Info about direct importing

[Smoody]

Kenmac, at this moment this is all just talk and planning, I may not even decide to go through with it, for now I just want to do a small scale type thing just as kays supply put it, to test the waters. So to answer your question, no at the moment I will not have a full fledged service department, parts supply, etc. like the big dealers here.

I really would like to get in with a importer that will let me place an order for 2-3 units at exporters price + freight/insurance and pay them a small fee for letting me add my order in with theirs. I will do the servicing and minor repairing of the machines and sell them locally.

I think for now that will be my best option is to find a US source for imported Yanmars and let the big boys continue handling the importing and customs issues. Although it does seem fairly simple to get an order in and shipped, but for now not an option, I work Full time and tinker with tractors on the side, no looking to replace my 9-5, just enjoy it and I notice there is a lack of sources for these tractors in my area, like I said there are a few VN dealers in SC but I do not wish to pursue those.

 

[EFC]

California, you make good points. However that all depends on the exporter they were using, the two I have contacted have been in business many many years and probably direct import to various big names mentioned on this forum.

As Eugene stated, I was given a inventory list and access to an online site with photo's and description about each unit, prices are fair and negotiable, not the cheapest but the tractors are in very good condition from the looks of them. I have a lot to square away and research before I take the leap. They require a minimum order of 8 units, I am not sure I want to invest that kind of cash just yet on something that is new to me (importing/exporting)

Kencunningham, I am located in Lancaster, SC, 1 hour south of Charlotte, NC

If 8 tractors might be too big of an investment for you then I would stick with what youre doing and leave the importing for another day. There are plenty of importers you can buy smaller quantities from and fix them up and sell for a profit. Put said profit in your pocket and enjoy a restless sleep. I say this based on 9 years of direct importing.

Realize you have ALL the risk. Japan (regardless of exporter) is not going to pitch in money when things go wrong and they can go very wrong. Plus the ports are not there to help you; they are the hubs of bureaucracy. If you dont speak their language you are in a world of hurt. They will punish you and not think twice. Also they have total control of your container and goods, tick them off and the container will sit till you run out of money (you pay rent on the container while it sits). Here are a small few that we have had happen more than once. I am excluding the once in a lifetime problems.

1. Held for inspection for more than 90 days, demerge fees $7000.00+ per container
2. USDA wash 3 times on same load, wash fees $1200.00 devan fee 900.00
3. Devan company stacked tractors on top of each other for washing smashing more than half the load. Container insurance will not cover since load is out of container. Devan company not liable because there is no proof they did the damage (youre not allowed to watch them devan)
4. Tillers stolen out of container at holding facility while waiting for USDA inspection. Again no proof, inspection areas in the port are locked facilities youre not allowed into.
5. Upper deck of tractors completely collapsed sitting on lower tractors. 18 months, lawyers, certified letters and hundreds of photos to get reimbursed from insurance company. All said and done after fees we received a check for 800.00. Since then we just pile them up out back and move on.
6. Tractors picked were substituted at time of loading with "comparable" tractors. This was done by the largest exporter in Japan and the substituted tractors were crap.
7. Tractors stacked on top of their tires in the container punchering most of them. $8000.00 to replace. Not covered under insurance due to improper loading. Japan made concessions by saying on next load they would give us a free tractor. yippie!! next container received free ym1300 worth 600.00 oh yeah and it had a bad engine
8. More than half the load unsellable. beautiful tractors that are unrepairable
9. Container x-rayed in port 4 times $2200.00

Around 2004 we had accumulated close to 100 unsellable tractors, more than half were tractors picked from photos that wound up having real problems. I decided at that point the only way to be profitable was to pick out each load in person. So 12 to 16 times a year I fly to Japan and hand pick each tractor. Every once and a while I will pick a load of tractors from photos and then go to the yard and see if they were tractors that I would have picked in person. Each time about 80% of what I picked from photos I drop off my list.

I am not saying it is impossible to import tractors without picking them in person but it takes a long term commitment from you and a "personal" relationship with the exporter before you will see reasonable quality controls. This is a business of personal responsibility and large capitol. The phrase "suck it up" has been something over the years I have had to come to terms with.

By the way, all the people in our office agree, the importing part is the easy end of this business if you plan to be a real dealer with whole goods, parts and service.

Buck

 

[Smoody]

EFC, all I can say is WOW, that doesn't paint a pretty picture. I really appreciate the feedback and the time it took you to write that up, that is exactly the type of feedback I need and you opened my eyes to a lot of things, I think you are right and for now I will try to locate a US source and work a deal with them..

anyone have any references? like I said I would like to place an order with exporter and have it combined with a experienced US importer and they make some cash for the trouble.

 

[Kays Supply]

EFC has given me alot of advice and help in the past. Take his words very seriously.

 

[HoyeTractor]

EFC's experiences are not unusual either. We had lots of similar experiences. We had a container that got unloaded by customs & it honestly looked like they set the container on its end and pushed the tractors back in with a dozer. It was terrible. The tractors were trashed and it took forever to untangle everything just to unload the container. We even got fined by the trucking company because we took too long for us to unload the trailer. We also had a container that got dropped when it was being unloaded from the ship at the port. All of the top level tractors were smashed down on the bottom tractors. Lots of broken parts, destroyed sheet metal, & VERY hard to unload them too. Another local dealer had a container full of tractors roll over in a truck wreck.

Only a tiny fraction of the damage amount was ever recovered in any of these instances.

But... It does feel a little like Christmas opening those container doors for the first time, full of excitement, not knowing what you are going to find inside, & that funky smelling disinfectant that customs uses. It makes it all worth while in the end.

Aaron
Parts@HoyeTractor.com
(940)592-0181

 

[buppy69]

how much was the tax?

$200 per tractor.

Eugene

 

[Smoody]

Ok, after reading private messages, speaking to a few over the phone, emailing certain importers that were recommended all I have is a big nothing. Its like no one wants to help or sell to me, am I going about this the wrong way? Some say importing is easy, others say its a nightmare, some ports wont let tractors come through, others will. etc etc. I am getting mixed info from 360 degrees.

I think with what I want to do far as pricing goes no one wants to touch it, and looking over numerous dealer websites I see the pricing on these units are rivaling US branded tractors in price, some pushing 13k! That's ridiculous in my opinion. in my mind I love Yanmar, but if for only a few thousand more and 3 year warranty I would buy green or orange. just my opinion.

I have received pricing from a few exporters, and from the prices they offered at I can't see a dealer mark up like there is, has freight really gotten that extreme?

 

[lens12]

I think a lot of the importing problems have to do with who the exporter & customs broker used is. I've bought tractors from 5 yards in Japan. What I call the "A" quality yards, I've never had a container held up by customs, failed decking, or sloppy loading. With the "B" yards I had containers stem cleaned ($5000, back charged to the exporter), decking failures with smashed hoods, & sloppy loading making it hard to unload the container.
If you are going to do a couple tractors at a time you are probably better off picking them up locally. There used to be an auction in Charlotte that got a lot of the grey tractors. If you were closer, it would be more practically to split a load with you.
Late model tractors from the higher quality exporters are too expensive. They must be quite a bit cheaper from the B yards since I get a fair amount of calls for parts on them.

 

[ProdaddyTX]

I have received pricing from a few exporters, and from the prices they offered at I can't see a dealer mark up like there is, has freight really gotten that extreme?

I think EFC, Aaron, and others already answered your questions about pricing and mark up pretty thoroughly.... you've got to factor in a BIG contingency for the unplanned and potentially HUGE "other" expenses.

This is a really good thread... thanks for posing the question Smoody, and thanks for the good responses guys.