POLAND - Dansk Maskinhandlerforening

Dansk Maskinhandlerforening
SECOND HAND MACHINERY
PROJECT IN POLAND
Agroshow 2011
Poznań, 23 September 2011
1
God morgen!
2
MIRTOP – MIROSŁAW TOKAJ
•
2011 – the owner of Mirtop –business consultancy; created to help foreign companies
to enter the Polish market
•
2001 – 2010 – the President of the Board and majority shareholder of Rolserwis S.A.
o dealer New Holland, Kuhn, Kverneland, Unia, Sipma, Zetor
o Importer 2001- 2010
•
2004 – 2009 - V-ce President of the Board and minority shareholder of Dimagro Polska
Ltd. ; French-Polish company in charge with second hand agriculture machinery sales.
Within the years the company sold more than 1200 second - hand agriculture machines
•
2008-2009 – Co-author of Promodis Polska project – creation of commercial organization
of Polish dealers which is a part of Promodis international purchasing company
•
1999-2000 - Sales manager of New Holland in Poland
•
1997 – 1999 – the member of the Supervisory Board of Bizon Ukraine – Polish – Ukrainian
enterprise
•
1997 – 1999 - Export manager Bizon sp. z o.o. –Polish manufacturer of combine
harvesters
3
Presentation agenda
Mirtop - Miroslaw Tokaj – introduction
Agriculture machinery market in Poland
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Polish economy - general information
Polish agriculture - statistics
Polish agriculture machinery - market characteristics
Agriculture – Examples of Danish presence in Poland
Polish sec – hand agriculture machinery - market characteristics
Perspectives for sec – hand machinery sales in Poland
DM project – main issues
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DM – the offer range for Dannish companies, project tasks
Sales manager – candidate’s profile
Co-operation rules with potential Polish partners
Dealer network creation – main issues
Stocking machines in Poland – main issues and consequences
Possible legal entity in Poland – organization issues
Sales suport activities – exhibitions, Internet, magazines and advertisements
4
Presentation sources
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GUS – Główny Urząd Statystyczny (Polish Statisctics Office)
Several academic studies
Private studies
Ag. magazines articles
Manufacturers’ studies
PL dealers experience
Personal experience
Remarks:
– Sometimes data concerning the same issue may differ
– In some cases data up to 4 yrs old (not followed by
further statistics)
5
Polish economy
General information
6
POLAND – general info
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Area: 312,685 sq km
Population: 38,2 mln
In EU since 1 May 2004
GDP 2010 – 354,3 billion EUR purch. power parity
GDP 2010 – 103,8% vs 2009, GDP 2011 Aug YTD + 4,5%
GDP per capita: 9.275 EUR; 60,6% of EU level
GDP – composition by sector:
– Agriculture – 4%
– Industry -32%
– Services – 64%
Labor force – 17 mln
Labor force by occupation:
– Agriculture – 17,4%
– Industry - 29,2%
– Services – 53,4%
Unemployment – 9,4%
Inflation Aug 2011: 4,2% vs 2,6 % in 2010
Minimum salary: 1.386 zł
Average salary: 3.455 zł (+4,5% vs 2010)
Due to complicated law regulations, and bureaucracy
the state is still not business friendly
7
Poland - Basic taxes
• VAT – agriculture machinery
– Since 1 Jan 2011 – 23%
– 1.05.2004 – 31.12.2010 – 22%
– Before 1.05.2004 - released
• CIT – 19% - companies, ag. dealers
• PIT – income tax - private persons
– up to 85.528zł – 18% minus 556,02 zł
– 14.839,02 zł plus 32% from the amount > 85'528 zł
• More and more farmers – VAT tax payers, less
and less lump sums payers
8
Poland vs economic crisis
• Poland – the Green Island
while Europe in fire
• Positive economic picture of
Poland last years
• High internal consumption
• Only 40% of goods
manufactured in Poland are
exported
• Banking sector discipline
• Expenses limits
• 100 bln EUR – EU structure
funds
9
Zloty vs EUR/DKK
• Currency exchange rate risk in
Poland
• Currency speculations: Forex,
stocks of exchange
• In the last 5 yrs 1 EUR = from
3,202 to 4,827 zl (50,6495 %
difference)
• Not a problem while charging in
DKK but….
• …..your importers may be in
trouble especially if they stock
machines for a longer time
• Currency rates to be checked
permanently
EURO
DKK
10
Labour efficiency inPoland
•
•
•
•
•
New technologies usage
Strong competition
New staff skills - experience
People’s motivations
Polish people are considered as one
of top hardworking nations
1.
2.
3.
Korea – 2390 h/yr
Poland – 1984 h/yr – no. 1 in EU
Japan – 1828 h/yr
• 40 hours – working week, most of
Poles work 3-4 hours longer
• Poland - the lowest in Europe
penalties for braking of the worker’s
laws (av. 730 zl = 182,5 EUR)
11
EU – Denmark – Poland
2010 – statisctics comparison
Country
EU
Denmark
Poland
Land area in
thous. km
4403,4
43,1
312,7
Population
501 103 000
5 535 000
38 200 000
Harmonized
GDP in bln
unemployment
euro
rate
9,5
7,2
9,4
12 279,00
234,40
354,30
GDP per
capita at
purchasing
power parity
(EU=100)
100,00
120,30
60,60
GDP
(constant
prices
2009=100)
101,8
102,1
103,8
Groos doestic
expenses on
R&D (% of GDP)
Gen.
government
debt in % of
GDP
2,01
3,02
0,68
80,00
43,60
55,00
12
Polish agriculture - statistics
13
Agricultural land
Total
Arable land
Orchards
Meadows
Pastures
Others
Forests
Other land
16 119,60
12 113,60
331,40
2 463,10
716,60
495,00
9 272,60
5 875,80
51,60%
38,70%
1,10%
7,90%
2,30%
1,60%
29,70%
18,80%
Arable land
Orchards
Meadows
Pastures
Others
Forests
Other land
Agricultural land: > 16 mln ha !!!
14
Land use 2010
May 2016 – Polish agricultural land
fully available for foreigh investros
15
Farms by area groups
of agricultural land
2002
Number of farms
<1 ha
1ha-5ha
5ha-10ha
10ha-15 ha
15ha-20ha
20ha-50ha
>50 ha
2010
2 933
977
1 147
427
183
84
96
20
2010
in thous.
2 278
715
863
352
152
72
97
27
Difference
% diff.
2002=100%
-655
-262
-284
-75
-31
-12
1
7
22,4
73,18
75,24
82,44
83,06
85,71
101,04
135,00
1 563 000 farms > 1 ha
The number of farms 2010 vs
2002 - 655.000 less (22,4%)
More farms 20ha-50ha (+1000)
More farms > 50 ha (+7000)
<1 ha
1ha-5ha
5ha-10ha
10ha-15 ha
15ha-20ha
There are only 27.000
farms >50 ha
20ha-50ha
>50 ha
16
Differentiation of farms
17
Huge diffenences
North and West of Poland – big farms
Centre – medium size
South and East of Poland – small farms
Different customers’ needs
Data in ha
18
The average farm size
The average farm size > 1ha = 9,8 ha
19
Yields
Cattle and pigs 2010
in thous. heads
Cattle
Pigs
5 755
15 271
Per 100 ha of agr. land
in Poland
37
98
in Denmark c.a.
