Is Kioti Viable for the Long Term??

[JerryG]

Growing pain can hurt any company and I really think that that is one of the major problems with Kioti now. A short story. I know a dealership that has been in business for about 50 and has sold a large name brand since the inception. This dealer contacted Kioti, leaving messages at least 4 times over a 3-4 month time span, that they would like to speak to someone about carrying the entire Kioti line. The nearest Kioti dealer is 45-50 miles away and is very near an out of the garage dealership. But yet, after trying to make this many contacts with the regional rep., the rep. finely contacted them and said that they are to close to the cracker box dealer and that Kioti had no interest in speaking with them. I really doubt that it is Kioti but is more than likely growing pains from inexperienced people that can't handle the rate of expansion that Kioti is currently experiencing.

 

[bluechip]

Jerry,
Not putting dealers too close is one of the advantages of establishing a relationship with Kioti. There is a lot of things to consider when adding dealers. could be the big line this dealer handles would be to directly competitive with Kioti, For example I find that Farmtrac and Kioti work fairly well together, but I don't think Kioti would want to be a me too alongside a "big three" dealer, I could be wrong. OR it could be the small dealer does a good job. I have seen some brands put dealers within 30 miles of each other, in densly populated areas, that is fine, but in rural Arknasas whre I am I need about 4 counties to make a a decent market!

I think the present status with KIOTI is they have a kick-**** product and did not plan for the success they are enjoying now. I am looking forward to them growing into thier potential and plan to grow right along with them.

Currently we are experiencing shortages of some popular models, so adding dealers is probably not in thier best interest until they get situated to serve a bigger market.

Just a thought.

 

[MessickFarmEqu]

You can tell LOADS about these companies by looking at their stock values and reading their quaterly reports. I have heard it said that if/when the CUT market slows it is expected that some of the weaker companies will pull out of the US. If I had to gamble on one of the smaller companies it would be Mahindra. Go to Quicken.com and graph the stocks of all these companies and you will see why.

 

[Dargo]

I can tell you that in my area, when priced at the same price as the big 3, they bomb out terribly. Their concept of protecting markets for the small (and the bad) dealers certainly doens't help them grow. There is 1 Kioti dealer in my area (a bad one in my opinion), where there were several a few years ago. Although I live in a rural area, I'd say that it would be a stretch to say that Kioti tractors make up 1/10 of 1% of the tractors around here. If they plan on breaking into my area they will have to get more dealers and stop insisting on full list for their tractors.

They obviously have a following on this board and, apparently, have pockets of better market penetration throughout the country. I can't imagine that my market area is that odd, so their dealer and marketing strategy will have to change to ever break into the majority of the US markets. Although it is bad dealers causing a lot of the problems, it appears that Kioti is allowing them. Just my 2c worth from a guy who was seriously considering a Kioti but was completely turned off by the dealer and lack of alternative dealers in my area. Kioti will likely be around, but they are as rare as hen's teeth in my neck of the woods. /forums/images/graemlins/tongue.gif

 

[RedRocker]

The price and the dealer were a big part of my decision to buy one. If either one had been negative I would probably be tractorless.

 

[shoppintractors]

Messick,

You being a "Big 3" sales guy, I see it as very unprofessional prognosticating about your competition in this public forum.

Brent,

I see customers of all brands shopping prices, some dealers quoting closer to list, some not. Can we start a thread in the specific forum of your unnamed 'Big 3' experience you seem to be so unhappy with? /forums/images/graemlins/tongue.gif /forums/images/graemlins/smirk.gif /forums/images/graemlins/tongue.gif /forums/images/graemlins/smirk.gif

Don

 

[getut]

</font><font color="blue" class="small">( when priced at the same price as the big 3, they bomb out terribly.)</font>

You touch on the point I was trying to make. They (Kioti) have a gold mine as a producer of equal quality/features (on average.... depending on the model, some better than the competition, some worse and some approximately equal) on their tractors and then selling them for the price they are worth... not selling them for the inflated prices of the big 3 brands. I really feel that companies especially the big ones, have gotten fat and either expect big profits because they can get them, or have to get the big prices because they are so fat.

Everybody hates Walmart.. but Walmart kicks everyones butts because they sell at FAIR prices. It has the net effect of culling all the fat cats completely out of the picture. Kioti should adopt the Walmart scheme... not fall right in with the big dogs.

 

[getut]

Whoops..forgot to give my example (even though I don't have one directly related to tractors):

I have a Freightliner plant near me. It is unionized and the little guy sweeping the floor can get as much as $18 an hour working there.

Kioti has a CHANCE to "sweep" the floor with big three companies that do their manufacturing in America if the whole company is that fat.... but won't grow much if they fall right in line with that as they themselves get larger.

 

[beenthere]

As long as there are tractor buyers, there will be tractor suppliers.
I buy the Deere brand because I think I get what I pay for, and it is a good investment that will have re-sale value in the long haul. I don't think they are overpriced, but that is just my opinion. Others don't need to agree with my 'measly' opinion. /forums/images/graemlins/wink.gif I don't knock the other brands, at least I don't try to comment on them in a negative way.
For those who want to invest money in Kioti, great. It will help the economy, either here or there. I hope all the Kioti's run forever and prove to be a good investment.
I will stick to green, as I like green the best, and think green is around for the long haul. If I need to trade up, the difference will be no more than if I was trading up within another brand (at least I don't think, in spite of a recent comment that a 'red' trade was not going to be worth much). I don't think that is typical.
I think CUT manufactueres are selling most or all of what they can produce, so the price will stay high until the market place is satisfied. Looking around at the growth of small farmettes and acreages, I don't think that will be in the near future.
PS I like that yellow seat too. /forums/images/graemlins/wink.gif

 

[getut]

Don't get me wrong. I'm not trashing the big 3 tractors.. they make awesome equipment, I am talking just the corporate environments. I have no way to back this next statement up, except that other companies can and do have excellent quality and do it cheaper than big three companies. That tells me that they are getting more money out of people than they deserve. They may be paying floor sweepers $18 an hour, or they may be paying CEO's 4 million a year, or they may just be pocketing money for a rainy day.

If there were NO viable alternatives out there creating as good a quality product with comparible features, then I would be swayed and say that it can't be done cheaper (without damaging quality) and they are getting a fair price out of their product.

I chose Kioti this time because they have a GREAT product and a ***more*** fair price. Next time I buy, I may buy Kioti, but if their prices have increased, or even stayed the same and there is a new guy on the block who is showing proven quality and the features that I need, but they are doing it cheaper, then that is who I will go with. What is this "brand loyalty" thing anyway???? Companies should be forced to innovate or die. Innovation comes in three flavors... Technology improvements related to the product, Technology improvements related to manufacture (may reduce cost to build, or improve quality), innovation leading to overhead cost reduction.

I think it is a sad fact that Americans and European manufacturers are slowly pricing themselves out of the game. I work for an Automotive supplier, our European plant counterparts get 6 weeks (sometime more) of vacation per year. We can't continue to compete if we continue on that path.

Wow.. I got way off topic in that last paragraph. sorry /forums/images/graemlins/crazy.gif