5030
Epic Contributor
- Joined
- Feb 21, 2003
- Messages
- 24,733
- Location
- SE Michigan in the middle of nowhere
- Tractor
- Kubota M9000 HDCC3 M9000 HDC
Regardless, when the pie slices get small enough, at some point nothing is left but the crumbs.
So looking at conservative estimate, say they only get 10% margin and sell 10 $20k units, that's $20k in profit just from tractor sales in a month or $120k a year. Those sales build a customer base for parts, service, and attachments/implements. If they are selling other types of equipment, it is better for everyone. They diversify, which lessens their risk and overhead. It could allow them to keep smaller margins to compete. The other factor is that small shops run lean. Few employees and tend to have small, older buildings. Of course, there are drawbacks being the little guy. I guess I'd rather deal with them that a big JD store that is just part of a much bigger set of stores. If you don't have millions to spend over time, they don't care about you or your business.I figure smaller dealers sell under 10 units a month. Not a lot of money to be made there.
Our local mahindra, bobcat, kitoi, what ever the blue electric one, and lawnmower place always looks on the verge of shutting down.
I figure most their business is in the lawnmowers they sell
I’d wager Kubota and JD have a lot more overhead than other brands.
You're right. The techs just show up to tell the farmer what he or she did wrong and how many $$$ it will cost to repair.Kubotas don't break