Tractor News Cabelas has tractors!!??

[MinnesotaEric]

FYI. 24 units is an epic failure. No dealer could survive on that, and a retailer like Cabela's who looks at $$ per sq\ft is going to quickly find that its not worth the floor space.

Cabelas has been selling tractors for how long? Less than a year?

The Cabelas in Rogers has way too much floor space and extensive, unused parking. Flooring isn't a problem for them and $700,000 or more in sales isn't a bad start considering all they sell is compact tractors.

 

[GManBart]

Cabelas has been selling tractors for how long? Less than a year?

The Cabelas in Rogers has way too much floor space and extensive, unused parking. Flooring isn't a problem for them and $700,000 or more in sales isn't a bad start considering all they sell is compact tractors.

That $700K has to pay for the training, salary, benefits, etc for the people they hire to service them, and for the facility used (assuming it's not collocated with something else like boat repairs/service). $700K won't go very far when you factor in all those other things. I'd have to go back and look, but I think it was around this time last year the first time I saw tractors at the local store.

 

[MinnesotaEric]

That $700K has to pay for the training, salary, benefits, etc for the people they hire to service them, and for the facility used (assuming it's not collocated with something else like boat repairs/service). $700K won't go very far when you factor in all those other things. I'd have to go back and look, but I think it was around this time last year the first time I saw tractors at the local store.

If in house, the same techs are fixing other stuff as well, except now a few of them got sent to school--or even better they picked up some out-of-work auto techs who can take anything apart. Boat motors, ATVs, tractors and so forth. Also, Cabelas has likely scheduled a division loss for a number of years and can write the loss off against gains in others areas minimizing their risk.

 

[GManBart]

If in house, the same techs are fixing other stuff as well, except now a few of them got sent to school--or even better they picked up some out-of-work auto techs who can take anything apart. Boat motors, ATVs, tractors and so forth. Also, Cabelas has likely scheduled a division loss for a number of years and can write the loss off against gains in others areas minimizing their risk.

In following the other thread(s) on this topic, they actually hired new employees with background in heavy equipment repair. There might have been some current employees who were trained, but they definitely hired a number of new folks. Some of the stores didn't already have a repair facility for other machines, so they bought/built new space for servicing tractors.

It's a safe bet Cabela's is going to be losing money on them for a while...once you hire people, and build new space, it gets expensive quickly.

One of the job postings:
https://sjobs.brassring.com/tgwebhost/jobdetails.aspx?partnerid=25405&siteid=5454&jobid=1169002

 

[MinnesotaEric]

In following the other thread(s) on this topic, they actually hired new employees with background in heavy equipment repair. There might have been some current employees who were trained, but they definitely hired a number of new folks. Some of the stores didn't already have a repair facility for other machines, so they bought/built new space for servicing tractors.

It's a safe bet Cabela's is going to be losing money on them for a while...once you hire people, and build new space, it gets expensive quickly.

One of the job postings:
https://sjobs.brassring.com/tgwebhost/jobdetails.aspx?partnerid=25405&siteid=5454&jobid=1169002

Sweet, then through the new hires Cabelas is showing us a deeper level of commitment than most retailers who simply add a line card to their show floors.

Cabelas is doubtlessly looking at demographic trends where there is a massive shift of wealth and home location taking place at an increasing velocity from cities to rural settings and seeks to supply the consumerism that comes with that shift.

I guess the bottom-line is that any kind of buildout or expansion assumes risk and since we don't know the top or bottom-lines (I threw out $700k on a sub $30K average), all we're both doing is guessing.

 

[MessickFarmEqu]

more things here make this conversation interesting. Any dealer will tell you that the road to profitability comes from parts and service. Cabalas would have a very limited chance at being able to provide much of either of those things at this point. Industry average net profitability for a dealership is 2-3% of your gross sales, and that's with all departments humming away. The only way I can see this makes a lick of sense for them is if they where able to cut a deal with TYM that their cost on the units and profit on their sales is much better than industry averages. I'm not sure they have leverage to do that though with 50 stores. There are dealer bodies much larger than that selling far more tractors and none have struck out to brand their own product line.

 

[kneedeep]

Perhaps Cabelas is willing to have a loss in that Division to get their name attached to the market for the food plot implement sales?? Love to have one of the Woods Drills they sell!
You got to admit, the Cabela tractor is slick looking, lots of bells and whistles. Some of the people around here would buy it and equipment for that reason only to park in the garage at Hunting Camp next to the Cab UTV, Duck Boat and 4WD truck.

 

[dusty3030]

Bass Pro shops did it with boats, who knows.

 

[MinnesotaEric]

more things here make this conversation interesting. Any dealer will tell you that the road to profitability comes from parts and service. Cabalas would have a very limited chance at being able to provide much of either of those things at this point. Industry average net profitability for a dealership is 2-3% of your gross sales, and that's with all departments humming away. The only way I can see this makes a lick of sense for them is if they where able to cut a deal with TYM that their cost on the units and profit on their sales is much better than industry averages. I'm not sure they have leverage to do that though with 50 stores. There are dealer bodies much larger than that selling far more tractors and none have struck out to brand their own product line.

My Kioti dealer explained to me that tractors don't really have a whole lot of after sale service as the people that tend to buy them are pretty handy and the tractors themselves are pretty reliable. For the most part that has played out true with my limited experience as the parts I'vve ordered are replacement for something that I damaged.

 

[Jim Timber]

I'm not sure they have leverage to do that though with 50 stores. There are dealer bodies much larger than that selling far more tractors and none have struck out to brand their own product line.

NorTrac? I think the Cabela's family could probably buy Northern Tool, and somehow they've been selling tractors under their own name for years.

