Buying Advice Buying from one dealer / Using another for repair

[JOHNTHOMAS]

Interesting input. Especially from some dealers and former dealers. I bought my first Kubota seven years ago from Barlows because they gave me the best price. Figured I'd worry about service later or felt I could convince them to do my service if I needed it. Didn't check their service reputation.
I have bought another eleven Kubotas since that first one. Yes, from Barlows. I think they give good prices for local or long distance. I don't think they charge me more or less because I've bought several or because I'm six miles from my home to their door and two miles from my business to their door.
Guess the giving good prices because they won't have to service it isn't holding water for me.
Barlows sells quite a few Kubotas locally and they service them if they need it. I've also read about them shipping warranty parts to people and even having their driver do some service work while out in other states. I think their prices are the same locally or long distance if I didn't say that before.
I've been in business for years and have heard all the reasons why one business is more successful than all the others (their advantages) but I'm convinced the business that services their customers in sales and/or service are the winners. They are with me.

 

[crazyal]

When I fist started looking Kubota didn't have the tractor builder giving you the MSRP. Other than special events, like a state fair, I have yet to see a dealer (any brand) put the price on a tractor. That makes it real hard to to shop around. Yes I didn't mind spending more money on a feature I really liked but for the most part I like knowing the prices at the beginning not after spending hours at a dealer. Think of it like looking at window stickers on a car on a Sunday to get a feel for prices so you can decide which models and what upgrades might be of interest.

There was a company, I think Carver in NC that would have monthly specials that would give an idea about prices. I always have a few spare minutes to look around the internet but I don't usually have spare time to go from dealer to dealer getting prices so I can go back and do some thinking as to what's most important. Barlows wasn't far behind, a simple on-line form to fill out and you get a price.

Now if local dealers want to charge more then that's their choice. But it only works if I don't know there's better prices out there or if I'm willing to pay for the extras of having a good dealer. If I have never done business with the dealer it's hard to put a price on how much extra that's worth. If you're talking a few hundred then that's not a big deal but when you start talking thousands of dollars now it's a big deal.

From reading posts here I'm guessing Barlows is selling plenty of tractors to locations where the local dealers just don't want to move very far from MSRP. It's not even like you can say one area, like the northeast for example, is very high so that's where a lot of their sales come from. It just looks like they send them all across the country. Yet you also read about how some local dealers, who don't sound huge, can sell a tractor close to Barlow's price.

 

[TractorTidy]

Obviuously a controversial issue. I do want to say that I never "held anyone up" for price or took advantage of anyone. Our price was fair and competitive continuously whether the guy was 6 mi. away or 100. We priced the same and sold a lot. And to clear the negative that is not why we are not JD anymore but still in business!

As someone said, many dealers far away will cut a price because they know they most likely won't see the customer again and to "get" the local dealer. Their attitude is let someone else take the loss for the warr. and PIPs or modifications, he won't come back to us. In that case, they are only helping their volume, not profit. Larger dealers can afford to take skinny deals more than a smaller one can if they choose. And yes, the margins are low even on a normal deal so there isn't much room left to absorb someone else's warranty loss and and a PIP loss. I will say, if someone moves into the area w/ a warranty machine from their old dealer, I would take care of it.

Refrain from your negative comments until you have been on the other side of the desk and know what it takes to survive. You help those that help you, but if it's just the low price game no matter what, then I elect not to play that game. The cheapest price isn't always the best price. But if you buy from me, I WILL take of you.

 

[devildog1]

Obviuously a controversial issue. I do want to say that I never "held anyone up" for price or took advantage of anyone. Our price was fair and competitive continuously whether the guy was 6 mi. away or 100. We priced the same and sold a lot. And to clear the negative that is not why we are not JD anymore but still in business!
If and a big if it is true in what you say, why would the difference in price be in the thousands? There is only one reason and one reason only for this vast difference in price,= profits! Hundreds of dollars, Yes, thousands No!

As someone said, many dealers far away will cut a price because they know they most likely won't see the customer again and to "get" the local dealer. Their attitude is let someone else take the loss for the warr. and PIPs or modifications, he won't come back to us. In that case, they are only helping their volume, not profit. Larger dealers can afford to take skinny deals more than a smaller one can if they choose. And yes, the margins are low even on a normal deal so there isn't much room left to absorb someone else's warranty loss and and a PIP loss.
Or those dealers are ok accepting a low profit on sales of new tractors.
I will say, if someone moves into the area w/ a warranty machine from their old dealer, I would take care of it.
Oh what a good thing you do! If you were traveling and your can or truck broke down somewhere different then where you bought it and was under warranty would you expect autherized dealer to repair it?

Refrain from your negative comments until you have been on the other side of the desk and know what it takes to survive. You help those that help you, but if it's just the low price game no matter what, then I elect not to play that game. The cheapest price isn't always the best price. But if you buy from me, I WILL take of you.

