[ China Agricultural Machinery Industry News ] In the past two years, the development of China's agricultural machinery industry has become increasingly embarrassing, and many companies have had a hard time, including some companies that have a good impression, and even have a strong chill. In fact, it is not only the days when agricultural machinery companies are not good, but the days of agricultural machinery circulation enterprises that have not been valued for a long time are even more difficult.
Recently, many industry colleagues engaged in agricultural machinery distribution have complained about their difficulties in the industry forum. After careful sorting, the author finally understands why our agricultural machinery dealers are so bleak, there are ten reasons!
Analysis: Ten major difficulties faced by agricultural machinery dealers
01
Regional dual authorization, the market is split
The long-term mainstream channel policy of the agricultural machinery industry is the distribution system. Under the distribution system, the manufacturer can authorize one dealer to franchise in one place, and can also give two or more dealers. In order to facilitate channel control, manufacturers tend to franchise.
However, a prominent phenomenon in the domestic agricultural machinery industry in recent years is that large enterprises are pushing dual or multi-head authorization.
In the short-term, adding a dealer in the same place can quickly increase the sales of products and increase the market share. However, in the long run, the two dealers will kill each other out of competition, resulting in vicious competition. If the profit margin is not enough, Both dealers will reduce the service to users and even push the service to the manufacturer.
The dual authorization system is a short-sighted behavior in marketing. This industry that pursues short-term benefits will inevitably damage the long-term development of the enterprise. The "contractual spirit" in the market economy is the foundation of rest and life. Do you not see when Kubota and John Deere have double authorization?
Today you abandoned the dealer, you will be abandoned by the dealer tomorrow!
02
After the first payment, the cash flow pressure is transferred to the dealer
In recent years, there is a unique phenomenon in the annual agricultural machinery industry report, that is, the growth rate of the industry is getting slower and slower, but the profit growth rate of some large-scale production enterprises exceeds that of the industry, and the annual cash flow is improving.
The reason is actually very simple. That is, in order to prevent the risk and profit of accounts receivable, the production enterprises no longer distribute the goods to the dealers in the sales, and they no longer give the dealers an account period.
In the past, some domestic production companies have promoted the first-for-money payment for a long period of time for the sake of competition, and successfully seized a large market share from the foreign capitals such as Kubota and Yanmar.
However, in recent years, China's Yituo, Lovol Heavy Industries and other companies have strongly promoted the first payment, which has improved both profit and cash flow. With the power of role models, the SMEs with a slightly stronger brand also have the same kind of learning. Some companies prefer not to sell goods or distribute goods to dealers.
The change in sales policy will sometimes completely change the profit level of the two upstream and downstream partners of production enterprises and distributors. Due to the current high interest rate of actual bank loans, for agricultural machinery dealers who do not have their own funds and need to operate through bank financing, Once the manufacturer does not give the goods or does not give the account period, the dealer's operating efficiency will fall immediately, and the days are not good.
03
Users are becoming more and more mature, traditional trading methods are no longer applicable
Along with the improvement of the level of agricultural mechanization, the mentality of domestic users is becoming more and more mature, the concept of consumption tends to be rational, and the phenomenon of blindly following the purchase of goods without actual needs is basically extinct.
Users' brand awareness is getting stronger and stronger. Not only will they shop around, but they will also ask dealers to ask for a variety of gifts for low discounts and if the dealers can't meet their requirements. When you turn your head, you will go to the store next door.
In addition, some cooperative users are well-informed, and the familiarity with agricultural machinery sometimes exceeds the dealer's salesman, so the price is cut to the light, and the dealer has no power to fight. Moreover, the requirements for services are also increasing.
In short, in the face of a group of more and more mature users, the previous control of agricultural machinery dealers is disappearing, and of course the days are not as good as before.
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