Pricing

   / Pricing #1  

Anonymous Poster

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Sep 27, 2005
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O.K. Guys I've been reading alot of stuff on this board and just thought I would post a few things about dealers in general that might interest some of you. Now I don't want to lump all dealers into one bunch, some of the things that I post may not pertain to ALL dealers. I only know from my own experiences.
First off just because one dealer can give you a good deal not all dealers of the same brand can give you the same deal.
If you have never been a dealer, don't tell a dealer "You can cut the price more than that, I'm going to XXXXXX's place!" YOU don't know that.
Some people think that dealers just pull inventory out of a hat. NOT SO!

Dealers have LOTS of overhead. (Some more than others) This is the reason for SOME pricing differences.

Insurance is a big one.
Shipping, the stuff don't come frieght free.
Employees (This opens up a BIG expense)Workers comp, etc
Parts Inventory(even if ya never sell it ya still gotta stock it just in case)
Tractor Inventory(the longer it sets the more it costs)If you want a tractor buy it just as soon as it hit's the lot. Chances are you'll get a better deal and the dealer will love ya for it.
Grounds maintanance
Shop equipment.
Delivery Vehicles.
Customer Service.

I could probably go on FOREVER.

I'm just trying to point out some things that some of the newer members to the board might not know.

I don't know everyones dealer so I can't say for sure about the dealer closest to you BUT
Your dealer is not out to screw you, he needs to get as much as he can out of the machine you want, so he can be ready for when times are lean.

In case y'all didn't know it , If the dealer don't make money what's his reason for doing it?
A dealer who only makes the bare minimum is usually the one that guys are talking about disappearing without a trace/w3tcompact/icons/sad.gif
No, I wouldn't expect anyone to pay list or above list.
Just remember the above when you beat your dealer out of the last bit of profit he was going to make on that tractor that's been on the lot for awhile.

When your dealer is higher than the other guy weigh your choices wisely. If your local dealer goes out of business, who are you gonna call for service, parts, etc.

The moral of this story................cut your dealer some slack!

Please don't be offended by this.
I am being very sincere about this subject.

Dealers who have other thoughts on this subject PLEASE post.

PEACE
 
   / Pricing #2  
I'm certainly not a dealer, but I'm betting that you are (or were)/w3tcompact/icons/wink.gif. I can't speak for anyone else, but I can relate my experience in my area. I have the big 3 (green, blue, orange) within a 15 minute drive. The next closest for any of them is 45 minutes. I won't mention any colors, but 1 out of these 3 told me to my face (at least the sales person did!) when I asked why they were so much higher than anyone else that it was because they were the only dealer of that brand in the area and they could charge whatever they wanted./w3tcompact/icons/shocked.gif My reply - "that's true, but you won't be charging me that, cause I'm out of here!!

I agree that the dealers have costs that us "regular" guys don't probably realize. And I also agree that the dealers are entitled to make a decent profit because that's what they are in business for. But when a dealer blatantly claims that they can charge whatever they want, I don't think they really want to be in business. They just want to make the most $$ they can at the expense of anybody else. A TRUE businessman is going to be up front in dealing with the customers and is going to realize that returning business is what really makes him his money. He's going to provide the best possible product at a fair price with the best support service for that customers purchase.

Like I said, IMHO, I expect the dealer to make a profit. But I'm not going to accept being taken to the cleaners because they may have some costs I'm not familiar with.
 
   / Pricing
  • Thread Starter
#3  
I'm not talking about dealers that are blatant ***holes. I would change brands over something like that. I know dealers all around that are like that. One of which got a well-known brands franchise yanked out of the store because of the Holier-than-thou-I-got-what-you-want attitude. Yes I AM a dealer and my customers get the best service I can possibly give them. I go out of my way to make them happy. In the same token alot of people that come in act like all dealers are just money grubbers that can (if they want) give them a tractor for wholesale price. The comments are aimed at OTHER dealers but you know where they are heading with the comments. I want them to buy my tractor BUT, I don't like hearing them bash ANY dealer. That was the purpose of the post. To make people aware that there's alot more to the business than just throwing the tractor out on the loat and put up an OPEN sign.

PEACE
 
   / Pricing #4  
Any suggestions on how to talk nicely with a dealer that is asking a price considerably OVER list ?
 
   / Pricing
  • Thread Starter
#5  
Be upfront, ask why he is that much higher. If he feeds you an OBVIOUS line(it'll probably have something to do with him being the only dealer in the area). Now you have a choice to make. There TYPICALLY is no reason to ask a price over list. If a dealer HAS to do that then he's not managing something right. Or he's price gouging/w3tcompact/icons/sad.gif/w3tcompact/icons/mad.gif.

PEACE
 
   / Pricing #6  
Any suggestions on how to talk nicely with a dealer that is asking a price considerably OVER list ?

Just be prepared to walk away...if he (or she) wants to deal, they'll call ya back!
Y'know, there's always another tractor....another dealer.
 
   / Pricing #7  
I did and would again walk away. This particular dealer swore that it was below cost, yet he needed a calculator to interpret the sales book numbers! Everyone wants a good deal, but it seems that most dealers (car, truck, tractor, etc.) are always saying that's the bottom line and they're losing money selling it for that price. Why should consumers have to pay "extra" for slow economic times, marble counter tops, fancy showrooms and the like? And what about the dealer that hasn't changed the paint in the last 10 years either? These are the types of things I notice. And neither type has any effect on my decison to purchase.
 
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  • Thread Starter
#8  
Ain't Competition Great!!! Internet sites help tremendously also. All business is very competitive these days. Dealers either meet/beat the competition or they are gone. Sometimes bad management internally makes it hard to stay in business. Just my two cents worth.
 
   / Pricing #9  
The internet will hurt alot of dealers. I hope it doesn't put my favorite dealer out of business. /w3tcompact/icons/sad.gif
Competition is great. It's why alot of other stores hate Wal-Mart. Come to think of it maybe competition is good to a point. At a certain point it becomes a monopoly.....

If I have enough money I can set up in an area...aquire the dealerships of all competing brands...then you will have to come to me for ANY brand /w3tcompact/icons/grin.gif/w3tcompact/icons/grin.gif/w3tcompact/icons/grin.gif. Some will drive to get better pricing alot will not. That will make me even more money then I can start buying the surrounding dealerships in a larger circle around me Hmmmm......Now where did I put that checkbook.................HEY, HONEY where's the checkbook! I'm going out to create a tractor empire. I'm gonna be as big as Microsoft!!!/w3tcompact/icons/grin.gif/w3tcompact/icons/grin.gif/w3tcompact/icons/grin.gif

Ob1
 
   / Pricing #10  
Last year was my first as a small landscape contractor. We worked part-time while I hold down a full-time job, help with the kids, take a few college classes, etc. I priced things for customers so that I made a reasonable profit, I certainly didn't want to gouge people.

I went over my books at the end of the year for taxes. I added up my costs, insurance, licenses, taxes, tractor payment and vehicle mileage. I came to the conclusion that I was supporting my customers at the expense of my family. I certainly shop around when I buy something and try to find the best deal, but this end of year book review has really given me a new appreciation of the reason things cost what they do.

This year I'll price to make a profit....hopefully.
 
 
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