Page 218 - Peterson 85 Years and Going Strong

Left to right: Eric Wavra/SITECH Ag Technology sales manager; Peterson’s Albany store in 2018
Peterson’s products and timing in the ag business cycle have been focused primarily on what Grimes calls the corporate-sized family farm. “Our cus- tomer is the thousands-of-acres, big iron, big harvest operations. We don’t get the small guys with fifty acres of hay, or the homeowner and hob- by farmers. They go to Kubota and John Deere and New Holland. We’re not built for that business model.” However, in 2016, Caterpillar launched its Retail Presence concept for its small line of BCP and CCE products. Grimes saw that as a perfect fit for ag customers, many of whom buy skid steers and backhoes for their operations. “Retail Presence is a point-of-sale program geared toward the walk- in customer who wants to buy a piece of equip- ment right now,” says Grimes. “That’s how we can position ourselves to get the mom-and-pop-sized customer. By the end of my career, there will be successful freestanding ag stores throughout our territory, independent of earthmoving. That’s the goal. That’s the vision.”
Grimes’ vision came true much sooner than he expected but in a completely different manner. On December 16, 2019, Peterson sold its ag busi- ness to Sacramento-based Holt Ag Solutions. The move stunned everyone. But after the dust settled, people could see the merit and advantages for themselves. “This is a big win for our ag custom- ers,” says Grimes, now general manager for Holt Ag Solutions in Oregon. “Now they’ve got a deal-
er focused specifically on their industry. There’s a sense of urgency and no more distractions because all the resources are focused on ag.”That’s because Holt-Cat split off its ag business in 2002 as a stand-alone business and officially named it Holt Ag Solutions in 2014. Ag is their only focus.
While Peterson will continue to sell and sup- port Cat ag products and Trimble ag technology, Holt Ag Solutions is now the hub for all other ag products in Peterson’s tri-state territory. “Peterson couldn’t dedicate the resources necessary to grow their ag business like they wanted to and still do all the other things to grow the Cat business, so they made the decision,” says Grimes. “Peterson’s former ag customers are now getting exactly what they needed, just under a different banner. The cus- tomers win because they don’t have to compete for attention anymore. Holt is winning. And Peterson can have better performance where they want to focus.”
216 | PETERSON: 85 YEARS AND GOING STRONG