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Tuesday, October 26, 2010

Another Good Screwing of the Family Farmer By AGCO

Here is another post detailing my love for AGCO. I suppose they have been funding their drive to acquire companies instead of developing their own products by raising parts prices. Well, to be fair, I would think they just add a flat percentage price increase when ever the clever folks in the business office decide to do so. Sometimes that price increase gets a bit out of hand.
Here is a photo of a $150 hose. I called my local dealer to see if they had one in stock (fat chance of that) and to see what the price was. I laughed when he said $150 for a power steering hose. I said nothing personal as I know you don't set prices, but I think I have a lot of room for other fabrication solutions on a $150 one foot length of hose.
He did tell me that it was JIC on one end and a Female flared tubing on the other end. I don't really know the difference but both ends looked the same to me. I would have made it myself but i don't trust our hose crimper on 2400 psi steering lines. When the blow the hydraulic fluid is atomized and it is kind of a frightening sensation when you smell the hydraulic vapor hitting the turbo.
So I took it to our local parts repair store and they made me a new hose for $25.
Why doesn't some at AGCO figure out that charging outrageous prices for parts doesn't really bring in new customers. I've come really close to buying a new Hesston Disc mower when hay prices were high and I really hate to go back to New Holland. I think I will just not buy a new one.  Of course there is no more Hesston brand anyway so what difference does it make.

6 comments:

  1. I surmise that the pricing guru at AGCO parts is on some pretty wild mind-altering substances. When I painted the D15 this spring I was going to use genuine "AGCO Heritage" paint. After checking price, I found that Agco Persian Orange #2 was $60 per QUART! The Rust-Oleum equivalent was $55 per Gallon at Grainger.

    Betcha can't guess where I got the paint.

    I can see them charging exorbitant prices on stuff that can't be had elsewhere, like a grille screen for an 1850 and the oddball RH tie rod end on the MF 760. But stuff like your hydraulic hose? It's gotten so bad that I don't even bother to call on anything that doesn't absolutely have to come from AGCO.

    Is there a large sub-set of farmers out there that just blindly order parts without checking prices? Otherwise I don't see how the AGCO parts organization stays afloat.

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  2. Don't get me started on Agco. What a bunch of business morons. Like you I own White tractors, but I also own a Gleaner combine and what they have done to that brand is an absolute disgrace. Service around here? Forget it. Parts in inventory? Surely, you're joking? Then like you discovered when you do get the parts they are 4 to 5 times, if not more, what they should be.

    Right now, I think Agco's management policies are the strongest argument going for purchasing red or green farm equipment....at least around here. It's almost like they are being run by cast-offs from Monsanto.

    All The Best,
    Frank W. James

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  3. Orin, I think they just apply blanket price increases so the longer a part has been on the pricelist the higher the price. Then they probably dump the parts that don't move fast enough. AGCO owns so many brands that nobody has a perspective on parts prices.

    Frank, I just don't understand corporate attitude of AGCO. I know that North America is not their biggest market but it is a market. Why wouldn't you and I be potential customers. White tractors and Gleaner combines, we have White and Massey combines and White and Moline tractors, Hesston swathers, and other orphaned AGCO brands can be found on our farm. How can they imagine we would want to buy a new AGCO product? I suppose they think messing with the dealer network and raising parts prices is a really good thing.
    The worst thing is that I look at most of their company announcements with this sense of doom. The phrase, "Well that will make someone buy a John Deere" is what comes to mind.
    Interesting book reviews Frank!

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  4. Seems to me farm equipment parts prices have always been shocking. I'll look for alternatives when I can but sometimes you just have to go with original equipment parts.
    I'm guessing a lot of good farm equipment has been parked and scrapped simply because the cost of parts to repair them is outrageous and the owner refuses to put that kind of money into an old tractor.
    Check out the auction sale here this weekend.
    http://www.mcdougallauction.com/regina/?auction=2117
    Some nice equipment there that dates back to the pre-White Agco days.

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  5. I sent this to an AGCO Exec. I suppose they already realize their problems and are structured to not do anything about it. If so, soon they will be gone.

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  6. Ed, thanks for the effort. After reading copies of the Farm Equipment Dealer News magazine I borrow from my uncle, I kind of think it the AGCO business philosophy that is to blame. They think it is a good idea to mess with the dealers and to have confusing brand strategies. I don't see it changing.
    I'm not sure it really hurts the company in the short run. For example, while I wouldn't by a Massey, Challenger tractors are a lot less money than other brands and I would consider one. Likewise, before the markets crashed I was seriously considering Hesston hay equipment. Although, I was only looking at the ones with Hesston decals and would not buy those with the Massey logo.
    In the long run they are probably trading brand loyalty away and gaining people who are just looking for the cheapest deal.
    Which is pretty much what happened to White which could hardly give a tractor away despite the fact that a tractor like my 2-155 FWA is one of the best tractors from that era. (IMHO)

    ReplyDelete

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