The 800 lb Gorilla

June 19 2008 at 1:29 PM
Tim McMurray  (Login Mac-1)

In any industry you name there will always be an 800 lber. They will dominate because of their purchasing power and they will use that power to intimidate, bypass, pressure, control and eliminate the other distributors, suppliers, importers and dealers.
The AG industry is no different other than to say it is easier to dominate because of its small size. Certain businesses have somewhat insulated themselves with unique offerrings and service but the pressure is always on because the 800 lber affects everyones bottom line.
Your choices now are always going to affect your options later. You can rationalize buying behavior in dollar terms (in the short run) but in the long run you will have nobody to blame but yourself when your choices, down the road are limited.
Specialist companies are always on the leading edge of demand (or lack of it)and if the demand lately is any indication of what is to come you are going to lose more of your current choices in the downturn we are facing.
Individually you can do your part and collectively you can make a difference that will determine what direction the industry goes. Do you want the current trend of consolidation to continue, increase or decrease? It is a question you need to ask yourself on every transaction you make.
Once your choices are limited the 800 lber is going to raise their prices to a very profitable level and you won't have many if any choices to exercise. Competition is a very good thing. Without it we have no choice but to pay the going rate and that rate will go up the less competion there is.
I'm not whining but I'm stating the obvious so that those that purchase via a google price search will realize they have nobody to blame but themselves when the number of hits diminish.




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