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Re: Engineering triumphs post revisited...sort of...


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Posted by Old Iowa on October 27, 2013 at 06:11:53 from (208.126.196.144):

In Reply to: Engineering triumphs post revisited...sort of... posted by NCWayne on October 26, 2013 at 23:27:21:

NCWayne: The fact is that the companies began to make junk when the bean counters started to guide the design of new equipment rather than engineers.

In days gone by you tried to make the product as good as possible then sold the quality. Now they do a market study and set the sales price an then design to that price. So if a better transmission costs too much then you have to junk up the cab/etc. So they make the cab area look fancy and put in a cheaper transmission.

Also the marketing guys like "planned obsolescence". Than means you need to replace the machine faster and they sell you another "new" cheaper build machine.

The question I have had for awhile now is where is the used "newer" junk going to sell??? Everyone whats the "new" toy but who is going to buy the 3-4 year old one that is out of warranty???

There is a very small market for used late model large equipment. Example: How many guys can use a 36 row corn planter??? The BTO all want new. The smaller guys can't use it as most would not even have a tractor large enough to put it.

It also is happening in smaller equipment. Take skid steer loaders. I would almost never buy a used one. They are one of the most abused pieces of equipment out there. Look at most skid steer dealers lots. They have rows of used ones in that 2000 hour and up bracket.

So what will be the answer?? I think part of it will be that used equipment will track the used car market. A ten year old car usually sells for about 25% of new price. Used equipment guys are used to ten year old equipment being worth 40-60% of new. So the value will fall on the newer larger used equipment.

An example of this is the JD 9610 combine. A good JD 9510 will out sell the JD 9610. IH 1680s combines are the same way.


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