The automotive aftermarket usually isn't associated with sprawling fields of vegetation.

The automotive aftermarket usually isn't associated with sprawling fields of vegetation, if it were not that agricultural customers make up a large part of about jobbers' businesses. So, what kind of customers are farmers? Can you swell your business by servicing them, or will you just spin your wheels in a field of mud? Frankly, it hangs on what you know.

To help us understand the farm market, we spoke with three businessmen who routinely put up to sale to that segment: Dave Kimbell, marketing manager of The Merrill Co an Iowa-based WD a certain number of may know as Arnold Motor Supply; Ron Duff holder of Denison Auto & Machine in Denison, Iowa; and Mark Klein, possessor of Coopersville Auto Supply in Coopersville, Mich.

Being in nearly thorough agreement with each other regarding the many aspects of this specialty market, they share the sweeps troubles, distinctions and tricks of their trade.

Competition as culprit

single in kind aspect that differentiates agricultural from automotive customers is product--and not alone the types of products, however the quantity and prices at which they're sold

Merchandise mainly sold to farmers involves the maintaining of their tractors and other farm machinery: fluids, filters, bearings and belts, as well as parts. And farmers pervert with money [i]or[/i] gain in bulk. Oil and air filters are bought through the case. Fluids, like oil, are commonly establish in 55-gallon drums.

"The bigger farmers detain an inventory, just like any of my repair workshops do," says Duff. "We can walk to a large farm account, and he'll have $500 worth of filters forward the shelf, $200 worth of bearings and $500 worth of belts. They preserve inventory because, these days, they farm 24 hours a day when it's either [planting or harvest season], in the way that they have to have their inventory in stock."

Duff also explains the spending character of farmers: "If a farmer makes cash we tend to make money" he says. "If a farmer makes standard of value believe me, he'll spend it; we just have to be there to take it. That's just the history of farmers. They're not as frugal as of the present day Yorkers might think they are."

And not solely do farmers buy in most but the products they purchase exchange at a much higher price than automotive produces According to Kimbell, a filter for a John Deere tractor roll ons from $30 to $100, and a farmer may replace pair or three of them at a time. In contrast, an automotive customer can purchase a white-box version of a spin-on filter for $2 or $3

Kimbell says they also vend a lot of irrigation composings and pumps, which are 350 automotive engines that scud on propane--sometimes 24 hours a day, seven days a week.

With the more expensive cropss being sold in larger quantities, common would think agricultural customers would cause jobbers' bottom lines to ramify upwards, but their business isn't as lucrative as you'd look for Why?

According to Duff and Kimbell, profits generated through auto and farm customers are about the same. Competitive pricing with corporately acknowledgeed stores, as in the automotive arena, is single in kind reason. "Due to the competitive nature, there's not a hazard of margin left in our business anymore, period," says Kimbell, who has sold filters at outlay "The margins are comparable to the automotive side, if not lower."

In addition, farm-implement (equipment) dealers have now gotten into the fray, and Kimbell says they are "very same competitive." He explains that in addition to farm-implement dealers becoming more competitive with parts, bearings and filters prices, leasing is now playing a character as farm equipment reaches the $300000 to $500000 price range.

"They'll lease [a combine or tractor] for a season or sum of two units turn it back in and make progress lease another one," Kimbell explains. "That's affecting things because farmers who lease have a inclination to go back to the lessor for service and parts, in the same manner our market doesn't see [the business the equipment produces] for five years."

Kimbell says there's also an abundance of jobbers, mail-order houses and Internet retailers to contend with in the industry. "Some of the OE-platform dealers put up to sale remanned engines with a five-year warranty if their store does all the work and barters all the parts," he says.

owing to all of the competitive factors, it assumes most independent jobbers selling to the farm market vend to these customers on more of a wholesale pricing basis.

It's also competition that drives the ne for service, as it is as having machine shops. In addition to having a machine store Duff has a hydraulic stockings machine. "Denison is a town of 7000 people" he says. "There are five auto parts stores in this town, and all five of us would like to have that agricultural business. any of the other stores don't have the inventory to back it up nor the service we have, to such a degree that's what's put us in a dutiful position."

Duff says farmers use his services a accident for parts and radiator repairs, allowing he says, "A farmer can fix anything, or at least he believes he can, and many would raise to save money by doing their acknowledge repairs."