Just wondering on how you shop for a new car or truck? How do you buy fuel for your vehicles? You must go to the highest price service station you can find.Wonder how you buy most or all of items in your house and clothing, what about home services , gas, fuel oil, electricity, you must not shop around huh?You must be responding to this thread on the most expensive computer out there, yeah right! Listen as I said before, I do and try to support my local dealers. But when there is a vast difference in quotable prices of thousands of dollars, something is just not right. And you can say anything you want to make customers buy the same product from you at thousands more then they could else where, after all you are a Salesman right?
DevilDog

 

[freddyr]

As a former dealer of JD, this was always a hot button for me. Most of the time a person buying from another dealer miles away was for price. But then they thought they could have us do the warr. work. I am a big advocate of doing business locally. If it was a price issue as mostly it was, I told the customer to be prepared to take the machine back to where he bought it for warr. work. Why? #1, we take care of those who patronize us. #2, warranty almost always underpays. Contrary to popular opinion, warranty very seldom pays what we have in it. Companies only pay flat rate which is usually less time than the actual job, plus only a fraction of the regular labor rate plus only a medium mark-up on parts. So warranty definitely is not a money maker. That is why you need to go back where you bought it. It's not fair to your local dealer and like slapping them in the face. In essence, you're not good enough to buy from but you're ok enough to do my warranty work. The other dealer rmade the profit and part of that profit is for warranty absoption down the road.

Now if you want to pay them for service, that's a different story.

Yes, a dealer is obligated to do warr. work by the manufacturer but nothing says when they have to do it. Those jobs always go to the back. The paying customers come first. They pay the bills. So give the local guy your business. You want their convenience so give them your business. That's how they will be there for you.

I agree! As a business person we do the same thing and yes the warranty money is 1/2 what we normally get. Regular customers come first before we fix somebody else's mess!

 

[bigbull338]

ill just in here again this time for the shop an service department.when i bought my mx5100 hst the shifter was tight an hard to shift through the ranges.so i thought ok its new so it needs time to loosen up.well i had a friend check it for me.an like me said get the machanic to come out an check it.my dealer is 40mi away,so ill called an talked to the shop an they ask can i bring it in.i goes not really because the big tractor is down.an we us it to hay with.so the machanic came out an worked on the tractor for 4hrs an fixed the prob.now my local kub dealer wouldnt come out here come heck or high water.i knew that an thats why i wouldnt buy from them at all.

 

[Tom_H]

My local dealer quoted me $2500 more than anyone else on my BX2200. I bought 50 miles away. The local svc. mgr. didn't want to do a warrantied recall. I called Kubota and they were forced to do it, though they kept bumping me to the bottom of their list and took a long time to get to me. Later, the owner's son, a salesman, revealed that his 78 y.o. father had been doing lots of bad calculations, some too high, some too low (sales they took losses on). He said, "I surely wish I had known; I could have given you the best deal." Later I bought a Woods backhoe from him, as he had the best price. Granddad passed away; the son is now the owner, and the grandson is now the svc. mgr. The warranty is expired, so I have to pay for repairs, but they treat me like a friend.

P.S. there are many long threads on this same topic in the archives in case anyone is interested.

 

[RoyJackson]

Yes they can, but I consider the only really acceptable way of prioritizing as who brought their tractor in first. If I take my tractor in after someone who did not buy their tractor there, I don't expect to get priority treatment. I choose my dealer based on how they treat everyone, not just me.

I agree with you, but we're not prioritizing the work...

 

[TractorTidy]

All I'm going to say is that there must be more profit to be made in upstate New York than in the midwest (doubtful). There isn't "thousands" to be made on any deal. 10% is a good deal, 6-7% is the average. That's low. Usually when there is that much difference (thousands), it is either a mistake has been made, miscommunitcation or not comparing "apples to apples" or the other dealer is willing to take a loss on the deal. If you even get a 10% margin then there are costs that come right off the top, the biggest being a finance charge to the dealer. If you finance that machine or use a credit card, it usually costs the dealer 2-3 % which comes off the margin (JDC keeps another 1% of that) then you have some extra frt. and/or set-up you didn't count on and other unexpected things (like a "throw this in!") and sometimes a trade that pulls you down. So, by the time it is all said and done, the percieved "profit" has dwindled down another 3-4% which leaves at @ 5-7%. Not much left.

Parts and service contribute to the bottom line but warranty does not. Warr. at best is usually break-even if your lucky.


I'm not going to engage in a argument. I'm just trying to explain that as dealers, we're not "taking" the customer.

 

[aczlan]

All I'm going to say is that there must be more profit to be made in upstate New York than in the midwest (doubtful).

Nah, expenses are just higher. Property tax for example is ~$4k/year on a 100k house (more if in a village).

Aaron Z