As a few on here have stated they carry what moves. They pay taxes on that property either through the cost of a lease or because they own it. So an item that say cost a dollar that sets for a year before it's sold actually cost them more to sell. SO if it's a slow moving item it makes no sense to stock a bunch. Now add in the declining number of farms. If TSC or Mills Fleet and Farm only carried ag related stuff they would go out of business. And as was stated maybe one in 10 or 20 customers have a link to any AG industry even in some rural farm areas. So are you going to only carry AG related items for a shrinking number of customers or are you going to attract a different customer base. Yea it sucks for the farmer, but they gotta keep the doors open or you get nothing!
As far as them buying on credit? If they get to that point after they are an established business they are in trouble. Most businesses especially large ones try to be able to pay for stuff up front! Those that don't wind up like Sears. Say company A buys stuff from company B to resell and make an order every 90 days. IF they have a positive cash flow they have the money in the bank and pay right away. They have earned a little interest and avoid paying interest. A win/win. If they have to borrow they have earned nothing and wind up paying more to stock the store because of interest. That's why a lot of companies make the decision to go public. Selling stock allows them to expand or upgrade equipment, stores ECT without going into debt.
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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