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  1. #1
    Bronze Member luckyme2010's Avatar
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    Oct 2010
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    77
    Location
    mobile alabama
    Tractor
    mahindra5530 4x4

    Default wonder what the mark up really is

    Today i went to my mahindra dealer here in saraland alabama.He quoted me a price on a 1816 out the door for 10500.00.Well i came home checked a few dealerships over in Mississippi and the salesman said he will deliver the tractor a 1816 the 86 miles to my house for 9000.00 or i could by a 2216 for 9900.00 no fel i already have one on a 5530 4wd this little one will mainly be used to pull a planter so im wondering if theres such a difference in price how much do these tractors cost wholesale to the dealer btw the 2216 at my dealer was 12000.

  2. #2
    Gold Member knute_m's Avatar
    Join Date
    Dec 2005
    Posts
    394
    Location
    Hilltop Hollow, WV
    Tractor
    Rehab of modern wrecks, now ranging from a 20 HP tractor, to a little Cat 320, to a really fun Cat 953 dirt mover.

    Default Re: wonder what the mark up really is

    Quote Originally Posted by luckyme2010 View Post
    Today i went to my mahindra dealer here in saraland alabama.He quoted me a price on a 1816 out the door for 10500.00.Well i came home checked a few dealerships over in Mississippi and the salesman said he will deliver the tractor a 1816 the 86 miles to my house for 9000.00 or i could by a 2216 for 9900.00 no fel i already have one on a 5530 4wd this little one will mainly be used to pull a planter so im wondering if theres such a difference in price how much do these tractors cost wholesale to the dealer btw the 2216 at my dealer was 12000.
    I guess I'm just old and crotchety. But experience tells me that "price" isn't always "cost."

    If you are planning on keeping the tractor for a number of years, the initial purchase dollar differences will average out pretty low per year of ownership.

    If you are going to want advice, warranty support, general service, emergency support, and good parts support -- I'd go with the local dealer for the few extra dollars. I'd make friends with that local dealer.

    Buying from a dealer two hours away isn't going to make friends with your local dealer, and if you have to truck that tractor back to the original dealer for service, it will cost you far more that what you saved on the intitial purchase. Yet, making local friends will bring many returns you may never have thought of.

    Knute

  3. #3
    Silver Member LRTX1's Avatar
    Join Date
    Jan 2010
    Posts
    193
    Location
    Hague, Fl
    Tractor
    Farmall 140's

    Default Re: wonder what the mark up really is

    1500 in savings can pay for a few trips to the 2 hour away dealer if the local dealer wants to be a tool.
    Layne

  4. #4
    Veteran Member jlsmith's Avatar
    Join Date
    Aug 2010
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    1,263
    Location
    Murchison, Tx.
    Tractor
    MF 285 Long 560 MF2670 CX100

    Default Re: wonder what the mark up really is

    Quote Originally Posted by knute_m View Post
    I guess I'm just old and crotchety. But experience tells me that "price" isn't always "cost."

    If you are planning on keeping the tractor for a number of years, the initial purchase dollar differences will average out pretty low per year of ownership.

    If you are going to want advice, warranty support, general service, emergency support, and good parts support -- I'd go with the local dealer for the few extra dollars. I'd make friends with that local dealer.

    Buying from a dealer two hours away isn't going to make friends with your local dealer, and if you have to truck that tractor back to the original dealer for service, it will cost you far more that what you saved on the intitial purchase. Yet, making local friends will bring many returns you may never have thought of.

    Knute
    I agree 100%

  5. #5
    Advertiser sweettractors's Avatar
    Join Date
    Jul 2003
    Posts
    7,147
    Location
    Central Kentucky
    Tractor
    JD 6403 CHA-JD 3130 CHA

    Default Re: wonder what the mark up really is

    Quote Originally Posted by luckyme2010 View Post
    Today i went to my mahindra dealer here in saraland alabama.He quoted me a price on a 1816 out the door for 10500.00.Well i came home checked a few dealerships over in Mississippi and the salesman said he will deliver the tractor a 1816 the 86 miles to my house for 9000.00 or i could by a 2216 for 9900.00 no fel i already have one on a 5530 4wd this little one will mainly be used to pull a planter so im wondering if theres such a difference in price how much do these tractors cost wholesale to the dealer btw the 2216 at my dealer was 12000.
    There are dealers that are content on selling 10 tractors a year and make $3000 profit on each and then there are volume dealers that sell 50-100 tractors a year with $500 profit on each and get a large percentage rebate from the Mfgr at the end of the fisical year. Ken Sweet
    http://www.sweetfarms.com/

    Sweet Farm Equipment LLC (Internet Sales, Shipping All States)
    Shipping Facility
    1815 Defries Rd., Canmer, Ky 42722 Toll Free 1-866-528-3323
    Ken Sweet sweet@scrtc.com

    Shipping Example: Can ship 800 lbs from Ky. to Dallas for $165
    The Northeast shipping corridor is a little more expensive.

