Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Fencepost brings big ticket savings to farmers


Fencepost brings big ticket bulk buying savings to farmers

Farmers in the market for a rotary milking machine can save up to $32,000 by taking advantage of a pilot bulk buying scheme launched by leading agricultural website Fencepost.com.

The scheme involves Fencepost acting as a conduit to aggregate member demand for a limited number of high value products and leveraging the demand to negotiate bulk purchase prices.

The first offer under the pilot scheme is for a new 50 bale rotary milking machine from Waikato Milking Systems offered exclusively to Fonterra Farmers with discounts of up to 22 per cent.

Fencepost CEO Kris Nygren says the offer is available until the end of October and is limited to a maximum of 20 units.

"The discount levels are dependent on the number ordered - if reservation fees are paid for between 16 and 20 units the discount amounts to about $32,000 on a $146,000* milking system."

Discounts levels are 8.3 per cent for between two and five units reserved, 13.8 per cent for six to 10 units and 18.6 per cent if 11 to 15 units are reserved.

Kris Nygren says interested parties need to register online at www.fencepost.com and pay an $800 reservation fee. If five or fewer farmers register, the reservation fee will be refunded.

The fee is paid to Waikato Milking Systems which has agreed to sell the milking unit at a discount based on the number of reservations, not just sales.

"Aggregation is a common approach to economies of scale and leveraging Internet technologies is a very efficient way of carrying it out," says Mr Nygren.

"Successful demand aggregation ventures invariably have a very strong affiliation with a buying group or an outstanding offer. The vendor partners get the benefits of bulk orders and low marketing costs leading to lower cost of sale and bigger order volumes."

Mr Nygren says the timing of the current offer is extremely good for farmers and a very good fit for Fencepost. "Farmers are coming off a reasonable year and dairy systems are traditionally bought around September, October and November for new year installation.

"It is a pilot offer and if it's successful we'll definitely be looking at other aggregation opportunities for our members."

The 50 bale Waikato Milking System rotary milking machine offer includes Waikato Xtra electronic cup removers, G2 cluster washers with flow control, lightweight Waikato 320 claws, automatic system drains among other specifications.

About Fencepost.com: Fencepost.com is a gateway to rural New Zealand and the country's leading agricultural website. It provides world-class Internet-based resources to help farmers manage their businesses and businesses manage their online activities. Services include farm management tools and portal, technology and e-business services. Fencepost is a wholly-owned subsidiary of Fonterra Co-operative Group, New Zealand's biggest company with a staff of more than 20,000, totals assets of NZ$11.8 million and turnover of just under NZ$14 billion.

* All figures are GST exclusive.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>

ALSO:

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: