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tukachinchilla t1_j8wa7un wrote

Wonder how much of that profit is from their proprietary accessories, parts and service schemes.

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IncomeStatementGuy OP t1_j8wfxuf wrote

Haven’t looked for that in their annual report.

How much % do you think it is roughly?

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tukachinchilla t1_j8zmbka wrote

Dunno, but it's killing farmers used to working on their stuff on the cheap. Now they have to pay for service from a guy with a laptop

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anonkitty2 t1_j93s9y0 wrote

The service schemes would be under "financial products.". Accessories and parts would go under the categories of the vehicles they are accessories and parts for. Toys and clothes would be under "other."

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IncomeStatementGuy OP t1_j8w6zcb wrote

Data source: Their 2022 annual report

Tools used: SankeyArt (I am developing this tool)

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General_Armadillo_29 t1_j8wbb9t wrote

Cool presentation, garbage company that treats farmers so poorly it’s insane though.

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IncomeStatementGuy OP t1_j8wfosj wrote

Thanks! How do they treat farmers? Farmers are their customers so they should be their kings 🤌

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cmde44 t1_j8wgvhq wrote

You know how you can't replace anything broken on your iPhone anywhere unless it's through an Apple store and it's performed by an Apple tech and costs an arm and a leg? John Deere does the same thing.

What used to be simple / or more basic maintenance work that a farmer could perform on their own is now not possible due to programming and must be performed by the dealership. This is an expense small farms can't take on and have been fighting for quite a while now.

U.S. Congress has been playing around with "right to repair" bills for years now; I believe on was just passed recently in regards to Deere, but it wasn't enough.

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abubuwu t1_j8wthso wrote

You lose your phone for a few days it's inconvenient but not a big deal.
You can't use a tractor for days to potentially weeks at a time and you can end up losing an entire crop field, that's the type of stuff that can literally lead to bankruptcy.

You don't own a JD tractor but "the vehicle owner receives an implied license for the life of the vehicle to operate the vehicle, subject to any warranty limitations, disclaimers or other contractual limitations in the sales contract or documentation"

https://copyright.gov/1201/2015/comments-032715/class%2021/John_Deere_Class21_1201_2014.pdf

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IncomeStatementGuy OP t1_j8wii81 wrote

Oh wow, that sucks! Are they mostly selling yearly maintenance contracts or is it pay as you have an incidence?

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cmde44 t1_j8wjquv wrote

Nope! They just put the diagnostic equipment behind programming paywalls that's only accessible to JD techs. Even if you could diagnose the problem without hooking to the machine electronically, you wouldn't be able to reprogram or finalize the fix once it was completed.

All of this was to make sure John Deere made the money on repairs using their techs and their parts. My company uses older series JD tractors (80's and 90's) and they are very easy to work on and not very electronic component heavy. A fuel pump goes out, we know what that looks like and we just fix it ourselves. Something simple like this might cost me $2,000 to do on my own but would cost $5,000 to have done by the dealership (these aren't real numbers of course).

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IncomeStatementGuy OP t1_j8wk4pq wrote

Wow... that just sounds like a stupid business practice that disgruntles their customers.

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Wise_Mongoose_3930 t1_j8x577h wrote

They're taking advantage of their market dominance, but it's certainly a risky play that has lost them tons of goodwill.

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SlayerOfDougs t1_j8w7ec1 wrote

Yet their employees had to strike

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IncomeStatementGuy OP t1_j8w7m2m wrote

Didn't know. For more pay?

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SlayerOfDougs t1_j8w84vw wrote

That , but mostly John Deere wanted to remove the pension for new hires. The old guard stood up and say no partially because they were screwed by the previous old guard in reduced pensions.

Seeing that they netted 7 billion, it appears the workers were right

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slimetraveler t1_j8x0low wrote

Where do their residential tractors fit in? I figured they were a small part but they are probably what is most recognizable about the company.

Also I've heard some some grumbling from farmers about not being able to do basic repairs themselves and service contracts being kindof forced on them as subscription services. Would that fall under financial products?

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Chupacabras7 t1_j8yi2ab wrote

Is there one for CAT?? Couldn’t find one using the search bar

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IncomeStatementGuy OP t1_j8ymu1w wrote

Not yet, but I‘ll create one for you, Mr. Chupacabras. Are they releasing earnings soon?

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Chupacabras7 t1_j8yol0c wrote

Thanks!! I have no idea when they are releasing but will try to have an answer for you.

Edit: They reported Q4 earnings already.

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Immarhinocerous t1_j8z95iz wrote

I wish this showed margins on each product channel.

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Zhydrac t1_j9078v1 wrote

Fun fact: they even make off-road UTVs

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jordtand t1_j90hif3 wrote

2B$ to research new ways of fucking over farmers

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Desmag t1_j90ruzw wrote

Cost of sales? Or wine and dine?

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Feerlez_Leeder101 t1_j912ql4 wrote

Well... How John Deere makes 75% of its money I guess. Not really sure what "other" would be.

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DarkNikolas t1_j9afgmg wrote

Plz show Sankey source / template in Python for this diagram 🙄

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IncomeStatementGuy OP t1_j9akiyz wrote

It’s created with SankeyArt, a web app I develop.

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DarkNikolas t1_j9akyst wrote

Yea , bat can you show source code from sankey diagram ?

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IncomeStatementGuy OP t1_j9ao0tf wrote

You mean the flows I defined in the Spreadsheet? Sure, I could share these. Or do you mean something different sandpit mentioned Python?

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DarkNikolas t1_j9aomj4 wrote

Yea , I mean Python sankey diagram source 🫣

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IncomeStatementGuy OP t1_j9aq7r6 wrote

There is no Python source code. The Sankey diagram is created with the SankeyArt web application. Its front end is mainly JavaScript, not Python.

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dan_bodine t1_j8z9446 wrote

It should be Gross income not profit.

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BurnTheOrange t1_j8zqmf0 wrote

Where's the line item for fucking up right to repair and charging farmers with broken equipment exorbitant fees while their crops rot?

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SociologySaves t1_j8y1nsw wrote

And anti union. Exploit cheap labor. Amerikkka.

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Ngfeigo14 t1_j8z7298 wrote

What does that have to do with it?

"Amerikkka"????

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SenecatheEldest t1_j9cwr1h wrote

They replaced the 'c' in America with the KKK. Because that's at all relevant to John Deere.

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SociologySaves t1_j904q5a wrote

It’s has to do with stolen surplus value. All value is produced by workers. John Deere exploits workers. Anti union. Bad for labor. Abusive. Profit stealing

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