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| How many minutes would it take for every farmer in the country to figure out where the cheap zone was if they allowed purchases to be made outside of the zone you reside in? Would you expect the dealer in Kentucky to provide service, or would your local dealer still be on the hook for the three extra bags you need to finish, or any product issues you have? At some point you have to realize the value of keeping your local dealer in business.
You are free to purchase from any dealer anywhere in the U.S., but he will be on the hook for the cost of the corn in your zone.
The story I have hear from Deere dealers is they aren't truly free to sell new equipment to anyone, on many pieces of equipment they are penalized for selling outside their trade territory. If they are still selling outside their territory then it implies their margin is large enough to cover the penalty for doing so and still turn a profit. Most seed dealers are not operating on that kind of margin.
Edited by Matt NCOK 11/12/2008 18:19
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Is zone based trait pricing fair?
