Best Negotiation Technique

spencer200 · May 29, 2003

oh I am not here to argue economics with you! I can say that if I sold anymore tractors than I do now I would need a larger building and staff. NOW thats a whole topic in its own finding good people to staff the operation. I would like to talk to your mahindra dealer because I would be willing to bet he is working on a larger margin than I currently do. I would also bet he is a dealer distributor selling to other dealers. Anyways it does not matter this has been a good thread and plenty of food for thought! /forums/images/graemlins/ooo.gif

Chipperman · May 29, 2003

What I can tell you is that I found a Mahindra dealership here in the U.S. (i.e. compacts) that claims sales of 700 tractors last year. 

Ranchman
I too have herd there is a dealer in Texas that sells 700 Mahindras. But I have also herd Mahindra sold some where around 6000 tractors last year. Now you may have a better idea than I as to how many dealers they have but lets just say maybe 300? If the 6000 tractors is even close then there are not many other dealers selling any where near that number. They build a nice tractor and they they do and incredable amount of advertising. Thats my two cents.
Happy Tractoring
Chipperman

RanchMan · May 29, 2003

Spencer200 -

I can say that if I sold anymore tractors than I do now I would need a larger building and staff. 

And that would be bad.....how ?? Potentially more money for your company, more jobs for the local population, higher demand for NH products, etc. etc. etc. Sure more work for you, but other than that, I really don't see much of down side.

While some businesses hit specific limits due to circumstance (industry, management, sales model, product, etc.), the vast majority of business folks I know have a desire to grow their business and their market share (especially those that are publicly traded). Again, I’m the first one to defend a business owner’s right to run their business as they see fit (a theme I've hit on in this thread), but I find it interesting that the reason you cite you don't wish to grow your business is because it's too big a pain to find "good" employees.

I would like to talk to your mahindra dealer because I would be willing to bet he is working on a larger margin than I currently do. I would also bet he is a dealer distributor selling to other dealers. 

Interesting conclusion - since I have presented no information on that particular dealer other than their volume claim (which I even acknowledged could be fictitious!) Heck, I didn't even say which State the dealer was in, much less their name. Again, maybe you’re right - maybe you’re wrong - but I find it interesting you are willing to make such a conclusion without any evidence to substantiate it. As for if they are a “dealer to dealer” - can’t comment on that other than I didn't see anything they stated that seemed to indicate that. (I could have missed something though.) ‘Course, if you want to talk with the dealer, (not sure how much information they would be willing to provide), here's their link.

Anyways it does not matter this has been a good thread and plenty of food for thought! 

I believe we agree on something. /forums/images/graemlins/wink.gif

RanchMan · May 29, 2003

Chipperman -

But I have also herd Mahindra sold some where around 6000 tractors last year. 

That's pretty close to the number I was able to find doing a little research in some trade rags.

...maybe 300? (Mahindra dealers) 

Hmmm. That feels too big to me - by a pretty substantial margin. I don't have hard facts to back it up other than using the "dealer finder" on the Mahindra web site along with various folks complaining here on TBN about their State having one or two dealerships (if any at all.) My “gut” would put it somewhere in the 100-150 dealer range - but again, that’s simply a “feeling.”

Regardless, your point is well taken – 6000-700 = 5300, /300 = ~ 17-18 tractors per dealer per year for the remaining ones. But, that still doesn’t negate my point - “High” volume is still “High” volume even if everyone else is “Low” volume. Maybe Mahindra has 1 “HV” dealership - maybe 2, maybe 3 -- and everyone else is just a “mom & pop” shop. Can’t really say - other than I still don’t see the controversy with my point regarding HV. (BTW, I found in one of the trade rags that the U.S. market for 40-70hp tractors is somewhere between 60-80K units/year - couldn’t find it, but I’d bet the volume is substantially more for smaller HP tractors - especially the “lawn” versions).

 They build a nice tractor...

Thanks (since I own one /forums/images/graemlins/wink.gif) I’m happy with mine, but they certainly have their warts too (pointed out my disappointments with mine here on TBN.) If I had it to do over again, I’d still get another Mahindra without hesitation- just that I’d be more aware of some of their shortcomings.

...they do and incredable amount of advertising. 

Hmm. I’ve only seen a couple of bill boards during my treks across the Texas, and I think I’ve heard 2 radio commercials. I don’t subscribe to a lot of tractor/garden magazines, so maybe that’s what you’re referring to. ‘Course, I can’t seem to not flip the channel without finding a JD commercial during T.V. time. Since T.V. time is pretty pricy compared to other forms, I suspect that their budget is far greater than Mahindra's. Advertising budgets are another one of those relative items I suppose.

Gary_in_Indiana · May 30, 2003

I can’t seem to not flip the channel without finding a JD commercial during T.V. time. 

Of course, Mahindra makes compact tractors and, to my knowledge at least, not a whole lot more. Deere, on the other hand has not only a full line of tractor in every size but also implements, garden trators, lawn mowers, combines, etc., etc., and even when they're advertising a combine, the consumer is still seeing that same famous color and logo and hearing "Nothing runs like a Deere." I'm sure that factors into the brand recognition value as well.

I happen to have a Deere but don't think they are the 'be all, end all' of tractors by any means. I don't want to sound like a Deere ad here, but I do think most people associate the Deere name with quality. That perception alone probably sells a million dollars worth of Deere equipment a year. Keeping that name in front of the public is part of that.

Woodbeef · May 30, 2003

Gary,actually Mahindra manufactures Utility tractors in India. The CUTs they sell are badge-engineered TYMs from Korea. On a world wide basis they sell almost twice as many tractors as JD does.

cnoel · May 30, 2003

Hey Gary, yor response is popular with me /forums/images/graemlins/laugh.gif. As a dealer, I couldn't have said it better. The better you treat a customer, the better they treat you....and vice-versa. The customers that treat you like you're trying to take them for all they own or try to get an extra 3% by pulling out a credit card after they have haggled you down till you're sorry they ever walked thru your door, are not going to get the same little "extras" that the honest and up front guy will get. Now don't get me wrong, if a customer doesn't ask for your best deal, then they aren't doing their job as a consumer-Its the ones who keep going and going and going......you get the picture.

19th_VA · Jun 2, 2003

( And that would be bad.....how ?? Potentially more money for your company, more jobs for the local population, higher demand for NH products, etc. etc. etc. Sure more work for you, but other than that, I really don't see much of down side. )

It's called having a life outside of business, Ranchman. I understand economics (haven't seen any mistakes on your part, by the way), and I also understand that there are more important things in life than making money. I think Spencer200 has discovered some. I would speculate this: he has weighed the opportunity cost of higher volume/bigger business with his desire for leisure/free time and has chosen (not wrongly) that his time is worth more than the trouble of more growth in business. Economics is not complicated but it is sometimes confounded by one of God's most beautiful creations--the human brain.

dourobob · Jun 2, 2003

Well said 19th VA.

Some choices are just NOT about more $$$

Bob

WVBill · Jun 2, 2003

Ditto - and there's also the "service level" issue. The general perception that "big" businesses give less/impersonal service is not unfounded. Perhaps Spencer2000 has decided that he would rather provide quality, personal service than make megabucks.