Farm machinery dealers
(
(Continued from Page ASS)
occupancy expenses—the cost of
land and facilities—which jumped
from 1.24 percent of sales in 1979 to
1.42 percent in 1981.
Other rising expenses also
pressed dealers. Salaries com
prised 35 percent of total dealer
ship expenses in 1981, the largest
cost element. The figure would be
even higher, but salaries of
mechanics and servicemen are
charged to their sales accounts.
Dealers’ efforts to restrain rising
costs are evident in developments
concerning salary expenses.
CUT YOUR COSTS
SHOP AT E.M. HERR'S TODAY
OmKMfMM as
Complete Lina jSvf —T*iKu)
_ _ . cawafi^gui^^ ✓ \ VJlr/
of DeLavan ■""™ f/T -a.—«4»
Sprayer Parts YT^S.
Fl* Up Your \
Sprayer NOW \ SfSls%;
* SAVE
WJ 1
E.U
POLYETHnaf PerFt
Twine 3/8-
70P.5.1. 1/2"
H & S MANURE SPREADER T~
CLEARANCE . SAVE UP TO , L
SAVE OVER 30% | 30% .HllPltl^y
I On Manure Spreader Aprons
C °Brands e * w/Gratz Chain & Silage Wagon Aprons -
QUANTITY
PRICES Pkg. Of 25 -
824.75
99*
sms ?
ALKi ‘ >O“Ai M(| I".
DRAINAGE PIPES
KENDALL UDDER CREME
SOFTENS
CHAPPED Sj
teats m
Contains
lanolin to
soften sun
burned and
chapped teats
and udders
28 02 SALE 4,bBoz ' SALE
Ss» *5" mi 99 »I 2"
Although salaries as a percent of
total sales increased from 3.1 to 5.4
percent from 1979 to 1981, average
dealership personnel dropped 7
percent from 14.1 to 13.1 persons,
reflecting the sluggish market.
From 1970 to 1981, sales per em
ployee more than tripled from
about 158,000 to over 1188,000.
The net effect of all of these
rising expenses and sluggish sales
has been an erosion of profits. In
the early 1970’5, average net
operating profit was 124,250, rising
to $86,190 in 1979, but declining to
$55,596 in 1981. Net profit on sales
Per FI
14*
14*
is*
3/4"
Y-TEX EAR
TAGS
Gal.
Diameter
PRICES
ON
POLY
TANKS
110
200
300
28*
31*
-SPECIAL PANELS
*ls** Sip
34”x16”
Reg. SALE
34"x16’ Hpg 18.95 *15.99
52”xl6’Cattle 19.95 17.99
52"x16' 20.95 18.99
Combination
.WetJJpote . Root
• Curing Erosion Development
Problems . Terrace Drainage
. Poor Yielding , Wa ter Table
• HHteide Seeps Control
Reg. Price
30”
$114.95
32"
$169.95
38”
$199.95
48"
$279.95
alone dropped from about $30,000
m 1979 to a net loss of almost $7,000
in 1981.
Weighing heavily on farm
machinery sales and profits is the
anemic farm income performance
of the past few years. When far
mers are in a financial bind, they
defer expensive equipment pur
chases as much as possible,
making do with equipment on
hand. Cheaper used equipment and
parts and service sales, which
provide less profit, become a
larger portion of a dealer’s total
business.
The slump in equipment sales
has created a buyers’ market
SALE
•95**
Uprights Available
*I49 95 65,550.1300,
1600 gal.
•IS4* 9
*265"
which forced down the average
profit margin on new and used
equipment from 9.9 percent in 1979
to 8.6 percent in 1981—about a 13-
percent drop. From 1980 to 1981,
the profit margin for parts was
almost flat at about 31 percent, but
the profit margin on service labor
increased over 1 percent to almost
38 perc or,t
EGGS
Distributor of
Blue Bell, Pa.
WATER WASHERS
for Hog, Poultry & Veal
Animal Confinement Operations
Warwick Hot and Cold Water
Washers deliver over 2000 psi
of profitable cleaning power for
your toughest jobs.
Our patented diaphragm pi
can't be damaged by runnii
dry!
, 'A/'\>^vvarwick
AUTHORIZED DISTRIBUTOR - SALES & SERVICE
FARMERSVIUi EQUIPMENT
RD 4, East Farmersville Rd., Ephrata, PA 17522
Located in the Village of Farmersville, Lancaster County
717-354-4271
Lancaster Fanning, Saturday, May 24,1983—A37
Manufacturer of
ALL ALUMINUM
TRUCK BODIES
Livestock, Grain
and Bulk Feed
Aluminum Grain Body
iMmall Refrigerated Trailers
Sales & Service
Available with electric or gaso
line power and a complete fine
of special application accessories
INC.
While profit margins tightened,
the dealers’ assets, as stacked
against liabilities, declined in 1981.
Faced with growing inventories
and slow sales turnover, dealers
have seen average ownership
equity—assets minus liabilities
decline from 29.3 in 1979 to 24.6 in
1981.
717-354-4971