European Partners

A letter to OUR European Partners

For a description as to what exactly is a shredder please refer to the following.

http://hayandforage.com/equipment/making-corn-silage-better-1103 

 

 

Thinking of becoming a Partner? Perhaps one of the better ways to explain the ownership of individual pieces of equipment is for you to read Pleasant Creek Hay Equipment's business proposal to perspective European Partners (Equipment Dealers). If we at the sales end at Pleasant Creek Hay Equipment are successful, the mowing end at Pleasant Creek Hay will be leasing the mowing side (and tractors) from our European Partners at quite reasonable rates, PENDING SALES, but at a price affordable of (second hand) equipment! 

A piece of equipment makes no money sitting in a dealer lot in Europe, the US or IN STORAGE AT YOUR FARM!

Your partnership will be leasing each individual piece of equipment from you, your other farm partner, myself as Pleasant Creek Hay Equipment (including its European partners) or own a piece of equipment outright...... but for book keeping purposes and in case it leases the piece to a third party, your partnership leases a piece from itself!

It would be a financial mistake not to account for every piece of equipments hours of use!

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Here is the proposed letter to perspective European Partners 

Dear Sirs,

I am the owner of PleasantCreekHay.com and PleasantCreekHayEquipment.com and a LICENSED NEW YORKSTATE Real estate salesperson. (I want to stress my licensing because you have to have a clean criminal record to obtain a license in real estate in the State of New York

As of 1.1.2011, the value of good second hand motorized agricultural and industrial equipment in the US increased up to10% as the price of new equipment increased as a result of increased emission standards needed in new motorized agricultural and construction equipment.

I am very much of the opinion YOUR COMPNY’s, (here in after sometimes referred to as EUROPE) second hand hay mowing equipment prior to 1.1.2011 was significantly of higher value and lower priced in Europe than here in the US, including tractors with air Brakes, hydraulic front suspension and IVT transmissions making them capable of travel 40k/hr or more. Europe has always lead the US. Europe had the first vertical silos, round balers and self propelled forage harvesters and now lead the way in what I think will be the next big thing in the US, the big hectare/hr mowing devices.  I think our US price matches that of your VAT added price and Europe and Pleasant Creek Hay Equipment can benefit from the price differential importing hay mowing equipment into the US. 

In the US, on any given day of the year, I might not even be able to purchase a mowing device capable of mowing 7 hectares/ hour for less than 60,000 euro, yet I could assemble multiple units from Europe for that price. The number of second hand mowing devices in Europe of 40 K+, 175HP or more 

A) I would like to, with EUROPE’s permission, list this machine (and others from  EUROPE, specifically all of your JCB Fastrac’s over 140 HP, any triple mower combinations, front mounted mowers and front Powered and reverse station tractors over 175 HP) in various North American web sites listing  Albany NY as home of the unit under the PleasantCreekHayEquipment.com USA home entering into a contractual arrangement with EUROPE (and other EUROPE hay cutting equipment using a similar formula) for  _____ $ US (     ) Euro in the US, FOB Albany NY USA. I have suggested listing the property at your list price + 4000 US for the Roll On Roll Off and Transport from New York City to Albany. Note that your list price includes the 19.2% VAT. A nice price adjustment for the cost of doing business in the US!

Without EUROPE’S permission, I could in theory list the unit for the same suggested price here in the US and take 100% of the mark up as my own, but that entails risk that ….

1) EUROPE will come to realize its equipment is being purchased on the assumption the European list price will stand and resold in the US and EUROPE not happy with its portion of the increased mark up raise its price to Pleasant Creek Hay Equipment making the transaction out of the question.

2) A mowing device that fails shortly after delivery could leave me in a particularly weak financial position. A second failure almost assuredly would weaken my financial position.

3) A buyer could come to realize the device is listed in Europe and my advertising (even though there will be additional costs) will be for naught should he purchase the machine directly from Europe.

4) I can not list the number of machines I would like to enroll without EUROPE’S consent. I would be limiting Pleasant Creek Hay Equipment’s potential income. 

I, as I do in real estate, prefer a 50/50 split in the commission on all of the listed machines sold by Pleasant Creek Hay Equipment.. 

In our real estate business dealings, as I will in our dealings, they are to be kept in the strictest confidence. To do otherwise in Real Estate I would jeopardize my license. I can’t for example tell a potential buyer of Real Estate exactly what a seller will sell a property for or if he/she mentions financial difficulty, reveal that to a potential buyer.  As your agent, I won’t be discussing my commission split or what PleasantCreekHay.com pays for its lease of equipment from EUROPE. Should someone identify one of PleasantCreekHayEquipment.com.’s listings as one of EUROPE’s listings and inquire about our dealings, my standard answer will be that I am not at liberty to discuss my business relationship with my European suppliers. 

1) I like photos. I will be welcoming photos from Europe, but:

a) I prefer not to reveal the identity of EUROPE as owner of a particular machine and prefer I get a set separate of photos, excluding any EUROPE Company logos from EUROPE. Even with a separate set of photos, it might be nearly impossible to keep the identity of a unit as belonging to EUROPE and if you prefer you can.

b) Have me touch up    (primarily reverse) any photos of the European web sites, including those on your EUROPE web site, reversing the photos if necessary. (Cropping out an identifiable feature, reversing the photo and stretching the photo to match the frame and your European listing and PleasantCreekHayEquipment.com listings similarities become coincidental.)

c) A third option is to have PleasantCreekHayEquipment.com .use manufacturer’s photos. 

2) PleasantCreekHayEquipment.com. will round up the hours on the machine, allowing for transport. (Set a number slightly higher than the European hours vs. copy hr/hr Europe’s hour listing.) 

