Dealer How do dealers set prices set on Kubota Tractors

[WALOL]

Thanks to you guys who weighed in on the L3830 pricing posted earlier. In planning a discussion strategy before I have another talk with my dealer, the thought has occurred about exactly how do the dealers establish the prices they quote to us prospects? I'm wondering how much lattitude the dealer has with the price, or maybe they are required by the Kubota head office in California to stick with a certain price based on location within the US? Also wandering how much of a markup the dealer gets on a typical sale of one of these machines. Don't want to be pushy about the price with the dealer but also don't want to overpay either. When buying a car you can get the "invoice" price to get another idea on pricing, anything like that available for Kubotas? Any thoughts on this from you guys?

Thanks. Also, doing maintanence on the old Farmalls is something like taking care of your hard working, well respected grandfather, who just needs a little more help than he used to. That said the cost comparison is a good point. Thanks.

 

[Henro]

Walol,

You may have asked a question to which there is no certain answer...

Bottom line is probably that the price asked is set by "what the market will bear..."

This does not help you, of course.

You can research prices, by visiting a site like one put on line by the state of Minnesota (sorry, don't have the link anymore) or perhaps by getting quotes from dealers willing to ship to you from a distance.

I don't think there is any info available like there is for cars, related to invoice price and MSRP and such when it comes to tractors.

IF all else fails, maybe you should be asking for quotes from all dealers within a certain radius from your home. Quoted for pick up at the dealership. You can always arrange for shipping or pick up later after you buy, and setting aside shipping/transport cost should make things clearer.

In my case, I got info from other dealers including an out of state one, and in the end decided to buy local, even though it cost an immediate tax penalty. I say immediate tax penalty, because if you buy out of state you still could be stuck with the sales tax if the state finds out about your purchase.

Wish I could be of more help... /forums/images/graemlins/crazy.gif

 

[NY_Yankees_Fan]

by visiting a site like one put on line by the state of Minnesota

web page

 

[MessickFarmEqu]

I'm a dealer located between Lancaster and Harrisburg. There is no estabilished pricing on tractors, the markup varies by where you live. Everyone has a different cost of overhead, setup charges, and trucking so you see pricing that ranges from full list to %15-18 off. If your in the Lancaster area you will find the dozen Kubota dealers in this area are amoung the lowest priced in the country.

Neil
Messick Farm Equipment

FYI... the minnesota pricing is now obsolete as there has been a reissue of the entire price book to reflect the price increase caused by steel and the global ecconomey.

 

[LarryRB]

I believe Kubota would do well to copy John Deere's site and post openly list prices of all machinery and attachments, This is why there is so much disparity in different sections of the country,,. when there are (NO CONTROLS) over list pricing, one sees like in New England area where almost all the dealers are thousands higher than anyone else.. Then these dealers are constantly crying to Kubota corporate that people are buying out of district.. They are hanging themselves and as far as I'm concerned some of the dealers around here deserve to lose it all.. A big thing with some in this neighborhood is the dealer attitude that everyone is a "yuppie".. Yuppie's pay top dollar and do not ask many questions about the machinery or it's cost. The dealer now has that everyone can pay like the yuppie attitude,, I hate to break the news to Kubota, I know of very few if any, yuppies in my neighborhood,. However, I can drive 30 miles east and find them in one residential district after another,town after town clear back to Boston, It is these people who come to the local dealers and buy.. If tractor "A" cost the dealer 26K with loader and shipping, then on the Kubota site it should list the price of tractor "A" as 29K list .. Now the yuppies can be happy and flat pay the 29 or the dealer can try and sell to us in the territories, where we can try and bargain for 15 or 20% off list.. AS long as it goes as set up now,, people here are going way out of district and when you add in, cost of machinery, the sales tax, and extra shipping to this area, and still beat the locals by thousands, someone, someday at Kubota may wake up and fix it.

