You need ‘em when you need ‘em.
And you really pay for them when you, and everyone else, needs them.
I’m talking about good condition used rotary hoes. It’s a dime a dozen over the years when I’ve seen them sold at auction. A quick check to Machinery Pete “Auction Price Data” shows more than 1,000 John Deere 400 rotary hoes sold over the past 17 years.
It’s interesting to study the data and note when prices cut on the high side.
It often occurs suddenly that everyone needs a rotary hoe, like when we see heavy rains and of course Spring 2017 proved as an example across much of the Midwest.
We can see this in search traffic data on MachineryPete.com. Every May, we see a spike in rotary hoe searches. In this case, “spike” means more than double the searches as the next highest month.
Then, it wasn’t surprising when in the third week of June 2017 I saw three nice condition John Deere 400 30’ rotary hoes sell for strong prices. Here’s a picture of one sold for $6,500 on a June 21, 2017 farm auction in northeast Illinois:
Four days prior, on a June 17 farm auction in central Iowa, a pair of 30’John Deere 400 rotary hoes sold for $5,500 each. Here’s a pic:
Here’s a look at the highest auction sale prices the past 30 months on John Deere 400 rotary hoes:
Note how 7 of the 11 highest auction sale prices in the past 2.5 years have come here the past three months…when everyone needs ‘em.
Of course the money making angle here is to think about acquiring them when nobody wants or needs them, when they are selling for much less. Then having them on hand to sell when it rains too much at the wrong time and suddenly everyone needs one. I have a friend in eastern Iowa who has done this for years with used rotary hoes. He stocks up on them, holds them, then when time is right, sells them and reaps the profit.
Here’s a look at the Supply and Demand data from MachineryPete.com’s Dealer Center—focusing on supply of rotary hoes:
This applies to other types of used farm equipment as well: snow blowers, down corn reels and more. I’m sure you can fill in a couple more examples from your own neck of the woods. Folks need them when they need them.
This doesn’t have to be simply a local exercise either. Let’s talk hypothetically for a moment here. Let’s say over the years you would have bought lots of good condition used rotary hoes when they came available for sale, perhaps at auction, private sales, however you could them. Buy them when no one is thinking rotary hoes. So you had your storehouse of good used rotary hoes sitting ready in February 2017.
Then it started raining all over the Midwest, in Illinois, in Indiana, in Iowa, in North Dakota. #plant17. #replant17. #rereplant17.
Realize that now you have new powerful uber targeted ways of messaging directly to demographic farmer groups in particular geographic regions. Our Machinery Pete business allows dealers to do this through our partnership with Farm Journal Media and our 378,000 email list of farmers broken down by where specifically they are, how many acres they farm, what crops they grow.
So you watch the weather radar, pay attention to Twitter, see all pics and video clips of the flooded farmer fields in northern half of Illinois, western Indiana, or central Iowa.
You know they are going to need them…good used rotary hoes that is.
In a day shoot out thousands or tens of thousands of uber targeted emails with your dealership name/brand/logo/contact info to these flooded farmers. Why sit back and wait for the customer to find you and what you have for sale? Target your prime prospects proactively. You can (our auction sale price data) see they are willing and able to pay.
You need ‘em when you need ‘em.
Buy low, sell high always has worked. It’s just good business. Now it’s possible to do on steroids–very targeted steroids.
Author: Greg Peterson