Price Check wonder what the mark up really is

[luckyme2010]

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.

 

[knute_m]

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

 

[LRTX1]

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

 

[jlsmith]

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%

 

[sweettractors]

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

 

[KWentling]

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

 

[EFC]

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

 

[LRTX1]

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.

 

[RickB]

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.

 

[LRTX1]

$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.