A couple of Nebraska's long-standing independent retailers have folded in the past two years. Fletcher says ag retailers face pressures similar to small-town grocery stores and clothing stores. People say they want to keep business local, but they don't want to pay higher prices, she says. The Internet is only adding to the pressure on local dealers, Fletcher says. Customers may not be buying their products over the Internet, but more are using it as a pricing mechanism and use the information to negotiate lower prices locally.
Chemicals account for most of the e-business so far.
A few companies are also selling seed, while others contend they will not undercut their local dealers by selling their seed online. Fletcher expects Internet sales to grow and chemical manufacturers may eventually offer direct online sales. The limiting factor will be finding alternative ways to provide the services such as custom application, scouting, and recommendations that retailers normally have provided. Some chemical manufacturers have already said they won't provide service for products sold over the Internet. Their local dealer had been a Pioneer rep for years, but the company wanted him to go at it full time.