ARE PRICES ABOUT TO DROP?
Folks maybe you know something I don't Know but our price is about to drop it's Something I've been hearing like the Last forever years and uh I'm just Waiting for the next big recession and Then I'm gonna buy everything I'm gonna Get some steals of deals I'm gonna make Out like a bandit well as somebody who's Pretty closely connected to both sides Of that argument Being a consumer and also being a dealer That sells equipment I hate to burst your bubble but I don't Think that's going to be happening I Mean it seems that I have in the last Couple of years done a lot of buying Right we moved businesses or locations Business locations we've moved houses And there were things expenses that we Had to buy that we kind of delayed for a While just because we wanted to spread Out All the purchases and you know six Months later the price climbs again it Just keeps happening the same thing Happens with all the attachments that I Sell as well you know every year even Pre-pandemic there were price increases Two to five percent would be typical you Know during the pandemic there were Three four five price increases a year And we saw prices go up 50 on some things and uh maybe even more Than that on other occasions as well
Just in the last in a four day time Period just last week we make stump Buckets right that's an item that we Manufacture I've got a fabricator who Builds them for me directly I buy the Raw materials and then he bills them Well the price went up 45 on raw steel and four days time and That's expected to just keep climbing And climbing and so price increases just Don't seem to be slowing down and and That said the steel had dropped down From kind of the highest point in the Pandemic so it would come down a bit and Now it's going back up and part of That's I think seasonality too as Construction Seasons really starts to Kick into into gear here with the spring And the summer and everything else and Demand starts to really heighten Um so a little bit of that is is normal To happen but you can You can sure bet that prices aren't Going the opposite direction but besides Just you know raw steel in that example There's other input costs that have gone Up and are not just going back down you Know labor costs went way up okay My son Is in high school he's making over 14 an Hour just to stock some shelves at Walmart Okay and then Menards just down The road to push carts they're paying 17 Bucks when he turns 18. he can go push
Carts make 17 17 an hour to push carts Okay so labor costs just keep going up And you don't see anybody I I'm I don't Hear from my guys it'd be great if they Ask for pay reductions but nobody's Asking for pay reductions no pay Decreases anywhere everybody wants to Make more money so that means that all Of those manufactured products are also Going to cost more as well same thing With utilities it just kind of flows its Way down the pipeline building costs Right buildings went way up if you need Repairs done all those kinds of costs go Up and so you're not just going to Magically see everything go the opposite Direction that's just not how it works And I think if that's the argument you're Trying to make It's a pretty bad one now what I will Say is that price increases are Normalizing right with more of a in General a typical once a year type of Thing and with the steel you kind of Level load that right we have a lot of Steel that cheaper prices we have have Some at really high prices you know kind Of all gets mixed together and we try to Level load that as best we can to keep a Stable price or minimize price increases And you're going to see that kind of Across the tractor industry and I think Across every industry in general there's
Some that are hit harder than others and Still recovering you see you hear about Fertilizer you still hear about ships Um there's still certain food categories I think that are hard to to recover as Well Went to Chick-fil-A the other day they Didn't have any grilled chicken they Were just none they're like nah we don't Have them anymore so you know life is Still kind of crazy as far as that goes So the good thing about kind of getting Back to the normal You know this incremental price Increases the fact that it allows for Dealers like myself to have a more Stable Handle on on what our prices are going To be and so you can offer more Incentives or more fun sales I mean it's It's you know I like to run the sale now And then and have a good time with you Guys and so you can do that knowing that Um you're not going to see these crazy Price increases at least in the Foreseeable future so it's it's helping With that so that's a good thing for the Consumer um you're not seeing big huge Jumps anymore like you were in the Pandemic it's getting back to that more Stabilized structure that I think we're All accustomed to we're proud to be Sponsored by rim guard Solutions a Liquid ballast weight it goes right
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Coming I mean like for a year and a half and it Just keeps getting delayed now it's late 2023 and now it's 20 24. it just kicks The can down the road constantly they Don't know what the heck they're talking About they don't know what they're doing But I can tell you from a reality Standpoint prices continue to go up and So if you're waiting for another six Months waiting for another year waiting For another two years for that bottom to Fall out well all you're doing is Letting the prices for new equipment go Up higher and so in one two years three Years if it ever even happens You're basing what you consider a deal Off of uh even higher new price and so If you're saving I don't know 15 20 off Of that new price That inflated new price because Inflation's real and a few in a couple Years from now you're just getting that For what you could have got it for today But it's a couple of years down the road And so you're getting something used Something older something out of Warranty something maybe that's got some Damage to it You have less time to use it you delay Your projects all that kind of thing There's a lot of bad things that are Associated with that and delaying that Purchase to get your work done now now
