The Rural Voice, 1990-11, Page 25Hagedom says there is less
competition against his new design of
manure spreader line because "the big
boys" aren't into them yet. "Having a
quality product is essential."
Van Eyl says that even though the
Americans are sometimes leery of
we're foreign, but because they
already have contracts with the major
companies." Canadians have to
convince the U.S. dealers they can
make more money with our product
than with some one else's, he says.
Lining up distributors and getting
Art Helm: "We don't have too much trouble competing
on price, although if the exchange rate continues to
narrow, it would hurt us."
dealing with foreigners in general,
"they think highly of Canadians and
they like our products." Unlike many
Canadians, Van Eyl says, Americans
are frank and open. "If they don't like
it, they tell us, and if they need them,
they want them the next morning. If
they don't need them (snowblowers
for instance in a mild winter) don't
bother them."
The Americans have more trust in
us, says Van Eyl. "They're gamblers,
make a deal and they take your word
for it, but you'll only fool them once."
All concur that getting into the
U.S. market does involve doing some
leg work and can present some
problems. "They're not standing at
the border with a suitcase of money,"
Van Eyl says.
"The biggest problem is getting
dealers," says Hagedorn, "not because
onto dealers' lots can sometimes be a
big hassle, but can be overcome.
Helm, Hagedorn, and Van Eyl, for
instance, are working through the
same sales representative, an ex -
patriot Canadian who lives in the
States. He knows about the excellent
reputation of Canadian manufacturers
and works strictly on commission.
They also get some direct farmer
sales, as well as picking up a few
dealers at the trade shows.
Because there has been free
trade in agriculture equipment for
decades, design and safety standards
have been harmonized. Equipment
used exclusively on the farm moves
back and forth across the border
freely.
However, there can be a few
complications if the equipment has to
be licensed for the road, as Van Eyl
PHOTOGRAPH BY W. MERLE GUNBY
discovered with his dump trailer
which American authorities thought
could be used on the highways.
Not only did he have to get a
certificate from the Ontario Ministry
of Transportation verifying the load
limits on his trailers, but he had to
obtain a 17 -digit serial number to give
his product world-wide recognition in
case the product is involved in an
accident or ends up being exported
again to another country. "It was a lot
of red tape and at one point we were
facing delays, so we had to get the
Canadian Consulate in Washington
prodding Ottawa to speed up
processing of the licence," says Van
Eyl. Selling into the U.S. market is
"not all gravy. We went through a lot
of expense."
"They are much stricter in
licensing in the U.S.," says Van Eyl,
"farm plates (for some trucks) are
restricted to the county in which they
were issued."
Helm also found that to keep
and service his U.S. markets, he had to
establish a parts depot south of the
border — again through a
commissioned agent — not only to
give speedy service to his American
customers, but also to show them he
meant business. "Parts are a real
necessity, they can't be broken down
too long." Helm's had one minor
glitch with parts: even though a whole
piece of equipment moves freely
across the border, sometimes there's a
tariff on a part (like a bearing for
instance) because it is already being
manufactured in the U.S.
Nuhn contends the U.S. is quite
friendly towards business. When he
went on one trade mission with his
equipment, he was whisked through
U.S. customs, but cooled his heels for
three hours at Canadian customs
trying to get back into the country
with the same equipment a week later
because "an `i' wasn't dotted right.
Someone has to pay for that truck
sitting there for three hours. There's
too much bureaucracy in Ontario,"
says Nuhn. "There's 15 or 20 minutes
paperwork for a trucker to move
something 40 miles."
There's plenty of help available for
farm equipment manufacturers, or any
other Canadian business, who wish to
NOVEMBER 1990 21