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 03-01-2000, 00:00 Post: 13285
Nuclear_Weapon7



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 Tractors in USA are too expensive.

Tractors in USA are too expensive. For example I found one Massey Ferguson 3945 which is a 73 HP, 4WD used tractor 580 hours old listed at $44,500, you can view its photo at http://www.agdealer.com/list/view_image.cfm?image=2010325&dealerid=150 This is a some what smaller tractor than Massey Ferguson MF 375 4WD 78 HP which sells brand new in Pakistan somewhat more than Rs. 800,000. At the rate of one US dollar eqauling 54 Pakistani Rupees, it comes to $14,814. Lets say an american customer does not get this machine at US $15,000 or say he gets it US $20,000. Does that mean that US manufactures are fleecing thier customers ? I dont buy the argument that Cost of doing business in the US is higher (wages, infrastructure, etc). Because electricity is more expensive in Pakistan than in USA. Workers wages are a lot less but they are also a lot less productive. I shall be posting a few more examples soon. Nuclear_Weapon7.Hyderabad,Sindh,PAKISTAN.






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 03-01-2000, 00:00 Post: 13287
Nuclear_Weapon7



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 Tractors-in-USA-are-too-expensive.

Heres one more. Its an exact match for model no. A Massey MF 375 quoted at $35,995.
http://www.agdealer.com/list/view_image.cfm?image=2020693&dealerid=164
This one is also a 4WD but with 72 inch bucket and only 736 hours. I think can find some MAssey dealer who can sell a new MF 375 4WD with 72 inch bucket at Us $20,000 fob Karachi.
Nuclear_Weapon7.






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 03-01-2000, 00:00 Post: 13289
Murf

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Nuc, there are far more, higher costs in North America than you have considered. For example, I suspect that very few of your farms are bought for industrial land at the rate of $30,000.00 / acre as happens here regularly. Also, don't forget that the wages for the manufacturer are just a very small portion of the totla cost to the consumer, it goes to the dealer on a $250,000 truck, with $1.62 / gal. diesel in the tank, and a $30,000 / yr. driver behind the wheel. Then a $40,000 / yr mechanic assembles & inspects it, then a 440,000 / yr salesman sells it. Even then theres probably a whole host of things I've missed, like the $10,000 / yr realty tax bill for the dealership... Don't be to quick to look at something and judge.






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 03-01-2000, 00:00 Post: 13295
Nuclear_Weapon7



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Well Murf I had not thought of this many hidden costs for US tractors, everything there is much more expensive then here excpet for diesel. Here are 4 more web links for MAssey Ferguson MF 240 ( all with defective brakes I think ). I think MF 240 can be bought from PAKISTAN fob Karachi at US $10,000 new.
http://www.agdealer.com/list/view_image.cfm?image=2701005&dealerid=102
http://www.agdealer.com/list/view_image.cfm?image=106129&dealerid=14
http://www.agdealer.com/list/view_image.cfm?image=1010805&dealerid=104
http://www.agdealer.com/list/view_image.cfm?image=207604&dealerid=102
Nuclear_Weapon7.






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 03-01-2000, 00:00 Post: 13296
MichaelSnyder

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 Tractors-in-USA-are-too-expensive.

Nuk,
It appears as if you are trying to make apples from oranges.
What's an average wage in Pakistan? Cost of an average single family house?
Naturally this varies by geographical location, but the average cost of a single family home in my area is about $125,000-$175,000 on 1/4 to 1/2 acre lot. I think the "Average" American middle class salary is somewhere between $29k and $31K a year. And it has become more and more common to know people making 6 digit incomes. I think Murf is from the Toronto Canada region, which is slightly more expensive than the US. I would ask that you post Pakistan $ figures to the examples I've given. Otherwise, your comparisons in tractor pricing hold little value. Remember...pricing is almost always driven by Supply & Demand!!






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 03-01-2000, 00:00 Post: 13297
Murf

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Michael, never mind Pakistan, I the sounds of your prices even. While it seems your 'average' wages are close to ours (albeit in Cdn $) the cost of houses are out a bit, that same house here (yes, Toronto area) would cost you $350,000Cdn (or $235,000US) and the AVERAGE price of diesel right now is $0.70/litre which is $2.80Cdn/gal. ($1.85US/gal.) so i guess there is good and bad to everything.






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 03-01-2000, 00:00 Post: 13301
Kim Hartshorn



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 Tractors-in-USA-are-too-expensive.

And dont leave out the tremendous cost of liability insurance. I have read that something like 75% of the cost of a ladder goes to cover liability.

I wonder if anyone realizes how slippery those stickers that say "Do not stand above this step" are when they get wet? Smile

I would imagine that the threat of liability in tractor manufacturing has to be quite high.

Kim Hartshorn






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 03-01-2000, 00:00 Post: 13304
Nuclear_Weapon7



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 Tractors-in-USA-are-too-expensive.

I think that in Seattle tractor manuf. must also have been active against WTO. The cost of everything is far greater in Japan than in USA but I think Japanese tractors are cheaper than US ones.






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 03-01-2000, 00:00 Post: 13311
MichaelSnyder

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Nuk,
I'm not sure where you get your info, but having been in Japan, I only remember a few things which were more expensive than a typical "major" US city.
However, S.Korea & China are definitely cheaper than Japan.
ANYWAY!!..Murf, your housing estimates are definitely in line for a US metro area. For example, average house in San Francisco is $285k, or at least it was 1 year ago. Nuk, you still haven't answered my Pakistan market question.






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 03-01-2000, 00:00 Post: 13312
Don in Oregon



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 Tractors-in-USA-are-too-expensive.

Hey Murph. What's the name of the dealer that's paying salesmen $440,000 a year? I need a job at this place!!
Nuc, there's one factor that you may not understand. Tractor manufacturers build different variations of similar tractors exclusively for certain markets around the world. The more advanced the countrys farming practices, the more advanced the tractor and also the higher priced it will be. For example, JD still builds tractors for sale in Argentina and Mexico whose designs became obsolete in the US up to twenty years ago. I would suspect you might find similar differences in tractors built for your market as well. I do know that MF is still building tractors for less developed ag markets that are virtually unchanged from the ones they sold in the US in the 1960's. Just my $.02. Don.






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Discussion Boards > Active Subjects > Messages as Posted > Tractor Projects Forum

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