FarmTrac Troubles

[longtrman]

If a $15,000 Farmtrac sold in India for export to the U.S. in Oct 2005 @60 Rupees per dollar that would have been 900,000 rupees.

If a $15,000 Farmtrac sold in the U.S. in Jan 2008 for export to India that would be 600,000 rupees.(@40 rupees per dollar)

If India had 10% inflation in those two years the an Indian farmer would pay an Indian tractor dealer 990,000 rupees for the $15,000 Farmtrac in Jan 2008

And that is why, now that Escorts is out of the U.S. Market, it will stay out of the U.S market.

These exchange rates are foun by putting "value of Ruppee 2005" into a search engine. These calculations are for amusement only and not intended as sound financial advise. For expert financial advice consult Bear-Stearns (ha,ha).

 

[rascoil]

Hey,B.S. from Textron, are you following this? Give us your words of wisdom.

Yea that is the good fellow that said I would get a motor and then after finding out I paid cash for my tractor said no about 40 times in 30 seconds. But I guess his bosses boss felt different.

 

[rascoil]

OH yea, The Daily Southerner wants to talk to Mr. Gherkin about his auction conflict of interest. This should make for a good read in a day or two. According to the email I got tonight.

 

[longtrman]

Thanks Case, hope your deal works out well. I feel the time to sit and wonder who did what is gone. Now is the time to try and find a way out of this mess preferrably all together but if necessary one by one. Yours is the only idea so far offered to try to move on. See my post on the rupee / dollar exchange rates I have found on the net. It might help. It might be to make things happen we have to collect tractors from several dealerships to get the freight manageable. I think the other fellows on this thread are working very hard to keep us from being had by the wolves but yours is I think the first attempt at a way forward. Farmers think that a used tractor at $10,000 is a safer bet than an unused tractor at $10,000 with no warranty. Strange!

 

[case1570]

Can anyone help me with this? Every other brand that I have sold over the years has done things different than Farmtrac. When faced with a slow down companies discount tractors to the dealers, raising DSA's or upping incentives until inventory is back in check. Kubota just did this and were killing us. Case did this along with several others over the years. Has anyone in their years witnessed a company leaving so much inventory everywhere. I don't see the economic sense in this. Why not drop prices short term and move dated inventory. There is only one other company that I know of, that did this, they took down dealers to. It was owned by the namelessXXXXXXX I better stop, I don't want to be in court with Tim C for slander. Ha Ha

Case

 

[Tim C.]

That ain't funny................................

But again, I have to warn all that this is a public site.

No hail here last night. Fried a computer. Worst electric storm I have seen in a while. Concussions shook the whole building.
Looks like crop planting will be a little late around here.

Tim

 

[sseelhoff]

I am still waiting for someone to comment. I hope i am not imagining things.

Still looking. Here is a link to the Mississippi Secretary of State's file on Farmtrac. Not much to see, but does confirm that they have registered as a foreign corporation in that state.

https://secure.sos.state.ms.us/buss...pNameSearch&Words=Starting&SearchStr=Farmtrac

 

[longtrman]

That ain't funny................................

But again, I have to warn all that this is a public site.

No hail here last night. Fried a computer. Worst electric storm I have seen in a while. Concussions shook the whole building.
Looks like crop planting will be a little late around here.

Tim

Tim sorry to hear about your computer. I was on line when the storm hit and one tremendous thunder bolt caused a snap in the computer like a 22 shell but so far I'm still using that computer.

Has anyone heard anything fro Textron yet?

 

[longtrman]

Can anyone help me with this? Every other brand that I have sold over the years has done things different than Farmtrac. When faced with a slow down companies discount tractors to the dealers, raising DSA's or upping incentives until inventory is back in check. Kubota just did this and were killing us. Case did this along with several others over the years. Has anyone in their years witnessed a company leaving so much inventory everywhere. I don't see the economic sense in this. Why not drop prices short term and move dated inventory. There is only one other company that I know of, that did this, they took down dealers to. It was owned by the namelessXXXXXXX I better stop, I don't want to be in court with Tim C for slander. Ha Ha

Case

Tim and I can remember the Long "one day sales" of the Jimmy Carter era when a 460 Long sold for $6750 and a 5040 sold for $14500. For people who aren't acquainted with those older tractors they are the same tractor made in the same plant by the same people except the 5040 has the sheet metal for an earlier Long 445. Come to thing of it the distributor of the 5040 gave up before Long. So your idea of cutting prices and moving the troublesome inventory might have been a good one. The trouble for FARMTRAC was the change in the dollar rupee ratio. But they could have gotten rid of some of the problem. By my calculations a Farmtrac on the last boatload which could hav sold for $15000 would now sell for $22500. I don't think many of my customers would go for a new tractor at $22500 when their neighbor had just bought one at a steep discount from $15000. So we would have gotten righ back into trouble.

 

[SESS]

Country Boys Auction & Realty now a more detailed listing of the items that will be sold at auction. I want the hayspears! Wish they could give the dealers first choice on some of this stuff before auction day!