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Ask the Expert: 2013: A Paradigm Shift in the Ag Equipment Business

In 2013, the signs of a looming collapse were becoming clear. In Farm Equipment, Dr. Jim Weber had been writing a series titled “The Business of Selling.” An article from the series “Gathering Storm Clouds” was posted in July 2013. I am paraphrasing but, in the article, Dr. Weber talks about low return on sales, dealerships dependence on volume and market share payments. Because of the low returns, dealerships should have been failing in droves. But because of record high commodity prices, record low interest rates and record on-farm income, dealerships were able to spike margins with new and used wholegoods.
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