  6. #6
    Platinum Member
    Join Date
    Jun 2002
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    566
    Location
    Rozet, Wyoming

    Default Re: wonder what the mark up really is

    I went through that when I bought my Kubota, except the dealer I bought from is 100 miles away and the cheaper tractor was 400 miles. I got the "local" dealer to come down some and bought there due to the "if the tractor needs service" issue. While the tractor has only been back once, it is nice to have that relationship. The price difference would have only paid for the travel cost once probably, so I'm about even all said and done. I'd work on the local guy and try to get him to lower the price. You know what he's got to work with. Keep in mind the cheaper dealer probably is figuring on selling the tractor and never having to deal with it later for any problems/warrantee work.

    Kim

  7. #7
    Veteran Member EFC's Avatar
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    Dec 2001
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    1,149
    Location
    Richland, Washington
    Tractor
    Enough

    Default Re: wonder what the mark up really is

    Quote Originally Posted by LRTX1 View Post
    1500 in savings can pay for a few trips to the 2 hour away dealer if the local dealer wants to be a tool.
    Just because a dealer has a higher price does not make him a tool. I think that is a VERY unfair comment. There are maybe a hundred reasons why one dealer is higher than another but only one of them is greed. Would you be a tool if your boss came to you and wanted you to work for 20% less (because a company in a different state pays less for the same job you do) and you said no? Maybe one dealer has better service, maybe he pays his employees a livable wage, maybe he pays benefits, maybe he even has employees where the other dealer is a one man show who sells out of a shed behind his house, maybe he stocks parts, maybe the cost of doing business in one state is less or more than another, maybe he can do math and the other dealer cant (this is common), maybe he is working to stay in business and the other dealer is working to go out of business.

    Everybody on this board wants to know what the markup is which there is no way to calculate till the end of the year. The invoice from the mfg is not the cost. The cost is all the debt added up at the end of the year divided by the amount of units purchased. Sure volume dealers can make it up in volume but what happens in years when there is no volume. Well we found out last year. When you need to sell 30 tractors a month at $500 over cost to break even and you sell 1............ Plus the volume rebate from an MFG on 100 tractors is maybe enough to pay the light bill.

    What is a fair wage that a dealer should make? How much should his employees make? Without being called "tools"

    Buck
    "People believe what they want to believe, reality be dammed"

    "You only fear from people what you would willingly do to them"

  8. #8
    Silver Member LRTX1's Avatar
    Join Date
    Jan 2010
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    193
    Location
    Hague, Fl
    Tractor
    Farmall 140's

    Default Re: wonder what the mark up really is

    Sorry, that was a VERY fair comment. I was not refering that the dealer was a "tool" if his price was 1500 higher. It was in reference to the

    "Buying from a dealer two hours away isn't going to make friends with your local dealer, and if you have to truck that tractor back to the original dealer for service, it will cost you far more that what you saved on the intitial purchase"

    The dealer should want your "service" business wherever you bought the tractor. If he doesn't want to be "friendly" with you because you bought a tractor somewhere else, quite frankly, he would be a "tool" in my book.
    Layne

  9. #9
    Super Member RickB's Avatar
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    Sep 2000
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    7,042
    Location
    Eastern NY
    Tractor
    Case 885, JD 730D, Ford 4000

    Default Re: wonder what the mark up really is

    Quote Originally Posted by LRTX1 View Post
    1500 in savings can pay for a few trips to the 2 hour away dealer if the local dealer wants to be a tool.
    $1500 in savings can also be a total fantasy if the local tractor is sold with ballast, block heater, different tire equipment or other dealer installed accessories that the cheaper unit isn't equipped with. Be sure to compare apples to apples.
    We have too much gun control.
    What we need is more idiot control.

  10. #10
    Silver Member LRTX1's Avatar
    Join Date
    Jan 2010
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    193
    Location
    Hague, Fl
    Tractor
    Farmall 140's

    Default Re: wonder what the mark up really is

    Quote Originally Posted by RickB View Post
    $1500 in savings can also be a total fantasy if the local tractor is sold with ballast, block heater, different tire equipment or other dealer installed accessories that the cheaper unit isn't equipped with. Be sure to compare apples to apples.

    I took the man at his word that 1500 in savings, meant that. I don't have a dog in this fight, not my tractor, not my money. I just pointed out the fact that 1500 dollars can pay for a number of two hour trips.
    Layne

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