Does Deere Gouge Farmers For Replacement Parts?

2014 - Volume #38, Issue #3, Page #05

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Most people would answer the question posed in this headline “Yes!” but parts have always seemed expensive. Is it gouging or just good business to charge as much as the market will bear for replacement parts?
  Roger Gutschmidt is an innovative farmer and jack-of-all-trades in Gackle, N. Dak. He’s been featured in FARM SHOW more times than any other inventor or manufacturer. He runs a lot of Deere equipment and is about as level-headed as anyone I’ve dealt with in 36 years of writing for this magazine. So when he reaches the conclusion that prices are getting out of control at Deere, I think the company should listen.
  “A customer came into my shop last fall looking for a replacement Bosch alternator for his Deere 9770 combine. I had one on my shelf and sold it to him for $250. He was tickled because Deere wanted $950 for the exact same unit. The one I sold him was a brand new OEM Bosch, just like Deere sells, and my cost was considerably lower than $250. I’m guessing Deere can buy them even cheaper than I can. So that’s a pretty amazing profit margin for both company and dealer.
  “Just recently the fan clutch went out on my Deere 8970 4-wheel drive. Deere sells that part for $1,200. I went online and found the exact same OEM replacement – an Eaton brand - for $425 (www.fanclutch.com; ph 800 525-0164; ext. 16 or 22; Part #18105-1 – replaces JD Part #RE56310). It’s really not much different buying online than buying from Deere because dealers don’t stock most of these expensive parts. The company likes to order them as needed. So in either case, the part must be shipped. This fan clutch is a common problem and most people think you can only get them from Deere.
  “I think markups on Deere parts have increased so much that anyone should first check online to see if you can’t find the same parts for less. If enough people start doing that, maybe the company will change its pricing.”

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Does Deere Gouge Farmers For Replacement Parts? TRACTORS Miscellaneous Most people would answer the question posed in this headline “Yes!” but parts have always seemed expensive Is it gouging or just good business to charge as much as the market will bear for replacement parts? Roger Gutschmidt is an innovative farmer and jack-of-all-trades in Gackle N Dak He’s been featured in FARM SHOW more times than any other inventor or manufacturer He runs a lot of Deere equipment and is about as level-headed as anyone I’ve dealt with in 36 years of writing for this magazine So when he reaches the conclusion that prices are getting out of control at Deere I think the company should listen “A customer came into my shop last fall looking for a replacement Bosch alternator for his Deere 9770 combine I had one on my shelf and sold it to him for $250 He was tickled because Deere wanted $950 for the exact same unit The one I sold him was a brand new OEM Bosch just like Deere sells and my cost was considerably lower than $250 I’m guessing Deere can buy them even cheaper than I can So that’s a pretty amazing profit margin for both company and dealer “Just recently the fan clutch went out on my Deere 8970 4-wheel drive Deere sells that part for $1 200 I went online and found the exact same OEM replacement – an Eaton brand - for $425 www fanclutch com; ph 800 525-0164; ext 16 or 22; Part #18105-1 – replaces JD Part #RE56310 It’s really not much different buying online than buying from Deere because dealers don’t stock most of these expensive parts The company likes to order them as needed So in either case the part must be shipped This fan clutch is a common problem and most people think you can only get them from Deere “I think markups on Deere parts have increased so much that anyone should first check online to see if you can’t find the same parts for less If enough people start doing that maybe the company will change its pricing ”

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