JD 2305 Pricing - dealer differences?

[cast_and_blast]

I've recently gotten serious about pricing out a JD 2305. It includes:

JD 2305 with Turf Tires
62C MMM with independent lift
200CX Loader
JD Ballast Box

When I use the JD "configurator" I get a list price of $15,755 pre-tax.

I've been less than thrilled with the response and prices at my closest JD dealer so I've expanded my search as there are over 15 dealers within 25 miles of me here in MN. I've called 6 of the major dealers so far.

What is amazing to me is the vast differences in prices that I'm being quoted for the exact same setups. I've been quoted anywhere from $15.5K down to $13.7K when dealing with these folks over the phone. The higher priced dealers are always anxious to know how they "stack-up" against their competitors and are upset to hear that they are anywhere from $500 to $1.8K high. They usually want to know which dealer is selling for a low price as well.

Is there a "standard" discount that JD dealers have worked out? I've gotten the same price from 3 of them (down to the exact dollar) yet they are not owned by the same parent company.

What have you found to be the best strategy for:

a) Getting a good price from JD on the equipment you want,
b) Getting your local or hometown dealers to get more aggressive on their pricing?

Let me be clear - I do value building a business relationship with my dealer; I'm not in this to squeeze the last nickel out of the deal. Part of that relationship is getting a competitive price on the front-end. I would love to keep my business local - just not sure I want to spend the the extra $1K (this is about 7% more) to do so.

Your advice is appreciated!

Scott

 

[cast_and_blast]

I've recently gotten serious about pricing out a JD 2305. It includes:

JD 2305 with Turf Tires
62C MMM with independent lift
200CX Loader
JD Ballast Box

When I use the JD "configurator" I get a list price of $15,755 pre-tax.

I've been less than thrilled with the response and prices at my closest JD dealer so I've expanded my search as there are over 15 dealers within 25 miles of me here in MN. I've called 6 of the major dealers so far.

What is amazing to me is the vast differences in prices that I'm being quoted for the exact same setups. I've been quoted anywhere from $15.5K down to $13.7K when dealing with these folks over the phone. The higher priced dealers are always anxious to know how they "stack-up" against their competitors and are upset to hear that they are anywhere from $500 to $1.8K high. They usually want to know which dealer is selling for a low price as well.

Is there a "standard" discount that JD dealers have worked out? I've gotten the same price from 3 of them (down to the exact dollar) yet they are not owned by the same parent company.

What have you found to be the best strategy for:

a) Getting a good price from JD on the equipment you want,
b) Getting your local or hometown dealers to get more aggressive on their pricing?

Let me be clear - I do value building a business relationship with my dealer; I'm not in this to squeeze the last nickel out of the deal. Part of that relationship is getting a competitive price on the front-end. I would love to keep my business local - just not sure I want to spend the the extra $1K (this is about 7% more) to do so.

Your advice is appreciated!

Scott

 

[johndeere_2210]

There are multiple factors in generating a price on a 2305 or other piece of equipment.

a) If the dealer been sitting on a piece for 6-months or more and now paying floor planning, money out the pocket get's a good deal for the buyer, because the dealer is motivated to move that piece of equipment and stop the paying out of pocket.

b) Shopping over the phone will always get you numbers from full retail to actual selling prices, because some dealerships take the position, if you are serious you will come in, sit down and work up a price.

c) Some dealers know the market can command a certain price in that area, so dealing/haggling over a price is pointless.

d) What has now entered the picture is inventory surges, so you are seeing some people on this forum waiting a while to get something, so if you are looking at one on the lot vs. a dealer having to order it for you, then the price will be different.

e) How are you paying for this equipment? Depending on which way you finance/pay for this either cost the dealer money or not. Some of the low rate finance plans cost the dealer as much as 2% of the sale, so that must be added back.

f) In some case, the impression a buyer makes on the sales person can determine how much they are willing to bend on a deal, if they like you then it bends more vs. a sales person knowing when you come through the door it's fight time.

