New Kubota prices, WOW

[crazyal]

Yeah, the Fed prints more money and people just don't seem to care. They say who cares. Then they see something they want to buy has gone up price and they say what happened, why, what happened. Most people don't even know what monitizing the debt means or what it is....Many people are buying up the equipment they will need knowing that prices are set to raise and companies will start to disappear and you will not be able to buy it anyway, it just will not be available.

HS

You would think that people would get it eat time they fill their tanks with gas. It's not that gas is expensive, it's that it's traded in a currency that's not worth as much as it use to be on an international market.

 

[MHarryE]

Have any of you checked on this reduction in value of the dollar? In 2008 it got as low as $0.63 per euro but today it is $0.7916 per euro. Same thing with British pound sterling, about the same percentage increase in dollar value. And along with that went the oil price - it topped out in 2008 at $147/barrel and is $84/barrel today. The tractor prices are really set by what the market will bear and the tractor market in North America is strong right now. As a John Deere stockholder, I just smile as I hear of another record quarter. Increased value of my Deere stock paid for my new Kubota and my remaining JD stock is now worth more than all of my Deere stock was before I bought the tractor.

 

[JOHNTHOMAS]

I can't ride stock, maybe livestock but not the paper stock or digitally recorded stock. So, I just buy Kubotas to ride the waves of increased/decreased value of the dollar and I can put my fat hands on them to insure they are still there and use them for fun and actually work some times. Will I make money on them by just owning them? No but I don't think I'll lose a major amount one day because I picked the wrong company with the wrong managers and a company that has no actual hands on assets but only a good idea for a few days. Be interesting to determine the value today of $10000 invested in Enron 15 years ago and a Kubota with some form of measurement of fun and work gotten out of the Kubota. Any way my 5 Kubotas are scattered around ready for fun and work and not costing very much money and if they are stolen, I've got insurance. I also have land for a bit of investment value and for having a place to store the Kubotas.:laughing:

 

[MessickFarmEqu]

The tractor prices are really set by what the market will bear and the tractor market in North America is strong right now.

The market is strong, we're very concerned with that will happen @ Tier 4. I don't agree that pricing is simply set at what the market will bear. If you look at Kubota's financials, they have a net margin around 6%, Deere is around 10%. So they don't have huge sums of money to throw around when it comes to pricing their product.

 

[MHarryE]

I've. Liv Ed through the reality of losing money in some marketing areas in order to maintain a presence while making good money in others in order to meet an overall profitability. Using things like emissions regulations to keep products sold in low margin countries from being grey marketed into high margin countries. There are things difficult to predict - will a customer go for the low initial cost investment solution when buying a new machine or will they look at total cost. Knowing that no matter what making a cleaner burning engine is going to cost money, there is also the need to predict what the other companies are going to do. And if you have just gone through a weak economy where you need to hold prices and reduce margin in order to reduce inventory, there has always been a trend to make a major price jump and blame it on regulations. On the other hand a major will try to give features to ease the sticker shock. Spent many planning sessions with each model change going through this including brainstorming the marketing introduction.

 

[mike69440]

Better start being nice to our machines, as I for one plan on not having to replace it.

 

[gumshu]

If they keep these prices up the way they are, they will take a beating from the Koreans... just like the Toyota & Hyundai... Sony & Samsung, etc.

 

[dennis52]

The local dollar over here has gone way up against the Japanese yen over the last few years but you don't see "authorised" prices ever coming down.
One maverick Kubota dealer is managing to undercut the competition by purchasing Japanese made machines that have been shipped to the US and then shipping them back across the Pacific.
Gives you some idea of the size of the authorised importer's mark up in this country.

 

[foreman Etexas]

I priced tractors last year,finally bought cple weeks ago,the tractor went up but they gave me a grand more for my tractor,so it came out to the same......

Then a co-worker just bought a kubota last week same place as me and looked at equal tractors in another color and it was 1200 more,same options across the board.....

 

[sdkubota]

Just priced a new Kubota B26 and it has jumped quite a bit. It was $42,500 plus $1,500 for Kubota insurance, plus tax $3,630 comes to $47,630. Even if you take the $1000 off that the dealer allows you, your still at $46,630. That's a big jump from the $41,000 that they were asking last year.

I don't get it, the value of my house has just about cut in half. Salaries, if you can even find a job, have dropped. The economy as a whole is in horrible shape, but tractors continue to rise. I just do not understand.

It is called the devaluation of the dollar caused by the government printing money without any tangible backing.