Too Many Tractor Brands? (Glacial sales pace)

[arnoldziffel]

New, tractor dealer inventory changes at a glacial pace in my area. As I go about my daily work I pass several small, CUT, tractor dealers and I'm amazed at how long dealer inventory stays the same.

One local dealer started selling Branson in May. Of the 8 original inventory machines only one has sold. How do they do it? Does Branson own the machines (no dealer floor plan?) and just lets the tractors sit at no cost to the dealer?

Its not just Branson, my local New Holland/Kubota dealer might sell one new machine a month out of maybe 20 in inventory. The Kioti dealer maybe sells a tractor every couple of months. The only dealer that seems to move a few is the Mahindra dealer but he advertises aggressively.

Perhaps it just reflects our local economy but this slow sales pace has been the norm around here for years. Its no skin off my nose but as a business person I'm motivated by daily cash flow and profits. I don't understand how these dealers make ANY money on tractors.

 

[RoyJackson]

Where are you located?

 

[arnoldziffel]

Syracuse, NY

 

[ajd187]

How long has it been going on? The Syracuse area has had a poor economy for years. I suspect it is probably a reflection of that more than anything else.

 

[RoyJackson]

How long has it been going on? The Syracuse area has had a poor economy for years. I suspect it is probably a reflection of that more than anything else.

I agree...

 

[arnoldziffel]

A friend once told me that the only people making any real money in the tractor business are the BANKERS. They collect floor plan interest dollars from the dealer and they collect tractor loan interest dollars from the retail buyer!

 

[art]

It takes three years before a new brand will find it's market level. Marketing and advertising is just a small part of it. Customer awareness is an important part of selling as well as reputation.

 

[Mattc8832]

In my area John Deere doesn't advertise and either does Kubota 2 dealers for each with 75 miles of here. The only other tractor dealer around here is Mahindra and they advertise like crazy.

 

[Gary Fowler]

The local Kubota dealer here cleared his lot completely this year, NH and Mahindra (both by same owner) kept a pretty good inventory all thru the year and I don't know how many they sold.

 

[Mattc8832]

Deere and Kubota are very popular here in my area. Growing up I use to spend my summers 1 west of here over in Eastern KY on my grand parents farm. Back then in the mid 1980's and early 1990's all the locals were using Ford Tractors. As I drive back to that area today to see family and friends you still see all the old ford 2810s , 3910s, and Ford 2000's sitting in the barns and sheds with new Kubotas sitting in the next stall. When I moved to north central wv about 8 years ago a I noticed that most of all the older tractors you see were mainly john deere and massey furguson. Now in that area it is pretty diverse on all the different brands being sold in that area today. - LS , Yanmar , Kioti , 2 Kubota Dealers , John Deere , Massey Furguson , Branson , TYM , New Holland, Bobcat Tractors, Mahindra and there was even a Farmtrac and Montana dealer there before 2009. All these dealers within a 60 mile radius of Clarksburg WV.