I don't know of a single person who owns a Nortrac either - certainly there has to be a couple out there though.

 

[Btown]

NorTrac? I think the Cabela's family could probably buy Northern Tool, and somehow they've been selling tractors under their own name for years. I don't know of a single person who owns a Nortrac either - certainly there has to be a couple out there though.

My neighbor had one of the larger Nortrac's in the US the 824 model. I believe it had a Perkins Diesel engine design in it. Not sure if he had any problems with it. But the price of the Nortrac's keep going up and they are approaching the Korean brand tractor prices. Don't see why anyone would buy a Nortrac over a LS, Kioti, Tym for almost the same $$$$ but u can get parts and warrantee work at a dealer

 

[Jim Timber]

I think Cabela's is more likely to get a tractor sale out of me than NT. If their "free to store" shipping performance is any indication of how they'd handle my up-time critical repair parts, I could lose a whole growing season before I got what I needed.

Current diverter valve for instance: Been ordered a week, expected arrival date 1-2 more weeks. Meanwhile, I've gotten my Surplus Center order and some Amazon lights which were placed after it. The real test will be if my out of stock (backordered) cylinder will come from SC before the valve gets here from NT. My NT drill press (long since unloaded on craigslist) took over a month. Seems like they ship them when they get around to it - they already have your money, so why rush?

 

[Brokermike]

Anyone actually buy one yet?

 

[tractorsales]

I have read a lot of the replies and threads on here and some are very helpful to read and others I wonder about.
I have seen just about all the tractor brands that are available and they all have there good selling points and some are more equiped then others.
if you look at a John Deere 3032E or 3038E tractor it is compatible to the LM35 tractor. The John Deere comes standard in a hydrostatic transmission only. The Lm35 Comes in both a gear drive and a hydostatic. The Deere does not have a cruise control that is an addtional option. Does not come with a rear work light - addtional option as well. Does not come with a rear hydraulic valve on the rear either-- addtional option. Does not come with a canopy either -- addiotion option. All these items are standard on a LM35 Tractor.
The John Deere has a 2 year or 2000 hour bumper to bumper warranty an a addtional 1 year on the power train warranty. The Cabela's LM35 comes with a 3 year Bumper to Bumper warranty and an addiotional 2 year warranty on the power train for a total of 5 year warranty.

With all this being said i have done my homework and research and know the products that I would have to choose from for a part time or hobbiest farmer or land owner.

 

[TSO]

I have read a lot of the replies and threads on here and some are very helpful to read and others I wonder about.
I have seen just about all the tractor brands that are available and they all have there good selling points and some are more equiped then others.
if you look at a John Deere 3032E or 3038E tractor it is compatible to the LM35 tractor. The John Deere comes standard in a hydrostatic transmission only. The Lm35 Comes in both a gear drive and a hydostatic. The Deere does not have a cruise control that is an addtional option. Does not come with a rear work light - addtional option as well. Does not come with a rear hydraulic valve on the rear either-- addtional option. Does not come with a canopy either -- addiotion option. All these items are standard on a LM35 Tractor.
The John Deere has a 2 year or 2000 hour bumper to bumper warranty an a addtional 1 year on the power train warranty. The Cabela's LM35 comes with a 3 year Bumper to Bumper warranty and an addiotional 2 year warranty on the power train for a total of 5 year warranty.

With all this being said i have done my homework and research and know the products that I would have to choose from for a part time or hobbiest farmer or land owner.

Sure... But that is the exact same case if you compare LS, Kioti, and TYM against the JD. Especially since the JD you are referring to is not the proper comparable. The 3032e is an economy version.

Then consider that the SAME EXACT TRACTOR you are referring to in the LM35 can be purchased from TYM directly for less.

You need to be more thorough in your homework & research.

What is the final out the door price that you are getting on the green TYM anyways?

 

[camer]

I checked a cab tractor from cabelas in Green Bay a week before Christmas salesman said he would get back to me in a week. Nobody called stopped there this week salesman wasn't there talked to another one way nobody called me shook his head and started to walk away I told him you must not want to sell a tractor to bad. He went into his office so I left will never buy anything from there again.

 

[MinnesotaEric]

Sure... But that is the exact same case if you compare LS, Kioti, and TYM against the JD. Especially since the JD you are referring to is not the proper comparable. The 3032e is an economy version.

Then consider that the SAME EXACT TRACTOR you are referring to in the LM35 can be purchased from TYM directly for less.

You need to be more thorough in your homework & research.

What is the final out the door price that you are getting on the green TYM anyways?

I dunno, Cabelas is selling the LM35 for $15299 right now. Can you even get a Deere 3XXX series for that?

And for that matter, can you find a TYM dealer?

http://www.tractorhouse.com/listingsdetail/detail.aspx?OHID=5902072

http://www.cabelas.com/product/CABELAS-WLM-LM-TRACTORS-W-TIRES/1672768.uts

http://www.tractorhouse.com/listingsdetail/detail.aspx?OHID=8286789

 

[murphy1244]

That is without FEL price. So its 15299 +

 

[MinnesotaEric]

That is without FEL price. So its 15299 +

And there is also the unspoken assumption that Cabelas fails to add any value, when in point of fact, Cabelas bring to the table value--the least of which is, will still be in business next year.

 

[TSO]

I dunno, Cabelas is selling the LM35 for $15299 right now. Can you even get a Deere 3XXX series for that?

And for that matter, can you find a TYM dealer?

I'm assuming that's without a loader ... And I'm not sure on JD pricing, though I'll just assume that it's high like usual.

I've actually got a TYM dealer about 50 mins from me. They sell Branson too. I've been there and checked out the stuff in person. Meh...