New Holland warning

tractor123 · Jan 13, 2005

Just thought you guys should know NH has sent out a warning letters to all dealers warning us about internet sales and how it is in violation of our dealer contract.

Hi Jim. Your question is directly to the point of whether or not it is against our dealer contract to advertise on the internet. To my knowledge, there is nothing in the dealer contract about the internet. A dealer can advertise at any price he likes on paper, even if the publication, like Fastline, is on the internet. Any price can be sent by email, but here's the catch: As of December 1st, 04 New Holland started a volume bonus program that can build into a lot of money but if you advertise lower than MSRP on the internet, you will lose up to 6% of your total volume. Also, you cannot sell a new tractor as an auction. That is why all ebay auctions have gone to buy-it-now prices. I hope this answers a lot of your questions. Thanks

tractor123 · Jan 13, 2005

( My specific concern involves the Class III hydro tractors that had a problem slipping out of gear when going downhill. )

I've sold hundreds of Class III tractors and have only had one with this problem. It was local, and this tractor was used in extreme duty conditions by multiple operators. This problem would generally come from changing ranges while still moving. Range gears are not synchronized. We warrantied the problem with no issues.

( That warranty repair required those tractors to be split. Even the most "rachet head" amoung us would probably balk at splitting his brand new tractor. )

Yes, this tractor did have to be split, and I would never recommend this for any owner, even he is totally capable of doing the repair.

woodlot · Jan 13, 2005

Jinman, I have to respectfully disagree with your point that only the dealer that sells a tractor should be expected to do the warranty work. What if a person buys a new CUT and then has to move out of state or across country during the warranty period. Should the owner then be required to sell the tractor simply because he is moving? What if a person is working with his CUT at his second home across state lines and has a breakdown? Shouldn't the friendly local NH dealer help him out and get him back to work? I like to think people are good-natured and willing to help when they can, that goes for business as well. To me it defines a good business. In reality I know everyone is not good-natured nor are all businesses customer friendly. I don't patronize those.

tractor123 · Jan 13, 2005

( Buy at Tarheel and Corrihers in North Carolina!!
)

I've seen Corriher and Tarheel mentioned together several times. Please consider us as two different companies. Corriher has been on the same block for 59 years with the same owner. Tarheel has been in business less than two years. Brandon at Tarheel worked for Corriher for about two years listing tractors on Ebay. We parted ways and he started Tarheel Tractor, in my opinion, using the information I taught him. It is easy to send a price by email and get a sale, but it takes years of experience and lots of mechanical ability to be able to help long distance customers with mechanical problems, to keep customers happy, so please try to identify us seperately.

jinman · Jan 13, 2005

( "cut the local guy" out of his sales profit.

It was never his money, IT"S mine, not his!!! )

When you buy a tractor with your money, you get a tractor and the dealer gets the money. Part of that money is profit, his profit. It's not profit until the money changes hands and the deal is done. It's your money to spend where you want, but after the deal it's not your profit. Is that a little clearer? /forums/images/graemlins/wink.gif

BillyP · Jan 13, 2005

Ted, I want to thank you for answering my question about NH warranty work. I have asked this question numerous times, whenever a "dealer" cries about how bad warranty work pays, and it always gets avoided. You are the second dealer that has came forward and told how it works. The first was My JD dealer and also said he'd do the work no matter where the tractor was purchased.

Thanks again for the truth.

jinman · Jan 13, 2005

( Jinman, I have to respectfully disagree with your point that only the dealer that sells a tractor should be expected to do the warranty work. )

Woodlot, I don't think you will find a quote where I said that. I agree with you completely that there are "tons" of reasons some other dealer other than the selling dealer would be asked to perform warranty work.

My feeling regards a person who doesn't like the dealer's prices and/or personality and buys his tractor somewhere else. Why would that person want that same dealer to work on his tractor? If something went wrong, wouldn't you kinda wonder????

