Why is there such a difference in prices?

   / Why is there such a difference in prices? #11  
Kioti pricing is all over the map. Some typically smaller dealers try to get list price as they consider their main competition to be Kubota and JD rather than other Kioti dealers. The bigger (smarter) Kioti dealers know they need to build volume to stay in business so they are happy to discount more and compete against other Kioti dealers.
 
   / Why is there such a difference in prices?
  • Thread Starter
#12  
I do not know the actual facts, but the local kioti dealer said that the price I paid for my Bobcat CT335 (exactly equipted as the Kioti DK35se HST) was an even grand below his cost. The volume thing makes sense when you are building a customer base. This needs the loyal devotion of the dealer to the customer by backing up the claims, promises, parts, and service that will retain the new customer. The local Kioti dealer said that Bobcat should not sell the tractor at that price because it undermines the Kioti dealers. The local Kioti dealer also did not budge even one dollar from his original quoted price. I do not know if Kioti sells to dealers at diferent prices due to sales volume, or other things, but dealers need to realize that the economy is tough right now and Americans are beginning to exhibit more desire of bang for the buck. I was quated the DK35 by 4 dealers within 250 miles and got the larger dealers to attempt to work out a good price and the (2) smaller dealers did not want to negotiate stating that the price was already so low that they could not make much money.
 
   / Why is there such a difference in prices? #13  
For the last few months and for ???how much longer, Bobcat is having what amounts to a fire sale on their "Kioti" tractors. One can hypothesize that they are either building market share (but why did they wait a year or more to start) or that they are just dumping inventory during a recession (apparently a big inventory). I am sure they are making life painful for the Kioti dealers who are already stressed just as all tractor dealers are by the current economic situation. I assume that things will stabilize again and that Bobcat prices will return to what they were six months ago or that Daedong will give bigger discounts to the Kioti dealers so they can compete. I must say that once again there is doubt in my mind about the talent of those who lead the corporation. They desparately need to build up better dealerships for Kioti to compete with Kubota/JD but this sort of thing shoots them in the foot.
 
   / Why is there such a difference in prices? #14  
Prices will always be all over the board BUT are much worse right now.
The reason is some dealers have older inventory (from before this years price increase) they need to get rid of, so they are discounting them alot.
At the same time there are dealers getting new equipment in that has the higher price even at the same profit margin.
You can only go so low on equipment and stay in business.
I have at times dumped equipment at cost, but I always tell people that they shouldn't get mad if another dealer can't match it.
I have last years model and it's been sitting. Has scuffs where people get on and off of it looking at it etc.
Some years are just worse than others at this point in time if I had 2 certain models one from last year and one from this year, making the same profit on each using the free loader program....
One would be 16700 the other 18000
Take away the free loader one would be 20400 the other 22010.
Same exact machine equipped exactly the same way.
Then take a dealer wanting to dump the first machine......you can see where this is going.
Then of course there is shipping and set up etc

BTI
 
   / Why is there such a difference in prices? #15  
If you ask me, I would say Bobcat is using their head.

Recessions, or depressions, or economic hard times, bring out the bargain hunters. These times, that try men's souls, also send quite a few people back to the farm. Especially, when the unemployment rate is reaching up around 10% of the total population.

Now, look at the recent past. If you were to drive down my part of the woods, about 40 years ago, you would see that the big farmers owned mostly Deere, and Ford. If you look at those same farms today; you will still find JD and Ford, but much newer models. Simply put; once these farms went with a certain brand of tractor, they stayed with it. Or that is, as long as the quality didn't take a nose dive.

Fast forward to the mid 80's, and up to this day. Kubota began to make a run, and now sits in high regard. If you ask the 30 and 40 year olds, in my area, what's the best tractor? Many will say Kubota. That's because they went with the new trend, in the 80's and 90's, and bought that tractor. In those days a JD was a little out of their reach.

If you mention Kioti to any of the folks, in my area, they will tell you that you get what you pay for; or it's better to be safe than sorry. Although I don't agree, I'm sure it sounds familiar. They may also tell you that Kioti is cheaper, because it set on a lot for over a year.

I'm now looking for a new tractor, and I'm not a type who follows trends. I started looking hard at the Kioti tractors, about the time that Bobcat took'm to the woodshed. So, now, I'm looking more into the Bobcat lineup. Funny thing is; I went and looked at the Bobcats, and they are cheaper than the Kioti, but they also have a new smell. Straight out of the crate! Moreover, I didn't see one scratch. Maybe I was the first person they let climb on that tractor, but I doubt it. I repeat; not one scratch, from all those people climbing on and off.