70
470
4,17 t/ha wheat
4 487 l of milk from 1 cow
20
Crops structure
Cereals
7 643
Patatoes
387
Industry plants
In thous. ha
1 172
Pastures
900
Crops structure
The others
417
Industry Pastures
8%
plants
11%
Patatoes
4%
The
others
4%
Cereals
73%
Cereals incl. maize for grain 7643 thous. ha (-7,8% vs 2002)
Potatoes - 387 thous. ha (-51,8% vs 2002)
Industry plants - 1 172 thous. ha (+54,8% vs 2002)
Pastures incl. maize for silage - 900 thous. ha (+60,1% vs 2002)
The others - 417 thous. ha (+37,9% vs 2002)
21
Crops structure
Sown area
Cereals
wheat
rye
barley
oats
triticale
cereal mixed
Pulses
Potatoes
Industrial
Sugar beet
oilseeds
fibrous
Feed
Other crops
%
72,4
20,2
10,1
9,2
5,5
12,5
11,9
1,6
3,7
11,5
2
9,3
0,01
5,5
5,3
22
Agriculture – output data
Specification
2000
Total
Crop output
Animal output
2002
2005
2008
2009
In mln zl
55 985,4 55 706,0 63 337,2 83 126,5 80 130,2
29 790,2 29 416,9 30 780,5 46 811,2 42 122,8
26 295,2 26 289,1 32 556,7 36 315,3 38 007,4
Total output 2000 - 2009
2009
90.000,0
80.000,0
70.000,0
Animal
output
47%
60.000,0
50.000,0
40.000,0
Crop
output
53%
30.000,0
20.000,0
10.000,0
0,0
2000
2002
2005
2008
2009
23
Polish agriculture in EU
POLAND IN THE EU
Agricultural land
Population
Ag. population
Production:
Wheat
Rye
Barley
Oats
Patatoes
Sugar beet
Rape and turnip rape
Meat
Cow's milk
Cattle
Pigs
Share %
Place in EU
8,70%
7,70%
25,50%
5
6
1
6,20%
37,30%
5,50%
14,20%
16,90%
8,60%
11,10%
7,30%
8,30%
6,30%
9.9%
4
2
5
1
2
3
3
6
4
7
3
Every 4th farmer in
Europe is Polish
24
Agricultural population
Yields per 1 ha in dt
EU
POLAND
52,1
32,2
DENMARK
60,3
PL Farmers:
- social issues
- political power
25
EU subsidies
• About 200 EUR per ha for a Polish farmer (close to Spain and
Austria)
Germany 300 EUR/ha
France 250 EUR/ha
Denmark 310 EUR/ha
EU 15
256 EUR/ha
• Modernization: Poland 60 EUR/ha
• Poland – the European leader in EU subsidies usage
• 30% of EU funds go to the land owners, not always farmers
• No willingness to sell land – „it is better if my neibghour ploughs
and seeds…..and I will collect EU subsidies”
• New EU budget – „active farmer” notion – possibility to change
• Ukraine joining EU – the threat for cereal manufacturers, not
possible to compete, the need to change their production profile
26
EU subsidies
• European subsidies changed the situation on the Polish agriculture
machinery market
• 2002 – 2004 – SAPARD – 300 mln EUR
• 2005 – 2006 SEKTOROWY PROGRAM OPERACYJNY – 1, 25 bln EUR
• 2007 – 2013 PROGRAM ROZWOJU OBSZARÓW WIEJSKICH – PROW –
budget: 17 bln EUR of which 1, 65 bln EUR for modernization of farms
(machines included)
• Many investments to be made also in 2014
• Up to 50% investment costs return
• As the consequence Poland became one of the most important European
markets
• New EU budget issue
• The question: Will there be any programms available after 2013?
27
Agriculture –
Danish presence in Poland
28
Danish activities in Poland
• Denmark – the 12th biggest foreign investor in Poland
• > 3.000,00 mln EUR from Denmark invested in PL
• Big DK companies: Statoil, Nordea, Carlsberg, TDC Mobile
International, Netto, Danfoss, Maersk, Grene, Kongskilde,
• Scandinavian-Polish Chamber of Commerce, SPCC, ul. Wiśniowa
40B lok. 9, 02-520 Warszawa; www.spcc.pl
– Since 2004
– > 340 companies from Scandinavian countries
– 109 companies from Denmark
29
Big Danish companies in charge of ag.
machinery in Poland
• Kongskilde
–
–
–
–
In Poland since 1997
Factory in Kutno
Dlr network – 44 dlrs
Offering Howard, Nordstern, Overum
• Grene
–
–
–
–
–
–
–
–
In Poland since 1996
Stock in Konin
Spare parts
500 employed
200 mln zl turnover
85 own selling outlets
20 salesmen
100 Grene partners
Grene outlets
30
Polen Invest A/S – Danish presence example
• Prime Food
– Located in Przechlewo
– In Poland since 1999
– Production volume: 8 000 tons of meat products
• Poldanor
–
–
–
–
–
–
–
–
–
Located in Przechlewo
In Poland since 1994
520 people employed
15.000 ha
30 farms
18 000 sows
8 modern bio-gas plants
fodder plant
Turnover c.a. 200 mln zl (50 mln EUR)
31
Polish agriculture machinery
Market characteristics
32
Agriculture - Investments
2005 - 2009
INVESTMENT OUTLAYS IN AGRICULTURE AND HUNTING
BY TYPE OF OUTLAYS
Fixed assets
2005
2006
2007
2008
2009
In million zloty
2 398
2 959
3 555
3 929
3 710
Total
of which
Machinery, technical
equipment and tools
Transport equipment
Per 1 ha
841
955
362
459
151
1 150
1 346
1 356
565
656
In zloty per / 1ha
185
220
243
566
Investments - machinery,
technical eq. and tools
1.400
1.200
1.000
800
600
230
400
1.346
1.356
2008
2009
1.150
841
955
200
0
2005
2006
2007
33
Tractors EU – Denmark - Poland
2000
EU (27)
DENMARK
POLAND
2007
IN THOUS. UNITS
8 954
9 237
123
111
1 307
1 553
% OF
2007
ARABLE LAND
PER 1 TR. IN HA
100,00
1,20
16,81
11,7
20,8
7,6
Data: GUS Rocznik rolnictwa 2010
34
Tractors - Poland
2000
2005
2007
2008
2009
In thous. units
1306,7
1437,2
1553,4
1566,3
1577,3
The previous year= 100
100,1
105,3
108,1
100,8
100,7
Average HP
43,25
53,45
54,13
54,26
54,26
Agricultural land per 1 tractor in ha
13,6
11,1
10,4
10,3
10,2
The average age of tractor >25 yrs old!
70% of tractors > 10 yrs
35
Tractor market Poland 2009 -2010 – 2011 Jul YTD
All makes, first registrations, new and sec - hand
Tractors
New
Sec- hand
Total
2009
%
13 541 49,52
13 806 50,48
27 347 100,00
37.567
2010
%
2011 Jul YTD
%
13 993 49,41
9 541 50,28
14 327 50,59
9 434 49,72
28 320 100,00
18 975 100,00
Total
%
37 075 49,67
37 567 50,33
74 642 100,00
37.075
New
Sec- hand
The value of: new tractors sold in 2010 > 2 bln zl
sec – hand tractors sold in 2010>1 bln zl
36
New tractors market 2010
Produced 2009 and 2010 - first registrations in Poland (2010)
(makes which registered> 50 tractors)
Make
New Holland
Zetor
John Deere
Belarus
DF
Case
Farmtrac
MF
Fendt
Valtra
Ursus
Pronar
Claas
Farmer
Lamborghini
Same
Kubota
Polmot
Landini
Mc Cormick
Q-ty
2 331
2 109
1 942
1 228
1 041
1 028
417
411
388
360
332
314
277
250
211
182
125
105
85
51
Mc Cormick 51
Landini 85
Polmot
105
Kubota
125
Same
182
Lamborghini
211
Farmer
250
Claas
277
Pronar
314
Ursus
332
Valtra
360
Fendt
388
MF
411
Farmtrac
417
Total market: new tractors 13993
Denmark c.a. 1400
Case
1.028
DF
1.041
1.228
Belarus
1.942
John Deere
2.109
Zetor
2.331
New Holland
0
500
1.000
1.500
2.000
2.500
37
Tractor market 2009-2010-2011 Jul YTD.
