Some dealers are making good money. Generally they are in areas with larger farms that buy a lot of equipment and use the dealers for services and repairs. In smaller market areas the dealers move a lot less euipment and get a lot less repair work. Some of those delers don't make a lot. Good example is 25 miles west of me is the Red River Valley area. Big CaseIH and JD dealers. Most of their sales are aimed at the big guys over there who lease or buy big new equipment every year. These guys don't talk about how many acres they plant, they talk how many sections. Now 12 miles southe east of me is a AGCO/MF delers. Much smaller farms in that area. I don't think he sells more than a handful of new tractors a year. I've never seen a new combine on his lot. He has about 5 guys working in the shop. Warrenty work can kill this guy. The thing that keeps him in business is keeping his customers happy. Drive by, most of his new equipment is impements and maybe 2 or 3 farm sized tractors, the rest is lawn mowers and utilities.
When I worked in auto repair I was at a small shop. We needed to average about 20 an hour (late 90's) to keep the doors open. Another 15 an hour to keep me in there with just my actual pay. Most of the time when we had to warrenty something we did it was a part failure. The parts houses would gladly replace the part but had tons of paper work to get reimbursed for the labor that was a lower labor rate than the 40 an hour we were charging. So most of the time we just ate the labor.
Also consider that dealers pay property taxes at the commericial rate. Items setting on the shelf that don't move often are eating up square feet. So is that tractor setting on the lot. If they can't turn that stuff over it's costing more money cause they still have to pay taxes on that space.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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