Why Do Small Tractors Cost The Same As Larger Ones

[Bird]

Ken, I suspect you may be right, and tractor manufacturers certainly aren't the only ones to do that. One that comes to mind is the veterinary I used. His prices were quite reasonable for rabbits, goats, donkeys, and cattle, but pretty darned high for dogs and cats. /forums/images/graemlins/wink.gif /forums/images/graemlins/laugh.gif

 

[TMcD_in_MI]

I know steel is expensive right now, but isn't it possible that it just doesn't cost much less to build a small tractor than a big one? I was just in a bookstore reading through one of their John Deere books and it said that when JD brought out the smaller B model, their customers expected it to be cheaper, but it cost about the same to produce as the bigger A. Apparently they had a tough time making any money on it at a price people would pay.

I don't know if this is still true, but it does stand to reason. Both big and little tractors probably take about the same number of manufacturing steps: casting, machining, stamping, painting, etc. The only difference would be the amount of material, and how much of the cost of manufacturing is due to materials? I have no idea myself.

Tom

 

[Soundguy]

</font><font color="blue" class="small">( NH TC30 where you have a no-frills economy tractor that actually turns out cheaper than it's smaller full feature compacts )</font>

I agree.. a tc29d would be more than a tc 30.

I also see this trend when browseing the heavy equipment shopper. You can find older equipment that is big.. come in around the same price as mid to small equipment.. Old ag tractors for instance.. a big ford 8000 or cas 1xxx series can be sold for 4000 dollars give or take a few bucks all day. That 4000$ won't get you a ford 4000 though... And is just a tad mor ethan a hundred series.. etc.

While still new.. everything tends to stay close to sale price.. but give it a few years.. and the big tractors suffer. However implements with them help to keep the value up. Like ahve a big boom mower.. and an otherwise 8-9k$ tractor will stay in the mid teens.

Soundguy

 

[Henro]

No doubt in my mind that supply and demand issues drive price up.

But there are basic manufacturing costs that play in the picture too. Nobody sells below cost for long and stays in business. When I look at the smaller tractors, I can't help but think the time to make each part may not be that different from what it takes to make the similar part of a larger tractor.

Labor costs, facility overhead, and so on may be about the same when building different sized tractors. Other costs involved in the process (design, development, sales network, etc) may not be that different either.

I guess what I am trying to say is that when I look at two different sized tractors, it does not surprise me that the dollar per pound price gets smaller when the tractor gets larger (up to a limit I suppose). The mass of material used make the tractor is likely not the key price-setting issue, when everything else that goes into producing the tractor and taking it to market is added together.

 

[sweettractors]

I can relate to out of bounds vet bills. We had a vet to come out and look at a cow that had died and he looked at her and said it may be this or that and could not give a firm answer. We asked to pay him on the spot and he said not to worry about it and that it would not be too high and he would have the secretary send us a bill at the end of the month. She sent one for $150 and we reluctantly paid it. /forums/images/graemlins/mad.gif. Looking back on it, I dont think he had the guts to tell us $150 face to face. We have since changed vets--From the stories I hear from our nationwide customers, the vets are usually pretty bad about sticking it too the horse owners as well--Ken Sweet

 

[cowboydoc]

New prices I don't think you see much difference. I sure don't see this disparity with Deere. I've got a tractor in about every category and jumping up each category costs alot of money. The CUT that I have new now would be around $24k. My 6415, utility tractor, new is around $50k. My 8320 was $137,000. The only anomaly in there would be my 5303 but that's a stripped down model. It's a small utility tractor and was $16k plus with the loader.

Used yes there is a much bigger disparity. This is because everyone wants a CUT or small utility tractor. The bigger older tractors there isn't much demand for. Alot of people have 1-40 acres that a CUT or small utility is handy for but few people have the acres to run a bigger utility tractor. Demand is much higher and that is what drives your used prices up.

 

[Evasive1]

I always think of my vet as being expensive until I remember that to become a vet it takes 7 years of school. These guys are doctors. Imagine the bill from your family doctor to come to your house to see you?

 

[Soundguy]

For those of us with horses... I can personally say.. that aside from major problems.. .. well.. even soem major problems.. It is easier to spend more 'doctor' money on a horse per year than a person.. and that includes the farm call. monthly Farier.. equine dentist.. coggins, a whole list of vaccines.. etc. And those are just the routine ones. Not to mention any 'oops' that DO occour.

Soundguy

 

[SkyPup]

How right you are, just another good reason to go to a good Veterinary School and get your DVM PhD. Things sure have changed since I graduated!

 

[sweettractors]

I think I would still be upset if my family Dr came out and charged my spouse $150 to tell her I was dead and it could have been any # things that caused it /forums/images/graemlins/grin.gif--Ken Sweet