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  1. #21
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    CubCadet

    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Not so.. My husband and I do not live in an exclusive county and our nearest dealer was priced $7000 higher than the one we bought from a neighboring state. It is brand new, less than 3 hours on it. Even the local dealer was impressed! He is happy stating that we bought a bobcat because he knows he will be getting all of our service business as well as selling us parts or various attachments we need. You have every right to check around... get the most for your money!

  2. #22
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    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Quote Originally Posted by Countrygirllana View Post
    Not so.. My husband and I do not live in an exclusive county and our nearest dealer was priced $7000 higher than the one we bought from a neighboring state. It is brand new, less than 3 hours on it. Even the local dealer was impressed! He is happy stating that we bought a bobcat because he knows he will be getting all of our service business as well as selling us parts or various attachments we need. You have every right to check around... get the most for your money!
    As a former salesman/sales manager at a Bobcat dealership (and now a full time teacher and part time landscaper), I just want to clarify that I think it is important for customers to get treated fairly. By that I mean that they should expect to buy a product that will be sold at a market driven price, supported in a manner that minimizes any down time in the event of a failure, and they should be dealt with by professional and courteous dealer personnel.

    I also want to point out that dealers are assigned territories with enough geographic size so that they can sell enough machines to make a living profitably (customers expect to make a profit at what they do as well). This territory size is agreed upon by Bobcat and the dealer based on the ability of the dealer to cover and support it, and the historic market opportunity of that territory (how many SSLs, mini's, CTLs, etc. are sold every year and what market share can Bobcat expect to get). The dealer relies on a secure territory so that they have the opportunity to reach those market share goals agreed upon between themselves and Bobcat reps. This breaks down if other bobcat dealers start selling into his territory. This is amplified in a down market. That local purchase also keeps a local salesman in your community employed and his family fed.

    One thing most customers don't know is that in the event of a failure under warranty, OEMs will only pay the dealer a "flat hour rate" for that repair, they don't reimburse the dealer for travel (why you usually get charged), they don't reimburse the dealer for the time it takes to troubleshoot a problem on a machine, they don't pay for shop supplies, factory required service tools, diagnostic equipment. The OEMs usually even charge the dealer for sending his mechanics to service training.

    Assume that a failure occurs and the repair actually takes 6 hours because the machine is dirty, a few bolts are seized, etc., but Bobcat only pays the dealer 4 hours for that failure. Your local dealer that is extremely happy that you bought from another dealer a state away instead of his (sarcasm) just had to eat two hours of shop labor (probably at about $75 an hour) to support a machine he didnÁ®š make any money on. Additionally, part of that lower price you paid to the distant dealer was due to the fact that he knows he won't spend any of his own money having to support it.

    Most smart dealers set aside part of the machine sales profit for product support that may not be covered under warranty. Have you ever gotten a loaner machine from a dealer while yours was being worked on? Ever receive a reduced rental rate, set of free filters, discounted repair? All of this costs the dealer money, and much of this support that the customer comes to expect from his dealer is covered by selling machines to local customers, not just by selling parts to customers who bought their machine a state away. Remember that local, loyal customers get the extra support. It's a fact of life, and it will come in handy one of these days when you're in a bind with a down machine, mot enough work to pay a service bill, etc.

    In any case, a dealer that doesn't sell his product at acceptable local market prices goes out of business.

  3. #23
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    Feb 2011
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    Tractor
    kubota m105x

    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Hi Reed Farm,

    I ordered a new T750 completely loaded with all options including two speed and highflow along with joystick controls for 64,000$.

  4. #24
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    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Philosophically I agree with you, but in the ladies case seven thousand dollars is a huge difference....I wonder why the closer, more local dealer tried to hose her down---maybe because he thought he could ?? In the recent past, when things were booming, and there were shortages of some products, these types of discrepancies were routine, and look where it got all of us.....Tony

  5. #25
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    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Quote Originally Posted by tony Cecil View Post
    Philosophically I agree with you, but in the ladies case seven thousand dollars is a huge difference....I wonder why the closer, more local dealer tried to hose her down---maybe because he thought he could ?? In the recent past, when things were booming, and there were shortages of some products, these types of discrepancies were routine, and look where it got all of us.....Tony
    Fair statement.

