Could this be true?

   / Could this be true? #1  

Thomas

Epic Contributor
Joined
Apr 6, 2000
Messages
29,792
Location
Lebanon,NH.
Tractor
Kubota B2650HSD w/Frontloader & CC LTX1046 & Craftman T2200 lawn mower.
While at work this morning a friend call my office and said there something you see and come right over...so off I went.
As I rounded the corner there was a tractor tralier with 2 brand new M9000 Kubota with front end loaders and the cabs had a/c plus radios and other goodies....yep I was drooling.

After looking at the Kubota's I chatted with the driver which he was from the midwest and was hired to deliver the Kubota's.

Its seem kinda strange for we have a Kubota dealership about 15 miles away in which we order Kubota equipment...mmmm.

A good friend of mine which is a purchasing agent said " its cheaper to buy heavier equipment from out west.
It seems Kubota has 4 regions and the prices vary and cost more in the northeast.

Has anybody heard of such a thing or is my chain being pulled?

Oh by the way the 2new M9000 Kubota's if one needs to install a lap top computer they can.....yikes what next.
 
   / Could this be true? #2  
<font color=blue>Has anybody heard of such a thing</font color=blue>

Nope, not that the equipment is priced differently to the dealers in different regions.

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   / Could this be true? #3  
Of course, I don't know for sure what dealers pay for the tractors, but it's highly unlikely that different dealers have to pay different prices for the tractors. In fact, I talked to my dealer yesterday on the phone and the retail price difference among dealers was mentioned and he said it was "possible" that some transportation charges could vary.

Of course, retail prices vary from dealer to dealer even in the same area. And overall dealer costs may vary in different regions for things like taxes, salaries, utilities, rent or purchase of land, etc. so some dealers may need to charge more than others to stay in business.

Bird
 
   / Could this be true? #4  
Ask your dealer to let you look at his specification book on the Kubotas. The "cost" price is shown on each page for each and every option as well as the tractor. It is coded to look like a model or serial number, but it is the invoice price. Guess they could print up one for each reagon, but it is unlikely. They do seem to get a kick back (hold out)based on the amount of orders they have made, which further lowers the cost below the "cost" price. They also have expenses like the cost of rent, employees, etc., that prevent dealers from selling to us at the price they pay.

Some dealers try to only sell at list price. Some will sell at cost plus 10%. Some say they sell at cost plus 5%. You just have to contact a few dealers, and take the time to find out what the market really is.

My dad went buy a dealer and they priced him a tiller at $2200. He went by once a month and finally wound up buying it in the dead of winter for $1500. Guess it doesn't always pay to be in a hurry.

The biggest difference in price is usually shipping costs. Kubota's that enter on the West Coast seem like they would be cheaper than those that enter in Ga, since the boat ride is further. Quotes from the West Coast in general tended to be a little higher than those that came through Ga.

Another factor is Kubota lets the dealers buy the tractors assembled or unassembled (wheels, etc)in the tractor sizes less than the larger M tractors. That has got to affect the Invoice costs on those tractors that come assembled.

I obtained several quotes from different parts of the country, including some that were quite close to the points of entry and NONE were as reasonable as I could get in the North Texas area. I have no idea why this was true.
 
   / Could this be true? #5  
I know I talked at length with a few guys in Washington State a few years ago when I was visiting there and they told me they drove over four hundred miles to buy Kubotas because the "Microsoft Tax" in that area was allowing all the dealers in the area to charge significantly higher than retail prices for them. Seems all the local Microsoft folks were buying their own "estates" and "going back to the country", which, of course, necessitated their buying a tractor; and since they had plenty of cash, and were buying all the local dealers could get their hands on, folks who wanted to pay a reasonable markup had to drive long distances to do so. Nice work if you can get it, eh? The law of supply and demand is a double-edged sword, too. Whadaya wanna bet some of those dealers have told their customers Kubota charges them more in that area?

Mark
 
 
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