I think CNH Corporate is really drving these dealers out of business. I too priced a Boomer 50 at my local, long time, New Holland dealer and the price was so far out in left field from an equal and/or arguably better LS that there wasn't even a choice to be made. Indentical tractor for 8K less money? It's a no brainer. CNH knows LS is selling direct, and also knows their price point. Yet, they continue to force their dealers to charge a large margin over the competition that is selling an identical product. They can't truly believe they can continue selling at a higher price based on "better dealer support" when their dealers are dropping like flies. There is just no value prop in their asking price. Deere and Kubota ask similar but truly do have reputation, brand loyalty, and a stable dealer network to show justification for their price point and that obviously does convince some customers to pay their asking prices.
In my opinion CNH needs to drop back and punt. Either drop their prices to close to what LS is charging for the indentical machine or cut ties with LS and go elsewhere to get their price down to compete with similar volume compact tractor brands. Selling a much smaller volume at Deere and Kubota prices while your dealers are shutting their doors is never going to work. Only think that can save CNH overall is the large Ag business machines.
In my opinion CNH needs to drop back and punt. Either drop their prices to close to what LS is charging for the indentical machine or cut ties with LS and go elsewhere to get their price down to compete with similar volume compact tractor brands. Selling a much smaller volume at Deere and Kubota prices while your dealers are shutting their doors is never going to work. Only think that can save CNH overall is the large Ag business machines.
