RK Tractor Guy
Manufacturer
I guess the easiest way to help someone understand why what we are doing is so different, just compare RK Tractors to Mahindra USA. Both buy tractors from TYM Korea, built to each company’s specifications and their brand. Let’s presume that both company’s pay the same amount to TYM Korea for their tractors. Mahindra USA sells their tractors to independent Mahindra dealers. Mahindra dealers are the customer of Mahindra USA, so Mahindra USA adds their profit margin to their cost and that is the price that a Mahindra dealer pays for that tractor. So, the Mahindra dealer has paid the cost that TYM Korea charged Mahindra USA plus the Mahindra USA markup. The Mahindra dealer then marks up the tractor further so they too can make a profit, and it is the independent Mahindra dealer, not Mahindra USA that sells the tractor to the tractor buyer.
RK Tractors sells their tractors through their own store locations, there is no sale to a dealer. That means that our cost to get a tractor to one of our stores includes what we paid TYM Korea for it, plus transportation, but we run our own fleet, so even our transportation costs to our stores are lower that what a Mahindra dealer pays for transportation from Mahindra USA to their dealership. We are the brand and the dealer in one, and that is why our prices are so low, every day.
If that isn’t eliminating the middle man, I don’t know what is.
Yes, tractor dealers negotiate, just like in the car business. RK Tractors does not because our prices are so far below those of any other brand, everyday, we don’t have to, and no one needs to wonder if they got the best possible price. A competing dealer selling a comparably equipped tractor at our price would literally be selling it for less than he paid for it.
So, any perception or belief that our low pricing is introductory or that we cannot hold to being the lowest priced brand out there fails to take into account that we are the brand and dealer in one company.
RK Tractors sells their tractors through their own store locations, there is no sale to a dealer. That means that our cost to get a tractor to one of our stores includes what we paid TYM Korea for it, plus transportation, but we run our own fleet, so even our transportation costs to our stores are lower that what a Mahindra dealer pays for transportation from Mahindra USA to their dealership. We are the brand and the dealer in one, and that is why our prices are so low, every day.
If that isn’t eliminating the middle man, I don’t know what is.
Yes, tractor dealers negotiate, just like in the car business. RK Tractors does not because our prices are so far below those of any other brand, everyday, we don’t have to, and no one needs to wonder if they got the best possible price. A competing dealer selling a comparably equipped tractor at our price would literally be selling it for less than he paid for it.
So, any perception or belief that our low pricing is introductory or that we cannot hold to being the lowest priced brand out there fails to take into account that we are the brand and dealer in one company.