Imported to Canada

[canoetrpr]

One of the guys who works for me is going down to Rochester to pick up a Subaru Outback. He is saving $11000 doing this!

If Kubota Canada does bring their prices in line with USA prices I will probably loose out a bit. If I do decide that I really want a Grand L I'm best off selling my L3400 here while prices are higher here and get a GL from the USA, taking advantage of the difference in the prices. I better move on this fast because used prices will adjust down once new goes down also.

 

[canoetrpr]

I was in to get a part today and found out that prices had dropped - but not by that much ~$1200 the sales manager said.

Unfortunately that is still a considerable gap between US pricing and Canadian - ~5-6K for a L3540 all things considered.

I'd imagine that the dealers have it pretty tough under these circumstances as they are losing sales.

I think that I've decided that I am going to stay put on my L3400 until the spring at least. I'll spend my money on an implement or two. I need a manure spreader, rear blade and box blade. My wife and I have decided that we will put off our landscaping project until spring 2009 so I don't have to rush to make a decision on a backhoe soon.

Unfortunately at this point it is looking very much like if I do go to another tractor it is going to be a either a Deere or a Kioti. I love Kubotas products but have not been adequately impressed by most dealers in my area or corporate Kubota Canada. Deere prices from the USA are excellent and warranty coverage is across North America. The local Kioti dealer isn't 25 min from me and he is probably the best dealer of any brand within an 1hr drive.

 

[Taiser]

Deere prices from the USA are excellent and warranty coverage is across North America.

Really?? When I was tractor shopping I looked at the deere 25?? and was told I had to buy it in my "region" I could not even go to Manitoba (about 8 hours away) to buy it because it would not be covered on warranty and most likely the dealer could not sell to me anyways. They said it was a regional policy.

What I found out by shopping and calling is that since Manitoba has tons of farmland = tons of dealers their prices are a lot lower than the ones around here. They dealer here did not even carry the CUT's anymore, had to go to a dealer 4 hours away just to get a price!!!!

Maybe I was misinformed? Can't see how they could not honor a warranty under those circumstances, what if I lived in Manitoba when I bought the thing and moved to Ontario???

 

[canoetrpr]

I think what they forgot (or didn't bother!) to tell you was that Deere defines 'region' as North America i.e. USA and Canada. So USA and Canada are the same 'region' but Europe and Canada are not.

See this link from Deere's own web page.

Also see this excellent thread on a Deere import to Canada.

The one thing that I haven't quite figured out is how the persons in the thread above didn't pay PST at the border when others that are importing have definately said that they are paying PST at the border.

 

[Northland]

I priced JD Deere's in Michigan prior to buying my B7800 and I thought they were much more expensive then comparable models from other makes. The Michigan dealer I spoke with told me that I would have to bring the unit back to them for warranty work.

I liked the Kioti's a lot and was going to buy a CK20/25 but then the cracked loader problem came up and I knew I didn't want hassles like that. Besides the Kioti dealer(s) were 300km's away. I have 3 Kubota dealers within 50 km's of me here.

I bought Kubota because of the 1) product quality and value 2) extensive dealer network 3) resale

 

[Northland]

I think what they forgot (or didn't bother!) to tell you was that Deere defines 'region' as North America i.e. USA and Canada. So USA and Canada are the same 'region' but Europe and Canada are not.

See this link from Deere's own web page.

Also see this excellent thread on a Deere import to Canada.

The one thing that I haven't quite figured out is how the persons in the thread above didn't pay PST at the border when others that are importing have definately said that they are paying PST at the border.

good links canoetrpr! not sure how they get away with not paying PST either. maybe the Sask govt doesn't require them to?

 

[tractor_rider]

Please do not bash the local dealers on pricing, Kubota Canada prints suggested retail pricing and the dealer has to abide by these, these prices have very marginal room to move. as for the difference on the canadian and us dollar all prices are based on US dollar at certain times in the year, kubota canada always has over 10 months supply on hand, would you sell for less than what you pay, as a canadian citizen we should be used to higher prices because of our low population, just remember if you don't support the local economy there will be no local economy. I hope all dealers refuse warranty on imported product because the is no financial benfit to doing warranty.

 

[canoetrpr]

Welcome to the forum tractor_rider.

Kubota dealers are getting hurt by this and I feel for them. Other than asking Kubota Canada to do something about the prices, they can't do a heck of a lot. I don't blame them.

However, the rest of your post is ludicrous on many levels. Let me try to explain.

