Inputs price vs value

[gustgd]

I'll have to ask forgiveness from you agri-ville purists out there who like to keep this forum related to commodity marketing. but since inputs are essentially a commodity I'd like to ask some best practices from you folks.

When you folks are buying inputs how do you decide where to buy given that the product comes from the same factory sometimes same wholesaler yet there might be $50.00 a case difference.
Is it all about lowest price is the law?

Is shopping locally much of a factor?

Does it matter if they buy grain and can cut you a break on the back end?

Past history of dealings?
"Free" agronomy advice, Returns policy, delivery, friendship, perks..........


Anyone with retail history please contribute to what you like to see.

[gustgd]

I'll start

In Davidson I am very lucky.
Richardson's, Viterra, Cargill all buy grain. Midwest Agro. a local independant with strength to the west side of SK. and Blairs Fert. strong in the east. Competition is quite good.

We shop pretty hard sending out a call for specific chemicals and generally buy from the lowest local price. We don't auction it's one call give me your best price I'll call back if successful. And I'll call again next chemical, no hard feelings.
This year we are getting lots from the elevators as we think it helps in grain delivery.
We generally know what we want as the chem companies come by as often as we need them and we often get to try new chemistry when it comes out and with my network within the Wheatgrowers I talk to many very good producers across the west.

We are probably use brand names most of the time but the generics do tempt us some of the time. I am more likely to use something after talking to other growers successfully. Rather than ask what the retail thinks I should use
(note to Chem manufacturers, farmers appreciate trips to factories and golf courses as well)
I'm sure that the big retails out there "know" us better than we know ourselves. I'm trying to figure out how to get the best value for my limited input dollars?

[ado089]

Ill pay 50 cents per acre more for consistent good prices compared to chasing the best price all the time. But that's just me.

[dave4441]

I try and use last year's price as a benchmark for purchase this year. Do not have the time to price all over, but know my dealer well enough, that i tend to get close over the long run. The chemical price drop means i have to keep on my toes a bit this year. Will use a generic if it can help keep me out of programs and or is cheaper. I think chem company programs are a bad way to make agronomic decisions and i do not bother signing up for them. Always pick the cheapest glyphosate and use more, been doing that for 5-6 years and believe it is the best.

Prefer to deal with local independent as they tend to have the most knowledge, but not looking to pay for any more service then simply loading the stuff in the back of my truck. I get a kick when dealers refer to that as service. Heck, if it was cheaper i would prefer a nutters type dealer where you loaded it yourself. Maybe that is the future.

[sawfly]

if we all bought local, we would still be paying thru the nose for all chemicals.
We had to go around the dealer system and government to break the monopoly.
buying local is great , but if all their doing is collecting money , and shipping it to the US or Germany.
great lot of good that does the local economy .

if the local guy is working for the customer great. if he's only working for head office then there's no real reason for customer loyalty

[SASKFARMER3]

Well we also have competition from Viagra Richardson, Cargill, And two independents. I love the lowest price is the law and all know it. Yes we have volume and heated storage. So lots of wiggle room. But were 50/50 between independence and This year Viagra. Also FNA has got lots this year. But this winter will have supper meeting with US relative and his dealer. Networking.

[freewheat]

I don't have the luxury to shop around, go where I get credt.

[DogPatch]

Sawfly......and others that don't see the value in local dealers

NOTE.. There will always be exceptions and they generally deserve NOT to have our business.

The local dealer is doing lots for the customer. He's providing permanent facilities for the storage and merchandising of chemicals. With all the rules they have, you can't just build a pole barn anymore.

Their inventory is there, and ready for you. They have a broad selection of products; Brand names, generics, herbicides, fungicides, insectides, seed and treatments. Supplies will only become short near season end, and with all the options out there, something will do the job. Excessive year-end inventory is very costly to store, insure, and maintain. No different than the bin of canola that heats.

Unless you have traded something for a special deal upfront, then extra product you have picked up or ordered should be returnable. They may provide alternate product should weather conditions change and you need to change chemicals. Can you return anything you ordered from the USA ?

Local dealers don't require an annual membership for the priviledge of buying from a limited product line, of old technology. New brand name products represent new and generally improved technology, and the value of research will continue to improve this chemistry for the future.

The local dealer can arrange credit packages to work with your cash flow. Cash upfront is generally a trade off to get a better deal.

Local dealers really have no choice about the big 6 or whatever chemical companies. Canada use to have our fair share of chemical manufactures years ago, but globalization allowed the European, and American's to dominate the mergers. From what I have seen, the quality control from these ones, is usually superior to that from China and India.

Local dealers will generally have staff with kids in school, pay taxes in the town/RM, and support local groups. Their families support other local business and will sometimes even buy you coffee at the curling rink. They have roots in you communities.

Everyone is in this world to make a buck, we shouldn't knock the local dealer for trying to stay in business too.

PS..... as a younger person, I did work for a local dealer, and I always appreciated the interaction with the customer. Some people, you can never please, the price will always be "better somewhere else" and quite frankly, those were generally not the most pleasant people to work with anyway.

[dave4441]

Dogpatch-you have some good points and unfortunately, the dealer takes some of the wrath re farm input prices, when I know that their business is not overly profitable, ie margins are not huge. But, farming is a business and no profitable business does not watch it's costs, including a independent retailer. It is a big circle. I have never had anyone pay any more from me then the mkt, and therfore I do not "owe" someone more then mkt price. Everything is a trade off. I hear guys walk across the street for 5 dollars per jug. In the long run, if their is shortages, those that chisel that hard will do without.

[dave4441]

Dogpatch-you have some good points and unfortunately, the dealer takes some of the wrath re farm input prices, when I know that their business is not overly profitable, ie margins are not huge. But, farming is a business and no profitable business does not watch it's costs, including a independent retailer. It is a big circle. I have never had anyone pay any more from me then the mkt, and therfore I do not "owe" someone more then mkt price. Everything is a trade off. I hear guys walk across the street for 5 dollars per jug. In the long run, if their is shortages, those that chisel that hard will do without.

[gustgd]

For those of you who use out of town suppliers, US dealers or FNA. How much off is enough for you to make the switch.
If they don't support the local clubs and groups have to carry extra inventory, or have the costs associated with local locations how much off do you expect. 2%-5%.

[gustgd]

Do the same rules apply to retail banking. AIG has some great rates for online banking.
Do mortgage brokers do business in agriculture?
For my experience in the Credit Union system, the costs associated with online banking allow them to make outstanding margins vs traditional face to face transactions.