Re: Why I avoid Mother Deere

Posted by wisbaker on July 27, 2012 at 19:02:59 from (207.118.137.63):

In Reply to: Why I avoid Mother Deere posted by Fawteen on July 27, 2012 at 01:59:08:

Yes some times the OEM abuse you an parts, basic economics say if they get to bad people will go non OEM, by used, do without, or move on to something else.

With the stress put on business from this stupid economy and from government in BOTH regulation AND taxes parts are going to be more expensive. The consolidation of farms is eventually going to lead to the consolidation of businesses that serve farms and less competition. More than one business has gotten to big for their britches and failed think IH 560 tractors or more recently GM going from near 70% market share in the 70's to less than 30% today(and paying executives bonuses all the way down)

How much of that $ you spend for a part actually goes for the part and the profit and how much goes for taxes, regulatory requirements, social security, single business tax, employee health care costs, workman comp costs, unemployment insurance costs, liability insurance costs, corporate income tax, personal income tax (paid on top of corporate tax), campaign contributions (read legal bribes), parts that get spoiled, lost or obsolete before sale, cost of returns on parts that were good when they left the counter but somewhere between the counter and the implement something went wrong, freight cost, charitable contributions, advertising, permit fees, debt/equity service cost and utilities? The cost of the previous list is probably more than the cost to manufacture and the dealer's profit. And remember on these captive imports (tractors made by a company that doesn't have their name on it when sold) you pay some of these costs TWICE once for the manufacturer and once for Mother Deere before it hits your dealer. Don't discount the actual manufacturer abusing Deere on parts with the hope of getting their foot in the US market by forcing Deere up market and allowing them to come into the market at a lower price for the same equipment in a different color.

Don't be surprised if one of our "big Three" equipment companies gets picked off by an overseas upstart they'll clobber them on service and value just like Toyota, Nissan and Honda did to GM, Ford and Chrysler.

And remember the current voice from DC wants the rich to pay "Their fair share" so rather than having $.30 of every dollar they make go to income taxes they'll pay $.50(or more)of what they make for taxes, guess what happens-they raise the price of the parts or "increase their margin". So if you're wanting to soak the rich just remember you'll pay a lot of their additional taxes if you have to buy from them.

Replies:

• Re: Why I avoid Mother Deere Ultradog MN 19:17:00 07/27/12 (0)

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