Price Check TC29D Price Check

   / TC29D Price Check #11  
I would have to say it can be as tough as the auto industry. However I get the feeling that the floor plan the mfg.'s provide is better than the auto industry. Figure a dealer moves allot more cars a day than a tractor dealer, and they make less (sometimes) per unit profit.
 
   / TC29D Price Check #12  
Yeah but good dealers like us dont have a rent/or mortgage. we have no operating loans and we pay cash for everything and take advantage of all cash discount. Plus we sell other than compact tractors. Other product lines are less competitive and allow for larger margins, as far as competion it can be brutal in certain areas margins can be depressed as low as 3-5% on some deals for compact tractors. I do agree with you that a healthier margin would be nice like 10-12% but when the market does not allow it you get with the program and cut your operating expenses. You also have your parts and service business which carry larger margins and profit opportunities. This has always been the basics for all business. We have 12-15 employees year round and keep up all maintance and make a major investment in our business every year. We still pay taxes every year and have some left over for a rainy day so I guess what I am trying to say is it can be done and it can work if you are good at what you do.
 
   / TC29D Price Check #13  
<font color=blue>good dealers like us dont have a rent/or mortgage</font color=blue>

Bingo! the magic words! That's how you do it. Now it makes sense how you can operate on margins that size and not lose your sanity /w3tcompact/icons/crazy.gif.

Thanks for all your input spencer200!
 
 
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