You should want your dealer to make some money on the deal because you want them to stay in business and service you in the future. The trouble is that everyone has either been taken or heard of someone taken by a car salesman and it happens in tractors too. When I bought my last tractor they started at $69,000 and when I figured in payments I just couldn't do it. They eventually came down to $62,500. Why not be there in the first place?
When I got prices for the baler I bought last year. One dealer I walked into said $15,500 which from doing preliminary research was about right and the next dealer started out over $20,000. I told him, look this is the price I got somewhere else, this is the price foe the other brand baler what is your real price. The second guy came down in price to the other guy but I bought from the first one because I liked him being upfront. I went back earlier this year and bought a disc mower from the same guy because they don't play games and I like that.
The saleman that I bought my tractor at just got to know me and he'd basically show me his costs, his setup fee, etc. and what he was making. Sometimes on small items he may be making close to 100% where big items it may be under 5%.
So for me it boils down to I want the guy to make a fair living but I don't want to go to the next dealer and find out I paid 33% too much. And, on bigger items it boils down can I make the payments. It could be a great price on the tractor but I just can't do it. Finally, I look at value. This tractor may be a good price on a good tractor but maybe for $10,000 more I get a better transmission, nicer engine, better resale and dealer network. For me personally, I also rather buy from small one off family owned dealers and I'd rather get equipment from family owned companies. Their going to care more about me, in the long run, than the wall street corporations.