Editor’s Note: For more of Tim Brannon’s reflections on the 2024 presidential election, read his latest Equipment Dealer Tips, Tales & Takeaways blog, “Rain Reflections on the Elections,” on Rural Lifestyle Dealer.
The Bossman Mike asked me the question, “How did your business outlook change as of the last election?” Well, we have mixed emotions, just as in me watching my mother-in-law drive my new Lincoln over a cliff... mixed emotions. (That was a joke honey — I have an image to maintain.) (The missus reads these you know)
Seriously, living in a state where the rural vote was almost 90% red, there was a soft sigh of relief here. I said soft. There was no partying, fist pumping, bumping or anything other than hoping the shift toward more regulations, socialism, 'wokism' all hopefully end. Also, we are needing the news media looking over the shoulder of businesses for price gouging as the red herring of inflation to recognize that exorbitant government spending is/was the root of inflation.
Another reason for the lack of an exuberating response is our customers are just like us — cautiously optimistic. Customers are not rushing in to buy all those tractors and mowers drawing interest and placing pre-sell orders as in the past. But, they are back kicking the tires in ever increasing numbers, even as we type.
Would they have been if the election had gone the other way, who knows?
The row crop guys remember the prior tariffs of the first administration but also remember the dollar added to the bushel price to offset the damage due to the trade war with China.
They will not be rushing out to purchase six-digit priced tractors, planters or harvesters, but the 'well healed' know there will be bargains to be had and will be purchased, discounts taken advantage of, all to the non-profitable benefit of the iron makers. The cost of production still is at or above the cost of production; row crop guys are hurting.
The cattle farmers are a bright spot, but they are dwindling in numbers. Pro and rural lifestyle customers will probably never rush at us again with a fist full of cash from government handouts.
After a slow winter, we think we will see the spring bring forth again the “normal” buying habits of the years before Covid on the consumer side. We also think there will be a lot of units we sold wishing to be traded for larger units. We think the consumer, high-end and commercial mower market will be a little underperforming due to the price increases, number of brands and size of the units on the market today. Pricing will be more competitive as there are a LOT of inventory in the showrooms of about everywhere
we visit. We think margins will be tough to maintain. This can be a blessing or a curse — trade ins MUST be carefully evaluated and we must ask over and over again, where or who is the market for this unit.
Due to the election we think the promise of lower energy prices will be a positive factor — if it happens — as well as lower interest rates.
So, how is OUR business outlook, can you say cautiously optimistic over and over again? We think there will be some real manufacturer incentives to move inventory — it has already started as we talk to fellow dealers.
This is our livelihood, right? Watching the results of the election and making plans to succeed in the resulting environment will be our dealership assignments.