How long before biggest dealers pack up

[AJR75]

Let's also not forget the manufacturing "lag time" from when these machines were built in say the last 18 months or so- buying steel at its absolute peak and trying to sell into a market that is tightening, especially with steel prices levelling/ backing off.

I have no idea how the overheads of these manufacturers break down but do know of several smaller ones where the cost of materials (plus % profit on this) makes up 60-70 of their gross turnover.

 

[Vader]

There has been talk of large central distribution hubs & only a few smaller 'remote' service locations for a while now from the various 'big' manufacturers, the lack of subsidy will only accelerate this.
It will be who is tied to the mothership & who is not?
You'll spec your machine on the web, send the spec to the mothership, part payment will be taken, machine will be manufactured, delivered to the distribution hub, PDI'd then fed out to the nearest remote service location where you will collect - no salesman or dealer boss to have a cup of tea & biscuit with, only a chat-bot when you spec it up & a manufacturer tech to hand over the service schedule.

Is it far from that now?
Our JD we got before last harvest was like that. Said what specs we wanted on it, then it joined the manufacturing que.
JD link means they can do diagnostics remotely.

 

[Hampton]

A friend had them quote to replace a water pump in his Kubota horse paddock tractor, £1200!!! He bought a pump for £62 and I did it for him, about an hours work.
I would never buy a tractor from them

I didn’t. They bought out the dealership I dealt with.

 

[Vader]

But it's not like the 80's where we had a tractor size suitable for every job.
On most farms the machinery investment only justifies one tractor, and yes, I am guilty of using a 9 foot topper and a 4m chain harrow behind 200hp.

Log splitter sat on back of mine mine at moment!!

 

[czechmate]

Is it far from that now?
Our JD we got before last harvest was like that. Said what specs we wanted on it, then it joined the manufacturing que.
JD link means they can do diagnostics remotely.

Ha ha ha, half the time, they can’t tell what is wrong with it when they are stood right next to it

 

[HarryB97]

A friend had them quote to replace a water pump in his Kubota horse paddock tractor, £1200!!! He bought a pump for £62 and I did it for him, about an hours work.
I would never buy a tractor from them

They have to pay for all the dealerships they have taken over somehow!

 

[Two Tone]

True, it’s the Manufactures fault.
Not only forcing the Dealers to do what they have to do to remain that brand’s dealer, but because the manufacturer makes most of its money from financing the new kit to the farmer.

It gets so ridiculous that you get JCB finance failing over themselves to finance us anything we need, for any brand!


Exactly the same has happened in the Motor trade. Even worse with their PCP’s.
Dealers get really pi55ed off if you don’t want the finance!

Speak of the devil!
This just landed in my inbox:

 

[Johnnyboxer]

Speak of the devil!
This just landed in my inbox:View attachment 1173737

 

[Blue.]

Speak of the devil!
This just landed in my inbox:View attachment 1173737

have you used them for finance in the past?

I've never has them contact me.

Regards finance being pushed I got an email yesterday off Hgv direct they had a cost per month with every garage equipment item advertised,so finance isn't specific to ag,you don't have to take it,so I can't see what the problem is.

 

[Highashgrange]

And people say there stealers!

I don’t think that’s the case, more the manufacturer pushing them to the limit.

Or it’s because they’ve made silly choices by doubling the size of the board of directors increasing silly salaries, building car like dealership buildings they do not need and by driving around in Land Rover company cars. It’s their fault I’m afraid.

Big JD dealer potentially next. Staff cuts happening already and that’s come from a current employee who’s very concerned for his future.

 

[Two Tone]

have you used them for finance in the past?

I've never has them contact me.

Regards finance being pushed I got an email yesterday off Hgv direct they had a cost per month with every garage equipment item advertised,so finance isn't specific to ag,you don't have to take it,so I can't see what the problem is.

Yes, I’ve used them.
Three times for Fastracs. Still go the last one we bough 10 years ago which is finished its finance after 3 years.
Once also for a Krone Round Baler, that krone must have subsided the finance on a 1+3 agreement.

There is no such thing as 0% finance. Somebody is subsidising it somewhere.
When something is offered at 0%, you’d be daft not to take it unless you can negotiate an better discount.

Even so, it’s the Capital payment that still needs repaying.


I’ve nothing on Finance at the moment. That is the first time that is the case since 1981.

 

[Ffermer Bach]

I still work that way
Learned it in oz and nz in hard times.
Aussies and kiwis working here were always hot on maintainance.
They would replace a choked grease nipple where locals would just f**k the bearing

called in on the mechanic the other day, he was cursing farmers, had a telehandler in with a worn out hub. Wheel nuts had come loose, and hadn't been tightened, this had destroyed the hub, all for want of a little preventative maintenance.

 

[Spencer]

called in on the mechanic the other day, he was cursing farmers, had a telehandler in with a worn out hub. Wheel nuts had come loose, and hadn't been tightened, this had destroyed the hub, all for want of a little preventative maintenance.

Sounds ungrateful for the work.. soon change his tune if he had nothing to fix!

 

[MF CI]

Sounds ungrateful for the work.. soon change his tune if he had nothing to fix!

I'm sure he would much prefer to be doing services, changing oils and preventative maintenance than riving at worn out seized up stuff which could have been prevented . On top of that the farmer will want it done in an hour, yesterday and won't pay the mechanic for months and only then after negotiating a discount on the man in a vans already much lower than the dealer hourly rate.

 

[GeorgeK]

Annoying to see if you care about equipment. Investigate the rattle immediately and more often than not it's just a bolt needs tightening. Ignore it and it'll wear away at everything nearby and eventually drop off taking a load of other stuff with it.

 

[Yale]

Is it far from that now?
Our JD we got before last harvest was like that. Said what specs we wanted on it, then it joined the manufacturing que.
JD link means they can do diagnostics remotely.

That’s great until they ‘upgrade’ the older products (tractors) remotely and make it not work quite as well so you are corralled into a new replacement!

Apple style.

 

[Bignor Farmer]

Ktwo have just gone to the wall with 6.5% on last declared accounts... you sure?

Yes.

Two very different businesses, a machinery manufacturer and a multi-site dealership.

 

[Kiwi Pete]

I think British weather plays a hand in what kit to run … and this year is really pointing it up. Cannot afford nails breaking down when the window for work is getting so tight

I think the weather, stories about the weather and stories about what it'll do next, basically rules most conventional farming operations.

We tend to find whatever it is we go looking for, if it's justifying having big gear then all the evidence is right there.
Same for the job being ruined by others, unprofitable or volatile or whatever.

It could equally be seen as a great time to go right back to basics, mind our own business -but what would the neighbours say?
"Oh I see they're in trouble"
"How long before they pack it in?"

 

[HarryB97]

Yes, I’ve used them.
Three times for Fastracs. Still go the last one we bough 10 years ago which is finished its finance after 3 years.
Once also for a Krone Round Baler, that krone must have subsided the finance on a 1+3 agreement.

There is no such thing as 0% finance. Somebody is subsidising it somewhere.
When something is offered at 0%, you’d be daft not to take it unless you can negotiate an better discount.

Even so, it’s the Capital payment that still needs repaying.


I’ve nothing on Finance at the moment. That is the first time that is the case since 1981.

That must be a nice place to be!

 

[DRC]

Drove past local Land Rover dealer this morning….. talk about shiny paint, lot was full of what seemed to be 72/73 reg motors…. Quite a sight, if you are determined to inflict a LR product on yourself….. now might be the time !

Sounds good until you see what they offer you part ex for the vehicle you only bought 18 months ago. That’s why folks are keeping the ones they’ve got