Canadians not welcome at JD - USA

[canuck50]

"The problem with using a US PO box as an address is that US state taxes would have to be paid so that would mean double taxes"

1. If you state it is for farm use, many states (e.g. Maryland) do not charge sales tax.
2. If you bring cash, any US dealer will sell you a tractor. You can give him an address of 1800 Pennsylvania Ave., Washington, DC 20001 and I bet he won't bat an eye. If you are looking for financing, that's where the problems come up.

Once again taxes are "not an issue" this is not about avoiding taxes.
As soon as I say hello they know I am Canadian so they would have to play along with the PO Box idea. I have no intention of lying if asked.

As to your point 2), thats what one might think but JD Head office has a big stick to control their dealers. I told them I have cash.
No doubt here and there dealers will find a way around it but most will not want to get in trouble with JD Corporate. Remember the machine will be tracked by serial number when it shows up for service at a dealer in Canada even if it is for a paid maintenance or repair.

 

[CinderSchnauzer]

I see Mutton Power has removed all prices from their website for new JD product. Obviously someone got to them as well. After all it's not good for consumers to have too much information - especially if it allows them to make better informed choices or heaven forbid - play one dealer against another.

All this sort of reminds me of the old days when the local Sea Ray dealer quoted everything at MSRP plus 10% and then gave everybody an automatic 10% discount. Everybody thought they were geting the greatest deals.

 

[Scooby074]

The Canadian dealers that complained, shot themselves in the foot for future sales to the states. They should have shot back with better prices.

I guess Deere is being "fair" in applying the surcharge equally, however i believe that the surcharge should not exist on either side of the boarder. Free market and all that.

When are the dealers going to realize this isn't the 40's, we have the internet and most of us are going to use it to find the best deal.

The irony here is Deere was being very forward thinking, moreso than the auto dealers by having their warranty valid for all of North America no matter where the tractor was purchased. Almost like they were incouraging cross boarder shopping! Now it seems like their discouraging it on both sides.

 

[CinderSchnauzer]

I guess Deere is being "fair" in applying the surcharge equally, however i believe that the surcharge should not exist on either side of the boarder. Free market and all that.

When are the dealers going to realize this isn't the 40's, we have the internet and most of us are going to use it to find the best deal.

It's certainly open for debate, but I'd argue "fairness" is not on the radar for most large multinational OEM's. Market share and profits are of more interest and if somehow they can segregate a market (say Canada) and artificially keep prices higher - that's what they will do. If there is $5,000 difference between the CDN and US MSRP, it's not the dealer making that extra, it's the OEM by setting a higher wholesale price to the dealer.

I guess if one really "needs" a tractor then choices may be more limited. If the tractor is only a "want" and can be postponed it may pay to write letters to JD corporate and to the dealers telling them - no sale until prices change.

The dealers who do not want to discount, and probably still wouldn't even if wholesale prices were lowered, is another story.

 

[gamble77]

There were several U.S dealers who were selling new JD's into Canada and financing them through the U.S arm of JD Credit...which can't be done. I talked to several customers who were shopping new machines and told them they could not finance and they said that "so and so dealership" said they could...bad business practices and it eventually caught up to them.

Mutton's prices were pulled probably because TractorHouse is not a forum for new equipment advertising...and the problem with Mutton's pricing on there is they would set unrealistic prices for people across the nation. Bottom line is you aren't going to see the kind of prices Mutton was offering in 99% of the JD dealerships you are going to go in. Dealers have to make money, every single one of you should reconize that, and most dealers give customer's fair deals. I occasionally run new machine add's online but only on either over-stocked equipment or "aged new" equipment...I do not however, blanket new prices.

The whole Canada selling thing I am not in full agreement with but we have to play by the rules. I sell equipment all across the world and trust me when I say there are rules that have to be adhered to...there are always good used, low houred machines out there to buy, looks like that is what Canadian customers are going to have to go after now instead of the brand new mahcines.

 

[jimg]

Im sure this matter will get straightened out when JD loses enough customers b/c of it....IF that ever happens. Theres another thread, in this forum I think, discussing (AKA complaining) the dealer pruning JD is currently in the midst of here in the US. Myself, I dont think JD will ever be hurt by these decisions b/c there are just too many brand-only buyers willing to pay the inflated prices. From JDs POV its pretty hard to take the complaints seriously when the $$$ keeps pouring in. Im sure theyve been in business long enough to know where the 'threshold of pain' is for their customer base and how not to exceed it.

 

[jdl]

Possibly, but as soon as a few "aboots" and "ehs" sneak through the party's over...

I haven't heard a single Canadian say "aboot" yet.

 

[ddivinia]

If you are so pissed off at John Deere - go buy some other brand. When their sales go to crap, they might get the point. The reality is the numbers is what they notice.

D.

 

[CinderSchnauzer]

Mutton's prices were pulled probably because TractorHouse is not a forum for new equipment advertising...and the problem with Mutton's pricing on there is they would set unrealistic prices for people across the nation.


Bottom line is you aren't going to see the kind of prices Mutton was offering in 99% of the JD dealerships you are going to go in. Dealers have to make money, every single one of you should reconize that, and most dealers give customer's fair deals. I occasionally run new machine add's online but only on either over-stocked equipment or "aged new" equipment...I do not however, blanket new prices.

I doubt their decision to remove pricing from their stand alone corporate website had anything to do with Tractorhouse.

Let's assume you're right and dealers to give fair deals. The UNfair aspect that many are pointing to is when JD corporate sells to the US dealer at a cheaper price (adjusted for currency exchange) than to the CDN dealer. Since JD Can does not post MSRP anywhere let me use GM as an example. Silverado trucks are manufactured in Oshawa Ontario. CDN MSRP for a Crew 4x4 Short Box LTZ is $45,870. US MSRP for the same thing is $39,875 and for all practical purposes the Dollar is at par.

The CDN dealers are not laughing all the way to the bank with that extra $6,000 - it's GM corporate. This is the type if thing people are upset with in the tractor market - and it is not just confined to JD. Posters who say "buy another brand" are not presenting a solution. The other brands are just as bad on the pricing side.

Now that $6,000 referenced above has come down a lot from what it used to be, mainly as a result of people and the media "whining / complaining" etc.

 

[canoetrpr]

I believe that this would be considered illegal under the rules of NAFTA. The 7% effectively amounts to a export tax. NAFTA is meant to level the playing field.