Why as farmers do we like to overpay!

[SASKFARMER3]

After a heated discussion it seems their is a group of farmers out their who dont check prices on anything. If the dealer tells them its 1000 and I cant do any better they sign the check and take it home and tell every one its that way we have no control over the price of the inputs.This group never ever goes to the next town, no phoning, no talking to neighbors they just pay what the going rate is. They argue how their is no way the price could be that oh the poor dealer got taken. BLA BLA BLA. Were all private business who have to wake up to the reality these guys need us not we need them.
If this is true then some say $100,000,000.00 million is left on the dealers table each year due to farmers not looking for deals.
Now with mega dealers in Equipment and protected territories its getting tougher to find these deals, their out their you just have to look. But if farmers sit back and do nothing (CWB prime example) then we all loose.
Yes every one has a right to a existence in business but gouging and over excess profit is useless. Educating farmers that their are deals out their puts us ahead of the game. Don't think for one second the companies dont have meetings on how to get extra sales out of their customers.
Don't be that blind to think this doesn't happen ever single day.

[JDGreen]

I dont get your point. For example just bought new 530hp tractor (green I might add)for next year. Did not shop anywhere but local megadealer.. Deal was very good, as I knew the value of my trade prior to dealing. I also knew the rate of exchange was "decent" and I also knew that the relationship established with this dealer has been one developed over many years.. (A thing called "trust") Megafarmer down the road who is friend of mine has to price shop as dealer knows he wittles to the last penny.. He deals and deal anddeals and deal and in the end is no better.. Therefore my point is in the end the megafarmer got same deal as I did or very close. What he didnt get was the valuable time that i had to concentrate my efforts on other things that "make money" I understand price shopping but dont ever underestimate loyalty or the thing called a "business relationship" SF3.. Next example I have been on the hunt for a tandem grain truck. As we already bought new a couple years ago, I could not justify new again so entered the used market. The local used market IMO was overpriced as was the rest of the provincial market.. Now were not talking a thousand bucks or 2 but rather 10000-20000 a pop on these boxed up road units with a million kms on them. To make a long story short, I know and understand the value of these trucks so have refused to pay the exorbitant prices they are trying to obtain for them. Instead bought a 3 year old fleet truck south of border brought up and boxed at cancade with 500,000 miles less than local trucks for 15,000 under their best so called cash price. Now thats makin money IMO and yes in this case the local dealers(s) can kiss it

[may-be]

JD green I don't get your point. You say looking for deals is a waste of time then what a good deal by looking around.
All I know is by being loyal to one place it seems I eventualy start getting taken for a ride. Seeing guys buy a peice of junk for thousands more from a local dealer than looking around boggels my mind.
Same goes for selling to one elevator. Poorer grades and waiting to sell while other people sell. And whats the problem makeing sure your input supplier is competitive.

[dave4441]

IT is about knowing who gives consistent fair pricing and who does not.

I was offered liquid N for $230/MT about a month ago. Did not consider pricing it elsewhere. Last year when offered N @ $600 i called a # of places to ensure it was not off.

I the previous thread, Saskfarmer stated that I was throwing around #s without checking my facts, now he claims farmers are throwing away $100 million dollars by not checking for deals. What are your calculations for that number?

[dave4441]

ACtually, he says 100 million million is left on the table. That is a big number.

[JDGreen]

May be... Part of my point is probably that my local dealers know us well enough that if they want the business, they come with sharp pencils at the start of discussion.. I have no time for the back and forth until finally I have achieved what I consider to be a good deal. It is important for your local dealers to want to "deal" with you. I don't want tobe thot of a buyer that only shops price. Price is very important but I am confident and sharp enough to know when the deal is good and the time is right.. JMO and workin on last field of durum and then all done..

[SASKFARMER3]

Way to go on being almost done jd. Just tried durum 16.8 we will start still nice color. We did have a dealer that was like yours but he took his cash and ran. The new super dealer is ok but your a dollar sign to him that's all. Dave is almost done to since he doesn't seed an acre.

[dave4441]

You are correct I do not seed an acre, but I do spray every acre. Have not seeded an acre in years.

[JDGreen]

Yes SF3 and that's exactly why I bought the tandem elsewhere. Next question if you had a dealer where the service was extremely exceptional or maybe he just kisses your a-- , how much is that worth to you over 5 years on let's say a 300 000 piece of equipment??

[Jagfarms]

I agree that we should look for deals but some farmers take it to far. I know of a few farmers that are always looking for deals phoning every dealership and chemical retailer in the country.
I have been in the dealerships etc when these farmers phone in for prices.
The dealer adds 15 percent to the price when they see who is calling.
I seen this happen at few places with the same farmer calling.
I thought it was pretty funny.

[JDGreen]

I think you nailed it on the head jagfarms.. I am involved with other business and that is exactly how we treat these types of farmers/customers. I've seen some boys with big britches pretty sad when the new kids on the block are paying less than they are

[may-be]

Reread what I wrote. New kids on the block or loyal people around hear do not pay less. The dealerships finely got competitive with what I can get elsewere. I agree that some farmers goe overboard shopping around, but some sure get taken for a ride by not shopping around. Only a fool will quote a new customer a higher price unless that known person could give you headaches. Or maybe he's not a fool and we are headed to protected territories.
I for one do not like to overpay.

[JDGreen]

reread what i said . Those are facts not just what your feeling or speculating.. Ive seen it time and time again...

[cchurch]

Everyone's got their hands in the farmers pockets.

[may-be]

This was my first hand experiance when I was the new kid on the block. Make a reasonable offer on a piece of equip and they cannot do it. Then sell it to another guy a week or two later for a few thousand less than i offered. Took them to long to realize I was not going to overpay because of thier easy credit. See first hand same people getting took all the time. If I was buying large new equip I would pay extra to buy local for the after sales support. They are the ones that get looked after very well( this could be speculating as I have no solid proof of this). If you think i am assumeing the rest, that is only your opinion.