The lessons of the former car: the agricultural machinery industry can no longer play the zero down payment

[ China Agricultural Machinery Industry News ] In the sales process, credit sales is a very common marketing behavior. In the agricultural machinery industry, after changing from a difference purchase to a full-price purchase, in order to cater to the user’s purchase habits, the dealer implements a credit sale subsidy. . There is a national endorsement of credit, and there is not much problem with this part of the credit sales. However, in this year's market research, it was found that there was a major change in the sales of agricultural machinery. Unlike the previous partial sales of subsidies, dealers began to sell off the self-raised funds this year. What is even more frightening is that some dealers even started. Zero down payment is credited.
The lessons of the former car: the agricultural machinery industry can no longer play the zero down payment
Why is there a zero down payment for the agricultural machinery industry?
According to dealers in Hebei, Shandong, Shaanxi, Gansu and other provinces, the phenomenon of such zero down payment is mainly for the sake of competition.
Since the market situation in the first half of this year was not good, the number of user inquiries and purchases was too small. In order to compete for users, dealers competed to lower the proportion of down payment.
When the agricultural machinery was sprayed at the site of a dealer store in Baoji, the user came to see the machine. In order not to let the user go to the next-door competitor, the dealer’s clerk said that as long as he saw the money, he could drive the car away. When the user has money, he will return it. The agricultural machine will see the user smashing 500 yuan and then dragging a 45,000 yuan middle wheel away.
The foresight of the construction machinery industry
Zero down payment! This reminds me of the construction machinery industry.
In the period of 2011-2012, due to fierce competition in the industry, in order to increase market share, many construction machinery dealers continue to lower the closing threshold, and the 30% down payment ratio in the industry is continuously reduced until zero down payment.
This radical sales method has laid a huge hidden danger for the whole industry. After 2012, with the completion of the national large-scale construction projects, many users could not find a job, which led to a large-scale and universal overdue of the construction machinery industry. The phenomenon of default and evasion of debt, the bad debt rate is above 50%, and the default rate of users with zero down payment is high.
Low down payment and zero down payment have caused the collapse of the entire construction industry in the construction machinery industry. Sany Heavy Industry, Zoomlion and other big companies have been greatly hurt. Small businesses and small dealers have been dragged down and died. The original billions The rich have become hundreds of millions of "negative", because the financial leasing dealers have joint responsibility, and unlimited liability, many bosses can not afford to owe money to the bank for the rest of their lives.
The foresight of the car is still in sight, and the agricultural machinery industry is repeating the same mistakes!
Agricultural machinery dealers should increase the down payment ratio
Here, it is strongly recommended that agricultural machinery dealers should control credit sales, especially for self-raised funds, zero down payment is even more necessary. If the competition is too fierce and must be sold off, it is necessary to increase the proportion of down payment, with reference to foreign construction machinery and automobile industry. The experience is that at least 30% of the down payment, of course, to 50% is more insurance, according to experts, the increase in the down payment ratio has the following benefits:
The first is to screen out high quality users. According to experience, if the user can afford 30% of the down payment, the user has certain strength, indicating that the user is not impulsive, it is well thought out, such users, the later repayment is guaranteed.
The second is to reduce the risk of dealers. The user's down payment reaches 50%, plus the handling fee, insurance premium, interest, etc., the user actually pays more than 60% down payment, plus the quotation to the customer itself has profit margin, so for the dealer, almost the cost will already be When the price is recovered, the risk is reduced.
The third is to protect the rights and interests of old customers. Many old customers are buying at full price, and the cost of purchasing them is very high, so they will charge higher when they work, but if a large number of low down payment users enter the market, they are relatively under pressure, in order to recover the cost as soon as possible, It will compete to lower the price of the operation, which will impact the original old user's price system, resulting in vicious competition, and ultimately everyone will not make money.
Of course, the agricultural machinery industry should learn from the lessons of the construction machinery industry. Don't play the game with zero down payment. Once the large-scale development, the formation of the whole industry's follow-up speculation, it may destroy the entire agricultural machinery industry.

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