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Low Inventories Anger John Deere Customers!
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Land_Surfer
Posted 4/25/2010 23:11 (#1174818 - in reply to #1174618)
Subject: Re: Low Inventories Anger John Deere Customers!


This is perfect example of a very successful business tactic used by ALL! They (manufacturers) haven't lost business because of it. The needs were forecasted at the dealer/territory management level (according to pre-sells), and then budgeted for resulting in targeted sales goals being met via much leaner inventory management (less cost, greater profitability, what farmer wouldn't want that for their operation?  Same for any mfg.). If this becomes a problem for the end user, then they need to anticipate their equipment needs and fine-tune their budgeting for more timely purchases (your lenders will thank you).

Big ticket impulse buying is too risky to plan for for anyone in today's economy. Gone are the days of dealers stocking inventory for the passer by and impulse buyer. It is also discouraged for budgeted sales targets to be exceeded for reasons that...it screws up inventory management throughout the chain from the purchasing of raw materials all the way to planning incentive programs. The big ticket mfg's know how much they need to sell each year and plan for exactly that amount. If that doesn't fit your buying habits, then you had better do a better job managing and planning your operation (farm and dealership alike). It's no longer like the game of buying a car or pick-up at the drop of a hat just because "we can now afford it at this point in time, or simply because we want a new one now."



Edited by Land_Surfer 4/26/2010 01:23
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