The good side to all of this uh Inflation I guess is the fact that if You have equipment and maybe you're Thinking man I don't need that anymore I Don't need that tool anymore I don't Need whatever it is anymore The longer you wait it seems like the More that those things are going to be Sold for it's hard to find a lot of used Nice used equipment out there so folks Are are paying more for that even used Trucks and everything still too and the Tractor wheel is kind of special you Know Tractors in general it's they're just an Anomaly there's no Blue Book for them But I've said this before you can go to Like a a 2012 John Deere 3032e for Example if you Say that's 10 years old 11 years old say You had 600 hours on it I bet you could Sell that tractor for more than what you Bought it new for 10 or 11 years ago I Mean tractors just hold their value very Well unless you just beat the absolute Snot out of them same thing goes with Attachments and if you are going to sell Your used attachments or your new or Your used tractor I should say base Those off of new pricing don't base it Off of what you paid for it years ago See what other equipment that's similar If the same model still made like a John Deere 3032e tractor is still
Manufactured Well base your used price for your Tractor off of what the brand new prices Are right now not from 10 years ago and When folks say you know that's that's Not cool that tractor is 10 years old or That brush Hog's 10 years old Well then say go ahead go ahead find one Somewhere else that's a lot cheaper but Why would I as a seller Take money out of my own pocket I'm Going to try to get as much as I Possibly can for it and so I think That's what most consumers are going to Do Whether they're buying or selling They're going to look and so I get it I Get the mindset of I'm going to wait for That bottom to drop and I'm going to get A deal but I'm here to tell you That doesn't work out very often and Normally that's hindsight is 2020 right You don't know how low of a price you Could possibly get until that time has Already passed and you're just maybe Hoping and guessing and wishing that you Got a good deal on something and you Don't really know if you did or not you Know I look at land a lot I love looking At property what's for sale and Everything else and all I can think of So many Parcels around here that I Thought man that'd be a that'd be a good Deal to own but you know I don't know
Maybe the price will drop a little bit And you can go back and look there's Houses my wife and I have looked at walk Through thought we should buy all sorts Of things and you look and see years Later how much those are selling for now After somebody else bought it moved in And then put it back on the market and Prices just I mean they're 50 more They're 100 more depending on how long Ago it was prices just historically go Up and up and up and yeah they're small Small Windows of time when you could Potentially find a deal But more often than not it seems like It's just justification not to buy Something which is perfectly fine but if You're trying to find that heck of a Deal on something you could be waited Forever now while I think that more Dealers more everybody everywhere is Getting better on having inventory on Hand the market has softened a little Bit it hasn't gone it's not still crazy Like it was during the pandemic but it Is still a very strong Market Um but myself included and other dealers Have been able to order well enough in Advance now right nine months in advance A year in advance whatever you need to To try to get that inventory and have it On hand this is like our third or fourth Year in a row doing all this and so you Kind of have a pattern down but lead
Times are still I just got the Notification that I have to have my snow Pusher order in for next Fall by April 15th that's their that's their drop dead Cut off they tried to make it March 15th We had to have our snow Pusher order in For next fall so lead times are still Really long as far as that goes other Manufacturers that we're working with I Mean the foil mowers that are just Coming in this spring we ordered those Last summer okay so like nine months ago Whatever the heck that was lead times Are still long you can't just say hey I Want to get one of these and guarantee You're going to have it and some of our Stuff is made to order and those lead Times over the winter we're down to two To four weeks now they're back up to Seven to ten weeks and probably going to Grow even more as that spring demand Continues to to you know do what it does Every year so wearing my dealer hat Right now well this isn't a dealer hat But metaphorically speaking I'd Encourage you to buy your attachments Right now and probably buy them from Good works tractors.com because we Include free shipping rewards and Financing too okay so we have good deals Go to our website see what you want for Your front end loader for your Three-point hitch we'd love to help you Out and if you don't own a tractor yet
Well we've been driving this summer Tractor around for just about a year now Not quite and we're loving it okay and So these are going to be available Fairly soon across most of the country All right they're expanding Incrementally in a controlled way the Summit comes with a lot of things Standard that other tractor Manufacturers don't including these are 14 tires liquid ballast inside those Tires a third function up front a rear Remote in the back a high back Suspension seat the list just goes on And on oh And we just got this canopy installed Too this is the Rhino hide canopy get That from tractorcanopy.com I think you Guys get the idea and on that note if You enjoyed today's video you want to See more stuff about tractors kind of Business related things too I like Talking about that sometimes hit that Subscribe button down below it's Completely free I want to thank you for Taking time out of your day to stop by And until next time stay safe we'll see You soon Foreign [Music] [Music] Foreign foreign [Music]