    I wasn't arguing the merits of the pricing difference since I don't have the specifics, e.g. model year, was the higher priced machine still being covered by floor plan, was the cheaper machine's dealer paying on the floor plan (cash flow killer), was it equipped equally (same tires, options, etc.), did the dealer of the cheaper machine have another newer machine coming to replace the old one, did the higher priced machine dealer have a potential deal on that machine at the higher price? All of these are unknowns so I didn't pass judgement, but you are correct. I know the Bobcat dealer discount and that is a huge difference in price if the machines were the same.

    Heck, I've had customers from another dealer's territory beg me to sell them a machine because they "didn't like/trust/get along with" their dealer, only to find out that they owed that dealer big bucks on their accounts and they were on credit hold. I was just trying to add my philosophy to the mix from a former salesman/ sales manager perspective.

    Good dealers fully understand the value of good customers and repeat business. Dealers that sell machines for $7k (if they're apples to apples) more than the same dealer in the next territory don't last long.

  6. #26
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    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Well you are correct ..Just too many variables...I just assumed the lady priced a comparable machine, maybe with some small adjustments....I did figure out one thing from our discussions on this board....In the effort to price a caterpillar product with a comparable kubota, the Cat dealer has been here in S C a long time..and my long ago dealing with them was a good experience...My Deere dealer is now gone, and the nearest is a long way off....The Cat product is more costly, but they have good service, and parts availability....therefore the machine is more costly, as that service is very important to a person using their machine to earn a living...In my case that is not as important...Tony

  7. #27
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    Default Re: Bobcat Track loader No MSRP/negotiation ?

    It was definitely a comparable machine. T320, high flow, a 91 pkg, joystick controls, forestry applications kit... local guy has it on his lot... other dealer is bringing it in from North Dakota. $7k cheaper... Also, that same dealer sold us a new forestry cutter for just over 16k when the other dealer wanted $22k. I don't know how he was able to offer such a better price, but I am happy he did.

  8. #28
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    Location
    Appomattox VA
    Tractor
    Kubota L4330 Komatsu D21

    Default Re: Bobcat Track loader No MSRP/negotiation ?

    This is great ...
    I am reading the posts to my wife and 15 year old daughter. Especially the point of view of the "former dealer" and the 15 year old asks " How does paying more money make a relationship ? ... shouldn't they give you a good price so you are happy and go back to them to buy more stuff or get service ?" Funny how a child gets it ....

  9. #29
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    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Quote Originally Posted by Countrygirllana View Post
    It was definitely a comparable machine. T320, high flow, a 91 pkg, joystick controls, forestry applications kit... local guy has it on his lot... other dealer is bringing it in from North Dakota. $7k cheaper... Also, that same dealer sold us a new forestry cutter for just over 16k when the other dealer wanted $22k. I don't know how he was able to offer such a better price, but I am happy he did.
    I know what Bobcat pays for that cutter and charges the dealers, and the dealer did not make money on that. Out of curiosity, what if the local dealer told you that you had to go back to that other dealer for support? Would that have changed your approach?

    How would the local dealer's price on the same set-up compare if you went to the local CAT dealer and asked to buy a 299C with a mulcher and forestry kit, or a ASV PT-100G forestry with a mulcher? Would it still be above local market pricing?

    I don't think there is any argument among us regarding the need for a dealer to offer a price that is fair, equitable, and driven by the local market.

  10. #30
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    Default Re: Bobcat Track loader No MSRP/negotiation ?

    Quote Originally Posted by Countrygirllana View Post
    It was definitely a comparable machine. T320, high flow, a 91 pkg, joystick controls, forestry applications kit... local guy has it on his lot... other dealer is bringing it in from North Dakota. $7k cheaper... Also, that same dealer sold us a new forestry cutter for just over 16k when the other dealer wanted $22k. I don't know how he was able to offer such a better price, but I am happy he did.
    That machine with those options has a suggested retail of just over $75k with everything including the forestry kit. I'm assuming that you bought the 60" Forestry Cutter. If so, the suggested retail price is $24,612. The total suggested retail of the machine packages and mulcher is approximately $99,649 without freight included. Based on what I know as a former Bobcat Sales Manager, the dealer that sold it to you is making less than $1000.

    You expected your local dealer to match that??? Then what, go out of business? The other dealer just made a quick $1000, dumped a machine off of his floor plan, and never has to worry about supporting it. Do you think a dealer can stay in business making about 1.3% margins on machines he sells? Could you stay in business if you made 1% on what you did?

    Your local dealer didn't make a dime, and I'm sure you just expect him to service it with a big fat smile on his face the next time you drive into his yard with it on your trailer. I would be ashamed to step back on that local dealers lot if I stuck it to him like that.

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