MHarryE
Elite Member
- Joined
- Feb 15, 2009
- Messages
- 2,970
- Location
- Northeastern Minnesota
- Tractor
- Kubota M7-171, M5-111, SVL75-2, RTV900XT & GR2120; CaseIH 1680 combine
Both Cabela's and TYM are likely to see a high side. TYM will buld more product and with increased volume, component prices from suppliers drop. TYM will be able to invest additonal money on manufacturing that will also reduce production cost. They will also get feedback from Cabela's customers that they can use for improving their own designs.
I once was on a team negotiating a supplier to build a product line for my company and had a lengthy conversation with their CEO. His father had founded the company. After getting into business his father said they could continue the way they were going, selling under their name brand only, and at best he could envision a 20% market share. If they changed their strategy, however, and went after the major agricultural implement manufacturers to supply what would be for them a small volume prouct but necessary to be a full line equipment supplier, they could get as much as 50% market share. They headed that direction and in a few years had 75%. The old man had envisioned getting 1 or 2 of the majors but he got John Deere, Case-International, and Massey-Ferguson (this was back in the 80's when those were the majors). Different engines, different paint, different decals and slightly different styling.
It is interesting to see what Cabela's has done getting into the business. Its what I would have expected from a company dependent on name recognition. In this case we are not talking about putting the name on a sweatshirt but a tractor is a major sporting goods expenditure like a boat & motor. An entirely different line of thought goes into this type of venture.
Obviously their tractors are not for our farming operation but we lease out most of our farm for hunting and most of those people have Cabela's labeled stuff. We have lots of small areas in which we can't begin to turn our large equpment but are just right for food plots. They often want to rent our smallest, the L5740, but even that is big for them and I am reluctant to let these novices use it. Almost all of these hunters come from the Minneapolis/St. Paul area and there is a Cabela's on each side of town. Wouldn't be surprised to find Cabela's tractors and implements on our place.
I once was on a team negotiating a supplier to build a product line for my company and had a lengthy conversation with their CEO. His father had founded the company. After getting into business his father said they could continue the way they were going, selling under their name brand only, and at best he could envision a 20% market share. If they changed their strategy, however, and went after the major agricultural implement manufacturers to supply what would be for them a small volume prouct but necessary to be a full line equipment supplier, they could get as much as 50% market share. They headed that direction and in a few years had 75%. The old man had envisioned getting 1 or 2 of the majors but he got John Deere, Case-International, and Massey-Ferguson (this was back in the 80's when those were the majors). Different engines, different paint, different decals and slightly different styling.
It is interesting to see what Cabela's has done getting into the business. Its what I would have expected from a company dependent on name recognition. In this case we are not talking about putting the name on a sweatshirt but a tractor is a major sporting goods expenditure like a boat & motor. An entirely different line of thought goes into this type of venture.
Obviously their tractors are not for our farming operation but we lease out most of our farm for hunting and most of those people have Cabela's labeled stuff. We have lots of small areas in which we can't begin to turn our large equpment but are just right for food plots. They often want to rent our smallest, the L5740, but even that is big for them and I am reluctant to let these novices use it. Almost all of these hunters come from the Minneapolis/St. Paul area and there is a Cabela's on each side of town. Wouldn't be surprised to find Cabela's tractors and implements on our place.
