canoetrpr
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Luremaker said:
That is most certainly socialism at work!
KUBOTA's genuine spare parts
- Thread starter wilbrode
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That is most certainly socialism at work!
ronjhall
Super Star Member
One of the things that is different than US is distribution. Many commodities distributed in Canada have more levels of distribution. Each one adding their markup to selling price. Not all commodities are this way. But Ag equipment is one of them.
robbieo11
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wow no i do feel bad
my healthcare this year is 8000 a year can i write that off on my taxes??????
my healthcare this year is 8000 a year can i write that off on my taxes??????
I'm no authority on this, but my understanding is that the distribution system you outline is correct with many US products. I know that Harley Davidson has (at least they did a couple years ago) one entity with the sole import/distribution rights for all of Canada. Basically, they got a percentage of all HD products they distributed to HD dealers for resale. It's very likely that this is the same with US ag products. However, I don't see the for anything like the difference in the spring price you mentioned. That just sounds like robery to me. Stan
Luremaker said:
canoetrpr
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I'm sure that the distribution issues with markup are real. However, there is only a single distributer of Kubota OEM parts - thats Kubota Canada. Not really that different from the USA - where it is Kubota USA.
Maybe that their cost of operating is slightly higher but not to an extent that would justify the price discrepancies in tractors / parts etc.
Our currency has gained strength so fast and it is a hassle to import a tractor between the countries - unless you have your own truck and trailer. Plus not all of the market is really aware that these price discrepanices exist. Tractor and tractor part buyers aren't for the most part the same kind of buyer as a buyer of electronics. Most go to the local dealer and pay what price needs to be paid.
The prices will be set to what people will pay - in any market. That is both the positive and negative of a free market.
What I don't agree with are the non tarrif barriers companies can set up - completely unrequlated - that go against the spirit of NAFTA. Like putting pressure on dealers in one country to not sell to customers in the other, denying warranty coverage. Red tape that make it harder and more expensive to ship between the countries. All of this red tape mostly impacts me or you as an end consumer if we try to import direct. I priced out a Wells Ag canopy the other day and the cost of shipping + brokerage was as much as the canopy itself! In the USA the same canopy can be shipped for $50 or so.
There is a class action lawsuit against major auto makers up here alledging that they are unfairly maintaining higher prices here through non tarrif barriers like lack of warranty coverage.
Maybe that their cost of operating is slightly higher but not to an extent that would justify the price discrepancies in tractors / parts etc.
Our currency has gained strength so fast and it is a hassle to import a tractor between the countries - unless you have your own truck and trailer. Plus not all of the market is really aware that these price discrepanices exist. Tractor and tractor part buyers aren't for the most part the same kind of buyer as a buyer of electronics. Most go to the local dealer and pay what price needs to be paid.
The prices will be set to what people will pay - in any market. That is both the positive and negative of a free market.
What I don't agree with are the non tarrif barriers companies can set up - completely unrequlated - that go against the spirit of NAFTA. Like putting pressure on dealers in one country to not sell to customers in the other, denying warranty coverage. Red tape that make it harder and more expensive to ship between the countries. All of this red tape mostly impacts me or you as an end consumer if we try to import direct. I priced out a Wells Ag canopy the other day and the cost of shipping + brokerage was as much as the canopy itself! In the USA the same canopy can be shipped for $50 or so.
There is a class action lawsuit against major auto makers up here alledging that they are unfairly maintaining higher prices here through non tarrif barriers like lack of warranty coverage.
Luremaker
Veteran Member
There just might be a business opportunity for an enterprising person here. Purchase parts (filters etc.) in bulk from USA based dealer at a discount ship to a warehouse (barn, garage, basement) in Canada. Set up a parts website for all of the major brands and ship direct to Canadian customers. The question remains: Can you sell for less than the Canadian dealers and still cover your expenses and make a few bucks from it.
FWIW, about three years ago Northern Tool set up a Canadian distribution center and Canadian web site in Cambridge Ontario and at first had all prices set at USA prices plus the going exchange rate. You could order just about anything except non-CSA electrical products that you found on the USA website and they would bring it in for the USA price plus exchange rate. This lasted about a year. Then they started charging around 20% OVER the going exchange rate. Another year goes by and they shut down the whole Canadian operation.
FWIW, about three years ago Northern Tool set up a Canadian distribution center and Canadian web site in Cambridge Ontario and at first had all prices set at USA prices plus the going exchange rate. You could order just about anything except non-CSA electrical products that you found on the USA website and they would bring it in for the USA price plus exchange rate. This lasted about a year. Then they started charging around 20% OVER the going exchange rate. Another year goes by and they shut down the whole Canadian operation.
canoetrpr
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Kubota USA would be all over a dealer in the USA who sold parts to a an individual who exported them to Canada.
When I was looking a month or two ago, I could not find a dealer willing to sell me a tractor in the USA. I inquired with about 3. I was told that Kubota USA is really making it known that dealers are not allowed to sell to Canadians.
Then again, there is a guy in the autotrader that has a good stock of pretty much brand new Kubotas from the USA it seems.. so where there is a will there is a way.
I've stopped looking now as realistically my tractor does everything I need it to, and started adding a few of the things that I wanted - like a sunshade, worklights etc.
Basically I'm pushing out my dream tractor purchase to who knows when in the future .... but it's going to include a cab so I might as well wait it out till when I can afford it all.
When I was looking a month or two ago, I could not find a dealer willing to sell me a tractor in the USA. I inquired with about 3. I was told that Kubota USA is really making it known that dealers are not allowed to sell to Canadians.
Then again, there is a guy in the autotrader that has a good stock of pretty much brand new Kubotas from the USA it seems.. so where there is a will there is a way.
I've stopped looking now as realistically my tractor does everything I need it to, and started adding a few of the things that I wanted - like a sunshade, worklights etc.
Basically I'm pushing out my dream tractor purchase to who knows when in the future .... but it's going to include a cab so I might as well wait it out till when I can afford it all.
art
Super Member
There are companies from Canada that we deal with that with the current pricing have pulled their equipment out of the USA because they said they couldn't make enough money on it. There has always been pricing differences between the borders, sometimes better for the purchaser, some times not. Might be the cost to produce goods in Canada is to high compared to the US>
slowzuki
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There are a few reasons, none of them justified for the price difference but the distribution structure is one reason.
I think it is Case/NH that also has a single point parts distribution setup in Canada so everything has to go through the Quebec importer driving costs through the roof for the consumer. They have at least a 100% markup before the dealers markup. We needed a clutch disc for a MF baler, 50$ part in the US, would have been 600$ Cdn. The little springs, size of your little finger were 25$ each.
Most people I know drive to the states to get major components because of the cost.
Some of the brands have extremely competitive price structures for parts, some just aren't as bad. JD is notorious in the US for high parts prices, in Canada they are cheaper than others. New Holland tractors aren't bad for the actual tractor and they can pull stock from dealers accross the border to get you a model quicker. Too bad their parts man is crippled.
I think it is Case/NH that also has a single point parts distribution setup in Canada so everything has to go through the Quebec importer driving costs through the roof for the consumer. They have at least a 100% markup before the dealers markup. We needed a clutch disc for a MF baler, 50$ part in the US, would have been 600$ Cdn. The little springs, size of your little finger were 25$ each.
Most people I know drive to the states to get major components because of the cost.
Some of the brands have extremely competitive price structures for parts, some just aren't as bad. JD is notorious in the US for high parts prices, in Canada they are cheaper than others. New Holland tractors aren't bad for the actual tractor and they can pull stock from dealers accross the border to get you a model quicker. Too bad their parts man is crippled.