For the second month in a row, North American farm equipment dealers are reporting that manufacturers have become more aggressive with incentives to increase machinery sales.
According to the results of the April Dealer Sentiments & Business Conditions Update survey, a net 21% of dealers say that manufacturers are more assertive in offering incentives in March — 31% more aggressive; 59% same; 10% less aggressive. This is up significantly over January when a net 22% of dealers reported that equipment makers were less aggressive with incentives. February saw the beginning of the trend toward higher inducements when 9% of dealers say they saw incentives increase.
This also appears to be impacting recent pricing of farm equipment, which was expected to increase as Tier 4 Final equipment hit dealers’ lots. According to the survey results, dealers report price contributed roughly 1.1% to total March revenue growth. This downward trend since November is somewhat surprising as new model year price increases and Final Tier 4 price increases were expected rise. In all likelihood, price increases are being negated by the reported increase in manufacturer incentive programs.
Post a comment
Report Abusive Comment