Some dealers are making good money. Generally they are in areas with larger farms that buy a lot of equipment and use the dealers for services and repairs. In smaller market areas the dealers move a lot less euipment and get a lot less repair work. Some of those delers don't make a lot. Good example is 25 miles west of me is the Red River Valley area. Big CaseIH and JD dealers. Most of their sales are aimed at the big guys over there who lease or buy big new equipment every year. These guys don't talk about how many acres they plant, they talk how many sections. Now 12 miles southe east of me is a AGCO/MF delers. Much smaller farms in that area. I don't think he sells more than a handful of new tractors a year. I've never seen a new combine on his lot. He has about 5 guys working in the shop. Warrenty work can kill this guy. The thing that keeps him in business is keeping his customers happy. Drive by, most of his new equipment is impements and maybe 2 or 3 farm sized tractors, the rest is lawn mowers and utilities.
When I worked in auto repair I was at a small shop. We needed to average about 20 an hour (late 90's) to keep the doors open. Another 15 an hour to keep me in there with just my actual pay. Most of the time when we had to warrenty something we did it was a part failure. The parts houses would gladly replace the part but had tons of paper work to get reimbursed for the labor that was a lower labor rate than the 40 an hour we were charging. So most of the time we just ate the labor.
Also consider that dealers pay property taxes at the commericial rate. Items setting on the shelf that don't move often are eating up square feet. So is that tractor setting on the lot. If they can't turn that stuff over it's costing more money cause they still have to pay taxes on that space.
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Today's Featured Article - The Day Mom Drove the 8N - by Brian Browning. My Dad was wanting to put in a garden but couldn't operate the 8N and handle the old horse drawn plow he had found and rigged up to use with the tractor. Well, he decided to go get Mom out of the house and have her drive the tractor while he walked behind the plow. You got to understand that while my Mom is a hard worker who will always help whenever she can... she had never operated farm machinery before that day. Dad got her out there, explained how the clutch was the same as in our o
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