3) PleasantCreekHayEquipment.com will list a price (as previously based by our agreed to formula) in US $s rounding up to the nearest $500 increment vs. the English Pound or euro. (Unless someone knows the formula, specifically the estimate RORA and transport to Albany it will be impossible to determine the machines origin based on price.) 

B) I’d like to list this unit (and others from  EUROPE, specifically all of your JCB Fastrac’s, motorized mower units, triple mower combinations, front mounted mowers and front Powered and reverse station t) in various North American web sites listing Albany NY as home of the unit as a try it before you buy it machine, I am of the opinion a try it before you buy it offer raises the confidence of the buyer to the point buyers will:

1) Sign  a lease.

a) A 50 hour lease locking in the listed price to PleasantCreekHayEquipment.com and you in Europe.

b) Leasing the machine for .65% of the average of the second hand machine list price and the list price of a comparable new unit. The RORA will serve as a deposit, the 50 hour charge, payable up front and non refundable if the potential buyer wishes not to purchase the unit.

( I am unsure as to whether you in Europe lease used equipment, but if you feel this is an unreasonable rate, feel free to suggest a different scale and or rate/hour/thousand.) In the US it isn’t uncommon to do custom work for 1% per thousand of investment. I am of the opinion that at .65%/thousand the lease will not be so high that a potential buyer will refuse the offer,

1) killing the sale leaving the unit in Europe

2) so low we will be taken advantage of, leaving us with an idle unit upon expiration of the lease.

3) since this is to be part of the purchase the hourly rate is of small consequence when the new owner has made the purchase.

4) Purchase the unit. WE NEED A WARRANTEE TO SELL EQUIPMENT ANYWHERE

Well that isn’t necessarily true, equipment is sold at auction all of the time, buyer beware. I consider myself particularly good at listening to an engine, but a warrantee for an engine a buyer won’t be able to listen to for the first time until he takes possession will certainly enhance sales.

If you at EUROPE have a stock warrantee on your motorized equipment, I will be more than happy to follow it to form here in the US as PleasantCreekHayEquipment.com.

Otherwise: I want to Warrantee machines for 25 hours of operation.

a) If for any reason the machine fails in the first 25 hours of operation and the necessary repairs are going to be in excess of $1000 (768.1 euro) acting as your agent, PleasantCreekHayEquipment.com will buy back the unit.

b) No other warrantees will apply. (This doesn’t mean that PleasantCreekHay.com and PleasantCreekHayEquipment.com  won’t assist the buyer in finding a mechanic or assist him in harvesting his crop, but you in Europe nor PleasantCreekHayEquipment.com. will have any further financial obligations to the buyer if for example a radiator or starter needed replacement.

c) Everything is negotiable! It is EUROPE’S machine and PleasantCreekHayEquipment.com. commission. If EUROPE, the owner and PleasantCreekHayEquipment.com concur on who and how much of the repairs are to be paid by all parties, then it will be the new owners option to keep the machine.

Otherwise:

d)PleasantCreekHayEquipment.com. and PleasantCreekHay.com will, in the event EUROPE and PleasantCreekHayEquipment.com. has to take possession of the unit will do support should we have a warrantee problem

1)PleasantCreekHayEquipment.com will seek out a reliable mechanic (preferably 3 shops taking the least expensive) and or use a manufacturer’s dealer or that of Agricultural equipment to make the repairs, including that of specialty shops that specialize in the units particular mechanical problem.

2) Upon repair, PleasantCreekHay.com will place the unit in its secondary fleet and begin paying the deposit (The RORA and FOB AlbanyNY)  in 6 monthly payments plus the appropriate hourly lease rate. (The secondary fleet is that portion of its fleet subject to immediate possession should a buyer come forward. The Primary Fleet is dependant on replacement prior to a buyer taking possession

c) PleasantCreekHay.com shall reserve the right to pay the deposit in its entirety placing it in its primary fleet.

THIS IS FAR FROM A SCAM! You are perfectly welcome to discuss our dealings with whom ever you wish, welcome to do any amount of searching the internet investigating my back ground. If you would like, I will be connecting my web cam to my computer so that we might communicate via web cam in the future.

My time, your time valuable, I prefer not to have you come to the US or I go to Europe, but it an option. If you have anyone on staff visiting the New York or the Boston area, for business or pleasure I certainly wouldn’t rule out lunch or dinner with a member of you or your staff.

For Your Information: I am but a start up company. I have yet to cut my first hectare (within the last 10 years) or sell my first piece of equipment. I am however a graduate of CornellUniversity with a degree in Agricultural finance and was born and raised on a dairy farm here in New YorkState. After college I returned to the family farm as a partner in PLEASANT CREEK DAIRY FARMS (150 milk cows). My first self-propelled forage harvester was a second hand European Import! 

I AM HUNGRY FOR THE KIND OF INCOME AND GROWTH POTENTIAL SELLING SECOND HAND EUROPEAN HAY EQUIPMENT MIGHT BRING MY START UP COMPANY!

On my behalf, as in real estate, our financial dealings are to be kept in the strictest confidence. I can’t for example tell a potential buyer of property exactly what a seller will sell a property for or if he/she mentions financial difficulty, reveal that to a potential buyer.  As your agent, I won’t be discussing my commission split or what PleasantCreekHay.com pays for its lease of equipment from Europe. Those are my responsibilities, my duties. I don't hold you to similar standards, freeing you to discuss our dealings to whom ever you like.

Sincerely,

Arthur Welser, Cornell Ag "74"

PleasantCreekHay.com

PleasantCreekHayEquipment.com

Front Power or reverse Station? 

MAKE DRAINAGE A PART OF YOUR CROP ROTATION!