Combines parts prices again

[Illinois_Gleaner]

The problem is that we don't have enough good dealers like you tbran,I know you do everything you can to help us farmers,but there are so many dealers that just sit in there buisness wanting to make all they can with the least amount of work on there part.Man I sure wish I lived close enough to deal with you. All of the work that guys like you have done to make our Gleaners run better,and you get nothing for it.If all the dealers worked to help the farmer like you do I would have alot more confidence in Agco then I do now. Keep up the good work it is appreciated IG

 

[Tom_Russell]

Many manufacturing businesses have formal procedures for reviewing spare parts prices and I wouldnt doubt AGCO has one as well. One manufacturer I worked for brought representatives of various departments together in meetings chaired by a purchasing agent who would hold up a part for everyone to see and ask a simple question, What would you pay for this part. Each participant would write the part number and price on a piece of paper and hand it back for tabulation. Some parts got a price reduction while others were increased. As with AGCO, there were thousands of parts so it was not possible to review all of them.

 

[T__langan]

I'll second that! I think all of us are most appreciative of tbran's help and advice, along with Dan and the Hyper guys. But I have to agree with IG - I just don't see too many dealers putting in the extra effort to pass any information along to AGCO in an attempt to get prices lowered. If AGCO had some sort of incentive program to reward their dealers for the effort, I can see it happening. Perhaps they doIJ If not, it might be something for them to consider. It would benefit everyone. AGCO would sell more parts, as would the dealers, and the farmer would save money. Actually, if AGCO's parts became very competitive, they would also stand to sell more equipment. Farmers would be more apt to purchase equipment that they know they can service cheaper than the others.

 

[kw]

I can vouch for Tbrans saying that Agco will lower the price if they can. A couple years ago we needed a new powersteering motor for a 4w-220 and Agco wanted near $1200 where as we could have Char-lynn make it for around $550. We did have to wait a few weeks as it was a special order for them (they made the original one for Allis) long story short, I took this info in to local dealer and a few days later he told me that the new price was in the middle $600 dollar range (can't remember exactly). Not a exact price match, but AGCO also will have to stock the part so I think it was a fair price. I have also complained about other things that he couldn't get changed, but it always worth trying on the outrageous items. Kirk

 

[silver_tin_tank]

And thats how STIEGER sold so many tractors All parts at any other place, if all els fails try CASE-IH and get riptoff Also known as the supermarket tractor My bit tin tank

 

[Rig]

I guess I don't know how AGCO can increase its market share the way things are. The perception in the countryside is that AGCO machines are cheaper and actually competively productive. The problem is that it is also the perception that they are not as reliable and they cost as much or more than Deere product to repair and maintain. What is the reason to switch. The problem is the depreciation on these machines because of this perception, real or imagined, defeats the reason to take a chance on a new brand. Treat your heritage customers right and that perception goes away. Gouge them with high parts prices on parts that have no competition from after market sources and that perception grows. Engine parts from AGCO are cheap because there is competition. Other parts are ridiculous in their pricing and that is because AGCO has a captive customer. Deere parts are more competive, in part, because their increased volume allows aftermarket people more opportunity. I question AGCO's long term planning or lack of it. The only reason I and others around me are still with AGCO are the dealers in my area. Unbelievably, I keep hearing that AGCO is thinking about reducing numbers of dealers. They are acting like they are happy with their present market share. Sorry I see it shrinking and threatening the servicablity of products that I have now.