Posted by newfarmer9 on August 23, 2015 at 18:43:42 from (24.114.64.162):
In Reply to: John Deere posted by Spudm on August 23, 2015 at 11:56:04:
I work as a sales representative in the ag equipment industry, and with the price of equipment dealers cannot afford to keep much inventory on hand. If that piece of equipment isn't sold in x amount of days the dealer has to start paying interest on the value or settle the equipment outright, which would sink a dealership pretty quickly if they had a few million in inventory on hand.
Also, due to the options available on equipment these days (cab, suspension, axles, tires, # SCVs, PTO, comfort options, guidance equipment, etc. etc.) it is impossible to predict what the buyer is looking for. The dealership is better off to have the buyer order exactly what he wants and order it straight from the factory which yes does take time, because they can't build a 300 horse tractor overnight.
On the issue of trade areas, you don't know how many times I have had someone from 3-4 hours or more away call and have me price a piece of equipment. I end up spending a couple of hours pricing the equipment and attachments, checking on compatibility with the service department, getting a freight quote, etc. etc. only to have the customer say "oh my local dealer cut me a good deal, I'm buying from him anyway, just wanted to check prices". It is frustrating. I want to sell equipment and be helpful but at the end of the day that takes away from time that could have been spent helping my local customers in my own backyard, the guys that I see every day and have a relationship with that goes further than a phone call or a "driving by" drop in to the office.
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