- Location
- Black Isle
So has the pendulum swung to a buyers market? It’s been the other way for too long.
It's swinging in that direction I'd say. Buyers definitely hold the power now but theres plenty of expensive stock sitting in dealers yards they don't want to give awaySo has the pendulum swung to a buyers market? It’s been the other way for too long.
Sharman’s and HRN are all the same family the Barclays as is Netherton which is still JD. It’s down to the cousin generation from the brothers but it’s still family blood through itWell I suppose nothing lasts forever does it, some dealers can tell the manufacturer to get lost, I believe Sharmans effectively did that a few years back and appear to doing well with a new franchise
others as we all know, losing a main franchise finishes them.
A lot of the mainliner franchises are structured like that to incentivise / bully you to play their game and sing to there tune e.g jd with sprayersI know with the larger manufacturers the bonuses available to sell X number make it almost impossible not to do those numbers.
I think you’d be surprised how little profit there actually is selling tractors and other kit. Most of the profit is from the servicing you need to do for the warranty and the golden handshake the manufacturer hands out end of the year for hitting the targets that get bigger and bigger each year.A lot of the mainliner franchises are structured like that to incentivise / bully you to play their game and sing to there tune e.g jd with sprayers
I agree that’s why they have to hit the target by hook or by crook which usually involves too much stock and a yard full of over valued tradeiins to shift to get the deal and guess what next years target is greater oh and by the way you will buy your neighbouring dealer as well.I think you’d be surprised how little profit there actually is selling tractors and other kit. Most of the profit is from the servicing you need to do for the warranty and the golden handshake the manufacturer hands out end of the year for hitting the targets that get bigger and bigger each year.
I’ve heard story’s that the targets arnt particularly regional either. Like the dealers in Devon have the same targets as the dealers in Norfolk, now there’s a damn sight more combines sold in to Norfolk and more foragers in to Devon but they don’t think like that and set unrealistic targets that as has been said the salesmen have to nearly do at a loss to keep the franchise.I agree that’s why they have to hit the target by hook or by crook which usually involves too much stock and a yard full of over valued tradeiins to shift to get the deal and guess what next years target is greater oh and by the way you will buy your neighbouring dealer as well.
Correct. JCB dealer sold us two tractors at a loss as long as we signed up to extra warranty & servicing so they can get some money back that way and to get the deal / keep JCB happy! Not sure how long that kind of Buisness can carry on to be honest before the manufacturers cut out the middle man and cream more profitI’ve heard story’s that the targets arnt particularly regional either. Like the dealers in Devon have the same targets as the dealers in Norfolk, now there’s a damn sight more combines sold in to Norfolk and more foragers in to Devon but they don’t think like that and set unrealistic targets that as has been said the salesmen have to nearly do at a loss to keep the franchise.
I suppose the benefit of the dealers is they can set unrealistic targets which are more often filled with stock orders so the dealer is carrying the ball then rather than the manufacturer.Correct. JCB dealer sold us two tractors at a loss as long as we signed up to extra warranty & servicing so they can get some money back that way and to get the deal / keep JCB happy! Not sure how long that kind of Buisness can carry on to be honest before the manufacturers cut out the middle man and cream more profit
Carrying the Ball / ticking timebombI suppose the benefit of the dealers is they can set unrealistic targets which are more often filled with stock orders so the dealer is carrying the ball then rather than the manufacturer.
I wouldn’t be cancelling orders because of no trade in, I always treat my trade ins as a totally separate deal so if I can sell for more private or can be bothered I have the option to, this way they don’t jack the price up to account for a higher trade in to make you think your getting a good deal, and if nothing else you’ll get known as a cock teaseHad an item on order , spoke to dealer and informed them of wish to trade 2 quality lesser value items . Showed little to no interest so cancelled new item. 2 way road you've got to support each other no point otherwise
Will beg to differ but they can sell stuff at the top and bugger the customer. It'd be there last sale . It's called trading and that's the nature of all businessI wouldn’t be cancelling orders because of no trade in, I always treat my trade ins as a totally separate deal so if I can sell for more private or can be bothered I have the option to, this way they don’t jack the price up to account for a higher trade in to make you think your getting a good deal, and if nothing else you’ll get known as a cock tease
I wouldn’t be cancelling orders because of no trade in, I always treat my trade ins as a totally separate deal so if I can sell for more private or can be bothered I have the option to, this way they don’t jack the price up to account for a higher trade in to make you think your getting a good deal, and if nothing else you’ll get known as a cock tease
That is simple, say from the start there’s no PX, you then get a realistic none jacked up price you then introduce the idea of PX at the end once you have prices and if you don’t like there bid you can sell else where. Simples..I asked for a quote on a new telescopic with my current machine as a trade in. When the price came I couldn’t get my head around it as it was far far more than I’d envisaged. So I went back to the dealer and said I want a straight buy price of the new machine as I’d decided to keep it as backup. It turned out they’d valued my trade in at £15,000. I then went to the trade to get a price on my trade in and it varied between £27,000 and £30,000 with the higher value coming after a guy had come and had a look at it. I now won’t deal with the original dealer and I’ve told the DP that as well.
I think there’s some seriously worried main dealers about because if I’d of accepted the deal then they would have had around £25,000 out of me assuming profit in a new machine is £10,000.
JCB telescopic’s are now back to 12 weeks order to delivery as of Friday.
You say it's a "random hypothetical example" just so it doesn't start any random rumours, not much wrong with Ripon Farm Services balance sheet, in fact quite the opposite, it's looking very healthy.I wonder how many of the bigger dealers could get out if they wanted to?
let’s use say Ripon Farm Services as a random example, sure there’s lots of rumours about there finances but let’s say if the directors st down one day looked at the accounts and all agreed that there was no light at the end of the tunnel could they ring the likes of JD up and say sorry chaps but this ain’t working so as our contract is up next week/month/year to sell your tractors we’re dropping you? Anything of yours that’s left in our yard after that date come get it!
note- this is just a random hypothetical example and bears no relevance to ripon farm services or JD management policies.
Yes I used them as there a major player and would leave a massive hole in the HD dealer network if they said nope we’re not gonna sell them anymore. As for the balance sheet it would look even better if they actually advertised everything they have kicking about at various depots. From what I’ve seen the website only shows a small selection of what they actually have for sale.