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<blockquote data-quote="Cowabunga" data-source="post: 1685832" data-attributes="member: 718"><p>What has that got to do with anything? If something major goes wrong within the first week or two on a reasonably expensive machine, such as five year old £30,000 tractor, of course the dealer will repair it or take the machine back and refund the purchaser. He still has to repair it and in some cases a substantial repair today could be easily in the thousands.</p><p>All such costs have to be accounted for on aggregate. It is all a cost on a trading business. As I mentioned previously, it is impossible to run a reputable professional business on a shoestring. As Dealer has given you the figures, most main dealers work on a net margin after costs of only 1% to 2% on a very large turnover. How much more 'efficient' do you expect them to become? Consider how much less net profit margin this is than most farms most of the time.</p><p>Those figures are what they net in the good times. How much do you expect they make now with drastically decreased farmer spending? </p><p></p><p>Farmers won't buy more because an used tractor, or new, is sold for a few thousand less. Farmers will just not open their cheque books at all. Spending nothing on new or used machinery as it gets tougher for longer for them, while the export market is dead as well.</p><p></p><p>It certainly surprises me that UK farmers are spending as much as they are at the moment. As I understand it, and certainly in this area, sales of both new and used machinery is holding up very well indeed all things considered. It is a very very long Winter that is ahead of all agriculture and allied industries though.</p></blockquote><p></p>
[QUOTE="Cowabunga, post: 1685832, member: 718"] What has that got to do with anything? If something major goes wrong within the first week or two on a reasonably expensive machine, such as five year old £30,000 tractor, of course the dealer will repair it or take the machine back and refund the purchaser. He still has to repair it and in some cases a substantial repair today could be easily in the thousands. All such costs have to be accounted for on aggregate. It is all a cost on a trading business. As I mentioned previously, it is impossible to run a reputable professional business on a shoestring. As Dealer has given you the figures, most main dealers work on a net margin after costs of only 1% to 2% on a very large turnover. How much more 'efficient' do you expect them to become? Consider how much less net profit margin this is than most farms most of the time. Those figures are what they net in the good times. How much do you expect they make now with drastically decreased farmer spending? Farmers won't buy more because an used tractor, or new, is sold for a few thousand less. Farmers will just not open their cheque books at all. Spending nothing on new or used machinery as it gets tougher for longer for them, while the export market is dead as well. It certainly surprises me that UK farmers are spending as much as they are at the moment. As I understand it, and certainly in this area, sales of both new and used machinery is holding up very well indeed all things considered. It is a very very long Winter that is ahead of all agriculture and allied industries though. [/QUOTE]
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