To get a dealer’s perspective on the current state of the tractor market, we reached out to Matt Rexrode, sales support and media director at Beverage Tractor (beveragetractor.com), and a 2022 OPE Business ’40 Under 40’ award-winner.
Beverage Tractor has three locations in Virginia – Stuarts Draft, Blacksburg and Danville – with all three of its locations carrying Kubota as well as Ventrac tractors. The dealership also carries a variety of tractor accessories and implements from companies including Land Pride, Woods and others.
(Editor’s note: This article first appeared in our 2022 Tractor Report, in our July/August 2022 issue.)
OPEB: Do you sell all ranges/sizes of tractors, or only compact and/or subcompact?
We sell a range of sizes of tractors, from 18-hp models up to 210-hp Kubota tractors.
OPEB: What percentage of your tractor business is in compact and/or subcompact tractors?
I would say the percentage of tractors we sell in compact/subcompact tractors would be around 75-80 percent.
OPEB: What percentage of your overall new-equipment business is with tractors?
Our overall new-equipment business that is only tractors is approximately 60 percent.
OPEB: What is your dealership’s compact and subcompact tractor buyer demographic?
For us, the majority are new tractor owners, usually lifestyle customers. In the 18- to 30-hp range, these are two- to five-acre homeowners, while in the 30-hp-and-up range, 10 acres or more. I’d include some hobby farmers in there as well.
OPEB: What are some of the trends you see within compact and subcompact tractor sales?
Covid has allowed jobs to change and forced people to do things like stay at home with remote jobs, homeschooling and more. It has helped push more buyers into this size and category of tractor – particularly smaller -acreage homeowners and people wanting to start/finish more projects.
OPEB: How do you expect your compact and subcompact tractor sales to be in 2022 vs. 2021?
Our expectation is for the sales to be flat or maybe even a little less than 2021 due to the inventory shortages, change in economy and other factors.
OPEB: Are there specific features your customers are generally seeking when it comes to compact and subcompact tractors?
Typically, customers in the compact/subcompact category are looking for power steering, 4WD and hydrostatic. Depending on the demographic or what they’re using the tractor for, some small homeowners might want a mid-mount mower. In our area – with the hot summers and somewhat unpredictable winters – some of the hobby farmers and larger acreage owners might prefer a cab as well.
OPEB: Why is the tractor business a good business to be in in 2022?
Here at Beverage Tractor, we believe the tractor business is always good to be in. As long as grass is growing, farmers are farming, and technology is expanding, equipment is needed. We all have to mow, and landscapers, contractors, builders, etc. all need equipment – we’re here to provide it for them.