New and sec – hand tractors
HP range market shares
HP range
<50
50-75
76-99
100-130
131-160
161-210
>210
n/a
Total
2009
2 050
6 111
9 335
5 118
1 751
766
371
1 845
27 347
2010
1 700
5 575
9 777
5 851
2 010
811
444
2 152
28 320
2011 Jul YTD
1 031
3 634
6 675
3 880
1 415
554
328
1 458
18 975
Total
4 781
15 320
25 787
14 849
5 176
2 131
1 143
5 455
74 642
HP range - market shares
3% 2%
7%
<50
7% 6%
20%
20%
50-75
76-99
100-130
35%
131-160
161-210
>210
n/a
The average HP of tractors registered in Poland in 2010 – 92 HP
38
Q-ty of tractors
• In thousands
• More tractors in
Eastern and
Central Poland
(smaller farms
area)
• Less tractors in
North and West
Poland (big
farms area)
39
Ag. machinery in Poland
Machinery type
Q-ty
vs 2002
Combine harvesters
152 000
Sugar beet combines
Patatoes combines
SPFH
Field sprayers
Orchard sprayers
28 000 <14,2%
80 000 <1,7%
12 000 <9,4%
496 000 >5,1%
52 000 >14%
>23%
Data 2007
40
Ag. machinery in Poland
Machinery type
Fertiliser spreaders
Manure spreaders
Mowers
Front end loaders
Q-ty
630 000
551 000
540 000
200 000
Balers
190 000
Data 2007
41
Systematics info Jan – Jul 2011
• Machines imported to Poland
– Combine harvesters - 1027
– Round balers - 1245
– Big balers - 37
– SPFH - 10
42
New combine market
Season 2010/2011 – estimated figures
New Holland - 420
Claas - 400
Fendt, MF (Korbanek)- 160
John Deere –120
Deutz Fahr – 30
Case – 19
Challenger, Laverda - 0
Total market: about 1150 (Denmark c.a. 150)
2001-2008 – the combine market was stable, usually 40% for NH,
40% for Claas, 15% for JD, 5% for the others
• DF, Fendt and MF have actively tried to open the market for the last
3 yrs
• Bigger nad bigger combines sellable every year
• Possible market drop in some yrs perspective
•
•
•
•
•
•
•
•
•
43
Combine market 2006 – 2011 Jul YTD
Combines
CASE IH
CHALLENGER
CLAAS
DEUTZ-FAHR
FENDT
JOHN DEERE
LAVERDA
MASSEY FERGUSON
NEW HOLLAND
Undisclosed
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
6
9
16
29
8
1
2
6
4
165
269
444
180
219
13
58
71
41
10
120
121
103
145
145
169
5
16
18
1
14
203
241
309
389
374
1027
513
697
1005
790
919
1027
Combines
CASE IH
CHALLENGER
CLAAS
DEUTZ-FAHR
FENDT
JOHN DEERE
LAVERDA
MASSEY FERGUSON
NEW HOLLAND
Undisclosed
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
1%
1%
2%
4%
1%
0%
0%
0%
1%
0%
32%
39%
44%
23%
24%
3%
8%
7%
5%
1%
0%
0%
0%
0%
13%
24%
15%
14%
18%
18%
1%
2%
2%
0%
0%
0%
0%
0%
0%
2%
40%
35%
31%
49%
41%
0%
0%
0%
0%
0%
513
697
1005
790
919
1027
44
Large balers market
2006 – 2011 Jul YTD
Large Balers AGCO-WHITE
CASE IH
CLAAS
DEUTZ-FAHR
KRONE
NEW HOLLAND
Undisclosed
VICON
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
2
1
2
1
3
2
8
4
2
1
11
17
10
13
4
5
4
10
6
37
2
3
21
11
11
10
22
52
31
39
37
Large Balers AGCO-WHITE
CASE IH
CLAAS
DEUTZ-FAHR
KRONE
NEW HOLLAND
Undisclosed
VICON
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
0%
0%
0%
0%
5%
0%
5%
4%
0%
3%
30%
9%
15%
0%
10%
0%
0%
0%
0%
5%
10%
50%
33%
32%
33%
40%
23%
8%
32%
15%
0%
0%
0%
0%
0%
20%
14%
40%
35%
28%
10
22
52
31
39
37
45
Round balers market
2006 – 2011 Jul YTD
Round Balers CASE IH
CLAAS
DEUTZ-FAHR
FENDT
JOHN DEERE
KRONE
MASSEY FERGUSON
NEW HOLLAND
POETTINGER
Undisclosed
VICON
WELGER
KUHN
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
1
6
34
64
62
38
75
160
69
72
21
22
8
33
8
48
14
30
68
46
76
79
149
182
168
175
30
25
43
53
178
220
20
9
6
1245
50
75
106
72
34
5
10
22
26
92
58
233
410
653
665
881
1245
Round Balers CASE IH
CLAAS
DEUTZ-FAHR
FENDT
JOHN DEERE
KRONE
MASSEY FERGUSON
NEW HOLLAND
POETTINGER
Undisclosed
VICON
WELGER
KUHN
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
0%
1%
5%
10%
7%
16%
18%
25%
10%
8%
9%
5%
1%
5%
1%
0%
0%
0%
0%
5%
6%
7%
10%
7%
9%
34%
36%
28%
25%
20%
0%
0%
0%
0%
3%
11%
10%
8%
27%
25%
0%
0%
3%
1%
1%
0%
0%
0%
0%
0%
21%
18%
16%
11%
4%
2%
2%
3%
4%
10%
0%
0%
0%
0%
7%
233
410
653
665
881
1245
46
SPFH market
2006 – 2011 Jul YTD
SPFH
CASE IH
CLAAS
JOHN DEERE
KRONE
NEW HOLLAND
Undisclosed
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
1
3
1
3
1
2
6
6
7
6
3
2
1
3
1
1
1
1
3
10
14
10
12
8
8
10
SPFH
CASE IH
CLAAS
JOHN DEERE
KRONE
NEW HOLLAND
Undisclosed
TIV
Jul YTD '06 Jul YTD '07 Jul YTD '08 Jul YTD '09 Jul YTD '10 Jul YTD '11
7%
0%
0%
0%
0%
21%
10%
25%
13%
25%
43%
60%
58%
75%
0%
21%
20%
8%
0%
38%
7%
10%
8%
13%
38%
0%
0%
0%
0%
0%
14
10
12
8
8
10
47
Group
Type
Mar k et Total
Conventional
Ploughs
Reversable
Half-reversable
Estimated annual sales of
different types of new ag.
machines – average
volumes
2008 - 2010
Soil
cultivation
Rototillers, cyclotillers,
For soil
Teeth machines
For stabble field
Disc machines
Rollers
Cereals
Seeding/
Fertilizing
Seeders/ combinations
Maize
Sugar beet
Built on
Fertilizer spreraders
Classical Mow ew rs
Mow ers w ith conditioning
Rakes
Wrapping machines
(According to manufacturers
and importers oral
declarations)
Grass/Hay
Silage cutters
Feed mexers
Square
Balers
Round
Big balers
Transport
Manure spreaders
1 400
1 400
20
7 000
300
2 200
1 000
20
Front end loaders
Front linkage
Hanged
Sprayers
1 200
600
300
330
2 100
450
75
200
5 000
3 000
250
1 000
4 000
120
600
400
2 500
40
5 600
Carts for bales
Loading
380
Trailers
Sew age
REMARK! ESTIMATION ONLY
The data are not formally verified.
1 200
2 700
50
Pulled
Self propelled
48
Specifically Polish…
• Strong position of Zetor
• Traditional position of Ursus
taken over by Warfama
• Polish important manufacturers:
–
–
–
–
–
Unia
Pronar
Sipma
Warfama
Metalfach
49
Distribution system in Poland
• Proffesional dlr networks of main manufacturers (John Deere, New
Holland, Case, SDF, Claas, Kverneland, Kuhn, Unia)
–
–
–
–
–
•
•
•
•
•
•
•
•
Fully dedicated to main suppliers
Dlr territories
Finance schemes
Geomarketing
Outlets building
Special position of Korbanek – MF, Fendt
Good network of Zetor
Medium size dlrs connected to Ursus, Mc Cormick, Kubota, Valtra,
Small, „no Western tractor” companies basing on Pronar, Belarus, Zetor,
Escort, Farmer, Farmtrac,
Hundrerds of companies offering new ag. machines
Hundreds of companies in charge with sec – hand machinery business
The number of dealers: Mirtop database: >600 „dlrs” – i.e. companies
selling different kind of ag. machinery, spare parts, accessories
PKD – economic activity statistics – not good source of information
50
Polish second – hand agriculture
machinery - market characteristics
51
Sec-hand machinrey business is difficult
• The sales of sec – hand machinery is based on unique features of
machines. It differs from brand new machinery marketing
• We mainly are in touch with people who cannot afford bying
„brand new” machines
– Considered as lower market segment
– Cash financing
• The „brand new machines” customers and dealers are not
focused on sec- hand machines due to EU subsidies
• There are no statistisc books showing the average value of
machinery…. the most importnat reffrence is Internet
• Perhaps it is the opportunity….
52
Sec – hand cars sales in Poland
• Sales of cars: 8% - new, 92% - sec – hand units
• Average price: 12.400 zł (3.100 EUR)
• >50% of cars > 10 yr old
53
Tractor market Poland 2010
New and sec – hand units
• The average HP tractor in Poland – 55 HP
• The most sellable sector – 82-136 HP (ab. 30%)
• The average age of tractors registered in 2010 in Poland - 11,2 yrs
HP
>306
278-306
239-277
205-238
171-204
137-170
110-136
83-109
55-82
35-54
21-34
up to 20
Av. Age
3
4,6
5
4
7
8,1
8,8
8,9
13,5
19,1
23
14,4
25
20
15
10
5
0
54
Tractor market Poland 2010
New and sec – hand units
• Age of tractors registered in 2010
Age
1
2-5 yrs
6-10 yrs
11-15 yrs
16-20 yrs
21-25
>25 yrs
Total
Q-ty
10593
4934
780
2048
2486
3227
4665
28733
%
36,87
17,17
2,71
7,13
8,65
11,23
16,24
100,00
1
2-5 yrs
6-10 yrs
11-15 yrs
16-20 yrs
21-25
>25 yrs
The value of all sec – hand tractors sold in 2010 > 1 bln zl
Very difficult to sell 6-10 yrs old tractor!
