# OEM Manufacturing Costs for Lawn Tractors



## amoschetti (Jan 14, 2011)

Hi All,

I've read various things about what it costs for an OEM to manufacture a lawn tractor (usually for those around a $2,000 price point). My question is how do companies like MTD get their manufacturing costs down so that they can offer a $800 lawn tractor? Do they cut corners on quality, the engine, labor, etc? How is is possible?


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## Hoodoo Valley (Nov 14, 2006)

They, I'm sure, cut costs as much as they can through reduced materials and design criteria in the frames and rearend / transmissions and parts, as well as probably producing the product in countries like China and or Mexico, where labor is next to free as verses the cost of labor in this country, which could kill a corporation having to pay something on the order of near minimum wage which is something like $8 an hour, and probably some of the cost cutting stems from lack of advertising and so on. Much more to factor, but I'm just abbreviating!


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## Mickey (Aug 14, 2010)

Of course the qlty isn't the same on a $800 riding *lawn mower* as something running $3-5k. Cheaper materials, and cost of operation depends upon a lot more things than labor. Automation plays a part in costs. Using bushings in place of real bearings. Vert shaft engines so simple belt drive is possible. Mech mechanism for rise/lowering the mower deck. Mech engagement of mower Vs electrical clutch. Entry level engines and trans-axles Vs something more substantial. Stamped steel front axles Vs cast iron. Very light duty trans-axles with very little capacity over just moving the while mowing. IMO the $800 machine will long be in the dump before a more substantial machine is even half worn out. I still own and use a 40 yr old GT and it still have some life in it. Oh, by the way, that 40 yr old machine cost over $2k in 1970.

The list could go on. You will NOT get a $2k machine for $800 by picking a different brand.

As an example, the 48" mower deck on my Cub has a doz grease fittings, shaft drive with cast iron gearbox, uses tapered roller bearings on the spindles, fully adj caster front wheels and adj full width roller on the back side. Tips the scales @ 265#. How does that compare to what you'll find on a $800 machine? I suspect the weight of my mower is a large % of total weigh of a $800 machine.

Not knocking a $800 machine but they are not in same class as a more expensive machine. If that is what you can afford, so be it. Take good care, don't expect more out of it that it was intended and designed for and you should see a number of yrs of service out of it.


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## dangeroustoys56 (Jul 26, 2010)

MTD is a bottom drawer 'cheep' tractor- it cant do alot of things bigger tractors can do , but itll do some heavy work. I have a 1992 White LT12 lawntractor i bot brand new - ive taken care of it and maintained it regular, it still runs and mows the grass every week- still has factory hub caps on it. Ive hauled some heavy stuff with it ( trailer of crushed stone - actually the trailer broke hauling it) and never had a problem. Over the years its needs a few normal parts, one deck mandrel, replacement starter gear, replaced the front axle ( with a well used spare one i had).

Doesnt have any rust holes in the deck, minor surface rust only ( i need to repaint it actually) - still has original briggs flathead engine.

Some up comming things that finally need replacing are the factory 18 year old drive belts- deck belt is still original. Not bad for a cheep machine i say. 

I have some other used MTD's which ran ( with some work) but the decks were totally shot and needed rebuilding/rust repair due to previous owners neglect.

Goes to show with regular maintenence and care any machine , no matter how cheep, will last a long time. I actually like MTD's , have 7 of em - easy to work on, easy to find replacement parts, plus theyre an excellent chassis to use for modified projects.


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## amoschetti (Jan 14, 2011)

Thanks y'all. Seems MTD gets a bad rap for it's lower quality brands, but hey you get what you pay for right? I think it's interesting to see them move some operations to China and it looks like they may be trying to separate the Cub Cadet brand from it's other lower quality brands...they no longer list it on the website...


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## Hoodoo Valley (Nov 14, 2006)

Gosh, anymore even John Deere builds some fairly cheap machine lines. It's a shame. I really like those companies that hold to a higher standard and in my mind, it benifits everyone including the planet and its resources.


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## dangeroustoys56 (Jul 26, 2010)

Pretty much all of it is being moved to China because they control most of the steel production - China also builds briggs motors, since teccy quit making motors.

Id buy a new MTD (if i was in the market for one) - just to see how long itd last .

Pop and i went to Lowes a few days ago, they had some JD riders there for around $1,200 and up - i was like " Dad- scratch the paint on one of those JD's and see if theres gold plating under that green paint!" - they also had some troy builts there - id buy one of those before a JD- because they look cooler.


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## Hoodoo Valley (Nov 14, 2006)

dangeroustoys56 said:


> Pretty much all of it is being moved to China because they control most of the steel production - China also builds briggs motors, since teccy quit making motors.
> 
> Id buy a new MTD (if i was in the market for one) - just to see how long itd last .
> 
> Pop and i went to Lowes a few days ago, they had some JD riders there for around $1,200 and up - i was like " Dad- scratch the paint on one of those JD's and see if theres gold plating under that green paint!" - they also had some troy builts there - id buy one of those before a JD- because they look cooler.


People just tend to think there's gold under there, but it's just cheap........I mean........expensive...... Chinese steel, processed from American scrap. The gold is under the paint of the machines back at the Deere dealer!


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## dangeroustoys56 (Jul 26, 2010)

From what ive herd all JD's are built by JD - they dont do like cub and have MTD build the light duty tractors.

Thing that bothers me is they most likely park all those tractors inside at nite- BUT they sit outside ALL day long- thru pouring rain and hot sun, and people sittin on em. 

When i bot my '92 White brand new- it was in a crate - took em a couple days to build it and deliver it - cost me almost $2000 for it. Back then i wasnt into collecting/rebuilding - was just a basic tractor to mow with - i actually bot it from a local JD dealer a few miles away. Im pretty sure back then it was US made- the briggs motor is US made.


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## Hoodoo Valley (Nov 14, 2006)

Actually DT, Deere is making some things such as some loader parts etc, in China now too. They recently set up in some tractor factory over there. I remember my disappointment when Winchester went to the Japanese back in, when was that, like 1980 or so. All these American icons are going cheapness!


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## dangeroustoys56 (Jul 26, 2010)

Im not sure about ag tractors- i know the regular stuff is assembled here. Really doesnt surprise me- they want stuff built dirt cheep n sell it for high dollar - i bet if everyone boycotted companies that make their stuff in China theyd get the big picture. 

Last time i went to see the folks last year we all went to a store that strictly sold 100% made in US stuff - has to be totally authenticated in order to be sold at the store.


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## Hoodoo Valley (Nov 14, 2006)

Don't even get me started. This sort of thing really pisses me off, and people just keep on buying the crap. But then we just allow corporate America to just continue making huge profits and obscene bonuses for the administrative level, then bail them out when they invest their money foolishly, and now this thread is dangerously close to being highjacked!


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