Market Share %? Does anyone really know?

frank_f15 · Dec 5, 2004

CHUCK: just what i said previously, just go down the road a few mile and preferences will change. I think a lot has to do with the dealer in certain areas, big dealer, lots of tractors, draws more custiomers. my theory is they are all pretty good machines.

kybota · Dec 6, 2004

( And Massey . . . what is with them? Not to mention all the other brands! )

Just a few thoughts about this from my limited observations of tractor dealerships in Indiana and Kentucky and talking to some dealers:

A former Ford dealer who now only sells new LG/Longtrac and used tractors, told me that Ford wanted "super store" shops with car dealer type show rooms and that the pressure became worse when Fiat took over. The two closest NH dealerships have the glass walled showrooms.

There are Massey dealers all around me and none that I've seen have this "super store" set up, and neither does the local Agco dealer.

Several of the local Kubota dealers have the indoor showrooms as well, but not the one where I purchased mine.

The local Deere dealers tend to have huge inventories, but not the fancy indoor show rooms.

I'm not sure what this all means, but have suspected that the show room features are intended for new or non-agritural customers (i.e. compact utility tractor shoppers).

Where that leaves Massey I suppose is trying to get a piece of the CUT pie, but they are selling through dealers used to targeting big ag operations. It makes sense that Agco use the MF brand, because even non-farmers are familiar with it.

Maybe some of the dealers on this forumn know differently from my observations in the Louisville area. This may be only a local phenomenon. I don't know.

For what it's worth, I much preferred working with the smaller dealers.

MessickFarmEqu · Dec 6, 2004

The "glass showroom" would just be unique to you, its not a mandate. There is somthing called dealer standards that sets guidlines for the appearance of a dealership and requires you do have things like diagnositic computers in your shop and a computerized parts system... things you should have anyway. There are some annoying items like New Holland flags outside, proper signage, and the right color building. The expenses do add up, I can see why a small dealer would be bothered with it. "Super Store" dealers is an exageration.

Bob_Skurka · Dec 10, 2004

I just spent about 30 minutes on the phone with the owner of my Kubota/Cub/Case dealership.

A couple interesting points. He confirmed again, he believes that Mahindra is PROBABLY number 4. He did say that Cub Cadet has historically NOT reported their numbers, but it is possible now that they do report, that they might be #4 with Mahindra being #5. He had no data on Jinma, and didn't think any accurate data exists. He had new clue where Kioti is in the rankings but said: "they are much smaller than the others."

He also stated that Kubota will have record sales this year because they are growing so fast. . . however, he could not tell me if that growth was also something that would translate into higher market share numbers of if it was simply because the total CUT market is growing.

Also, there will be a price increase on the Kubota product line of about 3% but that price increase will NOT be on the newly introduced machines.

Also, the brand new B3030 is very likely going to be priced SLIGHTLY LOWER than the current B2910.

bczoom · Dec 10, 2004

( I just spent about 30 minutes on the phone with the owner of my Kubota/Cub/Case dealership. )

Hey Bob,

Could you call the other dealerships (JD, Mahindra, PT, NH...) for us and see what their pricing plans are for 2005? /forums/images/graemlins/smile.gif /forums/images/graemlins/wink.gif /forums/images/graemlins/grin.gif

We would really appreciate it.
Thanks!!
Brian

MessickFarmEqu · Dec 10, 2004

Deere and NH both have a 3% across the board increase. Those where recent, it could have compounded on other increases. The New Kubota one is around 3%, some models have none at all, some have more. Its all over the map. The biggest % increases are hitting implement manufacturers

Bob_Skurka · Dec 10, 2004

Hey Bob,

Could you call the other dealerships (JD, Mahindra, PT, NH...) for us and see what their pricing plans are for 2005?

We would really appreciate it. 

