Let me ask the question a different way..........

   / Let me ask the question a different way.......... #1  

DrewL

Gold Member
Joined
Apr 16, 2005
Messages
425
Location
Sandwich, MA
Tractor
Kioti
There seems to be a fair amount of pricing disparity from area to area, region to region. So, do dealers get the same pricing from their respective distributors?
 
   / Let me ask the question a different way.......... #2  
I'd like to bet the pricing is different from region to region for the same reasons the price of fuel and other items are different from area to area. The cost of living is different in all areas, I’m sure the price of items like milk and bread and other basics are priced different in other area's of the US too.

Shipping, setup, employees wages.... that all comes into play when we dealers price our equipment. Other things like free delivery within X amount of distance might also be figured in. Free pickup and delivery on warranty items may is also something dealers consider. A dealer knows what he needs to make to survive. A person might pay a few bucks more to get a good serving friendly dealer, while another dealer might sell at rock bottom prices but then never bother to return your call when you can’t figure something out or you have a problem. Service after the sale is something someone should consider when purchasing.

To answer your questions, all Kioti dealers deal straight to Kioti in Wendell, NC. To answer your question about pricing….. well I prefer not to. To be honest it is no ones business but the dealers what the tractors cost us, or if there are different discount levels. Just as I would never ask a car dealer what their prices are. I expect to them to give me the best deal the first time, just as I do to all my customers. Dealers should give customers a good price and should make a fair profit.

Anyway…. I’ve rambled on too long now… Im sure some dealers do gouge prices in some areas, as I have seen some prices that are just way high (even above list) but in the end among all good dealers I believe the main difference in price from area to area is cost of living. Please don’t take any offense to this message as I don’t mean it to come off that way.

Take care,
 
   / Let me ask the question a different way.......... #3  
There is no distributor only Kioti.

I typed a whole lot more then deleted it!
 
   / Let me ask the question a different way.......... #4  
Dang Jon you did go on.

(More deleted data)
 
   / Let me ask the question a different way.......... #5  
Ya kinda got carried away... sorry fellas..... been one of those days...
 
   / Let me ask the question a different way.......... #6  
Thanks Jon. I have wanted to write this so many times. You wrote it well and it is appreciated. No matter what brand or product you deal in this is an excellent answer.

Maka
 
   / Let me ask the question a different way.......... #7  
In my search for a tractor I found a big difference in pricing and I agree it is only the dealers business what they pay. DrewL did not ask how much dealers pay for Kioti's. He asked do all dealers pay the same. I found that pricing is more or less what the market will take. If the product will sell for 3,4. or 5 thousand over, than by all means that is what it will be sold at. More or less what will the market stand for a particular area. Being in the auto business I understand this all to well. That is why you have to shop around. Service is a very important part of any major buying decision as well.
 
   / Let me ask the question a different way..........
  • Thread Starter
#8  
Thanks Donnyj as that is my question. Do dealers pay the same? I understand dealerships costs of buisiness. With all due respect that was not my question. Does a dealer in CA pay the same for a DK35 as a dealer in RI for the same tractor?
 
   / Let me ask the question a different way..........
  • Thread Starter
#9  
quote Dealers should give customers a good price and should make a fair profit. quote

Correct and I understand. With that said and following that logic, a bigger dealer gets a bigger price for the same machine. OR................does more ordering volume get a bigger dealer a lower price?
 
   / Let me ask the question a different way.......... #10  
<font color="red"> Dealers should give customers a good price and should make a fair profit. </font>

Jon, Maka & Bigtractor . . . being in business myself, with public sales figures known to be grossing over $100 million a year in sales, I think gives me some perspective on pricing. Wether I like it or not, my customers often know exactly the prices I pay, and often know exactly the deals I get in my industry. So let me pose a question in regards to your statement. If Wal-Mart and Toy-R-Us both sell the identical toy, and one of them is selling at a higher price than the other, who is making a <font color="red">fair profit</font> and who is taking advantage of the consumer? Or is it that both are making a fair profit? Now assume both are in the same town, in fact both are on the same street within 1 mile of each other, so we can assume the property taxes, labor costs, rent, etc are equivalent. And if the item is not on sale, but simply being sold at list, is that gouging? Take furniture as another example, or perhaps jewlery . . . if you don't buy it for at least 30% off then you are being gouged so as tractor buyers, how are we consumers supposed to know unless we ask? And when something is quoted at list, or very near it, why should we accept it? In fact I don't care to know what you make, but I do care what I pay.

And a follow up, what about the dealers who do not give a fair price the first time? You know the ones who make consumer haggle. Why sould we even have to endure that? Isn't that just a way of saying I'm going to charge you a high price and wear you down until finally cave in and pay me or until you get tired of my games and go to another dealer. Sorry, but I don't want to play games.

And another follow up regarding you not asking about car pricing from a dealer, I can understand you might not want to do that, but he reality is that Consumer Guide, Edmunds, Kelley and even a dozen national magazines like Automobile, Car & Driver, and Road & Track all publish list prices, invoice costs, and in some cases information about floor planning and other costing information that allows consumers to be far more educated. So all that said, isn't this just a case of dealers and manufacturers protecting their own turf and trying to inflate prices?

Now I don't know about all brands of tractors, but I've had two dealers tell me that they can earn volume discounts and rebates or incentives. That may not apply to all brands, but it apparently does apply to some.

This is not called 'the information age' for no reason. We all are using the internet for the purpose of gaining and sharing information. But even before Al Gore invented the internet, consumer magazines and periodicals began publishing pricing and comparitive information about many different market segments from cars to washing machines. And now that compact tractors are becoming so very popular, it only makes sense that we share that information. . . and you don't have to like it, but it is a reality of business and if your business model does not embrace it, then I suspect that you will be fighting all the way to the poorhouse at some point in the future. Just as some businesses thrive on cutting cost, others thrive on providing service, but only businesses that provide a high level of exclusivity for their product (such as Tiffany) seem to thrive without giving discounts. Folks, these are tractors we are talking about, not Tiffany originals.
 
 
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