SnowRidge
Elite Member
PT would have to raise the prices significantly if they had a dealer network. As it is, they only have a two person sales force. A best, they could cut that to one, so they would not get any great cost reduction from having dealers, but they would have to provide for dealer markup. The machines' list prices could only increase.
They would also have significantly higher warranty costs. They would have to absorb all the labor expense that is now being provided by their customers, either through them working on their own machines, or by hiring the work done. The dealers would do that work, and they would have to be paid. PT would have to drop their parts costs, which would cost them profit margin. Parts prices are unreasonable now. Add dealer markup and they would have a revolt on their hands if the charged those same prices to the dealers.
Frankly, I'm not sure what kind of dealers would be willing to take on the PT line given PT's business practices, uneven quality control, and unwillingness to fix basic design flaws like the cracking brush cutter decks. It would be interesting to know who some of their former dealers were, and to hear their opinions of the company.
They would also have significantly higher warranty costs. They would have to absorb all the labor expense that is now being provided by their customers, either through them working on their own machines, or by hiring the work done. The dealers would do that work, and they would have to be paid. PT would have to drop their parts costs, which would cost them profit margin. Parts prices are unreasonable now. Add dealer markup and they would have a revolt on their hands if the charged those same prices to the dealers.
Frankly, I'm not sure what kind of dealers would be willing to take on the PT line given PT's business practices, uneven quality control, and unwillingness to fix basic design flaws like the cracking brush cutter decks. It would be interesting to know who some of their former dealers were, and to hear their opinions of the company.