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Lock in and capital expense - the market is terrible at providing what is currently a financial service coupled with large equipment delivery. You need both ha
by Qworg 12y ago
Lock in and capital expense - the market is terrible at providing what is currently a financial service coupled with large equipment delivery. You need both halves - the sheet bending/engine manufacturing and the cash on offer to float the loan to the farmer.
There's a lot of strength to being incumbent in both of these areas.
- icebraining 12y agoWhy can't a manufacturer partner up with a financial company to provide the bundle?
- Qworg 12y agoThey can and do at the low end, but the upper end market is dominated by Deere and a few others in a way that is hard to understand. The manufacturer has to have the deep pockets and stomach for a protracted battle - lots of folks "bleed green" and will only buy Deere. Deere is everywhere in the countryside - big marketing campaigns. Deere and others also have large dealer networks. That is where the sales are made. Many of these dealers have been around for a really long time and have all of the customer access. You'd have to break into the network somehow. You'd have to not only be able to make it, but have the cash on hand to sustain more than a few years of incredibly low sales and lack of distribution.
- sologoub 12y agoAlso, don't forget that this is a relatively new development in situation. Historically, Deere has been a very reliable brand-name for farmers. Long term, they may do significant damage, but it will take time to erode the built-up good will.