Cowabunga
Member
- Location
- Ceredigion,Wales
Mainly MF.All I know is is I've had deals that I'd struggle to better at a farm sale.
What brand of farm machinery were you involved in selling?
As a theoretical example...
If there were two price increases in a year and there was a +£100,000 tractor in stock, ordered just before the two subsequent 5% price increases , there could be two identical tractors on the yard, about £10,000 apart in price. It would be up to management whether to sell the lower price one at the lowest possible price to shift it, or average the two out to sell at near the same price. There are an almost infinite range of scenarios that effect a given piece of equipment's possible selling price.
The major one is always the price at which the dealer bought it in for. It is not as simple as many people imagine and it is a great game to play at a dealer level if that is possible and enjoyed by the management, to make sure that the buying-in price gives a positive advantage to themselves and to the customer. Some play the game and some not for either cash-flow reasons or due to management structure or even the way a manufacturer supplies and invoices stock. One of the bigger sellers, for instance, sends units to a dealer but doesn't collect payment for up to six months after delivery [to the dealer] or when it is sold, whichever comes first. Others expect cash on delivery more or less. I think it is easier to gain an advantage with cash on delivery as long as stocking finance was not needed, which eats into margins greatly the longer stock remains unsold to the end user.