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McCormick calls for 'realistic' tractor pricing
Feb 9, 2007 #124
The tractor industry needs to rethink advertised prices and use discounts more intelligently than as a simple “give-away”, according to McCormick Tractors sales director Jeremy Lamb, who suggests that the 'artificial' prices quoted in price lists, advertisements and press articles are inflated by as much as 30% to allow big ‘discounts’ to be given.
"These bear no relation to transaction prices and, while they may give people a nice feeling when they think they’re getting a big discount, it’s just an illusion. It’s a nonsense that the industry quotes so-called retail prices that bear no relation to the final transaction price, just because we’ve got into the habit of being ‘generous’ by giving away huge discounts.”
McCormick says it is adjusting its list prices downwards over the next two years to align them much closer to the transaction price farmers and contractors will pay. Dealer margins will not be affected, nor will the company’s tractors become cheaper in real terms, says Mr Lamb.
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