Agco’s Lely takeover will mean ‘aggressive’ pricing for the hay gear | The Weekly Times

Mr McCormick said his company’s buying power allowed it to review pricing on the Lely products they will sell.

“There is some scope to do something on pricing with the Lely Welger product, particularly in New Zealand,” he said.

“The way that Lely do their costing and price structure globally is quite different to the way Agco does it.

“We’re more market-related in pricing where Lely were ‘this is what it costs’ price strategy. What that allows us to do locally is to look at the competition and see where it needs to be placed.

“We need to make the dealers comfortable that if they’ve had the Lely franchise and are going to continue on, that it’s competitive.

“Equally, if we pitch to someone else (to sell the rebranded grass equipment) then we need to be aggressive (on pricing).”

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Agco’s Lely takeover will mean ‘aggressive’ pricing for the hay gear | The Weekly Times.