 

[johndeere_2210]

There are multiple factors in generating a price on a 2305 or other piece of equipment.

a) If the dealer been sitting on a piece for 6-months or more and now paying floor planning, money out the pocket get's a good deal for the buyer, because the dealer is motivated to move that piece of equipment and stop the paying out of pocket.

b) Shopping over the phone will always get you numbers from full retail to actual selling prices, because some dealerships take the position, if you are serious you will come in, sit down and work up a price.

c) Some dealers know the market can command a certain price in that area, so dealing/haggling over a price is pointless.

d) What has now entered the picture is inventory surges, so you are seeing some people on this forum waiting a while to get something, so if you are looking at one on the lot vs. a dealer having to order it for you, then the price will be different.

e) How are you paying for this equipment? Depending on which way you finance/pay for this either cost the dealer money or not. Some of the low rate finance plans cost the dealer as much as 2% of the sale, so that must be added back.

f) In some case, the impression a buyer makes on the sales person can determine how much they are willing to bend on a deal, if they like you then it bends more vs. a sales person knowing when you come through the door it's fight time.

 

[beenthere]

The tone of your question seems to imply that the dealers should 'set' prices between them, so they are not different. You probably don't mean to convey that message, but it's what comes across to me.
Dealers are all in this game to make money, and hopefully stay in business. A good dealer that stays in business for the time you want to 'deal' with them, is good for you (at least I want my local dealer to stay in business, just like I hope my Dr. doesn't retire before I do /forums/images/graemlins/tongue.gif ).

Dealers 'deal' depending on a lot of things, mentioned already in the previous response. Also, a phone call asking for prices isn't a one-on-one contact face-to-face and probably not a good way to try to do business. At least I wouldn't think of trying it, but have made calls as to the availability of a tractor, before follow-up. Sometimes we forget that the dealer may not want to scalp his price and profit for you, as you come across as a potential problem, or not a future customer and good risk. There are a lot of nuisance customers. Please, I don't mean to be pegging you as a bad customer. I'm sure each of us thinks of ourselves as being good customers. Getting all but the squeal out of a deal isn't being the best customer, IMO.
But pick the dealer you want to have in your future, and see if you can come to an agreement on your 2305. Good luck.

I've found, with cars, that far-away dealers will give good deals, as the buyer will go to their local dealers if any service issues crop up, leaving the far-away dealer with no after-sales hassles. I'm sure this goes through tractor dealers minds as well. Also, there are small dealers just getting started, and looking for the volume sales. Others, CUT's are maybe a sideline, and not a priority item.

Lots of things that will make for "dealer differences" in pricing, IMO. /forums/images/graemlins/wink.gif

"Over the phone" isn't going to get you far, I don't think. Hit the road when you are serious. /forums/images/graemlins/wink.gif

 

[beenthere]

The tone of your question seems to imply that the dealers should 'set' prices between them, so they are not different. You probably don't mean to convey that message, but it's what comes across to me.
Dealers are all in this game to make money, and hopefully stay in business. A good dealer that stays in business for the time you want to 'deal' with them, is good for you (at least I want my local dealer to stay in business, just like I hope my Dr. doesn't retire before I do /forums/images/graemlins/tongue.gif ).

Dealers 'deal' depending on a lot of things, mentioned already in the previous response. Also, a phone call asking for prices isn't a one-on-one contact face-to-face and probably not a good way to try to do business. At least I wouldn't think of trying it, but have made calls as to the availability of a tractor, before follow-up. Sometimes we forget that the dealer may not want to scalp his price and profit for you, as you come across as a potential problem, or not a future customer and good risk. There are a lot of nuisance customers. Please, I don't mean to be pegging you as a bad customer. I'm sure each of us thinks of ourselves as being good customers. Getting all but the squeal out of a deal isn't being the best customer, IMO.
But pick the dealer you want to have in your future, and see if you can come to an agreement on your 2305. Good luck.

I've found, with cars, that far-away dealers will give good deals, as the buyer will go to their local dealers if any service issues crop up, leaving the far-away dealer with no after-sales hassles. I'm sure this goes through tractor dealers minds as well. Also, there are small dealers just getting started, and looking for the volume sales. Others, CUT's are maybe a sideline, and not a priority item.

