Price Check Kubota Price Increase

[tractorman99]

Kubota might be going up Suggested retail

 

[MessickFarmEqu]

The main problem is how the dollar is trading to the Yen. The dollar is up 7% so far in 09 alone. So anything thats imported is now more expensive. Your not just seeing this with Kubota, since 95% of compact tractors are imported from Japan they are all going up in price.

Consumers seem to be expecting huge discounts on things right now. Do realize, that GDP is down 6% at this point, and consumer prices have fallen by 0.2%. Thats it. I know it seems alot more severe than that but those are the numbers.

I've said this a dozen times on here... don't think that waiting longer is going to get you a cheaper price on a new tractor.

 

[FarmNut]

Shouldn't a stronger dollar result in just the opposite of what you are implying (i.e. strong dollar usually equals cheaper imports, but hurts US exports)?

 

[Ace3]

I believe that FarmNut has it correct. Seems like Kubota can sell their tractors no matter what the cost. That's a nice position to be in for them but bad for us.

 

[MessickFarmEqu]

Shouldn't a stronger dollar result in just the opposite of what you are implying (i.e. strong dollar usually equals cheaper imports, but hurts US exports)?

ugh yea... okay I'll eat my words on that. A large part of the prior cost increase was due to currency trade, in this case things should be improving.

 

[Ace Power Equipment]

ANYONE SEE TOYOTA ABOUT TO ASK JAPANESE GOV'T FOR MONEY. JAPAN IN AS MUCH OF A RECESSION AS WE ARE.

 

[newbury]

ANYONE SEE TOYOTA ABOUT TO ASK JAPANESE GOV'T FOR MONEY. JAPAN IN AS MUCH OF A RECESSION AS WE ARE.

OT -
But I'd say not yet.
The Japanese save money in different ways. I think Toyota and Nissan etc. are just looking at their competitors and thinking - "Stupid US Govt. gave many billions to GM, why don't I ask for a few billion?"

I've been following "asked for" tractor prices, mostly about 30HP Kubotas on Craigs etc.
After Kubota jumped their prices it seemed the asking prices at tractorhouse went up. Barlow's didn't seem to change much. Craigslist and ebay rose slightly, but the same tractors are still for sale.
I'm just starting to see a few "distress" sales - i.e. "Laid off, need to sell".
As one who squeezes every nickel I'm hoping for more as the lawn care business DOESN'T start up and a lot of these firms that bought what they didn't really need are willing to sell at a low price.

Time will tell, there's often a distance between MSRP and the vehicle moving off the dealers lot.

 

[Gator6x4]

CNNMoney.Com had an article the first of March on auto sales; it reported the following on auto sales in the US compared to last year.

GM Down 53%
Ford Down 48%
Toyota Down 40%
Chrysler Down 44%
Honda Down 38%
Nissan Down 37%

New and existing home sales down, all major department stores reporting depressed sales, Lowes and Home Depot reporting depressed sales, Bush Hog on the brink of going out of business. Large Banks have failed and other Banks are on a very slippery down hill slide.

Now with all that said tractor manufactures are increasing prices and reporting sales are up and strong. It would appear from this that we have the wrong people in management positions at all locations except tractor manufacturing and sales.

 

[MessickFarmEqu]

Time will tell, there's often a distance between MSRP and the vehicle moving off the dealers lot.

I hate to tell you, but the margin on most tractor sales is in the hundreds of dollars. If your looking at a new tractor, the longer you wait the more you are going to pay. There is not enough profit in this business for margin to shink because of slow sales (which really aren't as far off as you would think). This price increrase has yet to really hit the streets. We've had maybe a half dozen higher priced units so far.

 

[jambx]

I hate to tell you, but the margin on most tractor sales is in the hundreds of dollars. If your looking at a new tractor, the longer you wait the more you are going to pay. There is not enough profit in this business for margin to shink because of slow sales (which really aren't as far off as you would think). This price increrase has yet to really hit the streets. We've had maybe a half dozen higher priced units so far.

That maybe true however Kubota (and the others) are going to have to sweeten the financing pot with better terms and incentives if they want a piece of the shrinking pie (and it is shrinking everywhere be it at various paces). I am looking for another TLB and until I see more than just price increases in this economy will I not pull the trigger.