sub compacts

[justanotherjoe]

Fish-Is your land covered with brush and trees, or is it open? Why a sub-compact? Labor cost is the same on small or large engines, hydraulic parts and plumbing, etc. All equipment is expensive compared with highly competitive autos, but equipment is built so much better. My Yanmar is 30 years old, still does what it would when new. A used Kubota now sells for what it cost new, ten years ago. The whole industry is high margin, demand driven. You might consider hiring an immigrant with a wheel barrow instead of a tractor.

 

[fish_wisperer]

i already have an ag tractor and wouldnt trade it for anything. i just think the shipping dementions, shipping weight, and 400% less cost on steel should make these subcompacts much cheaper than they are. the profit margin must be through the roof. maybe mahindra will help us out a bit when they come out with theirs this year. thats what i herd anyway. i know thats what ill buy if they are quite a bit cheaper. unless i get a used one.

 

[linpat]

profit is around 15 points, which is not much when u r paying for setup, sales cost, shipping. to many dealers sale on the internet and than r not there to service the customer.

 

[turbo36]

Last time I checked air planes were pretty expensive, Heck, any old part ought to work and any back yard mechanic ought to be able to get em up in the air again, right? /forums/images/graemlins/grin.gif

 

[fish_wisperer]

??? that one went over my head..........probably cause i work on planes.

 

[fish_wisperer]

i had a chance last year to get a new massey gc2300 for $7000.00 i should have took it from what i see now. then i didnt know how high these little jokers were.

 

[RickO]

</font><font color="blue" class="small">( ??? that one went over my head..........probably cause i work on planes. )</font>

Over my head.. Like a plane ... /forums/images/graemlins/grin.gif

 

[LBrown59]

</font><font color="blue" class="small">( i had a chance last year to get a new massey gc2300 for $7000.00 i should have took it from what i see now. then i didnt know how high these little jokers were. )</font>

Yes you should have.
Some lawn and garden tractors cost more than that.

 

[Gunfighter]

Raw material is cheap, it's the number of steps it takes to machine and
assemble the tractor that determines the final cost. There are probably
just as many steps in building a small tractor as a big one...

Plus some of the compacts are tricked out with gizmos an gadgets not
always necessary to get the job done but only to make life easier for the
operated...

Then there is whatever the market can bear. The big CEO's want to make
their 10/20 million a year and you can't do that by cutting your profit margins
to close...

Richard
West Michigan

 

[daTeacha]

Right! Whatever is currently popular in the market will be priced to give the fattest profit margin the traffic will bear. Look at SUVs not too long ago -- FoMoCo alone made about $12k on each Expedition sold. The dealerships also made a profit, and so did the salesman. I figure actual cost on one of those puppies was probably around $18 to $20k but they sold for double that or more. I figure your basic compact probably generates about 30 to 35% profit by the time you count the salesman, dealer, manufacturer, and shippers.

Still, you can't blame people for making a profit when and where they can. The competition is pretty fierce and business is moving along pretty well so the customers must think the prices are reasonable.