We would normally have at least 20 tractors in the yard, but now we only have around four for sale, although more are arriving this weekend.This a is a healthy position for any dealer to find themselves in, yet selling tractors is not as simple a task as it might appear on the surface, a dealer has to be more than just a middleman if he is to survive.
The friendly touch in Donegal
One of the features common to the network of dealerships that are the backbone of the Irish machinery trade, is that they are family-owned and family run. Donegal Tractors is no exception with Roy Mortimer, his wife, Marian, and their two sons still very much involved in the business.
The main focus is on Massey Ferguson tractors, the marque Roy served his apprenticeship on and the one with which he is so familiar. He started selling them new in 2012, the year that he also moved into his current premises.
He had, up until then, been selling used examples, importing them mainly from the UK as well as dealing with local tractors as his customers traded them in.UK sourced tractors
The UK is still a vitally important source of used stock although Brexit has not made life any easier, or cheaper. There now is, Roy notes, an extra cost of around €1,500 and a great deal more paperwork involved when bringing them from across the water.
Shortage of popular sizes
Another problem that all dealers in Ireland are facing is the shortage of available stock. Roy mentions that the greatest demand is for tractors of 150-160hp, these are big enough to provide worthwhile gains in work rates but still small enough to fit in yards.
30k should be minimum spend for good tractor
For what is already out on the market, Roy also believes that a minimum of €30,000 is required to buy a good tractor that is going to last the course. Every machine that they sell will go through the workshop before delivery and to be confident in that machine, it needs to be in sound shape to begin with.
We try to keep around 20 in stock and the yard is normally full, but I have another two going out soon and another three arriving at the weekend."The increasing electronic complexity does not deter him and he reports few issues on the tractors he sells. He also notes that the majority of Amazone spreaders he sells go out with GPS section control fitted - his customers are not afraid of the new technology.
Increased competence required
An issue he has experienced with the increasing digitalisation of machinery is that his service staff have to expand their knowledge base to include the latest systems, as well as retaining a firm grasp on the mechanical fundamentals, roles which are usually divided in large car dealerships.
Material handling
If the demand for tractors is growing, so is that for dedicated handlers. Although he does sell Massey Ferguson telescopic handlers, there are still plenty of farmers who choose to equip their tractors for a multitude of tasks. Trading in second hand units is not so straightforward though. There is a lot of work in servicing them he notes, especially the boom mount, and it is difficult to achieve a satisfactory margin when this is taken into account.
Mega dealerships are not always the answer
There is a looming question over the future of the smaller dealership, with several of the big manufacturers continually hinting that they would prefer the supersized full line dedicated dealer to the smaller, and much more independent operator, such as Donegal Tractors.If ever there was a case for retaining the local, often family-owned, dealership then Donegal Tractors is it.
This level of knowledge and trust built up with both suppliers and customers over the years cannot simply be bought off the shelf, as some of the corporations would appear to believe.There is always a challenge
The advent of more sophisticated machinery is not an insurmountable object either. The actual metal bending engineering is becoming ever more reliable, reducing the need to strip tractors down as a matter of course.
