Why are TYM and Branson so much less??

[Tennsawdust]

I wouldn't have a problem with buying TYM or Branson either one. They are both good tractors. Typically you will see TYM, Kioti and LS being fairly close in price with TYM sometimes being very aggressive. TYM has a lot of tractors in North America - mostly through rebranding deals - so they are not really a new concern. TYM is working toward a goal of building 200,000 tractors per year (very aggressive goal in the tractor world) and they are pricing aggressively, including more content, adding sales channels (like Rural King) and appear to be working hard to grow their business in the U.S. Basically, TYM has built what appears to be a very nice factory in Korea and the boss has told them to fill it up, so that is what they appear to be doing.

From what I've seen Branson runs a little higher, but then you are buying 1,000 to 1,500 pounds more iron with the Branson (not kidding). I haven't spent time on a TYM, but have on some Bransons. I grew up using mostly MF and Ford tractors and the Branson is a much closer match to those than some of the other brands. I was also impressed with the fit and finish on them. I really wish that Branson or McCormick (same tractor) were better represented in my area.

 

[DavesTractor]

I haven't been on TBN often lately, but as a volume Branson and Mahindra dealer I have a couple of observations to make. First, this is a civil bunch of tractor fans. Awesome of you all not to just hammer any brand that is not your own. Rare indeed.

Secondly there are a lot of good points being made. I'll touch on one, where a poster mentioned that less marketing can mean tractors cost less. It is a risky thing to do, but Branson has decided on a slower growth plan than some brands with crazy lofty goals. They do much less national advertising. They pulled back a bunch on what is spent at the big farm shows, where a weekend display costs in the 6 figures with staff and tractor hauling, etc. When they do a national dealer meeting, it is close by the Rome, GA headquarters so they aren't enriching tractor haulers. Hotels are just normal, not glitzy. Meals are just meat and potatoes. Dress code is casual. Low pressure. Some brands spend several million dollars to put on their yearly meeting. The cost of that is added on the tractors, so is the cost of the multimillion dollar advertising campaigns. Branson has been profitable every year for years. Growth is steady, but not explosive. Prices go up seldom, and a small amount when they do.

I will admit, advertising is supposed to be free. You advertise, pay the cost of that and the resultant increase in sales should more than cover that costs. In a perfect world that is true. But as one of the larger Branson dealers in the USA, we like having low prices on a quality machine. Could I sell more if they were $5k more and we had fantastic brand recognition with lots of national advertising? I'm not sure honestly. For now, I like the slow and steady growth and steady prices. Works for us.

As for JD and Kubota. They are fine machines, especially if you look at their non-economy models. Good quality, very capable and with a solid network of dealers. They have earned enough market share over the years that they can make more margin. Good for them, it is the goal of most brands to get to that point. I don't diss on those brands, even as we sell against them every day.

 

[TractorNH]

TYM has a lot of tractors in North America - mostly through rebranding deals - so they are not really a new concern. TYM is working toward a goal of building 200,000 tractors per year (very aggressive goal in the tractor world) and they are pricing aggressively, including more content, adding sales channels (like Rural King) and appear to be working hard to grow their business in the U.S.

I recently saw an article where it was stated that if you total all the TYM tractors sold in the US across TYM and all of the TYM rebrands (Mahindra, RK, etc) they are actually the number 2 selling tractor manufacturer in the US in the under 100hp category of farm and utility tractors.

 

[DavesTractor]

I recently saw an article where it was stated that if you total all the TYM tractors sold in the US across TYM and all of the TYM rebrands (Mahindra, RK, etc) they are actually the number 2 selling tractor manufacturer in the US in the under 100hp category of farm and utility tractors.

I'd like to see that article. I doubt it is correct. Kubota and JD are the two top dogs in the USA, Mahindra is #3. But the gap between #2 and #3 is large.

I think if you took all that Mahindra sold in the USA (not just TYM re-brands) and add to that all that is sold via TYM dealers and add to that all RK products sold and even add all Branson, you would still be well short of bumping JD or Kubota. It is very impressive that Mahindra is #3, but even as a Mahindra dealer I will admit that going from #3 to #2 is a whole 'nother ballgame.

 

[screamin400]

I have been told they are number one in the world and number 3 in the U.S. with a large gap also

 

[DavesTractor]

I have been told they are number one in the world and number 3 in the U.S. with a large gap also

Which is true for Mahindra, as measured by tractor count, not by dollar volume. Impressive as that leaves not only the other newer brands below them (Kioti, LS, so forth) but they have also surpassed Massey and NH.

 

[Rustyiron]

Dave I don't know Cali geography but by you posting I'll guess you've lucked out so far with the fires. Glad to hear from you!:thumbsup:

 

[DavesTractor]

Thanks Rusty. Closest fire line is about 25 miles. The Carr fire traveled 7 miles one day, but that was a phenomenally bad firestorm. Over 1000 houses destroyed. They about have a wrap on that one, at least the perimeter. The Mendo Complex is about 70 miles the other way. They seem to be getting a handle on it also, quarter million acres on that one but I think less than 100 homes. Lots of fuel in the foothills and mountains, and it only takes a spark. Need rain, but that is rare in California during summer.

 

[s219]

Glad to hear you are doing OK Dave, but 25 miles would make me nervous!

As far as market share goes, the last time we had this discussion it came out that Kubota had crossed over 50% US market share at some point, based on one of their press releases, but there was some evidence they may have pulled back a little under 50% at some point (still they are close to 50% for the purposes of this discussion). Deere was supposedly a ways back at #2 though I don't know if we have an exact number. Then there are a whole bunch of other companies far back from that. It's interesting. Kubota started at zero back in 1969 so they have had almost 50 years to get where they are now.

 

[GirlWhoWantsTractor]

......all of the TYM rebrands (Mahindra, RK, etc)....

"Rebranding" actually means changing your corporate image, logo, etc., but it sounds like here on TBN it means "taking another company's product and sticking your label on it."

Mahindra is a tractor manufacturer. In other countries, they manufacture the tractor themselves. For the U.S. market, they still design the tractor and build some components themselves, however they have chosen to contract with various manufacturers to build other components. They then assemble the tractor in a Mahindra assembly plant. For the US market, Mahindra currently has TYM build some of the core components. Mahindra tractors are not the same as TYM-branded or RK or Branson tractors, though they may share some components.

TYM is a very large and well-regarded Korean *manufacturer*; they have a Machinery Division, a Cutlery Division, a Culture Service division (basically publishing and films), and a Cigarette Filter division. TYM didn't even *have* a tractor brand in the U.S. until 2004; before then, they simply made tractors and components for other tractor companies.

TYM supplies core tractor components to several U.S. tractor companies, including John Deere.

TYM does not even manufacture TYM-branded tractors top to bottom; many have Perkins engines and a Bosch hydro-electric hitch control system, for example.

So what does "rebranded" actually mean?