55
Sec – hand tractors market
Market
segmentation
56
Sec - hand tractor market 2009-2010-2011 Jul YTD.
First registrations in Poland
(makes which registered >50 units minimum once in 3 analyzed years)
Make
Zetor
MF
John Deere
Ursus
Case
Renault
Fendt
DF
Belarus
Same
Landini
New Holland
Fiat
Ford
JCB
Mc Cormick
Lamborghini
Fortschritt
Valtra&Valmet
Claas
Mercedes Benz
Steyr
2009
3 523
2 025
1 408
1 390
1 150
809
603
562
530
257
180
151
170
153
75
65
82
108
61
26
57
51
2010
3 268
1 998
1 616
1 161
1 179
1 074
729
639
743
292
173
212
153
154
113
97
73
66
88
68
43
42
2011 JUL
YTD
1 948
1 271
1 208
754
820
976
563
423
340
191
173
139
99
85
93
90
75
41
55
63
23
27
Total
Steyr
8 739 Mercedes Benz
5 294
Claas
4 232 Valtra&Valmet
Fortschritt
3 305
Lamborghini
3 149
Mc Cormick
2 859
JCB
1 895
Ford
1 624
Fiat
1 613
New
Holland
740
Landini
526
Same
502
Belarus
422
DF
392
Fendt
281
Renault
252
Case
230
Ursus
215
John Deere
204
MF
157
Zetor
123
0
120
Nearly all makes are sellable!
1000
2000
3000
4000
5000
6000
7000
8000
57
9000
Sec - hand tractors market. 2009-2010-2011 YTD
Tractors older > 10 yrs, first registrations in Poland
(makes which registered >50 units minimum once in 3 analyzed years)
Make
Zetor
MF
Ursus
John Deere
Case
Renault
Fendt
DF
Belarus
Same
Landini
Fiat
Ford
New Holland
Fortschritt
Lamborghini
JCB
Mercedes Benz
Steyr
2009
3 355
1 916
1 351
1 009
1 015
740
550
487
322
227
158
169
153
60
108
70
37
84
75
2010
3 127
1 892
1 125
1 093
1 042
992
644
557
279
257
150
152
153
110
66
55
67
42
39
2011 JUL
YTD
1 857
1 197
715
698
737
900
479
372
155
162
153
97
84
77
41
67
56
23
26
Total
8 339
5 005
3 191
2 800
2 794
2 632
1 673
1 416
756
646
461
418
390
247
215
192
160
149
140
Steyr
Mercedes Benz
Claas
Valtra&Valmet
Fortschritt
Lamborghini
Mc Cormick
JCB
Ford
Fiat
New Holland
Landini
Same
Belarus
DF
Fendt
Renault
Case
Ursus
John Deere
MF
Zetor
Nearly all makes are sellable!
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
58
Sec - hand tractors market 2009,2010, 2011 YTD
Tractors 100-130 HP, first registrations in Poland
(makes which registered more than minimum 15 units once sold in one of 3 chosen years)
Make
Zetor
MF
John Deere
Case
Fendt
Renault
Ursus
DF
Same
New Holland
Fiat
Ford
Belarus
Mc Cormick
Landini
Total
2009
358
337
325
254
192
127
125
89
38
44
25
17
15
13
16
2021
2010
406
378
375
307
224
165
88
99
63
50
27
38
25
27
13
2345
2011 JUL
YTD
254
239
224
214
190
146
57
60
48
34
19
10
16
10
17
1593
Total
1018
954
924
775
606
438
270
248
149
128
71
65
56
50
46
5959
Landini
Mc Cormick
Zetor + Western makes
Belarus
Ford
Fiat
New Holland
Same
DF
Ursus
Renault
Fendt
Case
John Deere
MF
Zetor
0
200
400
600
800
1000
1200
Total – all tractors, not only classified in graph
59
Sec - hand tractors market 2009,2010, 2011 YTD
Tractors 131-160 HP, first registrations in Poland
(makes which registered more than minimum 15 units once sold in one of 3 chosen years)
Make
John Deere
Zetor
MF
Case
Fendt
Ursus
Renault
DF
New Holland
JCB
JCB
Mc Cormick
Belarus
Total
2009
135
134
101
68
43
61
26
28
24
24
24
19
2
2 021
2010
220
135
113
75
95
46
51
46
41
24
24
16
15
2 345
2011 JUL
YTD
139
88
73
65
53
33
37
18
23
15
15
22
4
1 593
Total
494
357
287
208
191
140
114
92
88
63
63
57
21
5 959
Belarus
Western makes + Zetor
Mc Cormick
JCB
JCB
New Holland
DF
Renault
Ursus
Fendt
Case
MF
Zetor
John Deere
0
100
200
300
400
500
60
Sec - hand tractors market 2009,2010, 2011 YTD
Tractors 161 – 210 HP, first registrations in Poland
(All makes)
Make
John Deere
Case
MF
New Holland
JCB
Fendt
Valtra
Renault
Claas
DF
Mc Cormick
Fiat
Ursus
Ford
Same
Zetor
Landini
Steyr
Lamborghini
Hurlimann
Pronar
Valmet
Mercedes Benz
Total
2009
58
30
24
24
9
8
7
9
3
3
4
4
1
2
2
3
1
1
1
1
0
1
1
197
2011 JUL
YTD
2010
99
36
27
25
27
13
10
5
8
5
5
4
4
4
3
2
2
2
1
2
1
286
65
23
21
16
24
12
8
7
10
8
5
5
3
2
2
1
1
1
2
1
1
218
Total
222 Mercedes Benz
Valmet
89
Pronar
72
65
Hurlimann
60
Lamborghini
33
Steyr
25
Landini
21
Zetor
21
Same
16
Ford
14
Ursus
13
Fiat
8
Mc Cormick
8
DF
7
Claas
6
Renault
4
Valtra
4
Fendt
3
JCB
3
New Holland
3
MF
2
Case
1
John
Deere
701
Western makes
0
50
100
150
200
250
61
Sec - hand tractors market 2009,2010, 2011 YTD
Tractors > 210 HP, first registrations in Poland
(All makes)
Make
John Deere
Case
Fendt
Claas
MF
New Holland
JCB
DF
Mc Cormick
Same
Pronar
Kirowiec
Valtra
Renault
Lamborghini
Challenger
Total
2009
53
19
9
2
4
4
6
1
1
1
2011
JUL Total
YTD
2010
61
18
20
10
11
7
2
5
3
3
2
1
1
46
17
24
9
5
9
5
3
2
1
1
1
1
102
145
121
160
54
53
21
20
20
13
9
6
3
3
2
1
1
1
1
368
Challenger
Lamborghini
Renault
Western makes
Valtra
Kirowiec
Pronar
Same
Mc Cormick
DF
JCB
New Holland
MF
Claas
Fendt
Case
John Deere
0
20
40
60
80
100
120
140
160
62
Sec – hand machinery market
Sellable machines
63
The most wanted sec-hand machines
•
•
•
•
Tractors:
– 60-120 HP tractors,
– mainly old machines
– cab,
– 4WD
– JD, Zetor, MF, Ursus, Case, Renault, Fendt, DF, Belarus,
– heavy tractors – difficulties to sell, if yes John Deere, Case, Fendt – the best
reputation
Combines
– big group of very old machines, and small group of „some yrs old”
– grain version,
– straw chopper – necessary,
– makes: mainly NH, Claas, JD,
Telehandlers
– Manitou, JD, NH, JCB, Caterpillar, Merlo
SPFH
– Kemper required
– Claas, NH, JD
64
The most wanted sec-hand machines
•
Round balers
– Both fixed and variabe chambers, last yrs the market wants more variable chamber
balers
– Price drop
– Claas, NH, DF, Welger, Krone, Vicon, JD, NH,
•
•
•
•
•
•
•
•
•
•
Ploughs – 3-4 farrow, reversable – Kverneland, Lemken, Gr. Besson, Kuhn,
Rabewerk, Huard, Overum, Vogel&Noot,
Seeders – 3m – Amazone, Vicon, Kuhn, Sulky, Monosem, Nodet, Gaspardo,
Kongskilde, Accord, Horsch
Disc harrows – Kuhn, Razol, Quivogne, Rau, JD, Fenet,
Fertiliser spreaders – Amazone, Sulky, Vicon, Kuhn, Bogballe, Lely
Cultivation machinery – different makes,
Cyklotillers – Lemken, Kuhn, Kverneland, Agram, Lely, Rabewerek, Howard, Rau
Sprayers – Tecnoma, Rau, Caruelle, Berthoud, Hardi, Blanchard, Matrott, Napa
Mowers – Kuhn, Taarup. DF, Kverneland, Stoll, Lely, Claas, Agram, Vicon, Krone,
Pottinger
Hay machines – Kuhn, Pottinger, Stoll, Claas, Strella, Vicon, DF
Front end loaders – different makes
65
Average purchase prices of imported sec - hand
machines in 2005 - 2010
• No clear rules
• Average prices are
indication only
• Consolidated purchase
actions change a lot
• Commercial margins
0% - 100%
• Average margins >15%
Type of machine
Combine harvesters
Tractors
Telehandlers
Sprayers
Ploughs
Rakes
Seeders
Disc harrows
Cyclotiller
Subsoilers
Front end loaders
Round balers
Gruber
Mowers
Cultivation machines
Manure / calcium spreaders
Small square balers
Maize headers
Zloty EUR CRE 1:4
60 000
15 000
60 000
15 000
20 000
80 000
3 600
900
8 000
2 000
2 400
600
3 600
900
4 800
1 200
4 400
1 100
3 600
900
3 200
800
16 000
4 000
7 200
1 800
2 400
600
2 080
520
4 400
1 100
4 000
1 000
12 000
3 000
66
Sec – hand machinery market
Market
characteristics
67
Polish sec-hand machinery market
charactersistics
•
•
•
•
•
•
•
•
•
Private importers
Big companies selling sec – hand machines „taken over” by manufacturers of
new machines like Lehmann Agrotechnika, Rolmax, Świerkot last years
More and more of companies selling sec – hand machines offer also new
machinery
Specialists: example: SPFH – Agrotechnik Tafiły, the higher price level of their
machinery; more often become sellers of new machines
Contractor business growing – companies offering sec – hand machinery
render sevices
Small companies operating locally - hundreds of them, several machines on
private yards
EU VAT issue
Often cash business
High level of illegal transactions
68
Competition
•
•
•
•
•
•
•
•
•
•
•
•
•
•
General remark: no consolidated , organized actions from foreign dealers
Dimagro Polska – Promodis, France – an exception– 60 days payment for PL dealers
Individual activity of private dealers looking for opportunities in PL – visits, e-mail offereing
Many PL dlrs have stable conncetions in Germany, France, UK, Ireland, Benelux, Denmark,
Sweden etc.
