As a dealer, Kubota has never been in a better position competitively now as we are with the BX80. We've just got a whole ton of features with very useful benefits for like a $200 price increase. The fit and polish on the current product is fantastic, and the lead on the other tractors in the market is as obvious as its ever been.
A note started this thread about Kubota 'heavy discounting' with the $99-129\mo pricing on BX. Kubota did not cut pricing to do this, no extra discounts where used. Its a combination of a 0/84 rate that's not often used, and putting a lid on dealer margin. The margin left is fairly typical for a place like us, but its tight for some dealers who maybe in high-cost states. The only reactive thing I can think of was the bump in warranty from several years ago.
Greetings Fellow TBNers,
How many of you thought Messick's post was a great response to my original posts ? Come on now - be honest.
Lets be clear - Messick's is a great operation from everything I've been told - and he's a very skilled and valued poster by me and others. But look at what he said compared to the start of this thread and you'll see he is indeed a very skilled poster. He writes and states "As a dealer". But that wasn't what my posts were about was it LOL. My posts were and have been in this thread about Kubota's actions - not dealer's actions. Obviously Messick's is very good at communications
My point is that Kubota is doing some things this last 6 months that it has not done before to attempt to maintain its marketshare for the BX product line. And I provided some quite specific examples (free deck and $99 a month and on larger units $129 per month).
Now lets look at what Messick actually stated from his dealer's perspective: "Kubota did not cut pricing to do this, no extra discounts where used. Its a combination of a 0/84 rate that's not often used, and putting a lid on dealer margin." I understood that based on the 84 month extended financing - but if you note - Messick didn't reference the free 54 inch deck in that statement - now did he . . . told you - he's a good salesman
In other words Kubota has controlled and reduced dealer's profit potential (mandatory) relating to the BX product. And then of course in addition there is the free deck so dealer's aren't getting any profit on the deck either - seems like some serious discounting to many dealer's bottom line - at least sounds like it to me LOL
Messick also said "The margin left is fairly typical for a place like us, but its tight for some dealers who maybe in high-cost states." Tight ??? Good salesman that Messick LOL.
That comment didn't include the free deck - as I read it. So what about all the Kubota dealers that aren't as large, successful, established, and has the area prospect quantity that Messick's has ? Or has a long lengthy client list from many years when margins were handsome ?
In other words - I'd guess lots of dealer's might say Kubota has "done something" to try to maintain its marketshare - and that its been done to the dealer's bottom line.
1. This thread started with me making a post about marketshare recovery efforts by Kubota because the rest of the scut market is getting much more competitive than they previously were.
2. Then some wanted to post about Massey tractors because I bought a Massey scut - but that wasn't what my posts are or were targeted about.
3. Then some wanted to talk about sales numbers - but my posts weren't about sales numbers but about marketshare - which are 2 totally different things when a market has expanded greatly as the scut market has.
Messick made a great post about how Kubota has improved the BX products - and you'll note my posts had previously said that - Kubota makes fine product.
And his perspective as a highly successful dealer perspective is probably much like my dealer's thinking too - as they are also one of the successful larger dealers in the country. But Messick freely admits a fact that likely many other dealers don't "feel" - a
forced mandatory decline in BX profit margin levels because of the 84 month pre-quoted pricings - and a generous free deck worth - what - $2,000 ??? besides ?
4. My point is - why is it so hard for readers to recognize that the competition in the scut field is having an impact. Comments like "I'll still buy a Kubota because its well recognized and has been a good product" - - - has anyone questioned or doubted that at any point prior ? Has anyone said "don't buy a Kubota" ???? Has anyone said "xxxx brand is superior to a Kubota BX scut" in this thread ???
Why am I sticking to this thread - and defending the points I initially made ? Because too often TBNer's seem to reference past history in the process of others choosing for the future. Or too often - TBNer's reference poor dealers or even more often - a lack of available dealers close to them - and
my point is - if you see a manufacturer or manufacturers making it harder on small dealers to start or to thrive in various areas - you often create dealers fighting for every dollar they can get to stay in business and feed their families. Lots of dealers can't be a Messick's or a Mc Farlane's or 20 other dealers - because their territory or financial capacity can't compare.
I'd love to have some come back with insights or information or perspectives that counter mine. Am I picking on Messick's?
Absolutely not - I respect them - and I respect their salesmanship skills too - to reference the dealer perspective that they have.
But, but, but - for everyone who says "yes that Messicks knows what they are talking about and showed AxleHub the truth - you better understand that Kubota is openly making efforts to keep their considerable scut marketshare - even at the point of impacting the dealers in less than pleasant ways - because Kubota wouldn't do it if they were not competing against a growing group of joint competitor impact.
And no - not just Massey or J.D. or Kioti, - its every brand you can name that makes scuts - its the total of the group - not the individual of the group.
I'm not familiar with what the conditions are to get those special financing rates AND get a free deck or what that free deck is normally sold for.
This is much different than when Kubota lengthened the warranty period a couple years ago because Kubta (the company) bit the bullet on doing that.
jmho
