Buying Advice A dealer looking for your input

[JOHNTHOMAS]

I am a Kubota Dealer in the NE area. I have been at this for over 6 years now and absolutly loving the results. Great people that have filled my customer slots and a great product to equip them with. But I dont want to get comfortable with where I am. Like any good dealer I want to make sure I get better and giving people the buying experience they deserve.

Here is my scenario: I spent 6 WEEKS with a guy discussing a tractor. He was clueless and that is more than fine. I took at least 4 hours every week to get him on different machines driving around and using the attachments until we found the machine he was comfortable with and we both felt would do the jobs he had lined up. We then moved onto discussing attachment options and then getting his wife on board and excited. All in all it was going great, ( I even stayed 3 hours after close one night ). When the time came for him to buy he had me write up a formal quote and I gave him the best price I could, i did that right up front. Three days later I call him up to see if there were any more questions I could answer for him and I find out he bought the package from a dealer in PA because he butchered my price just to dump the tractor.

My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?

As a business owner I set my price based on what I'm selling compared to others in my local market. At this time it's rental property. If someone rents from someone else, I know they are getting an oddball deal (family, someone that doesn't know how much to charge, etc) or a lot less residence than I am offering. I have an on site security guard, security cameras and an on site maintenance man as well as newer maintained units. I charge for all these extras. Your product is available everywhere and comes from one manufacturer so it's a true apples to apples comparison. You only provided to your customer what you should have when you opened your business. Should your customer be shamed into paying more because you did what you should have, I think not and apparently he didn't either. Unbeatable service, come on, everyone says that. Cheap price for the exact same item? Or seller willing to make less profit than you? You gave your best price but another dealer with the same product cost sells his for less than you, how come and then he wanted to dump his makes no sense since you obviously wanted to sell (dump) yours. I say grow up. I sold Real Estate and under stand the costs/time/effort involved and then I taught Real Estate at College and had to listen to the complainers that "lost" their sales. Get out of the pit if you can't fight. That's life in America and I love it.
Another question, I know other dealer "dumps" his and you sell your but how come the other dealer sells for cheaper than you when both of you pay the same price for the tractor? I think there is the real question us buyers want to know the answer to.
You do charge for service and charge enough for your service to keep your service department operating, don't you? Not sure why you want to associate you providing the service that you should as being a bonus any more than you doing your sales function as a favor.
Do you not feel that a customer gives you an opportunity to make a sale to them with their time and attention? Or your doing them a favor by taking your time and attention? I believe you need to give an honest evaluation to yourself of your attitude.

 

[oldnslo]

I am a Kubota Dealer in the NE area. I have been at this for over 6 years now and absolutly loving the results. Great people that have filled my customer slots and a great product to equip them with. But I dont want to get comfortable with where I am. Like any good dealer I want to make sure I get better and giving people the buying experience they deserve.

Here is my scenario: I spent 6 WEEKS with a guy discussing a tractor. He was clueless and that is more than fine. I took at least 4 hours every week to get him on different machines driving around and using the attachments until we found the machine he was comfortable with and we both felt would do the jobs he had lined up. We then moved onto discussing attachment options and then getting his wife on board and excited. All in all it was going great, ( I even stayed 3 hours after close one night ). When the time came for him to buy he had me write up a formal quote and I gave him the best price I could, i did that right up front. Three days later I call him up to see if there were any more questions I could answer for him and I find out he bought the package from a dealer in PA because he butchered my price just to dump the tractor.

My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?

Did he figure in delivery fees from PA to NE. I have to believe that would add up to more than a few dollars. Prior to the internet we usually had two dealers for the same brand so that was the limit of your shopping. Now with the internet you can shop world wide and then wonder why the shop next door is closed.

I guess when and if he comes in for service you can try and either recoop your losses or treat him like a valued customer and see if he remembers that when he needs implements.

I still pay more for local service because I want the service to remain local. Next dealership is an hour farther away.

Roy

 

[bp fick]

Your extra attention paid to the potential buyer was an investment on your part. You invested an extraordinary amount of time. You went over, beyond and above. You educated the buyer as to what a tractor was, which were the best features and "helped get the wife on board". You did your job well.

Unfortunately, this newly educated buyer was still shopping and found a better price than yours. It must have been substantial. Your good will, engendered through the time spent with this fellow, was only go to go so far. It didn't go far enough. Maybe the other dealer did just "dump" a tractor, maybe the new buyer just walked into a great deal, whatever the reason.