The fact that Kubota Canada, or any other imported product, can be sold in Canada at all is because we as a country have decided to be open to trade. Further imports under NAFTA rules do not require tarrifs because again as a country we have decided that protectionist trade measures are not economically efficient and hinder growth. Free trade on the other hand leads to prosperity.

You may or may not believe this. The point is that Kubota and many other companies can freely import goods from the USA and are enjoying the benefits of a free and open market. Why should us, the end customer not be entitled to the same?

Tractors are not the only business where having a large inventory on hand hurts you because of volatile things like exchange rates. The rest of the business world deals with this by trying to have only enough inventory on hand to satisfy their supply and by managing their supply chain efficiently. You say Kubota has 10 months worth of supply on hand? WHY???? If it manages your inventory in this way then it should be prepared to hurt when the currency moves one way and helped when the currency moves the other. It's not rocket science... it's business.

Yes, sometimes in business you have to sell for less than you bought for. Particularly if you have some reason to manage your inventory you claim Kubota does. I'm not suggesting that I know that they should manage their inventory better.... I have no clue. But if your business model calls for having this kind of inventory on hand, then be prepared to benefit or hurt as a result of currency flucuations.

That said, the current prices don't even reflect what the currency was 10 months ago... so there goes that argument anyway.

What the heck does population have to do with paying a higher price for stuff? The vast majority of Canada's population is located within a couple of hours drive to the US border and very very close to major US centers. If transport costs were an issue because we are so far far far away then no one would save by importing form the USA as freight would cost too much. Turns out it is not so. Freight from Michigan costs about $1000.

Here is another point about your argument about us being prepared to pay more cause we have such a small population. How much more do you think Kubota tractors cost in say.... Alaska? Pretty sure the MSRP is about the same as in Michigan - even if the selling costs are not - they are not what they are in Canada.

Taken to its logical extension if we are to only support the local economy, why not be a protectionist country and charge 200% tarrifs on imported goods like Kubota tractors? Maybe we should seal the border and produce everything from tractors to ginseng in house only and make consumers pay 10 times the price they could otherwise.... see anything wrong with that?

I'd be happy to pay a local dealer over and above USA prices what I would have to pay for shipping and perhaps some in addition to that to support the local economy... however... that amount does not amount to 20-25% of the purchase price!

John Deere will support warranty North America wide. Our markets are so tightly integrated, there is no point not to do it. Non tarrif barriers (such as not doing warranty coverage), ike tarrif barriers, are just another way to restrict trade and restricting trade generally has negative impacts to productivity and prosperity of the economy. In a way it is hypocritical for companies that take advantage of free and open trade in the country like ours (i.e. no tarrifs) to import goods at wholesale that then turn around and add non tarrif barriers to consumers taking advantage of the opportunities that they have.

 

[Northland]

Please do not bash the local dealers on pricing, Kubota Canada prints suggested retail pricing and the dealer has to abide by these, these prices have very marginal room to move. as for the difference on the canadian and us dollar all prices are based on US dollar at certain times in the year, kubota canada always has over 10 months supply on hand, would you sell for less than what you pay, as a canadian citizen we should be used to higher prices because of our low population, just remember if you don't support the local economy there will be no local economy. I hope all dealers refuse warranty on imported product because the is no financial benfit to doing warranty.

You are naive if you actually beleive that which you wrote.

 

[Taiser]

I can believe that prices are set by the manufacturers and that is the pricing scheme that the dealers have to deal with. That's why I'm saying to the dealers to start SCREAMING to their manufacturers about their prices.

I got pride in my country sure, but my pride takes a back seat when I'm looking at $20,000 more for a car (like my earlier post example) in the states compared to here. We've been getting screwed for years and now it's finally caught up to the point where the buying public's eyes were opened when the buck hit par and above. Fact is, even at $0.90 on the greenback we were still getting screwed!

Best one yet was on the news the other day. Dude in Manitoba went to North Dakota and saw a Sea-doo, a $16,000.00 machine, at least here (manufactured in Montreal by Bombardier using Canadian union labor, paying Canadian wages, taxes, benefits etc.) that was over $4,000.00 less than the exact same machine in his province!!!

Now this is a company that has been bailed out countless times using MY/OUR tax money and they have the nerve to charge 4k more for a machine MADE IN THIS COUNTRY to the canadian consumer!!! And to make it even more insulting the dealer in North Dakota is FORCED to not sell to Canadians to protect the northern dealers or risk losing his dealership. What a pile.