JD 5E and 5M pricing

[Slippy]

One would think that they would always put their best foot forward in hopes that you will continue to be their customer, become a customer in the future, and make other purchases and have service done even if you don't buy today. This is potentially my first tractor purchase from this dealer, but they have done service for me in the past and have been excellent with turn around and workmanship. Price, well shop rates at dealers are almost always higher than private mechanics in my experience.
This process is as bad as buying a new car, except their is not enough information about actual costs, dealer kick backs, etc. I agree with the concept the dealer needs to make some money. Thats what keeps a business going.
If you think about it, without knowing the numbers, you could get a 25% discount and they could still make a "reasonable profit".

 

[vtsnowedin]

If you think about it, without knowing the numbers, you could get a 25% discount and they could still make a "reasonable profit".

I don't know how you could say that without knowing the actual invoice price plus shipping the dealer had to pay to get the tractor to his lot. I have just the one recent experience at buying JD and the 15 to 18% discount for a no trade sale rings true but I have no idea of what was left for the dealer. The next JD dealer down the road went bust this year and was sold off at auction so the profit margin isn't all that wide.
If you abuse your JD dealers and drive them out of business you will be stuck going some other color but you don't need to be their sole source of support.

 

[Soggy Bottom Outdoors]

I priced a 5075E open station, with canopy, 2wd, no loader, at my local Deere dealer, $25000. I was willing to write a check but the salesman said, NO CASH DISCOUNTS. I kept shopping.

 

[AKfish]

It's all about sayin' no... the sales person, the manager, the owner, the BUYER. If there's not enough profit in the offer or if you know that you can buy the same tractor at another dealer for less money - it's a big, fat NO! Can't do that - ain't interested..

Always takes at least 2 agreeable parties to make a deal.

That said; I bought a new JD in '08 for just over 24% below MSRP. I was very happy. The salesman was happy. My local dealer was NOT happy. A year later, the shop foreman says to me - "ain't no way we can stay in business if all we make is 7% on a sale"! Ok, that's why they said no.

The dealer in Georgia thought 7% was just fine!

AKfish

 

[Dadnatron]

The reason 'long distance' dealers are willing to sell at a lower price is because you are 'found business'. You are not their typical sell. You are not local, and they are unlikely to get more business from you requiring their overhead, ie workforce, building etc. You are essentially a 'free' 7% to their bottom line. You 'pop up' and give them money out of the blue. You didn't and won't cost them anything.

Whereas your local dealer has to advertise, pay the guy to 'sell you' answer questions, stock that $2 fitting, etc. Your local dealer is likely to sell the guy from GA a 7% tractor, because for that sale, it cost your local dealer 'nothing' to make. They guy called up, said 'this is what I want, what can you do for me' and they quoted the price.

This is the same for cars etc. You can almost always get a better deal purchasing in another city, with a call to the 'fleet manager' with your exact model and options. You are a 7% who fell into his lap, and they will almost always take that deal.

But you won't engender the 'good will' of buying locally, and that might cost you $$$ and TIME down the road.