I saved a lot with Barlows.
Where I come from, $1,200 is quite a bit of money!!!
Kubota Prices 25-40 HP
- Thread starter Browns329
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Where I come from, $1,200 is quite a bit of money!!!
cannonfodder999
Silver Member
I hope it's a short tow to Barlows
If needed, I would transport it to a local dealer for repair. I didn't purchase my Yukon locally either, due to finding a better price at a dealership over a hundred miles away. But if it needs repair, I am sure the local GMC dealer will provide me with great service.
redsox1
Silver Member
A better point might be why does the local dealer charge $1200 more (w/o shipping) for the same tractor that both dealers bought from Kubota?
guy gagnon
New member
Congratulations Browns! I think you got a good deal. I bought a L3800 with a FEL and backhoe. You gonne have a lot of fun with your new tractor.
Bluegill2
Veteran Member
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- Success Missouri
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- Kubota L3800DT, L3750DT Shuttle
Likely some quantity price in there somewhere. Dealer that buys more tractors gets a lower price.
crazyal
Super Member
Or it could be that the local dealers just charge a higher price and just figure that they will get most of the business so why not make more profit.
The gross profit a dealer makes on these deals often has little to do with if the dealer is greedy or not. I own two Kubota dealerships in vastly different markets, and benchmark my expenses against other dealers once a year in our "20 group." Most dealers net VERY LOW single digit margins (5% net is considered exceptional), despite having different markups.
Just as an example with my business, I've got one store in a very small town of 9,500 people and the other store is in a large metro area. Cost of living is very low in our small town dealership and the employees make 10-15% less than the other store, thus lowering the overhead. Good commercial real estate near one store is $20k/acre, and 70 miles away at the larger store it's 100k-300k/acre. Needing a minimum of 12,000 sq/ft for an equipment dealership, you're looking at 1.5-2 million alone for the building/land, vs. 500k or so for the same setup in the rural town.
At the end of the year, I make approximately the same net profit (on a percentage basis) from each store, which is in the LOW single digits. However, the markup on new tractors is different at both stores to compensate for the different overhead structures, even though my ending net profit percentage is the same. You simply cannot charge the same markup in a high cost of living/ high salary market as you can in a cheaper area. A dealer in a major metropolitan area will have to cover MUCH higher business expenses with his margin than a dealership in a small rural town. I know this because I own both.
To make things more complicated, some states place much higher tax burdens on the small business person than other states. Two dealers in different states, making identical incomes, may have to charge different prices simply due to those tax reasons alone. A dealer in MA may be required to provide healthcare for all employees, but the small town dealer in a neighboring state does not.
Those regional differences are beyond control of the business owner, who cannot control tax regulations, healthcare requirements, property taxes, insurance regulations etc. All of those "extras," tacked on to the small business owner by the local/state/federal government, are paid by margin on new equipment, even though the dealers take home pay may be the same or less than a cheaper dealer in a neighboring state that doesn't impose such burdens on small businesses.
Sorry for the long post, but some of the "all dealers are greedy if the price isn't the lowest in the country" discussions are somewhat misguided relative to the realities of doing business in different regions. You simply can't expect to have an outstanding dealer with a great facility, huge parts inventory and first class service shop that's convenient to a high cost metropolitan area, but have the bargain basement cost structure of a small town rural dealer. The math doesn't work.
Just as an example with my business, I've got one store in a very small town of 9,500 people and the other store is in a large metro area. Cost of living is very low in our small town dealership and the employees make 10-15% less than the other store, thus lowering the overhead. Good commercial real estate near one store is $20k/acre, and 70 miles away at the larger store it's 100k-300k/acre. Needing a minimum of 12,000 sq/ft for an equipment dealership, you're looking at 1.5-2 million alone for the building/land, vs. 500k or so for the same setup in the rural town.
At the end of the year, I make approximately the same net profit (on a percentage basis) from each store, which is in the LOW single digits. However, the markup on new tractors is different at both stores to compensate for the different overhead structures, even though my ending net profit percentage is the same. You simply cannot charge the same markup in a high cost of living/ high salary market as you can in a cheaper area. A dealer in a major metropolitan area will have to cover MUCH higher business expenses with his margin than a dealership in a small rural town. I know this because I own both.
To make things more complicated, some states place much higher tax burdens on the small business person than other states. Two dealers in different states, making identical incomes, may have to charge different prices simply due to those tax reasons alone. A dealer in MA may be required to provide healthcare for all employees, but the small town dealer in a neighboring state does not.
Those regional differences are beyond control of the business owner, who cannot control tax regulations, healthcare requirements, property taxes, insurance regulations etc. All of those "extras," tacked on to the small business owner by the local/state/federal government, are paid by margin on new equipment, even though the dealers take home pay may be the same or less than a cheaper dealer in a neighboring state that doesn't impose such burdens on small businesses.
Sorry for the long post, but some of the "all dealers are greedy if the price isn't the lowest in the country" discussions are somewhat misguided relative to the realities of doing business in different regions. You simply can't expect to have an outstanding dealer with a great facility, huge parts inventory and first class service shop that's convenient to a high cost metropolitan area, but have the bargain basement cost structure of a small town rural dealer. The math doesn't work.
guy gagnon
New member
Thanks for the info Spencer C. Useful for us, poor consumers who just try to get the best deal possible.
murphy1244
Super Star Member
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Sorry for the long post, but some of the "all dealers are greedy if the price isn't the lowest in the country" discussions are somewhat misguided relative to the realities of doing business in different regions. You simply can't expect to have an outstanding dealer with a great facility, huge parts inventory and first class service shop that's convenient to a high cost metropolitan area, but have the bargain basement cost structure of a small town rural dealer. The math doesn't work
And You too will lose customers to Barlows.Barlows sells more cause they charge less, And they charge less cause they sell more. Get on the truck or tractor or get run over by it..
100 to 300 thousand an acre????? Give me a break....
And You too will lose customers to Barlows.Barlows sells more cause they charge less, And they charge less cause they sell more. Get on the truck or tractor or get run over by it..
100 to 300 thousand an acre????? Give me a break....
