6 tips and tricks

Avoid disappointment due to long delivery time

27 April 2017 - Niels van der Boom

Machine manufacturers, importers and dealers are probably experiencing good times. The buyers have to deal with late delivery times more than once. That creates difficult situations. The trade-in may have already been sold on or is running considerably more hours. Below are 6 tips to avoid disappointment.

After golden years of sales and profit increases, tractor builders and machine manufacturers worldwide have had to tighten their belts. Extra labor has been shed again and production numbers have been reduced. However, growth figures are being recorded cautiously again, as noted by the European machine advocate CEMA. Is that an explanation for the long delivery times that buyers sometimes have to deal with?

Read the terms and conditions on the back of the quote

Reverse the quote
Before signing the quote, also look at the back of the paper. There is a good chance that it is printed closely with the general terms and conditions of the mechanization company or manufacturer. Hardly anyone reads the fine print, but it might be a good idea to study them anyway. The amount at the bottom of the line is certainly important, but what if the ordered machine does not arrive on time? Where are you then? For agricultural entrepreneurs, the contact with their dealer is often just as important as the brand. You trust and build on that. But, is that a guarantee of on-time delivery?

6 tips to help avoid long delivery times:
1. Order on time

This is like kicking in an open door, but on-time delivery starts with on-time ordering. Do not think 2 weeks before the sowing season that you will need a new seeder. Today, more and more machines are custom-built. It is therefore not possible to keep stocks. That starts with making a time schedule. Make a list of all the machines on the farm and see how often and how much they are used. This way you can plan when something "must" be exchanged. Also keep a close eye on any flaws that occur over the course of the season, so you don't get any surprises. After a year you often forget it again.

2. Make clear agreements
One person prefers to record everything on paper and for the other person a verbal agreement is sufficient. The fact is that this can cause misunderstandings. When purchasing, make sure that everything is recorded. The implementation, any adjustments, what has been exchanged and possibly with which hours. Where necessary, make agreements about delivery and payment terms, so that buyer and seller are not surprised afterwards. For example, what do you do when a trade-in telehandler has worked considerably more hours than agreed? Don't just rely on your business relationship, but record it, even if it's just a Whatsapp message.

Think of a plan B for late delivery or higher hours

3. Come up with a plan B
Is there a chance that the machine will be delivered later? Then think about a plan B in advance with your dealer and record it. If your ordered tractor arrives 2 months late, does the dealer have a trade-in machine that you can dispose of? And, what costs are involved. You cannot overcome all problems, but you can provide more certainty.

4. Attractive conditions
A delayed delivery is also disastrous for the manufacturer. It damages his reputation and often costs a lot of money. Some brands have special early purchase programs. If you know that the combine needs to be replaced, consider buying a new machine immediately after the harvest. This often results in attractive discounts or the manufacturer has models that are offered at a competitive price. Those who have the financial space, and a place in their shed, can gain an advantage by buying and delivering early.

5. How do you deal with overtime
Can you keep your tractor, combine or self-propelled mixer feeder at your disposal in the event of a late delivery? How do you deal with the extra hours that this machine runs? Dealers are not waiting for unexpectedly higher hours. Certainly not when the machine has already been resold. Make clear agreements on paper and agree a fee if necessary. Some customers have a penalty clause, whereby a discount is given when the delivery period is exceeded. Given the importance of the relationship with your dealer, this is not a desirable course of action! Always assume mutual fairness and honor the relationship.

6. Consider financing
Does your loader wagon need to be replaced, but have you just invested in phosphate rights? Then consider alternative financing options. Manufacturers often offer competitive lease rates. If you do not want to be faced with surprises, then look at operational lease or a rental construction. This is especially interesting for companies that work many hours. If this fits, you can also be sure that a fresh machine will be installed in the yard every few years.

Do you have a tip, suggestion or comment regarding this article? Let us know

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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