If a dealer has worked unsuccessfully to make a sale to someone and that person shows up with a new tractor, it's pretty obvious he got it somewhere else but wants to use the convenience of your dealership for his warranty issues. These are the cases I've seen documented here on TBN and these are the ONLY cases I am referring to.

I used to work at a gas station when I was in high school. In those days, they were called "service stations" because they also normally did tune-ups, lube jobs, etc.. When we sold the oil and filter, the change was included in the price. I had people come in who wanted to bring their own oil and filter and have me put that in for them. They got really mad when I told them what my labor charge would be. They thought I should do the work for next to nothing. Then if I changed the oil, they wanted me to check their air pressure, the oil in their differential, battery, radiator, etc.. Then they would drive down the street to the self-serve gas station to fill up with gas. I didn't really miss thier "business" if they never came back. /forums/images/graemlins/smirk.gif

getut · Jan 13, 2005

Jinman,

Ted pretty confirmed what I was thinking but here is where I disagree with protectionism of local dealers.

Dealers get compensated at each stage of the game. They should compete for that business at each stage of the game. As consumers we should not be "protected from ourselves" from being able to shop dealers for purchase price, and then shop dealers for service price.

Each one gets my business based on that. If a dealer wants to cry because I bought somewhere else then he won't get my $$$ for service work either. Same goes in reverse.

It is my (speaking theoretically here) money I get to make that decision. This is not a friendship type of thing. I can NOT like someone and still give them my service or purchase dollars because their price and quality are great. I can also like someone but not care for their work ethic or prices. Liking someone has nothing to do with this.

Protectionism is wrong. It helps NO one other than the corporation (by keeping prices driven up). If they have to compete at every stage of the game, then everyone is better off. Sure in the long run, there may end up being some service ONLY shops. But that is NOT bad? Who would mind getting a great price on a tractor delivered from 3 states away and ALSO getting a great price on quality service work because there is now competition?

djradz · Jan 13, 2005

Jim, I couldn't agree with you more. I think we have focused this argument on "service" but I think it really is much bigger than that. MikePA, stated it very well in:

( The ultimate, logical result of allowing Internet sales is the dealers with the lowest cost of selling would get all the business, leaving the local dealer, both good and bad dealers, probably out of business or trying to survive only on the service side of their business.

Want to see a certain tractor model before you buy, too bad, no local dealer that sells them.
Want to test drive a tractor before you buy, too bad, no local dealer.
Want to try a tractor out on your property, too bad, no local dealer.
Want to trade in your current tractor, too bad, no local dealer to buy it. )

Recall that many if not most of these activities are available at a cost to the local dealer. Also, operating his parts counter, staffing it with knowledgeable people, having sales people that are familiar with the implements that are also stocked and how compatible these are with the stocked tractors. Much of that and what Mike points out is lost if everything goes to the Internet.

Let me ask each of you, "Would you by a NH tractor, site-unseen?" I know I wouldn't, but the luxury to see the tractor or drive it, or for all the other conveniences, provided by having a local dealer, comes at a cost. They must recoupe that cost through every activity available, sales, service and parts. Take away the sales - and they end up in a death spiral.

I'm not saying the dealer's shouldn't be competitive, I just don't think the expectation should be that they can be as low as a major internet-based sales dealer.

getut · Jan 13, 2005

Let no one ever say that I argue a point to the exclusion of all else or ever claim to always be right. I will always acknowledge counterpoints in an argument when they are seem logical and valid.

djradz, you have just hit on the only true bonus for having local dealers (when looked at from only the consumer side) and in my opinion the only loss that would be experienced in the long run. Sitting on what you buy before you buy it has great worth.

I still don't think that value is great enough to justify protectionism though. Is it worth a couple thousand dollars in extra price? If sitting on one is that important is a day trip or at worst a weekend trip to super large outlet out of state eat up the couple thousand savings? I don't personally think so. Competition on an ever larger scale only benefits the buyer in the long run and there is enough of large corporations sitting on the individual already. I don't want to pay NH or ANY large company thousands extra because they protect their dealers from outside competition.