Loadstar
Platinum Member
Sysop said:Considering building and selling spare parts is higher profit than assembling new tractors, not keeping up on part availability over time would be a very bad business practice (unless it is some low volume model with many unique parts). If you priced the parts to build your own I think you'd find buying the parts alone would pretty much equal or exceed the cost of buying one assembled and you don't have the costs of factory assembly and testing associated. Selling parts is where most of the money is to be made for manufacturers.
"Considering building and selling spare parts is higher profit than assembling new tractors"- So the purpose of building a new machine is simply to support their parts network?... Oook
"not keeping up on part availability over time would be a very bad business practice" -then why do modern manufacturers have no problem doing it? So you buy a new machine! They don't like screwing around with parts.
"If you priced the parts to build your own I think you'd find buying the parts alone would pretty much equal or exceed the cost of buying one assembled "- there is also a cost of packaging, inventorying, shipping and handling parts. Then screwing around with a network dedicated to parts, it's a whole different side of it.
"Selling parts is where most of the money is to be made for manufacturers."- I don't hear on the news about part sales were up or down for manufacturers. Why aren't there Factory parts sales facilities on every corner? Because parts are a necessary evil for manufacturers.
It is much better for manufacturers if you buy new. They do not want you messing around with 50 year old machines.