 

[equipman]

LarryRB
Where do we sign up for those "yuppie" customers? That sure looks like a good way to improve the bottom line.
Lewis

 

[LarryRB]

are you saying in Ft Worth there are no yuppies? Boston is loaded with them... Don't ask questions, just pay whatever is told... I have a big, no, make that real BIG, hang up with yuppies that come out of the cities,, As a past town selectman, deputy fire chief, highway and ten other different boards, I've watched over the years as these yuppies come out here and tell us why we live all wrong and do everything wrong.. They register to vote first, then load a town meeting so they can vote in 25 more street lights.. Can't figure this out as only a few deer need them while in their travels.. Property was 35K per acre. Now they have it at 85K and higher...Same with the dealers... 15 years ago one could look at a tractor, and usually that person and the dealer struck a deal both were happy with.. Not today,, I should become a dealer myself, not many things one can call a list price out of the sky, demand it, and most instances receive it.. As I stated before and I say it as a previous self employed person myself, I don't feel sorry for one single dealer here regardless of the brand they sell, when that dealer is way over and above list price..

 

[gregp]

I am a little disturbed at the pricing myself. I live in Alaska and was quoted $16,200.00 for a B7610 hydro with a loader and weight box. I called the dealer that jeffgbook bought his tractor from in Texas and was Quoted $12,925.00 for the same tractor,loader but (with a box blade.)
I checked on freight and from Washington, oregon area it is $850.00 to ship it. I am still looking at a $2500.00 +- difference. My local dealer says he "just dont think he can go that low" Won't is more like it.
Does anyone know if Kubota works on the freight charge to the dealers? When the Honda dealership i work at sold Honda tractors, Honda shipped free freight even to Alaska as long as there was a certain dollar amount and you did not need it yesterday.
I will buy a tractor and i would like to buy local but not at extortion prices. /forums/images/graemlins/mad.gif

 

[sneaky_pete]

</font><font color="blue" class="small">( are you saying in Ft Worth there are no yuppies? Boston is loaded with them...)</font>

The nickname for Fort Worth is "Cowtown", and most residents accept it gladly. I'm sure there are some yuppies there, but the day there are a fraction of the number as in a place like Boston is the day I move another county or two to the west again. /forums/images/graemlins/cool.gif

 

[Maka]

Hi Gregp. I am a dealer in Idaho andget this quit often from customers. I sell a tractor at a price that is more than a guy in Missouri and customer comes in and wants me to meet the Missouri dealers price and I explain the following.

The Missouri dealer pays very little shipping vs. what I have to pay, he probably sell 10 to 1 of what I sell so he can make it on volumn, he sells outside his area expecting the dealers in his area to handle his sales service needs.

Now, here is me. I sell tractors at a fair rate and know what my margin to cover my cost of doing business. I could care less what the dealer across the country is selling for and absolutly will not allow him to set my prices, period. I don't make it on volumn, I pay heavy shipping and other costs so I need to make enough to employ my people, cover cost and stay open to service the loyal customers I have.

Having said this I had a dealer sell a tractor over the internet from the south to a guy on the east coast for dirt cheap and then call me and ask me to deliver him one out of my inventory and he would split with me. I declined as I would then have to ship another tractor in, not have this one in inventory(only had one of this model in at the time) thus potentially costing me much more.

I tell customer that if they like the price in the south or mid west then they have to decide if the shipping is worth it and LTL hardley ever is. If they happen to have family in that area who they can have bring it or they drive out and visit and bring it back and they can save more power to them.

Here is where I really help my customers and wqhere I believe the difference is made. If someone goes out and buys from 1500 miles away then yes, I will service it. If under warranty I am covered and I make my money. The difference is that my customers always come first. If one of my customers who uses their machine for monetary purposes or one of my larger machines for farming etc. and they have a problem I have loaner tractors available to them. Would never do this for a customer who tried to save every penny and then expects me as a dealer to give them the same service that my customers will get. It really boils down to service for me. I give a great price, great product but have to make a living and won't allow someone else in the country to set my prices for me.

My customers are very happy and yes, as stated I will service any machine that is in my brand line but if it is not sold by me then that customer gets put at the end of the line while I attend to my customers.

Does this sound bad? I hope not as I am just tired of some guy 1000 miles away giving a potential customer some expectation that I also can sell at those prices. On the flip side I will bend over backwards for my customers and do.

Best Maka