Re: John Deere Pulls Plug

Posted by donjr on January 10, 2013 at 10:26:43 from (72.71.177.34):

In Reply to: John Deere Pulls Plug posted by showcrop on January 10, 2013 at 04:26:24:

I read these arguments with a bit of cynacism, because most are right, and a lot because it's the way things are. Our local dealers have merged and become a large chain with a dozen stores, way down into Virginia. Like the CIHNH dealers, also. And our local JD dealer can usually have parts the next day for most things because of it. But I also see the advertising of a combine vs. a car, and the statement that they're not the same. Well, DUH! But quite often, I can find a lot of parts from local automotive supplies for half the price of the dealer. Same part, different package. Bearings are a great example, or PTO crosses. Our local red dealer left here some twenty years ago when the were told by CIH they couldn't carry NH as a short line. Our nearest dealer, again IH, had their franchise yanked when they broke up IH, and they wound up with a truck line and Kubota tractors. Our nearest CIH dealer is now over 50 miles away. I still have three NH dealers within 40 miles, but NO CIH!!! And, though I am a greenie, I still respect and use some IH equipment, but I hate going for parts, so most are used or aftermarket. Does CIH benefit? Probably not. I also have one JD dealer within 15 miles, but two others within 50 miles, and unassociated with each other. Yet their prices are set hard and fast (like NH) from the manufacturer. I have learned to LOVE USED equipment that is almost new and half the price at the auction, if I can find one without a dozen dealers snapping it up to keep the price high enough to make a guy look at their overpriced new paint. My baler is a great example. It's a NH 644. It cost me about $12k new, and a new one is close to $25k. I can get a current model at a sale for $10k if there are no dealers there, or about $15k if one is. He'll ask $20k for the used machine. He wants to 'give' me $6k for mine in trade on the machine he just bought at $15k, and bill me for $20k for the used machine. He'll turn around and sell mine for $10k and swear he's losing money.But, I'm the one who has to work my ask off to pay the bill.

And that's a good reason why guys are getting out or never starting farming. If they were reasonable without over pricing, there would be more farmers who could stay in business. But, by the time they have the machinery paid for, it's worn, and there's some slick salesman telling them they HAVE to have a NEW machine, at a premium price set by the manufacturer, not the market. And the market is shrinking, because a man can make a living making them rather than paying for them.

As I have found, new paint is much cheaper than new iron. And , I have a rainbow of colors to chose from....

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