Example of capital connections: Masaleix Rene et Fils – the daughter company in Poland:
Agro-Terreco
Dlrs not open to discuss their business details
Example of active German dealer who advertises in PL ag. magazines : Fritz Brandt
Landmaschinenhandel, Hodenberger Str. 40 28355 Bremen Germany www.brandttraktoren.de
www.traktorpoold.de - advertising in PL ag. magazines
www.agriaffairs.pl - - advertising in PL ag. magazines
www.troostwijk.com - Online auction
www.landwirt.com – machines mainly from Austria
Manufacturers try to persuade their dealers to buy from their sec – hand machinery stocks
Some Western dealers send machines to their PL partners on commission stock
Ritchie Bros. auctions – not very well known
69
Perspectives for sec – hand
machinery sales in Poland
• Since Poland joined EU until 2011 due to subsidies good sales of
old sec – hand machines only
• After 2013, if no modernization subsidies, there will be an
opportunity to sell younger second hand machines
• PL dealers - more „buy back” situations after 2013
• PL „brand new machinery dealers” will be more focused on sec –
hand machinery business; they will have to re-organize their
business
• Sec - hand machines to become an arising problem for PL
dealers
70
Financing of second hand
machinery
71
Financing of sec – hand mach.
Polish Leasing Association
Finance - currency risk issue
Age of machine + finance scheme up to 10 yrs
Low value machines not to be covered with finance
schemes
• Polish legal entity to be a leasing company partner only
• Polish individual customers bring machines to Poland and
finance them under leasing schemes
• Leasing and loans
•
•
•
•
72
Leasing companies – juxtaposition – machines leased Jan – Jun 2011
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
Company
Bankowy Fundusz Leasingow S.A.
BAWAG Leasing&Fleet Sp. z o. o.
BGŻ Leasing Sp. z o.o.
BNP Paribas Leasing Solutions
BRE Leasing Sp. z o.o.
BZ WBK Finanse&Leasing S.A.
Caterpillar Financial Services Poland Sp. z o. o.
De Lage Landen Leasing Polska S.A.
Deutsche Leasing Polska S.A.
DnB Nord Leasing Sp. z o.o.
Europejski Fundusz Leasingowy S.A.
FGA Leasing Polska Sp. Z o. o.
Getin Leasing S.A.
Handlowy Leasing Sp.z o.o.
IKB Leasing Polska Sp. z o.o.
ING Lease Polska Sp. z o.o.
Kredyt Lease S.A.
MAN Financial Services Poland
Masterlease Polska (FUTURA)
Mercedes-Benz Leasing PolskaSp. z .o. o.
Millennium Leasing Sp. z o.o.
NL Leasing Polska Spółka z o. o.
Nordea Finance Polska S.A.
ORIX Polska S.A
Pekao Leasing Sp. z o.o.
Raiffeisen Leasing Polska S.A.
Scania Finance Polska Sp. z o.o.
SG Equipment Leasing Polska Sp.z o.o.
SGB-Trans-Leasing PTLeasingowe Sp. z o.o.
Siemens Finance Sp. z o.o.
VB Leasing Polska S.A.
VFS Usługi Finansowe Polska Sp. z o.o.
Volkswagen Leasing Polska Sp. z o.o.
TOTAL
VEHICLES
Ag.
machinery
3459
31
156
0
634
548
959
1307
5679
3
3389
1205
0
0
55
923
79
39
262
0
11457
226
1333
0
5942
56
890
6
36
14
384
3
684
1
348
0
2976
0
1587
0
4329
15
185
0
256
0
636
1
3769
13
7756
343
1026
0
879
149
143
2
52
736
3330
526
766
0
3116
0
66552
6147
8 leasing companies represent 5 814
financed ag. mach. machines;
i.e. 94,5% !!!
The value of ag. mach. leased in
6m. of 2011 = 184,95 mln zl
The use of EU funds by the farmers
results in dominant share of agricultural
machines in loan financing sector.
If loans =100% , ag. machines = 62%
73
The most important leasing
companies
•
•
•
•
•
•
•
•
BNP Paribas Leasing Solutions
BZ WBK Finance & Leasing Solutions
De Lage Landen Leasing Polska S.A.
Siemens Finance sp. z o.o.
BGŻ Leasing sp. z o.o.
VB Leasing Polska S.A.
Raiffeisen Leasing Polska S.A.
Europejski Fundusz Leasingowy S.A.
74
Leasing - offers examples
• BZ WBK Leasing
–
–
–
–
Machine max. 4 yr old
Leasing scheme up to 8 yrs (age of machine+finance scheme lasting)
Minimum value to be financed 15 000 zl
Tractor 100 000 zl net, to be financed in 4yrs scheme, 48x2,164% = 113,872% + 6% final
purchase instalment;
• De Lage Landen
–
–
–
–
–
Financing schemes mainly in zloty
Age of machine + fin. scheme lasting up to 10 yrs
Minimum value of machine 5.000 EUR (20.000zl)
Known makes only
The offer example - tractor 4yrs old, 100.000zł net: deposit 15-20%, 5 yrs scheme, 1% final purchase instalment, total cost: 120% - 122%
75
Leasing - offers examples
• GETIN Leasing SA
–
–
–
–
–
Age of machine + fin. scheme lasting up to 10 yrs; the age of machine at the scheme end max. 13 yrs
old
Scheme lasting: 3-5 yrs
Deposit 10%
The companies younger than 6 months- deposit min. 35%
The offer example: Combine harvester, net price 120.000 zl; deposit 9%, + 59 instalments – cost
119%, +1% final purchase instalment, i.e. = total 129%
• BNP Paribas Lease Group
–
–
–
–
–
–
–
–
–
Not interested
Market leader thanks to co-operation with
John Deere Credit,
SDF Finance,
Claas Financial Services
Manitou Finance
Sec – hand machinery are not a „target” of the company
Sometimes they finance sec – hand machinery but only for special reasons
The conditions: age of machine + finance scheme up to 8 yrs, 20% deposit
76
Credits taken to buy sec- hand machines
• There are no many of such examples in Poland – most of companies
selling sec – hand machines represent low bank credibility
• Companies use their own money to invest
• Manufacturers of brand new machines force their dealers to issue
bank warranties and revolving credits to pay on time
• No known examples of such activities in second hand machinery
business (expect of Dimagro Polska)
• Credit rates for purchasing of machines 8%-11%WIBOR (4,5%) + bank
margin + other fees
77
DM – the offer for Danish
companies
The project tasks
78
DM position
• The company cannot be involved in risky actions
• Any recommended solutions must be safe for the company and
DK dealers
• Suggestion: DM to present possibilities, and support DK dealers
with legal, organization and commercial issues
• Very important: DM cannot take resonsibility for any promises,
or actions of DK dealers
• DM to create Danish dealers offer addressed to their Polish
partners
79
The offer
• What is DM dlrs offer for your potential PL partners?
