Too Many Tractor Brands? (Glacial sales pace)

[rd_macgregor]

When I watched the nifty light show that Messick's linked to on the owning/operating forum page, I couldn't help wondering if any customers were going to look over, much less test drive, any of those fully-wired tractors between now and New Years. Inventory cost has to be eating in to somebody's bottom line when capital stock just sits there for months, waiting for a buyer.

 

[MessickFarmEqu]

When I watched the nifty light show that Messick's linked to on the owning/operating forum page, I couldn't help wondering if any customers were going to look over, much less test drive, any of those fully-wired tractors between now and New Years. Inventory cost has to be eating in to somebody's bottom line when capital stock just sits there for months, waiting for a buyer.

not our bottom line for the most part we have at minimum 9 months before a unit starts to cost us money, often that can be extended. Whats in the video is 1/8 of our current inventory, so its not really a headache as far as ongoing sales are concerned. Lots of whats in the video is L32/3800 because we put in a HUGE order knowing they where going Tier 4. In that case we will carry some interest cost but it will put us in a good competitive position to be selling older Tier 3 tractors.

 

[Mudfarmer]

Makes you think the profit is in parts and service, huh?
mf

 

[arnoldziffel]

A new car dealer friend of mine has told me that their real profit center IS parts, service and USED cars. They consider themselves lucky when NEW care sales make any real money.

Perhaps the CUT tractor market follows a similar model?

 

[Mattc8832]

Possibly - I know a guy that once was a power equipment dealer and he told me that selling riders, walk behinds and handhelds only contributed to about 15% of his profit and everything else was parts and labor. He said that some warranty jobs was good money and some wasn't worth your time. I have noticed that in the last year traveling WV , OH , PA that Mahindra has been really advertising heavy.

 

[rdbigfarmboy]

I have noticed some of the big chain dealers move equipment around andit looks like it sells. its helpful to watch their web sites.
Locally tractors are selling, those buying new are either retires buying a dream tractor for the dream project or for profit farmers. Kubota Deere and Case seem to have done well. Offering financing seems to be the secret.
I typically buy used so Im not in either catageory.

 

[crazyal]

I'm not sure how easy it is to tell if a smaller dealer is actually selling equipment or not. The local Kubota dealer has lots of them in boxes. I doubt I would know if they sold one as I bet once they do the unbox another one and put it in the void. Since the boxes can't easily be spotted from the road it's hard to tell when the number is dropping.