Mike Wiles, author of a recent eye-opening case study titled, “What is Needed in Developing a Plan for Capital Expenditures?” identifies a major buyer of farm equipment and the equipment that relies on precision technology.
When to replace farm machinery — along with the precision technology connected to it — is an important and often complex decision for growers. Understanding their equipment capital expenditure strategy can be critical in helping you align your sales and marketing efforts to coincide with their purchasing plans and might get you re-thinking your current financing programs.
To read this case study, which outlines a farmer’s successful 3-step planning strategy for monitoring his ability to update equipment while maintaining sufficient capacity for debt service and liquidity as well as avoiding impulse buying, click here.
5 questions to keep in mind while reading the case study…
- Is this typical of the buyers we’ll be encountering in 2015?
- Is your dealership willing to structure retail sales to go after these customers?
- Will any lost revenue from decreased margins be made up in downstream parts and service revenues?
- When encountering these farmers, do we also need to be selling to their business advisors?
- Do we regularly need to be including these types of business advisors in our monthly sales calls?
Be sure to post your thoughts below the case study after reading.