S&H Farm Supply to double locations in 2008

On Jan. 7, the company opened in Mountain Grove via an acquisition, and a Joplin store also is in the works. That expansion should increase S&H’s buying power and streamline service needs for customers.

S&H owners Wayne and Eric Schnelle bought out Chasteen Tractor Inc. owned by Ray Chasteen of Mountain Grove.

Both Eric Schnelle and Ray Chasteen declined to comment on details of the sale, though Schnelle said S&H is leasing the Mountain Grove space from Chasteen and that the purchase did not involve a large capital expense such as a building or construction.

Schnelle said S&H retained all employees in the parts, service and office areas of Chasteen Tractor and consolidated sales into S&H’s Lockwood office.

Chasteen, who bought the Mountain Grove store from his father-in-law in 1973, said it was time to retire.

Chasteen has known Wayne Schnelle for 20 years and his son, Eric, nearly that long, and he said he was glad to sell to someone he knew. More importantly for him, though, was the benefit to his customers. S&H, like Chasteen Tractor, is a New Holland dealer.

“Eric had the same products I sell,” Chasteen said. “Therefore, my farmers can get the parts they need for the products I sold.”

The two new stores aren’t the first branching out for S&H; a Rogersville location was added in 2005.

Welcome transition

Dan Bratt, New Holland’s agricultural business manager for Missouri, said the sale is just the sort of thing New Holland likes to see.

“We always would prefer another dealership acquire an old dealership,” Bratt said. “In Missouri, the majority of our dealerships are family dealerships passed from generation to generation. The family part is just as important to us as the business part.”

Chasteen said the trend in the farm machinery business has been toward larger dealerships with better economies of scale and selection, with about $2 million in stock available. That’s because when farmers decide to buy, they don’t want to wait six weeks for delivery, he said.

“You’ve got to get big or get out,” Chasteen said.

Eric Schnelle is aware of that necessity, and he said he looks forward to having more buying power as a four-store chain.

Bratt said S&H is just the right size for the image New Holland wants to convey.

“We want our dealerships to stay small enough that the owner can touch every customer,” Bratt said. “We’re not out to be dealing with other corporations. Our goal is to stay local. Eric is a good example of that. He is at all of the stores every week.”

Another advantage will be in customer service, as clients will be able to avoid driving out of town for parts, Schnelle said.

“The big service we offer in the machinery business is having spare parts and an outlet for buying supplies and repairs in those markets,” Schnelle said. “Especially with high fuel prices, it will be nice because we have a parts shuttle and can shuttle parts to those areas if they don’t have them.”

Joplin-bound

Schnelle said S&H’s Joplin store is slated to open in March.

S&H is leasing a new location at 4060 Coyote Drive, which Schnelle said is right off Interstate 44 at Highway 43, near a Peterbilt Trucks operation.

“Part of the reason we are going there is to expand parts and service support to customers we are already supporting,” Schnelle said. “We were just an hour-plus away from farmers in that area now. Not only will it give us presence there to increase sales, but it will offer expanded support to our customers in that location.”

A manager already has been chosen for the Joplin store. Schnelle said Bill Lyons comes to S&H with 20 years of equipment sales and service.

“You get the best people you can and expand or support them with existing people that you train and bring in,” Schnelle said.

Still, Schnelle said there is a lot of work to do before regional operations are up and running smoothly.

“This will be a year with lots of opportunities and challenges,” Schnelle said.[[In-content Ad]]