested in taking over the
dealership, Busse is not sure what will happen with the
business down the road. At 55, he says he'd like to
keep working for another 10 years.
"Hopefully, I can ease out and keep the business going." he
says. "I'd hate to see any of the stores disappear.
I've got some employees who are very capable of taking the
reins and making the thing work without me being there
everyday, as long as I can still help them financially.
That's my goal down the road.
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