Here's my point. Kioti just started to gather some steam, in these hard times, but Bobcat is about to take'm to lunch. Same tractor, different coat. Same tractor, much cheaper. The question is; would you pay thousands more for an orange tractor, over a white one? If so, Kioti will be the new Kubota, or Deere, of a new generation of tractor owners. If not, and Kioti refuses to lower it's prices, then I will go on record to say; that in 20 years, if you ask someone in their 30's, or 40's - what's the best tractor to buy? They'll say Bobcat!
 
   / Why is there such a difference in prices? #16  
Here's my point. Kioti just started to gather some steam, in these hard times, but Bobcat is about to take'm to lunch. Same tractor, different coat. Same tractor, much cheaper. The question is; would you pay thousands more for an orange tractor, over a white one? If so, Kioti will be the new Kubota, or Deere, of a new generation of tractor owners. If not, and Kioti refuses to lower it's prices, then I will go on record to say; that in 20 years, if you ask someone in their 30's, or 40's - what's the best tractor to buy? They'll say Bobcat!

It was just reported: On Bobcat's website their incentives on the Bobcat compact tractors now ends June 14, 2009

Hmmmmmmmmm........that's in like 24 hours. You'll have to see next week what they replace it with.

Don
 
   / Why is there such a difference in prices? #17  
It was just reported: On Bobcat's website their incentives on the Bobcat compact tractors now ends June 14, 2009

Hmmmmmmmmm........that's in like 24 hours. You'll have to see next week what they replace it with.

Don

Not worried the least bit. Just because Wall Street, main street, and the U.S. Congress, believe the worst is behind us - I know better. Once reality sets in, you can safely bet that you'll see another round that's far worse than you can ever imagine. The problems we face today are minor, compared to the ones you'll face tomorrow.

I've never once worried about the end of the incentives. I know the price will fall again, late in the fall, if not sooner. In fact, I never would have feared to wait until after September: although that was the stated deadline on the incentives. What's that old line: Only Fools rush in!

Never considered rushing into anything, regardless of the incentives offered. That said; I've still not given up on buying a Kioti, and I don't prefer one color over the other. I can wait as long as need be; because that 25 year old John Deere, sitting in the barn, still has plenty of life left in her.

Who knows; maybe Deere will come out with their own incentives, and I can simply buy another big Green tractor. No problem!
 
   / Why is there such a difference in prices? #18  
That's because they went with the new trend, in the 80's and 90's, and bought that tractor. In those days a JD was a little out of their reach.

There is a few problems with your history report. When Kubota came into the US their products where perceived as being over priced. The reason Kubota was successful was that they where selling a product line that the domestic companies did not think had a real market potential here in the US. They where not popular because they where cheap, it was because they where innovative. There is a long history of failed tractor companies who sold on price alone.
 
   / Why is there such a difference in prices? #19  
Ya know, the more I think about it? I wouldn't be surprised if, Come Monday, it'll be Alright. Great song, but I'm actually thinking Bobcat may be pulling the old Shuck and Jive. Could be wrong, but it's sure a possibility.

One thing's for sure; they'll have a huge day today. Grabbing a Ton and a half of market share. That said; I wouldn't be surprised if they're simply knocking the first flock of vultures off the fence. Then, once these vultures get their stomach full, and the dust settles on the Bobcat lots; Bobcat will probably put the same old numbers back up on their website. Good through September, once again, or maybe next Saturday? As they eagerly await the next flock to gather.

Regardless of the outcome, I won't be in the first flock.
 
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   / Why is there such a difference in prices? #20  
There is a few problems with your history report. When Kubota came into the US their products where perceived as being over priced. The reason Kubota was successful was that they where selling a product line that the domestic companies did not think had a real market potential here in the US. They where not popular because they where cheap, it was because they where innovative. There is a long history of failed tractor companies who sold on price alone.

Perceived as being overpriced? When they first came out? I think they've always been overpriced.

Maybe they were also overpriced when they first came out; but Deere has ruled the nest, where I live, for a long time. They also, still to this day, cost more than Kubota; but not by very much. Those who own Kubota's, where I live, will also tell you that Kubota's not only better than Deere; but also cheaper. I told them they needed to check the current prices, rather than just trade-in for a bigger tractor; or better yet - look at another maker, such as Kioti.

But, No! They just keep climbing the ladder you guys built. Sometimes the trade in value will make you think you're getting a better deal. It's that old car salesman gimmick. Deja Vu!

By the way. Speaking of car dealers, and checking your history, maybe you should check the history of Chrysler, and G.M. Can you say Bankrupt?
 

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