• To succeed it is necessary to offer something
• Examples:
– full access to your machinery database for partners,
– machinery checking programme,
– making a kind of Danish brand - the same way of machines
preparation
– advertising in PL magazines,
– invitations to visit Denmark for several choosen Polish
companies,
– language support
– to employ the sales manager
– to have a part-time job machinery seeking man in Denmark
80
How to proceed?
•
•
•
•
•
•
•
•
•
•
•
•
To work with „brand new machinery” dealers
To work with existing sec – hand machinery trading companies
To work with new network, established exclusively for DM project
To establish your own trading company
To help DK dealers to co-operate with choosen Polish companies
To build a database of Polish sec – hand machinery trading
companies, and to transfer it to DK dlrs
To send DM offer to all potentially interested PL companies
To advertise and to exhibit…..Why not with PL partners?
To take care of professional transport logistics
To work out a financing scheme for DK sec – hand machines
To prepare off season commercial package
To propose attractive payment terms and conditions for
permanently buying companies
81
How to proceed?
• Variant 1 – PASSIVE
–
–
–
–
–
–
–
no sales manager,
no network creation
low budget,
advertising,
no stock,
no risk,
no further investment
Probably low sales
• Variant 2 – SALES MANAGER
–
–
–
–
–
–
–
sales manager,
network creation
higher budget,
advertising ,
no stock,
no risk,
no further investments
The business can grow
82
How to proceed?
• Variant 3 - STOCK
• Variant 4 - COMPANY
–
–
–
–
–
sales manager,
network creation
regular budget,
advertising,
stocking machinery in
Poland,
– commercial risk,
– no further investment,
–
–
–
–
–
sales manager,
network creation
regular budget,
advertising,
stocking machinery in
Poland,
– commercial risk,
– capital investment,
High sales level
High sales level
83
Sales manager
84
Sales manager
• The range of tasks:
– Dlr network creation
– Translation of the offers
– Preparation of PL dealers visits in Denmark….. for example
every 2 weeks …….. (travels, accomodation, calendar )
– Correspondence, offers making,
– Searching for sec – hand machinery
– Explaining the machinery status
– Technical fiches preparation
– Being in touch with DM and DK dlrs
– Stock checking
– Being deals whitness
– Negotiations – expected to be neutral
85
Sales manager – the candidate’s profile
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
28-45 yrs old
Creative
Energetic
Friendly
Patient
Positive approach
„Hungry to earn”….
Ability to build dlr network
Agriculture machinery market knowledge
Happy to travel extensively
Technical or agriculture education backgroud
English/ German (?) speaking person
Negotiations skills
Win-win strategy supporter
IT skills
Driving licence
It is not easy to find such a person!
86
Sales manager – salary issue
•
•
•
•
•
•
•
•
Suggestion:
– 8.000 – 10.000 zloty brutto (2000 – 2500 EUR) month salary
– Bonus for sales target – payable at each yr end
• For example 1st yr target 1 000 000 zl (250 000 EUR) – the bonus of 20.000 zł (5.000 EUR)
Car – if working actively he will drive 70 000-80 000 km/yr; expected price: 80 000zl (20 000 EUR)
Price indications (sec – hand car)
– Peugeot 407, 2009, eng. 2,0, 136 HP, 10000km – 76 000 zl
– Volksvagen Passat CC 2,0, 2009, 200 HP, 20000km - 78900zl
– Toyota RAV 4 – 2,0, 2009,, 40000km, - 76900zl
– Winter tyres – 2000 zl (500 EUR)
– Insurance – 2500 zl/year (625 EUR)
Travel costs coverage (petrol, accomodation) –
– Assumption: 6xhotel/month x 200zl = 1 200 zl/month (300 EUR)
– Assumption: 80000km/yr/12 = 6666 km/month x 5zl/l of petrol / assumption the car 7l/100km =
2333zl/month x12= 27997 zl/yr (7000 EUR)
Laptop – 3500 zl (875 EUR)
Photo camera – 800 zl (200 EUR)
Telephone expenses – c.a – 1000 zl/month (250 EUR) - SKYPE usage to reduce the costs
DM could:
– employ the sales manager
– offer him to establish a company and sign a freelance agreement with the company (invoicing DM
monthly)
87
Sales manager –costs
Expenses
zloty
Year
Month
Salary
108 000,00 9 000,00
Bonus
20 000,00 1 666,67
Travels
14 400,00 1 200,00
Telephone
12 000,00 1 000,00
Car insurance
2 500,00
208,33
Fuel
27 996,00 2 333,00
Accomodation 14 400,00 1 200,00
Total
199 296,00 16 608,00
Initial input
Car
Winter tyres
Laptop
Photo camera
Total
euro
Year
Month
27 000,00 2 250,00
5 000,00
416,67
3 600,00
300,00
3 000,00
250,00
625,00
52,08
6 999,00
583,25
3 600,00
300,00
49 824,00 4 152,00
zloty
euro
80 000,00 20 000,00
2 000,00
500,00
3 500,00
875,00
800,00
200,00
86 300,00 21 575,00
88
Sales manager – alternative solution
•
•
•
•
•
•
•
•
•
•
•
Sales manager – the owner of his own company
Agreement with DM – invoice every month
The range of activities and responsabilities, timing, reporting ways and frequency
to be agreed
His own car, phone, computer
Low each month issued invoice value, for example 6.000 zl brutto x 12m. =
72.000zl (18.000 EUR a yr)
Travel costs return (invoices control, and DM acceptance)x% payable from each
deal – DK dealer must be informed about it
High bonus – for example x% of the agreed turnover target achieved, payable at
each qr end
Results reporting for bonus calculation
No insurance, holidays etc.
No problem with Polish labour law
Recommended solution
89
Dealer network creation – main
issues
Co-operation rules with potential
Polish partners
90
„Brand new” machinery dealers involvement
•
Such dealers will not be interested in sec – hand machinery sales. The reasons are:
–
–
–
–
–
–
–
–
–
–
–
–
–
Currrently not stocked by sec – hand machinery
In last 2 yrs manufacturers forced them to issue bank warranties, and open new outlets
Many of them had to take high bank credits;
No prepared staff
No knowledge how to run such business
No experience – no price indications, sometimes very naive approach
They do not have Western Europe experience
Very good sales of new machines, so no business needs
Fully involved in sales of new machines
They treat sec – hand business as something „worse”
Some of them say: „I will never touch it”
Sometimes they declare interests but later on they do nothing
Bad experience from B2B relations
Remarks:
They demand the same rules like with new machines
Assumption: low level of co-operation is possible after 2014
The level of sales of new machines may go down after 2014
Conclusion: Most of brand new machinery dealers will not be the right partners for DM
project
91
Companies selling sec – hand machinery
•
•
•
•
•
•
•
•
•
Specialists
Pragmatic
Flexible
Investing their own money
Often paying before machinery collection
Not financially strong
Not loyal
They usually have their own sources of supply
Missing organized partners, usually direct B2B contacts
Conclusion:
If DM dlrs offer additional commercial or marketing values
many of such companies would like to co-operate
92
DM dealer in Poland
Sec – hand machines sellers – needed info :
–
–
–
–
–
–
–
–
Address, legal issues, establishment year, etc.
Range of products they buy
Estimated sales volume
Estimated market share and position
Subdealers’ network ??? If any….
Strong and weak points…..
Market strategy and marketing activities
Distribution strategy
93
DM dealer in Poland
•
Questionnaire
–
–
–
–
Legal issues
The company establishment date
Employment
Internal organization
•
•
•
•
–
–
–
Turnover 2008, 2009, 2010, 2011 up to date
Finance results 2008, 2009, 2010, 2011 up to date
Suppliers
•
•
–
–
Brand new machines
Second hand machines
Number of customers
Sales statistics (volumes, types, makes):
•
•
–
Sales
Service
Administration
others
Tractors
machines
Activity region (map)
– Needs (makes, machines, customers’ motivations, region specific needs)
–
–
–
–
Machines which will probably bring success in short time
Possible problems because of climate, weather conditions, others….
