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Post by lafarmer345 on Jul 29, 2011 16:55:01 GMT -5
OK for those of you that don't know, I farm around 400 acres. This year it was mostly corn with a little cotton. I will plant probably half of acreage in wheat this fall, then corn or cotton or a combo next year. My "real job" is working for a seed, chem, fert dealer.
The bossman had a meeting today with the big boys and sales numbers and margins were discussed. We have a fairly stable customer base but our sales are down a little bit this year....2%, not a big deal, but they would much rather see positive numbers than negative. And we have time to make that up, especially if we have the increase in wheat acres we are predicting as well as a good fall fertilizer season.
Now to the question part. The area I work in is notorious for being the most cutthroat as far as prices go. This is good for me as a farmer but makes it hard as a salesman. For instance, our "range" this year for Roundup Powermax was $16.45-17.50. We were missing some sales at the low price and found out that a competitor was selling PMAX for $14.25. And this is the same on seed, fert, all chemicals, I just used Roundup as an example.
In your area, wherever that may be, do you price all of the different companies? Do you buy from one or two suppliers and seldom or never ask the price? (Please don't say you do like our customers and go get all of the lowest prices from all of the store and then go BACK around to try to get it lower?)
Just curious as to how things work in your world.
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Post by ses on Jul 29, 2011 17:22:53 GMT -5
We have a wholesaler 60 miles away that pretty much sets the price. If you do your own spraying you pretty much buy from him. If you hire it done you go local. Service sells. Other wise I price around and the cheap guy gets the business.
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Post by turdypointbuck on Jul 29, 2011 18:43:43 GMT -5
Not a big acre guy myself. Our whole operations on the row crop side is around 700. We do 95% of our business with the seed and farm supply in our home town. Buy all the chemical and fertilizer from there, buy most of the seed from there as well. Got a couple neighbors who sell seed and farm, so we usually buy some seed from them as well. To answer your question, we usually dont go around looking for the cheapest price.
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Post by peelergtfb on Jul 29, 2011 20:32:29 GMT -5
We sometimes shop around, less if we are dealing with a company with excellent service. If somebody gives me a lower price I never take it to someone else to match I either pay more or go with the cheaper price. I figure if he can make his price cheaper he was trying to screw me the first time. Need to watch who gets a deal word gets around
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Post by eci on Jul 30, 2011 11:34:21 GMT -5
Mainly deal with one fert. dealer . Service and TRUST are worth it . One thing I have noticed more this year guy's calling me about prices for app . Don't know if there just checking to see if there fert. plant was high or low . Most around here are all the same price for app. Ken
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Post by kwestfarms on Jul 30, 2011 13:47:05 GMT -5
We have large price difference between coops and a private dealer in this area. Potash as much as $50/ ton ,urea as much as $90/ ton cheaper at the private dealer !!! Coops keep screaming; loyalty...its your business...remember the patronage refund... ya , right , I'll take the refund right up front from the private dealer. Competition....its a good thing!!!
John
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dman
FFA member
Posts: 63
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Post by dman on Jul 30, 2011 13:52:41 GMT -5
One thing I have found out about the private dealers.......they are your friends, until something goes WRONG!!! Then they don't know you and it wasn't their fault, YOU are the one who screwed up. Even when you prove they did! I'll pay a little more for who ever gives me the best service. Co-op or private.
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Post by kwestfarms on Jul 31, 2011 5:40:15 GMT -5
On that point , Mike , I have had screw-ups by both private and co-ops and at least for me both made the situation right. King would probably tell you thats because I'm such a nice guy!!! John
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joel
4-H er
Posts: 30
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Post by joel on Jul 31, 2011 8:29:16 GMT -5
Good chance you will be dead before you see much "patronage" refund.
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Post by lafarmer345 on Jul 31, 2011 8:54:11 GMT -5
Funny thing here, there aren't many co-ops. There is one a few miles east of here that does well. But private retailers are the norm here.
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Post by ilweedman on Jul 31, 2011 8:56:25 GMT -5
Guess that depends on the coop your dealing with Joel.
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Post by bentover on Jul 31, 2011 9:23:10 GMT -5
kwestfarms, Everything I've heard is that you are a really decent person who is rather hesitant to part with a dollar. Ive worked mainly with co-ops all my farming life after getting royally screwed by a couple private places. i never count on dividends I don't expect to live long enough LOL The co-ops just seemed to have better crop advisors Too many of the privates maybe had lower prices on some of the basic fertilisers. But thet usually were pushing a lot of high priced FOO FOO dust to get a better yield while cutting down on the basics that are required before putting on some high priced micros.. In 45 years plus of farming I've learned that its not the price of the individual items in a budget , its the cost of the total program and the 'hopefull' profit that the program results in.
i also try to patronise the same couple co-ops because they know my farms, and I'm friends with the agronomists having worked together for 20 years. I do get prices from orther places, but I JUST HAVE NOT SEEN ENOUGH PRICE DIFFERENCE to quit the co-ops to go private. John I hope your crops are doing great. Give a call sometime I lost your number. i tried to contact you before progress days for Glowplug to meet there But I failed
Bentover aka Kinghere
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Post by kwestfarms on Jul 31, 2011 10:04:20 GMT -5
The private operation I am refering to has been in operation a long time. Their advice has been as good or better than co-ops around here. I pretty well stick to proven agronomy practices , never been much tempted too try things not backed up with research done by independent sources . In my little operation , $53/ ton saving on potash makes a noticeable difference in the bottom line at the end of the year. John
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Post by kwestfarms on Jul 31, 2011 10:29:10 GMT -5
Bent : My soybeans look like some of the absolute best I have ever grown!!! Too bad we are not closer to harvest - so much time for bad stuff to happen. My corn looks good but will not be fully silked by Aug. 1. Probably because of my decision to plant most of the beans first in this late Spring we just had. If we keep gaining on the GDU's , I will probably be OK. Day- night temps looking good for next 5 to 7 days. Sounds like you are feeling better. Be careful in the heat!!! John
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dman
FFA member
Posts: 63
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Post by dman on Jul 31, 2011 11:49:27 GMT -5
bentover, I got royally screwed by a private too, was on the feed side but I figgered if they didn't take responsibilty on that, they wouldn't take responsibilty on the crop side. We have a pretty good run co-op here that I do all my stuff with, feed and seed. They provide good service and products, and if you have a problem they make it right. Oh and the last 4 or 5 years now, they have paid 80-85% of dividends back in cash. Not the "normal" 20%. And I believe they are on a 7 year retirement schedule.
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