Tractor/machinery prices dropping yet?

[d williams]

Here's something about dealers getting rich or not from a previous discussion.
A quick Google suggests P+B in 2021 had a turnover of 66 million and come away with a pre tax profit of 800,000. Yes it's a lot of money but you could do much better investing elsewhere.

I think you need to ask what turnover is ???
They may have no money invested to turnover that money

 

[oil barron]

Here's something about dealers getting rich or not from a previous discussion.
A quick Google suggests P+B in 2021 had a turnover of 66 million and come away with a pre tax profit of 800,000. Yes it's a lot of money but you could do much better investing elsewhere.

Depends how much capital they had in the business. If they had 5mill in and get 800k a year from it that’s a damn good business

 

[Bossfarmer]

The point is he wouldn’t need to sell anymore kit as the fendt wont depreciate as much…

how do you work that one out? as a % of total cost depreciation looks reasonable but when you actually look at £££££££ cost to change for another fendt is actually likely to be higher than other brands and your tieing up the extra 40k

 

[daveydiesel1]

how do you work that one out? as a % of total cost depreciation looks reasonable but when you actually look at £££££££ cost to change for another fendt is actually likely to be higher than other brands and your tieing up the extra 40k

Have you priced a fendt though?

 

[Bossfarmer]

Have you priced a fendt though?

no but plenty others have and the figures are out of sensible reach

 

[MF CI]

I think you need to ask what turnover is ???
They may have no money invested to turnover that money

Depends how much capital they had in the business. If they had 5mill in and get 800k a year from it that’s a damn good business

Go and ask Google, or them directly better still start your own dealership if you think it's a license to print money.

 

[oil barron]

Go and ask Google, or them directly better still start your own dealership if you think it's a license to print money.

I’ve got no idea if it is a License to print money or not. Just saying comparing turnover to profit on a retail operation is pointless. Look at Tescos profit / turnover.

 

[JohnnyF]

Not so sure. In a £100,000 after discount new piece of equipment how much has the dealer got in it? My guess is 10%? I recently had a quote for a tractor and it was £99,950.
My trade in sold privately I know is worth at least £30,000 but more likely about £32,500 as I’ve enquired about similar machines in private ads. They don’t hang around very long if tidy like mine is.
The dealer who quoted me £99,950 for a new one offered £20,000 for mine which he didn’t want to divulge initially.
So in just my deal I think he’s looking for around £22,500 income.
Of that he’s got to service/warranty my trade in and resell. With regards to my new purchase then his costs are his overheads because of the manufacturers warranty on it.
Needless to say I walked away from said deal because I know everybody needs to make money but he has annoyed me a lot with this. I’ve traded with them many times over the years but I think I’m done. I’ll buy nearly new out of his territory from anywhere else and sell mine privately and should I get a warranty claim on the nearly new then it’s upto the manufacturer to decide who does the work.

You’re well over estimating there. If there was £5k in the new deal I’d be surprised. Sometimes the jack the price up of the new then give it back to you on the PX value so you think your getting a deal but in reality the new sales arnt money spinners like everyone thinks they are, it’s the warranty and servicing mark ups that they make their money on. Pay a fitter £15/hr to service your machine but charge you £75/hr if not more…? That’s clean cut profit, selling you filters and oil for 200% mark up what you can get online etc.
it really is the workshops making the money and the new sales giving the workshops the jobs to do to make more money.

 

[d williams]

Go and ask Google, or them directly better still start your own dealership if you think it's a license to print money.

Where exactly did I say that???
You made out that they made 800k off a 66million turnover which you thought was a pretty poor return on investment and I suggested that they maybe had no money invested for that return

 

[MF CI]

Where exactly did I say that???
You made out that they made 800k off a 66million turnover which you thought was a pretty poor return on investment and I suggested that they maybe had no money invested for that return

All I did was give some indicative figures, others may be available to counteract the common belief that dealers are making loads of money by ripping off their customers.
Here's another number P +B are holding about £25 Million in stock according to last available figures.

 

[MF CI]

You’re well over estimating there. If there was £5k in the new deal I’d be surprised. Sometimes the jack the price up of the new then give it back to you on the PX value so you think your getting a deal but in reality the new sales arnt money spinners like everyone thinks they are, it’s the warranty and servicing mark ups that they make their money on. Pay a fitter £15/hr to service your machine but charge you £75/hr if not more…? That’s clean cut profit, selling you filters and oil for 200% mark up what you can get online etc.
it really is the workshops making the money and the new sales giving the workshops the jobs to do to make more money.

The only thing to take issue with there is paying a mechanic £15 and charging out at £75 is clean cut profit. It's not easy being a dealer.

 

[Speedstar]

looking to upgrade a few things and offset some tax in the process but not overpay....has anyone had quotes for tractors or machinery in 2024 and if so what were they if you dont mind posting? ive been told dealers were now stuck with stock they cant shift but are they prepared to drop? waiting on quotes back from MF,fastrack and NH

It's only a few weeks ago you told us all how you bought and paid for a low spec cheap tractor, you may have been better to spend your money more wisely on a new one

 

[JohnnyF]

The only thing to take issue with there is paying a mechanic £15 and charging out at £75 is clean cut profit. It's not easy being a dealer.

I’m well aware, the point I’m making is the margins are much better on the servicing and workshops than what they are that the sales guys bring in.
In fact I brought two Fastracs not that long ago at cost from the dealer aslong as I signed up for extended warranty and service work so they could make some money on the deal!

 

[JohnnyF]

It's only a few weeks ago you told us all how you bought and paid for a low spec cheap tractor, you may have been better to spend your money more wisely on a new one

I know a guy who would rather spend 100 grand on a new tractor so save a 5 grand tax bill. Some people make you wonder…

 

[Speedstar]

I know a guy who would rather spend 100 grand on a new tractor so save a 5 grand tax bill. Some people make you wonder…

The tax man will get it one way or they other

 

[d williams]

All I did was give some indicative figures, others may be available to counteract the common belief that dealers are making loads of money by ripping off their customers.
Here's another number P +B are holding about £25 Million in stock according to last available figures.

Unless you are a qualified chartered accountant you will not understand accountants and it could all be smoke and mirrors

 

[d williams]

The only thing to take issue with there is paying a mechanic £15 and charging out at £75 is clean cut profit. It's not easy being a dealer.

If it was that simple there would be a lot more people doing it there won’t be any Agri dealers making that margin on their fitters

 

[Speedstar]

no but plenty others have and the figures are out of sensible reach

We had price for top spec New Holland and Case both 240 hp both were North of 200k with a big warranty,

 

[daveydiesel1]

If it was that simple there would be a lot more people doing it there won’t be any Agri dealers making that margin on their fitters

If thetr even making £15 an hour from them if theyv a few of them it soon adds up into a whole lot of money. Local dealer bought out another depot last year and has just bought 120 acres of land there. It hasnt went down well with alot of his customers thats struggling to to get the bills paid and saying the workshop bills have went up since the changeover from the previous owner of said second branch. Im not really a customer of his before the accusations start flying so dont shoot the messenger

 

[MrNoo]

Our local dealer as not ordered a single tractor for stock from Massey this quarter as they have enough. never happened before.

Apparently our local dealer has sold........ 1 tractor since the start of this year, MF, can't see them lasting long if that continues. I don't know anyone who runs an MF tractor, would never have one myself, still have nightmares over the 3090 Datatronic we had here.