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Colby, KS | Although not stated as policy, the new Monsanto / Precision Planting model will force pretty much all the reps out that are not run by an equipment dealership. Their tactic has been to establish small farmer/seedsman reps in an area and then move into the same area with a big multi-location dealership. The original reps end up getting stabbed in the back. Sure they can still be reps, but they can't compete because the dealerships have a shop guy dedicated to support and $100K+ of PP inventory that they get an extra 5% margin on than the small guy.
1) The inventory is getting more and more expensive. All it takes is for one customer to be unhappy or not pay and you lose your entire margin for the year!
2) They have really tightened up the margins unless the rep is moving a lot of quantity. If you can't stock big money, you can't make big money.
3) The PP model pushes reps to do customer support. They don't want to do it at the mfg level. The new electronics take a ton of time to support. It's a full time job for a guy in the spring if he has many customers.
These 3 things really limit the appeal of being a PP dealer for a seedsman or farmer. I do not think there is much future in it for a farmer or seedsman with PP.
Edited by nwksmilo 11/20/2012 19:55
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Precision Planting and Pioneer Reps ?
