BUyer CoNfideNCe key TO SUSTAINING SALES GAINS
Caution has been a major theme in the farm ma- chinery market for the last few years, with buyers relatively hesitant as grain prices continue to strain producers’ machinery budgets. But, recent data show confidence among buyers is slowly im- proving, making it important for sellers to do what they can to maintain that confidence, experts say.
Both federal macroeconomic data and research in the ag sector show producers’ attitudes are shift- ing, and that rise in sentiments about the econo- my is spilling over to the farm machinery sector.
A recent survey conducted by DTN/The Progres- sive Farmer (DTN/PF) shows crop producers’ at- titudes are improving despite a challenging grain marketplace. The Agricultural Confidence index (ACI) showed an almost doubling of those who believe economic conditions will improve soon.
The brightening of producer attitudes mirrors what’s happening in the economy in general; re- cent federal data show U.S. consumer confidence is rising, with “consumers’ assessment of current business and labor market conditions” improving considerably, likely foreshadowing an increase in economic growth in the next few months.
Though the grain markets remain in lower ter- ritory, more producers are returning to the mar- ket — both new and used — to cover essential machinery needs. In the absence of any major measurable changes in the grain marketplace, the change reflects growing optimism, said Charlie Glass, Farm Equipment Manufacturers Associa- tion (FEMA) Dealer Relations Committee Chair- man emeritus.
“i’ve seen a significant difference in how buyers see the market,” Glass said. “Technically, it hasn’t changed, but I think their attitudes toward it are changing.”
Ensuring those sentiments continue to grow hinges on sustaining buyer confidence. “i’ve been telling producers that i realize this is a difficult
time in agriculture and it’s hard to be aggressive as a buyer, but you’ll never have a better oppor- tunity as a buyer than right now,” said used farm machinery expert Greg “Machinery Pete” Peter- son. “you’re going to get a great value. Good used equipment values have been holding the last 18 months. Buyer confidence is coming back.”
Ways to Boost & Sustain Confidence
often, maintaining or building buyer confidence is a matter of honesty, acknowledgement of challenging market prices for producers, and openness when it comes to marketing individual machines. Sometimes, that buyer-seller rela- tionship is the product of a long-term working relationship, while in other cases, it’s the recog- nition that both buyer and seller will benefit from working together through this sluggish part of the grain market cycle.
“As a dealer, you can put any price on a piece of equipment you want. If it’s the right price, farmers are reacting and buying. So, make the equipment you’re selling stand out,” Peterson said. “The more you can personalize a piece of equipment by showing its ownership history and maintenance records, the more real and honest you are, and the more you can show you respect your custom- ers, the better off you will be. Putting a face on a piece of equipment and showing how well it has been maintained means a lot to buyers.”
Sometimes, that takes thinking beyond each transaction and looking at a bigger picture. Per- ception is often reality in a market like farm ma- chinery today, and the more you can demonstrate the true value of a piece of machinery and show you are willing to work with buyers by specifically targeting the machinery they need at prices on which both parties agree, the more you will bene- fit in the long term.
“Take control of the message. Why sit back and let market chatter and coffee-shop talk dictate your sales?” Peterson asked. “The dealers who
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