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I was talking to my uncle about the price of a combine, he said something like $240,000 and started going on, then I asked him again what the price of a combine was.

He then said he figured up the cost of one of the machines a few days ago and it came to around $205,000 or so he said. I asked him what they usually sell them for. He told me usually about $225,000 or $230,000. He said they only make about $5,000 per combine. T

hey do however move many more tractors than combines but they sell at least 12 every year as he has a harvester who buys all his combines every year from him. I was just curious what the price of combines around everywhere else was. He said $240,000 was probably kinda high, but it was for a fully loaded combine with almost all the gadgets and electronics. He said the $205,000 combine had most of them but not all.

Alex

 

[brandonswia]

He's probably pretty close on prices. If you go to Deere.com, you can spec out a list price on any new piece of equipment. Then, probably take 10-20% off list.

He is also probably right that a dealer only makes 5-10K on a new combine and sometimes they don't make that until they sell the trade or the trade on the trade.

Parts and service is where the majority of a dealership's profits come from, but they need to sell new equipment in order to service it.

Brandon Vorthmann

 

[combiness]

A margin of $10,000 is most likely a very high figure at best. About half of that is closer to the mark. However, apart from service and parts, dealers do clear a far better margin proportionately on USED machines. This is also where the buyer can do some price negotiating if the dealer is willing.

 

[hfh]

Heres my 2001 figures. I bought my 2001 9650sts fully loaded (pickup head, 930 flex w/full finger auger, greenstar y/m) $149k new. No way in the heck I can get a 2006 9660sts loaded the same way for that kind of figure. Tells you how things are getting out of hand in prices of machinery in just 5 years. Im not getting any richer than I was prior to 2001 with all the input costs going up.

 

[jacobb]

I hear you hfh, trying to trade tractors, JD 9300 for new 9320, or even used 9320, not a single dealership will even think about trying to trade for $30/hour, uncle just traded a CIH Steiger 9370 for $22/hour for a 1 year old TJ 375. Can't see why we can't trade for 30, but the dealer can't do anything. Sounds like they can do better for the people going from a different brand to deere than a deere for deere trade

Prices are just too high, or the used should gain equal or closer value.


Jacob

 

[hfh]

Im in the same boat too regarding tractors. I m trying to trade 9370 off for any 9420 jd or stx/tj425 for $16/hr with auto steer. I was lucky to trade my 9380 last year for a new 9420 with autosteer for $16/hr. Currently, the lowest I could get is $26 hr on a used 9420 with autosteer.

Prior to 1998, my family has traded combines, 4wds, 2wds, and some implemements at the same time every 2 years and it was easy to do that. But with today's prices, I can only do one machine a year. And whats more, Im farming the same amount of ground as prior to 1998. Boy, I miss those days prior to 1998. If inputs and crops have been on equal footing like prior to 1998, I'd have new stuff every 2 years. Sadly, thats not the case.