The ways they work with customers – market trends, trainings, advertisements, exhibitions,
publications etc…
Presence in Media: newspapers, internet
94
Rol-System
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
www.rol-system.com.pl
Mr. Jarosław Kułynycz
ul. Miastecka 32, 77-220 Koczała, 608321641
Since 2005, 1 person company
Low costs project
Own money invested, machines paid before delivery
Selling mainly tools, not many tractors, and combines,
Tractors – 80-160 HP
Annual sales: about 50 machines
Transport – on customer’s costs
Customers all over Poland
Sometimes small repairs (no painting)
8.09.2011 – 59 machines displayed on their own website,
more on stock (up to 200)
More and more loyal customers
Well positioned on Internet, using own website,
Wiadomości Rolnicze, Przegląd Rolniczy, www.allegro.pl,
local newspapers
Not interested how his customers finance deals
Last years EU subsidies negativelly influenced sec – hand
machinery market
Interested to be a DM dealer – important: receiving well
prepared offers, better sales conditions, common purchase
actions
95
KSM Trading
•
•
•
•
•
•
•
•
•
•
•
•
•
•
KSM Trading Ltd.
SINCE 22.05.2001
PRESIDENT OF THE BOARD: HENRIK BERGHOLDT
SHAREHOLDER: HENRIK BERGHOLDT NIELSEN - 100%
COMPANY CAPITAL: 107.000
VAT 857-177-82-34
REGON - 8112359764
KRS 0000005137
OFFER RANGE
– NEW AND SEC - HAND MACH.
– FOREST MACHINERY
– SPARE PARTS
– HYDRAULIC COMPONENTS
– TRANSPORT
8.09.2011 – 23 sec – hand machines on Internet – tec24,
Wiadomości Rolnicze
Info: „we have >100 machines in our yard, every week new
delivery”
Co-operation network Agromarket including (the company is
one of top sellers of new machines in PL)
Infoveriti report attached (balance sheet, finance results
2002-2008 KSM Infoveriti reports\KSM TRADING SP. Z O.O. Raport Infoveriti.htm
Another company: KSM Trading Kołobrzeg Ltd. since 2005 –
former name KSM Poland 2005 Ltd. (Infoveriti report
attached) KSM Infoveriti reports\KSM TRADING KOŁOBRZEG
SP. Z O.O. - Raport Infoveriti.htm
96
New companies network
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Your sales manager’s task could be to create a new companies network
Small, flexible, dynamic companies
To start with 3-4 dealers
Final number of dealers: 12-15 in different parts of the country
Required DM Polish partner profile: legal entity, workshop, qualified staff, acceptance of DK dlrs as
main suppliers, active marketing approach
They could be fully dedicated to DM project
Probably low capital possibilities
Low credibility
Happy to travel to Denmark
If they come together as a group of buyers sometimes they may make a DK dlr impressed (difficult
deals but many machines sold in one day)
Stock value control – very important
Commission stock possibilities
To be permanently controlled
Transport fees issue
They will need a sales and marketing training from DM
Possible exchange of machines in between of dlrs if stock created (Be careful: costs of repairs,
painting, etc,)
Conclusion: a mixture of sec – hand machinery sellers and „new companies network”
could be the best solution
97
Stocking machines in Poland – main issues
and consequences
• In the beginning: payment before collection - it is safe but will not bring
high sales
• Dlrs buy much more machines if they have 60 days to pay
• If a DK dlr decides to send machines to Poland without full payment
invoicing only when PL dlr has a final customer
• Stock to be controlled by sales manager
• Stock value control
• If stock created, the bill of exchange signed „in blanco” by PL dlr for each
DK dealer who delivered machines to Poland or deposite in DM
• Insurance policy for machines on stock – PL dlr obligation
• Commission stock – not recommended, the machines sent under such
rules are usually not price attractive and difficult to be sold, as the
consequence both the seller and the buyer are dissapointed
98
Possible legal entity in Poland – organization
issues
• If DM decided to open a company in Poland, Danish dealers would
not be afraid of selling machines with prolonged date of payment to
such a company.
• If not, perhaps DM could help some of interested DK dlrs to open a
company (outlet) belonging to them
• The easiest way – to stock at one main roads, in good agricultural
region
• Low capital project
• Limited liability company
• PL partners capital involvement issue
• If capital mixed – minimum 51% of shares in DM hands
• Polish business account office
99
To be considered….
•
•
•
•
•
•
•
•
Covering of sec – hand machines with warranty - not reccomended
Added values – we offer not only machines…. We offer also our proffesionalism and quality!
The project logo
Slogan proposals:
– Maszyny z Danii to problem z bani! – Machines from Denmark – no problem for your head!
– Duńska maszyna sprawdzona – nie dokuczy mi żona ! – The machine from Demark is
checked – my wife will not annoys me!
– Duńskie maszyny na polowe wyczyny! – Danish machines for field performane!
Important: DK dlrs involved in the project - the same style of machinery preparation
– Techical descriptions- describing machinery technical condition
– possibly simple,
– Polish&Danish languages versions,
– no time consuming fiches,
– ticking boxes,
– date, signature
Checking confirmation………. ( stickers)
Responsability question……..what if a machine sold as „good condition one” fails the first
day…………. Need to work out procedures (return option, limited time to inform about failures,
spare parts shipment, Danish technician visits etc..)
Advice – to introduce inscriptions on your and your partners invoices:
– „The buyer knows the technical condition of the machine” – meaning „you have seen and
checked what you bought……”
– „The seller’s warranty due to hidden defects of the machine is excluded”
100
Other issues
101
DK dealer
• In the first yr a group of up to 15 DK dealers involved only – mainly dlrs
well experienced with sec – hand machinery business
• Checking period – minimum 1 yr; afterwards invitation for the others
• They should „find” 4-5 hours to receive the guests from Poland, the visits
should be agreed before…….
• 1 person from each dealership to be in constant touch with the sales
manager
• Offers updating
• Machinery checking
• Loading preparation
102
The project fees
• DK dealer to be charged for participation in the project
• To generate funds to employ a sales manager
• To cover DM costs like this presentation , possible legal
consultancies, travels, etc.
• To gain sources for advertisements, and exhibition costs
• Example:
– Entrance fee: 200 EUR - 700 EUR
– Annual fee: 100 EUR – 300 EUR
– Turnover fee – 1% - 2,5% caunted from a dlr sales of sechand machinery to Poland
103
The project incomes - exercise
EUR
Entrance fees
200,00
300,00
400,00
500,00
700,00
Annual fee - 2nd yr
and each year
100,00
200,00
300,00
Turnover fees
200 000,00
400 000,00
800 000,00
1 000 000,00
1 500 000,00
Number of dlrs in the project
15
30
60
90
3 000,00 6 000,00 12 000,00 18 000,00
4 500,00 9 000,00 18 000,00 27 000,00
6 000,00 12 000,00 24 000,00 36 000,00
7 500,00 15 000,00 30 000,00 45 000,00
10 500,00 21 000,00 42 000,00 63 000,00
15
30
60
90
1 500,00
3 000,00
4 500,00
1%
2 000,00
4 000,00
8 000,00
10 000,00
15 000,00
3 000,00
6 000,00
9 000,00
1,50%
3 000,00
6 000,00
12 000,00
15 000,00
22 500,00
6 000,00
12 000,00
18 000,00
2%
4 000,00
8 000,00
16 000,00
20 000,00
30 000,00
9 000,00
18 000,00
27 000,00
2,50%
5 000,00
10 000,00
20 000,00
25 000,00
37 500,00
104
Danish VAT charging
• Special Danish regulation
• It will not be positively understood, especially if your PL dlrs are
expected to invest in your machines
• It makes your position weaker in comparison to other countries dlrs
• One of Sales manager’s tasks could be to control transfer of the
right documentation to DK dealers
• Special procedure to be prepared in accordance to DM instruction
–
–
–
–
your partner EU VAT number checking,
shipping documents come back,
confirmation on invoices’ copies,
timing of such actions for your PL dealers, etc.)
• Reccomendation: Do not add VAT for your PL dealers who buy
permanently from you.
105
Sales suport activities
Agriculture magazines
Internet
Exhibitions
106
Only from www.mascus.pl
•
•
•
•
How to find your offer?
49 000 ag machinery advertisements………..
291 sellers of ag. mach. from Denmark
DK dealers offers:
–
–
–
–
–
–
–
–
–
–
Sjørup Traktor A/S – 496
Kragmann A/S - 98
Herborg Smede- og Maskinforretning A/S – 204
Brdr. Holst Sørensen A/S – 63
Jøla Maskincenter A/S – 190
Horsens Maskiner A/S – 377
Vinderup Maskinforretning – 237
Bay Christensen A/S – 78
MVJ Maskiner A/S – 469
Etc………………
107
Checking…
• Automatic translation is a catastrophe…..
