2016 Precision Farming Dealer Summit — Roundtable #5
A Precision Farming Dealer Staff Report
Josh Barnaby of O’Malley Equipment in Independence, Kan., moderated this roundtable where dealers discussed the challenges and opportunities for selling precision equipment that has been traded in by customers during the purchase of new equipment.
How to transfer the risk from the dealership back to the customer who is trading the equipment was a hot topic of discussion, says Barnaby. One of the more difficult issues is determining the actual value of the traded-in equipment.
Comments from the participating dealers included the use of Internet tools to verify the value of equipment and leveraging relationships with other dealers and manufacturers in an informal network to find potential customers for used equipment.
One dealer suggests that precision farming equipment trade-ins should be handled in much the same way as other used ag machinery. That is, trade it at a wholesale level and have it sold before the dealership takes possession of it.
Another strategy is to consign it and have a central database where other precision equipment is listed. If someone is interested in something listed in the database, the dealer can put the individuals in contact with each other and allow them to discuss price, etc.
By doing so, “Hopefully the dealership can sell the customer something new or sell components needed to install it on the customer’s equipment, like a harness or the labor to install it.”
Summarizing the discussion, Barnaby says “Everybody made mistakes and are trying to stay away from those situations where they ended up with equipment that has no value because like cellphones, modems and other electronic products, they can have a fairly short shelf life. Everyone is trying to stay away from taking in these types of products.”
Read full coverage of the Precision Farming Dealer Summit presentations, from how to recruit and retain precision employees, to developing a standalone precision business, to managing customers’ data, in the March 2016 issue of Farm Equipment.
Roundtable Discussion Topics
1. Keeping Precision Employees Productive Year Round
2. Troubleshooting Technology: Conquering Compatibility Problems
3. Putting on a Successful Precision Ag Field Day
4. How to Structure Your Precision Internships
5. Strategies for Selling Used Precision Equipment (currently viewing)
6. Making the Most of Online Sales Opportunities
7. Spreading Precision Workflow Across Departments
8. UAVs: Practical Precision Tools or Toys?
9. Tech Support: Where Can Manufacturers Improve?
10. Marketing: Where Will I Get the Most Bang for My Buck?