The Quarterly Messick's Report

[Hay Dude]

So I missed the start of this. What do you all what to know?

Few questions to what I saw so far.

Yes.. we use a hub and spoke model. We have 5 stores, 1 Hub with 4 spokes (which is not a lot by todays standards)

Yes, the new building was nutty expensive. We where super fortunate to lock in all the pricing, financing, etc pre-pandemic. I can't imagine how different it would look today. What we did is affordable with our typical margins from the old location. We are not "raising prices to pay for it" (not to say we're not seeing prices going up, but the reasons have nothing to do with the building).On the financial side, most of the new building costs are recovered from efficiencies of people doing their jobs better.

Yes, we do embrace the 'super store' model. Inventory is one thing, people are the other. You don't find experienced people in this industry, you have to grow them. The super store model with company trainers, training facilities, etc is really key to making this all work. We've made a big deal out of the Mount Joy hub store, but we've been investing in all our stores to make them better places to work. Hiring is hard right now, we need to invest in our facilities so we're the best place to work.

Lastly thanks. I can't say that enough. I almost can't believe myself whats happening here. I'm proud of our people and what they are doing, and just blown away by all the people who choose us. The amount of support and encouraging words from everyone visiting the store, sending emails, coming to open houses was way beyond what we ever expected.

I can’t believe how low used equipment inventories are! I am looking for a used 130HP power shift or CVT with a strong loader for $60k or less.
Forget about it. Even used inventory at Messicks is low!
What are you seeing in your crystal ball for used equipment?

 

[Cahaba Valley Farm]

If y'all ever look to get out of the cold, it would be nice to see your model down here in East Texas.

Add Alabama in that as well.

 

[MessickFarmEqu]

Used priced are nuts. Used inventories are at the lowest level I've ever seen it. We are noticing auction values going over the price of new equipment. I'm a little scared to really put all our cards into that as we expect values to collapse once new inventory starts to normalize. We are starting to see that happen in some places, but we have a long way to go. We are definitely valuing used machines that we can sell quickly much higher than a year or two ago. We're not enjoying this at all. We need predictability.