It is hard to believe that another Fall Harvest will be upon us soon and Planting Spring Crops is just around the corner. With that being said Combines, Grain Carts, Tractors, various other kinds of Harvest Support Equipment, and Drills will be resurrected once again to bring the bushels off the fields and to the Bin for Market. The importance of making sure your machine is in peak operation condition is paramount during harvest and the current economy. Every bushel of grain is equally important and none of it can be wasted or lost. If your machine is free of breakdowns your efficiencies go up and so do your profits. This means your machine is set correctly and your overall machine utilization is at its max. Grain lose is minimal so more bushels are getting in the bin. The Grain Cart Tractor and Cart are working in tandem for speedy delivery to the Semis hauling grain back to the Farm or Elevator. Time is of the essence during Harvest. Mother Nature doesn’t always cooperate and downtime doesn’t make it any easier.
Winter Service Inspections are a great time to make sure your machines are ready to go and all of the Gremlins are found and disposed of. This is the best time to have the complete attention of the service department. They aren’t slammed with Customer’s calls needing urgent attention because their machine is down. Also, Parts and Service have great specials they run to help maximize your purchasing power. When your unit comes out in the Spring it will be ready to do its part in planting and harvesting without flaw, knock on wood!!
If you are in the market for a New or New-To-You piece of equipment then Recondition will help the value of your trade in. The better condition a piece of equipment is in during the sales process the better the residual value will be. Recondition plays a key role in what a trade is worth. The less effort the dealership has to put into Recondition Process the less cost will need to be associated in buying the equipment.
Regardless, of age condition plays a key in role in the resale of the machine as well. Sales People are more likely to recommend a machine to a customer if they have the confidence it will be perform well and keep the customer running. If the Sales Person does not feel like the machine is a good machine and there will be potential issues, not accounted for during the evaluation process, then the machine will sit and subsequent trades will have a stigma attached and the machine residual value will reflect this attitude.
Future customers find solace in repair history. The more information the dealership can give a potential customer the more likely they will find comfort with the machine and thus purchase. Having past winter inspections to show what has been repaired and at what hour intervals paints a picture of a well taken care of machine. When a machine, historically, sells fast the more the machine’s residual value increases. The cost to hold goes down; thereby more residual value for the trade in.
In closing, understanding how Recondition effects machine’s performance helps better understand the machine’s ability to be efficient. The more the efficient the machine is during Planting or Harvest Seasons the more profitable the machine is. The better shape the machine is in when it comes time to sell the greater the residual value is and a greater return on investment. The machine stays profitable throughout its life cycle.
If you would like to hear more conversations like these tune into Moving Iron Podcast which can be found on iTunes, Google Play, Stitcher Radio, TuneIn Radio, and SoundCloud. You can also visit my website, www.MovingIronLLC.com, where you can find recent Blog Post from the Moving Iron Blog, past and current episodes of Moving Iron Podcast, Morning Market Roundup with Chip Nellinger, and the Tax Tip of The Week with Glen Birnbaum. So until next time, let’s go move some iron.