Tough business. We, who have spent our lives in the public sector, whatever the specifics of that sector, have in some ways lived out what you have described many, many times. It comes with the territory. It just does. Most of the time, an investment in working with a potential client, customer, parishioner, volunteer, etc is "rewarded". Sometimes, one trains a new employee, invests lots of training and know how only to have that employee take a position that pays better than their present one.

Yes, indeed, this is life. Yes, service, quality and all the rest still have great meaning, but in this economy, a great price is always important. Always.

 

[attala cruiser]

I bought a tractor last month from the Kubota dealer that was 90 miles away over the local dealer that was 7 miles(from my actual residence). The local dealer was off by almost a thousand bucks and stated that was his best price and he couldn't do any better. (We even had mutual friends who advised me to call him) I chose not to buy from them. The dealer 90 miles away gave me a better price over the phone and delivered the tractor to my land (which is about 4o miles away from him) I pass that local Kubota dealer about twice a week and will never purchase anything from them. I had also checked at an out of state dealer about 150 miles away that beat the price I payed, but I chose to do business a little closer. I feel like the dealer I purchased from will do me right when servicing issues come up.

 

[JOHNTHOMAS]

Yes, indeed, this is life. Yes, service, quality and all the rest still have great meaning, but in this economy, a great price is always important. Always.

I believe and am convinced that good price, service and quality are all available and will make a prosperous business.

 

[ultrarunner]

Part of the problem is much of Service is a future benefit and I've been short changed a number of times...

I live in a region with 7.5 million people and the Kubota Dealers in my county and the neighboring county pulled up stakes... so I've got to drive a couple of counties to get to the nearest one... I've heard part of the reason is the high cost of doing business here.

My Father always did better on used equipment sales because for most purposes, used equipment is unique... he said it is much easy to be undercut on new equipment because there are many sources for the same product... just the way it is.

 

[bp fick]

I believe and am convinced that good price, service and quality are all available and will make a prosperous business.

I believe that unless that "other" tractor was truly "dumped", at an unrealistic, below cost price, (my definition of dumping) then our OP forgot the good price on his business formula. There shouldn't have been that big of a discrepancy in price to allow this loss of sale, especially considering the extra shipping costs.

 

[MMagis]

Johnthomas, I know very little about the business, but even I know that half of what you say is wrong. Running one type of business doesn’t make you an expert in all of them.

 

[subsonic]

Service and reputation count big time. The time you put into helping a buyer does credit to your reputation. I don't think most sales people would put in that much time. If you guys have a great service dept. even better. Sounds like you have a good shop. That being said, money talks. Small pecentage spread, no big deal. Big difference in price is another matter. If someone saves enough to be able to pick up an extra attachment, or a good used attachment with the difference, then that factors in real big.

Face it, we live in a connected world now. People are going to price shop hard nowadays.

Will this tractor end up at your shop for future work? I bet it will. The buyer is going to remember you spent that time with him. Do not look at this as a total loss. Even if you did not make anything off the sale, your shop is going to still make money on the backside for the next 5-10 years off this guy.

I have to think shops make there bread and butter off routine maint, repairs, parts and warranty work.

Keep up the good work.

 

[Bill in VA]

I find this thread very interesting since I am also in the process of purchasing a tractor. Many of the comments, especially TractorShopper's match very closely to what I am doing/experiencing.

The tractor I will probably purchase will be a TLB and will be the single most expensive equipment purchase I will have made in my life and probably ever will make. Price obviously is of prime importance but making sure I get honest/reliable service is a close second.

The only concrete advice (different than that given so far)I can give you is what one dealer did with me. He simply asked me in a very upfront, honest, and heartfelt (real word?) way the following:

" I'm gonna spend some time with you here on all of the details of this equipment and I'm willing to spend more time to help you decide what to buy and hopefully to help you decide to buy here. The one thing I ask is that you give me a chance to counter any offer you get from someone else. Just give me the opportunity to get you the best combined deal of service, advice, and price even if I've got some close competition."

He then stuck his hand out to shake mine and we did so. I really don't remember if what I put in quotes above was his exact words but hopefully it communicates the gist of what he was saying.

Afterwards I thought highly of him because he did/has given me substantial advice and he was upfront in letting me know what he wants for that. To be honest I may not buy the tractor from him but I will absolutely give him the last shot.