Machinery sales

[balerman]

people are tending keeping stuff longer I find, but I don't think the main dealers are getting any more of the servicing and repair work due to this? partly cause people cant afford to pay main dealers service prices so they are looking else were for independents or doing jobs themselves.

If you go into the workshop of the main dealer I use most you will only see machines less than 2 or 3 years old,they freely admit they get virtually no work on tractors or machines when the warranty runs out,and they are very good at what they do.Their labour rate is £65/hr,I can go 3 miles down the road and use a more independent engineer whose work is also very good for £35/hr.A lot of main dealers have had a very good last week of their financial year for obvious reasons,but the rest of the year has been awful,this coming year will be far worse I think.

 

[Jato]

It will be the "over valued" trade ins which are hurting dealers.
The new machine sale has not made any money until these are sold.
It is in fact costing the dealer until cleared.

 

[Two Tone]

Some dealers are great but some just don't help themselves.Were looking to change our combination drill and have recently demoed three different makes..Ive rung the one salesman several times for a price to change,but despite promising to ring back each time,he doesn't.A quick call to say he hadn't got round to it would at least keep us informed.We are cash buyers too,
We need the dealers as much as they need us and it would be a sad day if some were to close their doors for the last time.

Blimey! I wouldn't give them any more chances. If nothing else, that sort of behaviour is bl--dy rude and disrepectful!

I'd ring them maybe a second time, but never a third. Their loss for wasting your time. Unbelievable stupid on their behalf, especially if they gave you a demo.

I assume you the other two have given you a price, so at least you can have a deal with one of them. But if you prefer the make of the one that the dealer hasn't rung back on, try another dealer that sells the brand.

 

[Mursal]

Would it be safe to say the combo you are trading is quite fresh?
He's probably full to the neck ..................
@texelburger

 

[MrNoo]

Same thing with a fertie spreader I bought this year. Phoned my main dealer at 9am and a chap was in the yard within an hour, tried another nearby, was told that the man for my area would get in contact with me, "if you dont hear from him after 2 days then call me again and I'll chase it up" to which I replied "If I dont hear from him by end of play that day I would be buying elsewhere" he didn't and I did. So he lost out on an easy sale.
Is it any wonder dealers are finding it hard with this sort of thing happening.

 

[Sonoftheheir]

On Countryfile this evening the machinery dealer from Shropshire suggested that sales were down by 40 - 50 % and that is an area where there are some of the most profitable farmers in the UK ( so we are lead to believe) . So what is happening in the less prosperous areas of the country ? We hear rumours of the main manufacturers stepping in to keep their dealers afloat (only rumours) it's not a happy situation.

Are you not a dealer? How are you finding things?

 

[texelburger]

Blimey! I wouldn't give them any more chances. If nothing else, that sort of behaviour is bl--dy rude and disrepectful!

I'd ring them maybe a second time, but never a third. Their loss for wasting your time. Unbelievable stupid on their behalf, especially if they gave you a demo.

I assume you the other two have given you a price, so at least you can have a deal with one of them. But if you prefer the make of the one that the dealer hasn't rung back on, try another dealer that sells the brand.

My sentiments too.My preferred machine is with the dealer who doesn't ring back,he's very affable and polite on the phone but that's no good if you don't return calls.Think i will give him a couple of days and if nothing is forthcoming there is a dealer,i have met,50 miles away who sells the same machine.Problem is they did bring the demo and nothing was too much trouble ,i would feel a little uneasy and unethical running off to another dealer.
Actually all three machines were good and very little between them,it's just down to small preferences .

 

[Drillman]

At least one dealer not so far from us has invested in a decent pencil sharpener and started slashing prices.

Won't be long before a few more follow suit if prices don't improve.

Hmm seems there pencil sharpener has broken as everything has been un discounted today.

 

[Roy Stokes]

My sentiments too.My preferred machine is with the dealer who doesn't ring back,he's very affable and polite on the phone but that's no good if you don't return calls.Think i will give him a couple of days and if nothing is forthcoming there is a dealer,i have met,50 miles away who sells the same machine.Problem is they did bring the demo and nothing was too much trouble ,i would feel a little uneasy and unethical running off to another dealer.
Actually all three machines were good and very little between them,it's just down to small preferences .

Very understandable sentiments as your dealer supplied the demo, so give him a call and tell him if he doesn't get round with some figures you will be forced to look elsewhere, this way he cannot say anything if he doesn't respond

 

[DRC]

I didn't see country file myself but there was mention on another topic on here that he was on.

According to a post on the other thread, he made over £2 million profit last year. I know he moves a lot of stuff, but the margins must be pretty good.

 

[Mark C]

If an average dealer's 2nd hand 5 yr old tractor with 5000 hours is 100 now, what will the price be in 6 months' time?

Up as the demand for used climbs because folks keep hold of their's

Down because dealers will have to take their medicine

About the same?

I know what you mean! I was looking for a new bale trailer a month or so back. Contacted 3 manufacturers, visited one factory, no follow up call since I left and one manufacturer contacted my local dealer's rep with my details. He's never followed it up either

 

[DRC]

It's a chicken and egg situation with dealers not wanting yards full of second hand stuff, but that has stalled a couple of deals I was interested in.
I've got one year left on finance on my handler, but everything else is paid for and up to date enough to get by for a few years, if need be.

 

[Cowabunga]

Would it be safe to say the combo you are trading is quite fresh?
He's probably full to the neck ..................
@texelburger

That's probably it. The dealer might not want a part exchange lying on his yard. Expensive used machinery eats up vast amounts of capital. He may indeed be trying to find a buyer before he comes to negotiate, because many large dealers will no longer entertain buying back machinery unless pre-sold or underwritten by another dealer.

 

[stuart]

Has anyone actually seen those figures seem a bit hard to believe he does shift some kit but over £2 million in profit

 

[DRC]

Has anyone actually seen those figures seem a bit hard to believe he does shift some kit but over £2 million in profit

I suppose if its a Ltd company, you can find out.
@Only quoted that amount, so I presume he's looked at companies house.

 

[DougD]

Same with us this time last year asked prices for four makes of baler got prices of two within a day or two still don't know the prices of other two

I know what you mean! I was looking for a new bale trailer a month or so back. Contacted 3 manufacturers, visited one factory, no follow up call since I left and one manufacturer contacted my local dealer's rep with my details. He's never followed it up either

 

[Cowabunga]

Has anyone actually seen those figures seem a bit hard to believe he does shift some kit but over £2 million in profit

Most dealers who shift a lot of kit, and lets face it they have to be very competitive to shift a lot of machinery these days, are working on a net profit of around 2% of turnover, give or take. If this company is making £2million profit before tax, work out how much kit he shifts. Even at 5% net if he's a magician. To save you working it out, a 5% profit on turnover resulting in £2m profit requires a turnover of £40 million.
Assuming 20% coming from workshop and stores, thats maybe £32million in machinery sales. That's a massive amount of sales. How many main dealers, even with a high proportion of harvester sales, manage that?

All figure are my best guess of course and bare no relation to any real dealerships, alive or dead.

 

[smcapstick]

Most dealers who shift a lot of kit, and lets face it they have to be very competitive to shift a lot of machinery these days, are working on a net profit of around 2% give or take. If this company is making £2million profit before tax, work out how much kit he shifts. Even at 5% net if he's a magician.

Who plucked £2 million out of the air, anyway? That sounds absurdly high.

 

[Cowabunga]

Who plucked £2 million out of the air, anyway? That sounds absurdly high.

I would have said so, but what do I know?

 

[DRC]

Don't think he's gona make the 2.2 million he made last year this year