I'm sure I'm not the first person to say Dealerships are over priced.

[JasperFrank]

If you go outside the dealerships, there is a precipitous drop in what things cost. I thought this was odd at first. I've even had a salesperson tell me what I wanted to buy was insanely priced. I don't understand what the dealerships are doing. They price things in insane ways for anything tractor related, like it is different than anything else. Its really the same materials, like a car. But for some reason they want to charge 3 or 4 times as much as one could find elsewhere. What is it in these dealerships, that think they can survive in a world that is now internet based and I can find things all over the US, at the same quality, for far less than what my local dealership is providing?
What is the nature of that dealership? Do they just think we are all, wealthy, small plot, idiots with too much money? I always go to the dealership first. And I am always disappointed by the numbers they give me. Then I find locals, not associated with the dealers, that will do the same work for less. Money back in to the local economy.

 

[oosik]

You do not list examples of any great disparities ............ I get all my supplies from the local Kubota dealer. Oil, filters & many of my implements came from the Kubota dealer. I do have several brands of implements and a couple were purchased from other dealers but most are Land Pride and all but two were purchased from the Kubota dealer.

Be careful in using cheap supplies - - as long as what you use meets the minimum spec called out for your tractor - you will be fine.


BTW - - Welcome to TBN and the forum.

 

[JasperFrank]

A local dealership said it would cost me 1300 dollars for a radiator. That's just the part, not instillation. Even the sales person said this was crazy. I didn't say it was crazy, he did, and i agreed with him. And i would not want to be in his shoes, to make the sale. I had it remade, with a typical, automotive recore for $300, from some other local shop and re-installed it my self. I saved 2,000 Dollars, since the dealership would have charged $2600. The other three hundred is that I made 100 dollars a day installing this my self on my weekends. Even the people that work at dealerships know they are morally challenged, with what they are asked to charge people. A bolt is a bolt, if it has the same specs. Yet if it is a Tractor Bolt, it is all of a sudden, worth 2X more at the local dealership. So I call shenanigans. I will never consider a local dealer again. Better to just find other sources and/or to do it yourself till these dealers get back to some sort of pricing reality or even support the tractors they sold. And I will give an example of these shenanigans. I needed two new front tires for my 1220 ford. Called all the local dealers of New Holland from Roseburg to Portland, and they could not get me any 12 inch j tires. Even if i pointed out at the 12 j inch tires on the tractors they had for sale. They are selling tractors that they admit that they can't replace the tires on. On a lark, I call my local car tire place, in Springfield, Schmumk's, and ask if they can get me these j 12s, Paul Schmumk, the owner is working the counter, says sure, when do you want them, 100 each, if you can wait four days, and do you want the inner tubes also. Wow, that is service!

I say **** the dealerships and go as local as you can.

 

[RandyT]

What most people don't understand about dealership prices is doesn't have much choice to charge those prices. The Manufacturer sets a base MSRP price and then bases the dealer discount off of that amount. This isn't a case of a parts distributor for the dealer selling the radiator to the dealer for 300 and then the dealer charging 1300. this is a case of manufacturer setting the price at 1300 but will will sell it to the dealer for 1000.

As a mower repair dealer myself, I have a lot of cases where a bolt is $2.05 through the dealer but my parts distributor is charging me $1.85 for that bolt. Then to top it off the same manufacturer that is charging the dealer those prices will also sell on Amazon at under dealer cost plus free freight to the customer. I have seen it on generator where a customer can buy one shipped straight from the manufacturer for $100 under my cost. Or a lawnmower company will require a dealer to stock a certain number of mowers but the local box store is selling those same mowers for $200 under dealer cost.

 

[thepumpguysc]

Its the same everywhere.. actually there are 3-4 price points in their system.. LIST price being one of them.. THEN theres DEALER price which is about 10% over cost.. then it goes UP from there..
Do you think if a different tractor co. called & wanted the same radiator, they'd pay the same price as you?? The answer is NO.. They would pay LESS THAN 1/2 of what u were quoted..
That's why it pays to "have an account" or talk real nice to the counter person..lol

 

[RandyT]

Its the same everywhere.. actually there are 3-4 price points in their system.. LIST price being one of them.. THEN theres DEALER price which is about 10% over cost.. then it goes UP from there..
Do you think if a different tractor co. called & wanted the same radiator, they'd pay the same price as you?? The answer is NO.. They would pay LESS THAN 1/2 of what u were quoted..
That's why it pays to "have an account" or talk real nice to the counter person..lol

I would love to see those type of parts discounts. For my type of business, dealer cost is set by the equipment manufacturer is 10-30% below MSRP. And wholegoods are as low at 5% below MSRP. Nothing like having a $200 chainsaw on the shelf ready to sell and the profit margin is $6.00-12.00.

And I will almost bet that the dealer that wants $1300 for the radiator is paying the equipment parts supplier over $1000 for that radiator. But that same company will sell that part online for $900. I can walk into Walmart and purchase a new pushmower for less than the cost of the engine from Briggs.

 

[Bird]

Yep, it's always been that way and probably always will be. I can remember some 50 years ago in the auto parts business, we had 4 price sheets (from the warehouse) for most parts: (1) our cost, (2) dealer price, (3) independent mechanic price, (4) retail price. Of course, being in a small town, we didn't use all those.

 

[Gordon Gould]

There are other things to consider also. I have a JD mower that takes a $75 ( JD pricing ) great long timing belt to maintain blade registration. I can go on ebay or Amazon and get the belt for $25. Not a JD belt though. I have gone to a JD dealer got a $75 belt. Came in a plain box. No name, no P/N, and the belt felt and looked inferior. It lasted two mowings. I suspect it was a $25 ebay belt. JD belts have usually lasted 2 or three years. Next belt I bought on line at a genuine JD parts place. Came in nice green JD box with P/Ns all over it and on the belt. I always thought that dealer was OK but now I wonder.

gg

 

[Jstpssng]

I took my company truck to the dealer because it was leaking coolant; apparently I had put a small stick through the radiator. They said "We can fix it now for $1100, or order another and it will cost $700." I'm not surewhat the difference was between the two, but I opted to go back on another day to get it fixed.

 

[Streetcar]

Had to buy power steering rack for my car was quoted 220 plus 50 security deposit. Picking up the part, the cashier did not close out account of mechanic before me. Charged me 140 with no deposits. List was 350