crop input retailers

[uef]

Here is my simple question about fertilizer/chemical retailers: Why are they around? Apart from their desire to make money I don't see a practical reason. In the fall I make my fertilizer plan. I know what I want and how much of it. The same goes for chemicals. So why are there businesses whose whole purpose is to make a phone call and order it for me (and of course add a few percent to the price)?
Do you have some answers?

[charliep]

With access to the internet and other direct buying opportunities, the answer is the local dealer has less of a role. Having said that, the elements of customer starting with advice on use of the products and warehousing to have product stored close by for those who do not have appropriate buildings.

Interesting topic.

[JohnKenneth]

it is interesting. i don't know much about this side of the business - is it possible to work around them, i.e. buy direct from chem and fert manufacturers?

[rainman]

uef, do you like having people in the rural area or should everyone move to the city except the farmer? I don't mind paying a few extra dollars for my supplies, I KNOW they are not making very much money!!

[wd9]

In fertilizer, having a blending facility is too expensive to own at home, so I guess I pay for it at the dealer. To set up bins for sulphur, elemental sulfur, blend in copper, phosphate, urea, potash, other micros would be a costly undertaking.

[uef]

"We have to support our local communities!" - I knew this was going to come up. And I support that to a certain degree. The only question is how much is it worth to you. Let's say your inputs would be 5% cheaper. In my case that would be about $5000. That's more than my car is worth. And I don't think any company would invest that much money in buildings, staff etc. for just 5% return.

[silverback]

join fna and bypass anyone you can then.

Better yet, start your own company.

Pretty sure agrium is not going to sell to you direct, or a blended product, without you setting up your own business/dealership first.

[uef]

rainman:
"I KNOW they are not making very much money!!" - How much is it? Really, I am curios.
And I don't want to step on anybodies toes here, it is just a question that came to my mind. I now it is next to impossible to get fertilizer direct from the plant and if you phone e.g. BASF about delivering chemical directly to you they will not even talk you. But why is that so? I just does not make sense to me and maybe somebody has a good explanation.

[silverback]

Because the vast majority of farmers (imo) enjoy their suppliers ability to gather information and advice and distill it down to what will work on their farm.

Some farmers don't even want to try and worry about marketing their own product so imagine them trying to figure out their soil samples, fert. blends, chemical needs, insect pests, etc...

Information is a valuable product, and any company that can provide such information shouldn't feel they have to do it for free.

Start your own fertilizer/ chem distributor company and keep the few percent in your pocket.

[rainman]

uef, when I say not very much I mean not very much relative to what the boy's on top are making. Sure if you can sell a thousand cases of Horizon, etc, then you will make some decent money, but these dealers are not making money like they used to. Most chemical and fert is between 5-10% margin which to me is not that much. I agree with you that if we cut them out we could save money, but if you look at it that way what would be left in a community? It's the Mosaic's and Bayer's that could drop their prices by 5% rather than eliminating the dealer.