Kioti has teamed up with Woods

jeff9366 · Dec 15, 2016

Additional manufacturing employment for the US workforce at Woods.

I worked for a small California winery and, later, a large California winery for twenty-four years. Exports developed into an important segment for both "California" wineries.

It is a global marketplace.

ovrszd · Dec 15, 2016

jeff9366 said:
Additional manufacturing employment for the US workforce at Woods.

I worked for a small California winery and, later, a large California winery for twenty-four years. Exports were an important segment for both California wineries.

It is a global marketplace.

Very good point!!!! I never thought of that.

So this joint venture, as we have agreed, is good for Woods. That can have a trickle down effect and be good for their employees due to boosted sales. Wonder how many people they employee?? I have no idea of their production numbers.

jeff9366 · Dec 15, 2016

Neither do I, but I expect STAGNANT describes Woods sales, relative to the total implement market. It is interesting to me that everythingattachments.com is an advertiser on TBN and has made a major, if imperfect, effort to market over the internet while Woods is not a TBN advertiser and Woods' web site is underwhelming.

It may also be that the current generation of Woods ownership does not see the next generation of potential Woods management as sufficiently motivated, if Woods is a family business. August Busch sold Budweiser to INBEV/Belgium for that reason.

ovrszd · Dec 15, 2016

jeff9366 said:
Neither do I, but I expect STAGNANT describes Woods production, relative to the total implement market.

It may also be that the current generation of Woods ownership does not see the next generation of potential Woods management as sufficiently motivated, if Woods is a family business. August Busch sold Budweiser to INBEV/Belgium for that reason.

Yep. In our lifetimes there have been several large successful business names disappear due to poor management.

If this venture is an attempt at reviving a terminal company I'm all for it. They produce a quality product.

On the other hand, if this is the reason on Woods part, how long will they produce a quality product under such management?

MtnViewRanch · Dec 15, 2016

Woods info

Fact Sheet

ovrszd · Dec 15, 2016

Good stuff Brian. Thanks for posting!!!!

Hope their product continues to carry the heritage it was born with. Hope this venture with Kioti ensures that.

airbiscuit · Dec 15, 2016

I don't get all the consternation about this. Kubota/Landpride or Kioti/Woods - Good tractors, good implements.

Boom - Mic Drop.

engine29 · Dec 16, 2016

ovrszd, when I made the comment about Woods didn't care, I meant they didn't care about how it was named. Whether their name was on it or not. I don't think in agreements like this the company (Like Kioti in this case) is going to make a lot of money from it, yes I'm sure they get some portion of what is sold, but it is more for there to be an implement line that they can provide to their dealers and customers to sell w/ their tractors.

It's not just to save the customer money, it is to give the Kioti tractor buyer a one-stop-shop to buy their implements also. Statistics show that @ 80% of compact tractor sales consist of 1 or more implement sales not including the loader. The vast majority of new tractor buyers are first time buyers and do not have implements sitting around. They're going to need a cutter, or a box or a blade or a tiller or forks or a combination of many implements. They don't want to go from place to place, they want to do it at one place, where they buy/bought the tractor.

As far as Woods doing this to survive, not true at all. Woods is a very solid company owned by Blount co., which also owns Oregon chain and used to own Dixon mowers before selling to Husqvarna. This is just a way to continue to grow their business which any company would like to do.

Who's going to benefit?, the customer, the dealer, Kioti and Woods. It's a win-win for all parties.

ovrszd · Dec 16, 2016

engine29 said:
ovrszd, when I made the comment about Woods didn't care, I meant they didn't care about how it was named. Whether their name was on it or not. I don't think in agreements like this the company (Like Kioti in this case) is going to make a lot of money from it, yes I'm sure they get some portion of what is sold, but it is more for there to be an implement line that they can provide to their dealers and customers to sell w/ their tractors.

It's not just to save the customer money, it is to give the Kioti tractor buyer a one-stop-shop to buy their implements also. Statistics show that @ 80% of compact tractor sales consist of 1 or more implement sales not including the loader. The vast majority of new tractor buyers are first time buyers and do not have implements sitting around. they're going to need a cutter, or a box or a blade or a tiller or forks or a combination of many implements. They don't want to go from place to place, they want to do it at one place, where they buy/bought the tractor.

As far as Woods doing this to survive, not true at all. Woods is a very solid company owned by Blount co., which also owns Oregon chain and used to own Dixon mowers before selling to Husqvarna. This is just a way to continue to grow their business which any company would like to do.

Who's going to benefit?, the customer, the dealer, Kioti and Woods. It's a win-win for all parties.

And I didn't mean to imply you were in error. I was just making a point that Kioti and Woods both "care" about this deal.

Kioti is definitely going to make money with this agreement. I'm sure their Gurus have spent hours charting the expected sales and projected a profit line at the bottom that would be a gain. If not, they wouldn't have signed on. If all they were after was an equipment line to sell at their dealerships they would have just guided their dealers to handle Woods products.

Your concept of giving the Kioti tractor buyer a one stop shop is partially right. Again, if they aligned their dealers with an implement provider such as Woods that would be accomplished. What Kioti is after is the "died in the wool" devoted Kioti buyer that wants a Kioti sticker on his cutter too.

The reason the vast majority of new tractor buyers buy implements at the same time is financing. I'll go out on a limb and say it's in the 90% or higher percentile. Secondary concern is the brand name on the implement. All brands that I am aware of offer this financing, even if the implement name is different from the tractor name.

Yeah, I assume Woods is a solid company. I only referenced them doing this for survival to justify their action. If it's done to grow their production and increase their bottom line, I'm all for it.

Who's going to benefit?, the dealer, Kioti and Woods. No benefit for the customer.

The only loser will be that buyer that comes on here a couple years from now and heatedly defends that his Kioti cutter is better than a Woods cutter.