Pay for the equipment you need, when you need it.
Apr 05, 2024
Could you be overpaying on ag equipment purchases? Learn the five questions that can help you get a better deal on your next machine purchase below.
Today’s ag equipment is becoming increasingly innovative. From solar-powered scarecrows that spin around to keep birds at bay and artificial intelligence-powered milking robots that personalize the milking process based on a cow’s udder shape to Internet of Things (IoT) technology that helps monitor soil quality and autonomous tractors, AgTech is advancing farm productivity.
Although investments in the AgTech sector had slowed during the COVID-19 pandemic, venture capitalist deals increased 19% quarter-over-quarter in Q3 of 2023. The AgTech market is expected to reach about $16 billion by 2027, up from $6 billion in 2019.
With these tech advancements – coupled with inflation – farm machinery prices are increasing. Ag machinery prices rose by at least 15% in 2021.
Fortunately, it is often possible to negotiate farm equipment prices.
How to Negotiate Ag Equipment Prices Like a Pro is a step-by-step guide that empowers farmers to bargain for fair ag machinery prices. Through seven steps, farmers will discover tips and tricks for securing machinery within their budget.
In this free download, you’ll learn:
Why it’s beneficial to look for machinery before you even need it
Types of data to gather, such as overlooked costs like warranty plans
How timing can impact prices
Download How to Negotiate Ag Equipment Prices Like a Pro
If you don’t like negotiating, you’re not alone. About 57% of men and 83% of women do not enjoy negotiating.
Negotiating doesn’t have to be anxiety-inducing, though. Rather than thinking of bargaining as an uncomfortable argument with a winner and loser, think of it as a conversation that benefits both parties.
Approach the seller with questions that help you gather information on the farm equipment and on the retailer. This will help prime the seller for discussing costs, and they may even begin offering you discounts or bonuses before you ask because it is in their best interest to make the sale.
Here are a few questions farmers can ask when negotiating ag equipment prices with sellers.
Just because a salesperson is on the shop floor doesn’t mean they are immediately available to speak with everyone that walks in the door. They may be less inclined to bargain if, for example, they are watching the clock to get to a pre-scheduled appointment. Use this question to establish rapport, introducing yourself, and to let them know that you value their time and service.
Even though you have likely researched the make and model of the machinery you’re interested in purchasing, the salesperson’s response may give you insight into something you hadn’t considered before. Do some more research to see if the machine they see selling well could be the right fit for you, keeping in mind that best-selling doesn’t always mean best for your particular farming needs.
Some machinery requires additional purchases to fully function the way you want them to. For example, a tractor may be more productive if combined with a new loader. If a seller knows you’re interested in purchasing more than one item, they may be willing to offer a package deal. If they cannot come down on the price of the ag equipment itself, they may be able to offer discounted or free services that are valuable.
While sellers often have sale days around certain major holidays, such as around Black Friday, they may also have sales scheduled at unlikely times too. For example, they may have a special sale running around the time of their store anniversary. Salespeople are often willing to share upcoming sale dates with customers. Even if they don’t have a sale planned, this question lets them know that you’re on the hunt for a deal, and it may lead them to offer a hidden discount such as a family and friends discount.
Because naming a specific desired price point can feel uncomfortable, many bargain hunters suggest prices that are higher than the lowest price a seller may be willing to sell for. Therefore, it can be to your advantage to get them to name the price first and go from there. Keeping the phrasing focused on the machine – rather than asking “How much can you come down in price?” – can also help the bargaining feel less confrontational.
Download the guide to learn how to calculate a price range to use when negotiating.
© 2014 - 2024 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN”, "Farmers First", “FBN Direct”, "F2F", and "F2F Genetics Network" are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.
Financing offered by FBN Finance, LLC and its lending partners. Terms and conditions apply. To qualify, a borrower must be a member of Farmer’s Business Network, Inc. and meet all underwriting requirements. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify. NMLS ID: 1631119.
The material provided is for information purposes only. It is not intended to be a substitute for specific professional advice. Neither Farmer’s Business Network nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in the material and any liability therefore is expressly disclaimed. The information and opinions expressed by others in this material are their own and are not endorsed or approved by FBN or its affiliates.
Apr 05, 2024