• I have checked your websites
– BRDR. Holst Sorensen A/S – no Polish
– Horsens Maskiner A/S – no Polish
– S.D Kjaersgaard A/S – Polish flag, but if you click, English text
appears
– Praestbro Maskiner - no Polish
– Johannes Mertz A/S – no Polish
– Stadil Maskinforretning A/S – no Polish
• 20 tries, 1 good example: Maskinforretning Hjallerup - website
welcome page in PL language sending an internet user to sec –
hand machinery sector, further no continuation
108
Internet
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
www.wrp.pl - magazine, mach. database (22 200 mach.)
www.agriaffairs.pl - mach. database (152 000 mach.)
www.tarctorpool.pl – mach. database (64 600 mach.)
www.mascus.pl - mach. database (49 000 mach.)
www.allegro.pl – mach. database (1 560 mach.)
www.pl.tec24.com – mach. database (18.900 mach.)
www.otomoto.pl – mach. database (9 200 mach.)
www.iagro.pl – mach. database (46 000 records)
www.rolnicze24.pl - mach. database (11.500 mach.)
www.erolnictwo.net – dlrs database
www.rolnictwo.com.pl- dlrs and new mach. database
www.tabor24.pl – mach. database
www.gieldarolna.pl – mach. database, ad. portal
www.autoline.com.pl – mach. and dlrs database
www.agronews.com.pl - magazine
www.naszarola.pl - magazine
www.rolnicy.com - magazine
www.ppr.pl - magazine
These are examples ony
Reaserch 2010, +15ha
farmers
70% farmers use internet.
i.e. >140.000
43% farmers check prices
of ag. machines on
internet, i.e. >86.000
42% have an e-mail
address, i.e. >84.000
Portals - in many cases
using the same database
109
If you try to find a machine….
• www.google.pl – first choice of most of Internet users, new verb in Polish:
„to google”
• You write: „używane maszyny rolnicze” – „sec – hand agriculture
machinery”
• Positioning is not so difficult: 6 dlrs of 16 first records
• IT specialist needed
• Google searching results:
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
www.korbanek.pl/uzywane-ciagniki - dealer
www.tabor24.pl – dtb
www.otomoto.pl - dtb
www.rolnicze24.pl – dtb
www.agriaffeires.pl - dtb
www.traktorpool.pl - dtb
www.agrotrader.pl – dtb
www.aldo.agro.pl - dealer
www.maszynyrolnicze.agro.pl - dtb
www.rolcel.pl - dealer
www.autoline.com.pl - dtb
www.targ.rolniczy24.pl - dtb
www.gieldarolna24.pl - dtb
www.rol-trans.pl - dealer
www.maszynyrolnicze.motokomis.pl - dealer
www.rolsystem.com - dealer
DM dlrs offer
positioning is
one key issues!
110
DM dlrs „PL website” for sec – hand machines
• DM to create and promote your own website in Polish (cover?)
• Special, suitable graphics using Danish and Polish symbols
• Info regarding Polish and Danish dealers involved in the project,
offers, transport, current stock in Poland (if exists)
• Electronic tools for sales manager to add and cancel
adevertisements
• DM dlrs machinery database transfer
• www. name proposals (all domeins available):
– www.maszynyzdanii.pl
- machinesfromdenmark.pl
– www.uzywanemaszynyzdanii.pl – secondhandmachinesfromdenmark.pl
– www.maszynyrolniczezdanii.pl – maszynyrolniczezdanii.pl
• .pl and/or .com.pl – endings
• Positioning – the key to succeed
111
Searching for dealers
• www.agriaffairs.pl – map and list of dlrs
advertising there
• Following Internet database websites and
advertisements – the easiest way to find
all active dealers
112
The most popular ag magazines
•
•
•
•
•
•
•
•
•
Top Agrar
Poradnik Rolniczy
Tygodnik Rolniczy
Farmer
Agromechanika
Wiadomości Rolnicze
Aktualności Rolnicze
Rolniczy Przegląd Techniczny
ATR Express
Martin&Jacob 2009
72% of farmers declare they
read ag. magazines
113
The most important ag. magazines
Wieś Kujawsko - Pomorska
Raport Rolny
Burak Cukrowy
Agro_Magazyn Ludzi Przedsiębiorczych
Poradnik Rolniczy - Rolnik Mazowiecki
Kurier Rolniczy
Hoduj z Głową
Ochrona Roślin
Zachodniopomorski Magazyn Rolniczy
Bydło
Poradnik Rolniczy - Polska wieś
Hodowca Trzody Chlewnej
Gazeta Sołecka
Działkowiec
Chłopska Droga
Hodowca Bydła
Trzoda Chlewna
Agro Serwis
Rolniczy Przegląd Techniczny
Aktualności rolnicze
Wiadomości Rolnicze
Agromechanika
Farmer
Tygodnik Rolniczy
Poradnik Rolniczy
Top Agrar Polska
0,00%
2,10%
2,20%
2,20%
2,30%
2,50%
2,60%
2,70%
2,80%
3%
3,10%
3,20%
3,20%
3,60%
3,90%
4%
4,30%
4,60%
72% of farmers declare they read ag.
magazines
7,10%
7,90%
12,10%
12,60%
14,10%
16,80%
23,20%
26,20%
32,10%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
Martin&Jacob 2009
114
Ag. magazines - where to advertise?
• Searching of dealers, promotion of DM database, insert of leaflets:
–
–
–
–
Topagrar
ATR Express
Rolniczy Przegląd Techniczny
Agromechanika
• Info for farmers, DM dealers map, promotion of DM database, insert of
leaflets
–
–
–
–
–
–
Wiadomości Rolnicze
Farmer
Poradnik Rolniczy
Tygodnik Rolniczy
Farmer
Aktualności Rolnicze
• Please, note: Top Agrar and ATR Express - offer sending ad. materials to
the selected sectors of farms
115
Important exhibitions
• National show – Agroshow, Bednary the second half of
September each year – highly recommended presence
• Zielone (Green) Agroshow – second half of May,
Kąkolewo
• Agrotech – Kielce, half of March each year - highly
recommended presence
• Polagra – Premiery – Poznań, February, every second
year
• Regional shows – May, June, July, September - good for
local PL dealers or simple DK dlrs operating in choosen
territory only
116
Transport
• To find PL and DK transport companies and
to negotiate the best possible conditions
• My experience: it really matters!!!
• The task for sales manager, DK dlrs support
required
• To transfer this info to PL and DK dlrs
• To look for better transport offers
• Planning procedures (ordering, machinery
dimensions, timing, language skills)
• Important: documents return to DK dlrs
117
Recommendations
A small piece of advice…..
118
If I were you…
• I would employ a sales manager in Poland (his own company
option) – Variant 2
• I would expect him to build a dlr net (sec – hand machinery
experts and new companies)
• I would like to have permanent visits of PL dealers in Denmark
• I would promote DK dlrs internet offers - .pl website
• I would print a brochure with DK dlrs addresses, and special,
price attractive machines photos – to be distributed by ag.
magazines, and during main exhibitions (important: to take care
of language correctness
• I would advertise in some choosen PL ag. magazines
• I would have a small info stand on main exhibitions
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If I were you…
• I would consider the option to find a man in Denmark to help
Polish dealers to find the right machines (Polish language
speaaking person)
• I would ask DK dealers to be well prepared for Polish dealers
visits
–
–
–
–
Machinery stickers, technical description
Price list
1 person authorized to make decisions fully available for PL dealers
Meeting room
I would ask DK dealers to provide technical fiches and take
care of machinery checking before collection
• I would charge your dealers with fees for join the project
• I would build a database of Polish sec – hand trading companies
and transfer it to Danish dealers (those who join the project)
• I would take care of good transport logistics
•
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If I were you…
• I would not:
– build a commission stock in Poland
– create a company in Poland, at least not in the beginning of
your activity
– charge PL partners with Danish VAT
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The 5 most difficult issues
in the first activity period
• Machinery technical condition reliable info
• Internal discipline (repeatibility of procedures)
• Offers updating
• How to convince PL dealers to pay before machinery
collection?
• Stocking in Poland issue
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The 5 most important issues
• Work out clear DM project rules for DK dlrs
• Preparation of consolidated DK dlrs offer
• Sales manager employment
• Creation of dlr network in Poland
• Advertising campaigne
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Results expectation
Satisfaction:
high sales results will probably appear not
earlier than in the trird year of your
activity….
but BE PATIENT…
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MIRTOP MIROSŁAW TOKAJ
UL. PATRIOTÓW 22
09-410 PŁOCK
POLSKA
VAT: PL 774-171-75-74
Tel. +48 795 132 236
e-mail: [email protected] or [email protected]
Website: www.mirtop.pl
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On your CD….
• Presentation – Power Point
• Presentation – PDF
• Concise Statistical Yearbook of Poland 2011 – PDF
• Statistical Yearbook of Agriculture 2010 – PDF
• KSM Trading – Infoveriti report example
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Mange tak!
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