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| Mother Deere does not want to deal with farmers who farm less than 5,000 acres. Anything below that level is not what deere considers a "pod" (mother deere internal terminology for an operation that trades planter 500 hp tractor row crop mfd class 8 combine regularly) . In deeres estimation any operation farming less than 5k in the cornbelt is not a viable operation in the sense of purchasing new iron. They want their salesforce spending their time /energy/resource on selling new items. They do not want them out burning up and down the gravels knocking on doors trying to sell 5 year old trade ins owned by the dealership to the small farmer. Their approach to business is this- sales force goes out and spends their time selling new. Auction off the trade ins and let that feed the shop/ parts counter. What looks like taking a bath on an auction item they make up for it on the backside by the dealer not carrying, reconditioning and marketing the item and deere doesnt lose the salespersons time that would otherwise be spent on finding buyers and negotiating the trade in process on used pieces. Another leg of this sales approach is inflating shop rates and parts prices. Take what looks like a bath on the auction sale then quickly recover it by servicing and selling parts back to it. They do not want sales personnel dedicating time to selling used dealer owned items to small farmers plain and simple. At first the liquidation auctions made people scratch their heads but that is going to be the way going forward. I would guess you will see case ih shift to this model of sales approach in the future. Case IH leads deere when it comes to the actual design of equipment, but Deere wrote the book on how to market and maintain a brand.
Edited by Lotts_Valley 6/27/2025 14:37
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Dealership auctions
