dealer requirements

[dqdave1]

I was wondering if CNH has requirements on dealers to how they can price their equipment. Also if they dictate the selling price on equipment. IE: GM says the dealer can not sell a vehicle below GMS pricing; but I know some dealers that go around thaat also.

[mike10]

New Holland does not place limitations on a dealer's pricing policies.

[daTeacha]

So, if I was a dealer and paid $15,000 for a tractor and I really liked you I could sell it to you for $15. Get to know your dealer really well!

[dqdave1]

Maybe I should have said; is there a MSRP on all models? I have never seen one on paper. Is there hold back money. Is there percentage returns at year end on volume of $ sold? These can make the difference in selling prices.
Do all dealers "have to" buy all repair literature each model change?

[MessickFarmEqu]

CNH's programs are about the most complex out there. It confuses the heck out of me and I look at it every day. You name it, we got it in one way or another.

Yes, not only do we have to buy repair manuals we also must have all the electronic diagonstic equipment and pay yearly maintence costs for the software. The cost of doing business in the service dept is insane, thus why you pay about the same rates to have a tractor worked on as a car - they are very simular.

[thcri]

CNH's programs are about the most complex out there. It confuses the heck out of me and I look at it every day. You name it, we got it in one way or another.

Yes, not only do we have to buy repair manuals we also must have all the electronic diagonstic equipment and pay yearly maintence costs for the software. The cost of doing business in the service dept is insane, thus why you pay about the same rates to have a tractor worked on as a car - they are very simular.

Neil,
I remember when Case bought out International. A lot of the International dealers had to merge because of the computer/dealer costs. The costs were so hi all the dealers in a area got together and made one of the dealers the "Dealer for the Area" That dealer bought all the software, the rights to be a dealer and then they divided up the costs amongst themselves. But only the "Dealer for the Area" could actually order the equipment. Otherwise it would have put a lot of dealers out of business. I am wondering if they slacked off on that some or even with the merge of New Holland are they still pretty tight?

murph

[MessickFarmEqu]

The cost for this kinda stuff is simply expensive. The electronics set to work on a tractor is about $1500, plus a $2000 laptop and $2500/yr that you pay PER LAPTOP (we have 3) for mandatory software updates. CNH has got to be making a profit off this, Kubota is about 1/3 the expense. We paid around $80,000 for our business system that we bought about 8 years ago, thats due for an update now that we've been avoiding. There are still more fee's for the parts counter programs and electronic catalog updates. Its crazy, parts and service are expensive for a reason.

We do have two stores and we share quiet a bit of stuff. A high speed internet link connects the locations so we can share a phone system and servers. The connection still costs $800/mo!