Lots of things that will make for "dealer differences" in pricing, IMO. /forums/images/graemlins/wink.gif

"Over the phone" isn't going to get you far, I don't think. Hit the road when you are serious. /forums/images/graemlins/wink.gif

 

[JohnSinVA]

At the dealer closest to me they have that exact setup and one nearly identical except that it has R4s instead of turfs. Both have a price of $14K with a cash discount of a few hundred off that. This particular dealer has two fairly large dealerships, which tells me they move a lot of product. The "cash discount" also reflects what the earlier poster said regarding cost to the dealer of financing through JD. Either way, there's just too much competition and too many options in different colors to pay full retail for a machine.

 

[JohnSinVA]

At the dealer closest to me they have that exact setup and one nearly identical except that it has R4s instead of turfs. Both have a price of $14K with a cash discount of a few hundred off that. This particular dealer has two fairly large dealerships, which tells me they move a lot of product. The "cash discount" also reflects what the earlier poster said regarding cost to the dealer of financing through JD. Either way, there's just too much competition and too many options in different colors to pay full retail for a machine.

 

[cast_and_blast]

</font><font color="blue" class="small">(
The tone of your question seems to imply that the dealers should 'set' prices between them, so they are not different. You probably don't mean to convey that message, but it's what comes across to me. )</font>

Not what I mean to convey - I would guess that JD has some type of "guideline". I would expect each dealer to set their own price but I would not expect to see $1.8K difference on a $15.7K list price tractor.

</font><font color="blue" class="small">( Dealers are all in this game to make money, and hopefully stay in business. A good dealer that stays in business for the time you want to 'deal' with them, is good for you (at least I want my local dealer to stay in business, just like I hope my Dr. doesn't retire before I do /forums/images/graemlins/tongue.gif ). )</font>

Exactly why I want to stay local (and by that I mean my hometown dealer 3 miles away vs. 20 miles away). They will have the last shot at the deal, but given my face-to-face conversations with them so far I don't expect them to budge on their price which is $1K higher.

</font><font color="blue" class="small">( Dealers 'deal' depending on a lot of things, mentioned already in the previous response. Also, a phone call asking for prices isn't a one-on-one contact face-to-face and probably not a good way to try to do business. )</font>

Two of my higher prices came from stopping into dealers. Strange, but true...

</font><font color="blue" class="small">( Please, I don't mean to be pegging you as a bad customer. I'm sure each of us thinks of ourselves as being good customers. Getting all but the squeal out of a deal isn't being the best customer, IMO. )</font>

Nope, understood your point here. That's why I stated in my first post that I wan't trying to get the last nickel out of the deal, but I don't want to spend an extra grand for nothing.

Thanks!

Scott

 

[cast_and_blast]

</font><font color="blue" class="small">(
The tone of your question seems to imply that the dealers should 'set' prices between them, so they are not different. You probably don't mean to convey that message, but it's what comes across to me. )</font>

Not what I mean to convey - I would guess that JD has some type of "guideline". I would expect each dealer to set their own price but I would not expect to see $1.8K difference on a $15.7K list price tractor.

</font><font color="blue" class="small">( Dealers are all in this game to make money, and hopefully stay in business. A good dealer that stays in business for the time you want to 'deal' with them, is good for you (at least I want my local dealer to stay in business, just like I hope my Dr. doesn't retire before I do /forums/images/graemlins/tongue.gif ). )</font>

Exactly why I want to stay local (and by that I mean my hometown dealer 3 miles away vs. 20 miles away). They will have the last shot at the deal, but given my face-to-face conversations with them so far I don't expect them to budge on their price which is $1K higher.

</font><font color="blue" class="small">( Dealers 'deal' depending on a lot of things, mentioned already in the previous response. Also, a phone call asking for prices isn't a one-on-one contact face-to-face and probably not a good way to try to do business. )</font>

Two of my higher prices came from stopping into dealers. Strange, but true...

</font><font color="blue" class="small">( Please, I don't mean to be pegging you as a bad customer. I'm sure each of us thinks of ourselves as being good customers. Getting all but the squeal out of a deal isn't being the best customer, IMO. )</font>

Nope, understood your point here. That's why I stated in my first post that I wan't trying to get the last nickel out of the deal, but I don't want to spend an extra grand for nothing.

Thanks!

Scott