New Holland warning

[spencer200]

Just thought you guys should know NH has sent out a warning letters to all dealers warning us about internet sales and how it is in violation of our dealer contract. Anyone caught selling thru the internet could face a contract violation and could have there contract revoked.

 

[Kevin_in_VA]

Looks like the good deals will be going by the wayside. Glad I got mine already.

 

[mahlers]

I think they'll have a hard time enforcing that unless they very clearly spell out what an "internet sale" is. If it's defined as a sale that is completely conducted over the internet, then a few phone calls and written correspondences via US Mail during the sales process would get around that. At the other end of the spectrum, if it means that advertising on the internet is a no-no, then just about everyone these days will be in violation one way or another - so they'll need to define 'advertising' very clearly, and such definition will undoubtedly open up a whole new gaggle of loopholes.

My opinion on that letter is this - it's a half-hearted attempt to placate the non-internet-using dealers who are complaining that the internet is killing them because of increased competition. New Holland probably feels like they have to do something to address all the complaints, but they know that there really isn't anything they can do about the 'problem.'

Or, if NH were really smart, they released that letter to stir up a buying frenzy via the internet. /forums/images/graemlins/cool.gif

 

[RickB]

Wonder if that includes the used inventory dealers post on NH's own website? They can't stock parts and can't package the ones they do have so they can ship intact. But they have time to constantly harass their dealer base. We need less "dealer standards" and more "manufacturer's standards".

 

[Cliff_Johns]

I think Kubota did this about 3-6 months back didn't they?

I'm not sure how their efforts are progressing.

Cliff

 

[thcri]

If the dealer is doing a good job of selling product and is loyal to New Holland is would be tough for them to stop it. The manufacture that I deal with also has warned us about cross state and internet sales and we are told the product would be pulled from us, so far it has only been a threat.

murph

 

[PineRidge]

I would think that if New Holland really wanted to put a stop to Internet sales then their first stop would be the dealers that sell on eBay. I personally don't think you'll ever see it happen as it will ultimately hurt New Holland's bottom line anyway.

I spent my money with a local dealer but I can't slight a guy for wanting to save some serious money any way that he legally can.

 

[tc35dforme]

I know Stihl does a pretty good job of protecting their dealers. You can't buy one on line......Is it good or bad ?? I guess that's a matter of what direction your coming from. In the 'good old' days, people called that an unfair business practice ....limiting competetive pricing through fixing costs through a delaer network. These days...I guess you could call that a fight for survival. In the compact tractor market, with such a wide group of choices to select from, I think any limit on marketing is going to limit sales. I think some manufacturer will step in to fill the void. Just this dopes opinion /forums/images/graemlins/tongue.gif.

 

[PineRidge]

I would think that might be considered a form of price fixing myself......

 

[Bob_Skurka]

<font color="blue"> I would think that might be considered a form of price fixing myself...... </font>

Mike, price fixing laws are pretty bizarre in my mind. If you and I own competing businesses, we cannot talk about price or agree to a set price we each charge our customers because that IS price fixing.

However, if you and I both distribute brand "X" goods, or sell brand "X" goods at retail, then the owner/manufacturer of brand "X", under some specific contracts and constraints, can require us to advertise at a set price, and that is NOT price fixing. Go figure!?!

I think tractor dealers will always be allowed to post their prices on the internet, it really is no different than a car dealer posting its pricing.

Kubota, if I understand them correctly, allows for all parts of a sale over the internet, but FORBIDS a 3rd party transport company from delivering their tractors. Consequently I could buy from someone 9 states away, but I'd have to go get it, or the dealer would personally have to deliver it . . . that puts a practical limit on sales geography.

I tend to think that in this age of information, a local dealership that is not aware of internet pricing is bound to follow the dinosaurs and the Edsel. The local NH dealer better be aware of the pricing and the specs of Kioti, Massey, Branson, Mahindra and Century in addition to Kubota and JD. Kioti is really coming on strong and their CK20 and CK30 are excellent machines, great designs, great specs, and in some areas (not all) with prices that seriously undercut the Big 3 brands. I expect Mahindra to become more agressive in due course. Not so sure about the other brands, I suspect they don't have the marketing $$$ behind them to make major inroads.

It is easy to stress quality, but when so many competitors are in play, and with some of them being in the same design, feature & quality league, then price and dealer support really become very important factors that set brands apart locally. But there will ALWAYS be an up & coming brand that will be available on the interet, at better pricing. The Big 3 had better take that into consideration.