What's a Cub worth? Economics 101
 

As an economist, I've never responded to one of the "what's it worth?" questions here... but I'm relaxing with a beer and this is the kind of stuff I like to talk about (I know - what a geek, right?)

The key to the question is that all value is subjective, that is to say that it is a product of an individual making choices.

By definition, for any exchange to take place, both parties involved must feel that they will be better off after the exchange - otherwise, no exchange will take place.

If you have $500 in your pocket, and you'd rather have a Cub, then you value the Cub more than the $500. So if you make that exchange, you feel better off with the cub in your garage than you did with $500 in your pocket.

Likewise, for the seller to have made the exchange, he must have valued the $500 more than the Cub that was sitting in his garage.

So there is no such thing as "objective" value - value that exists separate of individuals making choices.

The real lesson to be learned here is that sellers place an individual value on their tractor. A guy that really knows his Cubs is going to demand more money in exchange for it because he a) has more interest in tractors than the average person and b) has paid a lot more attention to what comparable tractors have sold for - so he adjusts his expectations accordingly.

A guy who has had a Cub sitting in his barn for a few years because it was left by a previous occupant, and he hires a landscaper to mow his lawn...he's not likely to place much value on it at all. This is why so many of them sit for so many years. The owner places little value on the tractor, and little value on the storage space it's taking up. It's also why the killer deals are always "someone who knew someone who had a Cub," and introduced you as a buyer to the owner, who didn't even have the motivation to list it on Craigslist or something.

When that owner wants to "clean house" and is motivated to list it, he now places more value on the space than the tractor. So there's still a lot of opportunity for someone who values tractors to get a "great deal."

I've seen threads where guys have expressed guilt or pity for a seller that didn't know what something was "worth." The fact is, the seller sold it for what they felt it was "worth." It just wasn't worth as much to them as it was to you and your fellow Cub enthusiasts. Would they be happy to get more? Certainly, but it would be windfall profit to them. They may even "pity" you as you load it up.

Some of the members here have stated succinctly what I just wrote, but with only nine words - "it's worth what you're willing to pay for it."

I couldn't agree more.

What kind of beer are you drinking? That there is getting a bit deep Dave but oh so true!

Founders Red's Rye! And I did it from my rice-grain-sized keypad on the android while sitting at the bar. :)

Founders Brewing Co in Grand Rapids?

That is one thing I am most jealous of in MI. Seems that there is a brewery in every town. I love the micros. I went to 3 last time I was up there this past May. I really want to go to Ann Arbor to the tractor one. :beer2::beerchug:

That's the one. I live 7 minutes away.

Michigan craft brewing is phenomenal. I'm a home brewer myself.

'What's it worth' perspective
 

Well said Dave...very true and right on the money(no pun intended)... and nice perspective from the seller's and buyer's viewpoint...although I'm hoping to find another Cub from the "barn left by the previous occupant".... :)