What a crazy end to 2021, and what a crazy start to 2022. Lead times haven’t gotten better, and in some cases they have gotten worse. Chip shortages are still an issue, and we likely won’t see much relief in the near term.
Claas of America announces Claas Used, a pre-owned equipment program for North America that combines the performance and efficiency of a Claas machine, with professionally inspected and protected “Certified” units and special low-rate financing through Claas Financial Services.
Used equipment is a regular topic of conversation among dealers, but as our team has been planning the program for the 2020 Dealership Minds Summit on Profit-Turning Trades, it’s taken a front seat as I talk with dealers about what their challenges are.
Used equipment is a regular topic of conversation among dealers, but as our team has been planning the program for the 2020 Dealership Minds Summit on Profit-Turning Trades, it’s taken a front seat as I talk with dealers about what their challenges are.
Used equipment is a regular topic of conversation among dealers, but as our team has been planning the program for the 2020 Dealership Minds Summit on Profit-Turning Trades, it’s taken a front seat as I talk with dealers about what their challenges are.
I was curious to see what the price increase has been for combines over the past 3 model changes. I looked through the business system, locating customers who have rolled combines every year, trying to see how pricing has evolved over the last decade. What I found was not all that shocking, but at the same time I have to wonder how long trading the volume of equipment with high used pricing can be sustained. This is not to say a 2018 combine and 2008 combine are the same. The amount of technology and overall improvements in the past 10 years are tremendously vast. So, this goes without saying, R&D cost will be recaptured but with this comes a challenge of its own. When a manufacturer has a price increase, it does affect the used market but not the entire price increase. In the the last 5 years, the rate of price increase recapture has been less than the previous 5 years.
I was curious to see what the price increase has been for combines over the past 3 model changes. I looked through the business system, locating customers who have rolled combines every year, trying to see how pricing has evolved over the last decade. What I found was not all that shocking, but at the same time I have to wonder how long trading the volume of equipment with high used pricing can be sustained.
Inaccurate machine reconditioning can completely wreck inventory. If the estimate during the sales process is too low or something was missed, the end result could be a loser for the dealership. If the Recondition Estimate is exceeded, the unit could be sold for a loss.
Inaccurate machine reconditioning can completely wreck inventory. If the estimate during the sales process is too low or something was missed, the end result could be a loser for the dealership. If the Recondition Estimate is exceeded, the unit could be sold for a loss.
Executive editor Kim Schmidt checking in from Farm Equipment headquarters with an update on 2025 Dealership Minds Summit set for July 29-30 in Iowa City.
The program is out. Check it out at DealershipMindsSummit.com.
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
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