Canadians not welcome at JD - USA

[canuck50]

I would be interested to hear what others think of this. I know what I think but its not appropiate for print.

It seems that last week JD head office issued a very firm order that any US dealers must charge Canadians a 7% surcharge when they buy in USA for export back to Canada. Apparently the 7% goes to JD ( not to the dealer) What they will do with it is a big question

JD quote all kinds of BS to justify the policy but its clearly a reaction to Canadian dealers whining about sales going to USA dealers because of the current exchange rates.

It seems to me its between me and the laws of USA and Canada if I what to buy something and take it elsewhere. Of course I respect the right of JD to have what ever sales policy they what. Likewise I can buy another brand!

Comments

 

[RoyJackson]

I understand your frustration, but Deere has to support it's dealers.

 

[Robert_in_NY]

I agree with Roy, Deere is protecting its Canadian dealers and evening the playing field.

 

[gamble77]

Just buy a slightly used machine...then you don't have to worry about this!

 

[canuck50]

A few points to think about.

Machines are priced in $US, so now that the $CAD is stonger Canadian dealers should be getting them for less. Are they passing on the savings? Not that I have seen. No they whine because they can no longer take advantage

Did JD do anything to "support dealers" when the $CAD was 0.75 and the traffic was the other way? US dealrs tell me no, they were on their own to survive. Will JD reverse the policy when the $CAD drops back to 0.80?

By the way I think the way they have set it up is that the dealer has to pay the 7% to JD. He can pass it on to the Canadian customer or not that up to the dealer. Does not leave much room for the USA dealer to make a profit unless he passes it on!

JD could support their CA dealers by telling them to get off their ***** and work harder to get and keep business. Excuses that it costs more to operate in Canada are just that. Many places in Canada dealers are so far apart or are owned by the same group that there is no competition. The only competition is accross the border. Other than JD, Kubota and NH there are very few dealers for other brands so service and parts are an issue. The point is there is not really a competative market in Canada.

By comparison car and truck prices have dropped big time in Canada as the $CAD dollar got stronger. The same thing has happened with many other imported products.

Free trade, fair wages for all that earn them and free markets to keep things competative, thats where I stand. Stick in your ear Mr Deere

 

[CinderSchnauzer]

JD could support their CA dealers by telling them to get off their ***** and work harder to get and keep business. Excuses that it costs more to operate in Canada are just that. Many places in Canada dealers are so far apart or are owned by the same group that there is no competition. The only competition is accross the border. Other than JD, Kubota and NH there are very few dealers for other brands so service and parts are an issue. The point is there is not really a competative market in Canada.

You may be pointing the finger at the wrong place. Don't really think JD or Car dealers are the ones making the "extra" profit. For example the GM Silverado / Seirra is built in Oshawa yet MSRP for a 4x4 is approx $10,000 less in US. It is not the dealer making the extra $10K - it's GM.

At least JD has not installed an "electronic immobilizer" as required on all CDN cars - conveniently preventing import of all GM's built since Sept. 2007.

 

[Scooby074]

I have to agree with Canuck, we've paid way more than our friends south of the border for too long for the same items, and now with our dollar being strong its time to reap some of the rewards. This isn't about leveling the field, because the field has been sloped the other way for decades, it's about Deere keeping the prices to Canadian's falsely high.

JD corperate shouldn't be jumping in to prevent sales as its up to the Canadian dealers to get aggressive with pricing to keep these buyers in Canada.

I was at a local JD dealer here and they will not dicker on the price, its almost like they have never heard of the internet! Thats the way it is up here, no competition.

On the other hand the local Massey dealer has lowered there prices inline with the strong dollar to keep the sales here. So guess where my money will go if i purchase in the near future.

As far as immobilizers go, that was a federal mandate to appease the insurence companys and there are approved aftermarket immobilizers that can be installed to allow import.

 

[CinderSchnauzer]

This isn't about leveling the field, because the field has been sloped the other way for decades, it's about Deere keeping the prices to Canadian's falsely high.

JD corperate shouldn't be jumping in to prevent sales as its up to the Canadian dealers to get aggressive with pricing to keep these buyers in Canada.

I was at a local JD dealer here and they will not dicker on the price, its almost like they have never heard of the internet! Thats the way it is up here, no competition.

I'm not specifically in disagreement with the OP. I think you have highlighted two things in your post.

1. A Dealer who does not want to dicker. I supect this is similar on both sides of the border. If the Dealer does not want to deal go to another - whether Canada or the US. The local JD stores were both willing to discount - before and after the CDN$$$ change. Western Canada stores seemed to be like yours in NS. Soon as the word "discount" was mentioned they didn't want to talk to you. Doesn't matter what JD corporate charges the Dealer - if they will not discount, you're not going to get a great deal.

2. Corporate pricing. If corporate does not reduce the price to the Dealer, even if they want to discount, there is only so much room available. It was my understanding that JD did lower their CDN prices. At the time I purchased, my CDN deal was equal to if not slightly better than any US based deal that I found - given many months searching.

The only way things will change is if enough customers complain and make their views known. There have been some changes, but in many cases a long way to go. The answer I got from GM, after taking away the spin doctoring and BS was that they priced CDN vehicles higher because they could get away with it - and they are still doing it.

 

[Scooby074]

Judging by the new buildings, I don't think any of the Deere dealers in my province are hurting in the financial department, at least the 3 I've been to.

I think there is a lot more wiggle room on the prices then they let on for sure.

Unfortunately, as a result of consolidation, all the dealerships in my province are branches of 2 main franchises. This does not help the consumer as their prices are pretty well the same across the board. Only option here is to go to the states, another province or another brand.

Bottom line I think is that no matter how you slice it Deere is penalizing Canadians for being Canadians. In my shopping experience (early December) my local dealers were no wheres close to the online American prices I found for all brands. It should be up to Canadians where they purchase without a penalty imposed by the company.

 

[ScottK]

I'm curious about importing stuff to Canada. If you buy a tractor here in the US, can you just drive it across the border and not get hit with taxes? What about the other direction? I'm pretty sure US Customs taxes anything over $800 for US residents. I was just wondering is such tax would wipe out any savings.

How about getting a US PO Box so they don't know where you live?

Scott