Uh. . . well, no. But you were very polite about asking! Actually I had to finish up a deal with him on a new Cub Cadet GT and he had just came back from a Kubota meeting of some sort. He & I also talked after he got back from the big dealers meeting in October. So after finalizing the current deal, we just shot the bull for about a half hour. He said he sold 60 more Kubota's than he figured he projected.

bczoom · Dec 10, 2004

( Uh. . . well, no. But you were very polite about asking! )

Bob - I was (I hope) obviously kidding. /forums/images/graemlins/wink.gif

Neil - Thanks for the info.

Looks like most are going for about 3%.

Brian

SkyPup · Dec 10, 2004

The price I'm paying for a new Kubota TLB-39 is actually LESS than last years TLB-35 (difficult to believe with the high yen and expensive steel, but true)! /forums/images/graemlins/cool.gif

BigGary · Dec 10, 2004

Pup,
Call it like it is, the yen isnt high the dollar is low! /forums/images/graemlins/frown.gif

Bob_Skurka · Dec 10, 2004

The price I'm paying for a new Kubota TLB-39 is actually LESS than last years TLB-35 

Yea, the dealer was saying the newest designs will be at or below the prices of the models they are replacing. The designs that are being carried over will be the ones that may have the roughly 3% increases in price.

This will be sort of interesting as many of minor brands seem to sell on price, and as there have been reports that they are going up too, but the newest model Kubotas are actually holding firm or going down in price.

Brian: Bob - I was (I hope) obviously kidding. Yea, I know.

SkyPup · Dec 10, 2004

That really is difficult to comprehend since the machine itself is approximately 20% more machine than the one it replaced...but hey, I'm not complaining. /forums/images/graemlins/wink.gif

Ledgemere Farm · Dec 10, 2004

He said he sold 60 more Kubota's than he figured he projected.

Funny thing about that number: when I bought my Cub Cadet, the dealer said he wanted to sell 62 in a year and I was # 60. /forums/images/graemlins/wink.gif

Bob_Skurka · Dec 10, 2004

That really is difficult to comprehend since the machine itself is approximately 20% more machine than the one it replaced...but hey, I'm not complaining. 

When I was talking to the dealer, he said that he was told Kubota is making major advances in technology and design. I'm not sure how to take that, but perhaps it is in the assembly line technology & design? If it is easier to build the machine, the cost can be kept low, even if the prices of the materials go up. I know my business is totally different, but we are constantly looking at ways to increase our efficiencies with computers, ergonomics and equipment. . . to give us the ability to sell the same items at lower prices while holding or even increasing our margins. I would suppose Kubota is doing the same. And if they are capable of doing that, then the "value" issues that some of the minor brands toss around as reasons to buy their tractors are going to be even harder to sell.

By the way, the dealer said that in some of the southern states he had been told the Kubota market share % is nearing 65% but that those are regional numbers and don't hold nationally. He also stated that was for tractors UNDER 40-hp.

SkyPup · Dec 10, 2004

The reason Kubota's market share is way UP in the South is multiple HURRICANES, could't keep a good Kubota on the lot this fall as everyone available was purchased and used, even more so than skidsteers and larger track and wheel loaders.

Most likely be more of this kind of action next year as well so get ready!

rockyridgefarm · Dec 10, 2004

Kubota 50% of all sales
JD 25% of all sales
NH 15% of all sales
Combined the "big 3" control roughly 90% of all sales. 

WOW! I would have a hard time suggesting to a friend that he go outside that 90%....

bczoom · Dec 10, 2004

( The reason Kubota's market share is way UP in the South is multiple HURRICANES, could't keep a good Kubota on the lot this fall as everyone available was purchased and used, even more so than skidsteers and larger track and wheel loaders.

Most likely be more of this kind of action next year as well so get ready! )

That makes me wonder...
Since Mother Nature flooded the south in 2004 and Kubota reciprocated by flooding the market down there, has it reached saturation and 2005 sales may go down the drain for that area?

Sorry about all the puns... couldn't resist.

art · Dec 10, 2004

Kubota just introduced there programs for the discontinued models which has changed the picture on the new ones being less! They always do that to purge the system.