Posted 5/16/2019 15:48 (#7500205 - in reply to #7498244) Subject: RE: Seed sales commissions
Monroe City, MO
The reason that number is "unbelievable" for that amount of volume, is because that is unbelievable. You do not know the whole story. There are a wide array of possibilities that you probably aren't privy to. He could be getting a temporary boost from his company to get a start. Or, he could be selling more volume than you know about. Or, you could just be wrong. Shocking, I know. Buckle up though, it could be a combination of all three things as they are not mutually exclusive.
Are you saying we should get rid of seed dealers? As a dealer myself, that's my biggest fear for the industry right now. As farmers get bigger and bigger, they'll take direct ship. Fewer "smaller" farmers will need fewer dealers. That will work for some, others- not so much.
I work my butt off as a dealer. Most people don't realize what farming is like until they've done it and the same thing can be said about seed dealerships. I've missed mealtimes and other events with my family because I've had that one guy who just had to have seed at 8:30 on a Thursday night. I walk fields and try to proactively seek out my customers in-season when problems arise. Just last week I had a guy ask me about late planted corn and what he should do. I gave him an answer then, but knew that I needed to do more. I compiled pertinent data as well as some university findings to support my answer. I visited with him for over an hour yesterday evening (again missing dinner with my wife and 9 month old) to help him understand why I told him what I told him. He thanked me and said that after my original answer he was still hesitant, but now his mind was at peace because of what I showed him. I didn't have to do that. I don't have to do most of the things that I do. I've already made the sale. The fact of the matter is that I do those things to continue making sales. I want to provide value. A good seed dealer is worth exactly whatever he or she is making.
I feel bad for you. If you are dealing with this guy, you feel his isn't bringing enough value to you. Whomever you are buying from probably isn't in your opinion. And that's okay. Go somewhere else. Quit worrying about what someone is making off of the seed you are buying. Your concern should be whether or not it works for you at that price point. If a hybrid is more profitable for you than any other hybrid, then who cares if the dealer is making $2 per bag or $200? You need to stay in your lane and worry about yourself. No one is forcing you to buy seed from any particular place. And no one cares what you think is an acceptable commission. It's all irrelevant. Do what's right for you. If that's buying corn for $50/80k from Rural King, then great. Do that. But don't begrudge somebody for making a living. If he or his company is truly gouging and screwing people, they won't be in business for long.