Kubota fixed pricing?

[mikeharold]

So I have been looking at and wanting a BX25 for our new place and had the dealer quote me one a while back. Went in today to get a credit app and talk about the price. He basically quoted me retail pricing originally. So I asked him about the price and he proceeds to tell me that Kubota fixes their price and that's all he can do and that they make up for it in service by coming out and doing the 50 hr service on site for no labor cost and other misc things.

A little background, we are in a smaller and pretty much isolated market here, they have been here since I can remember and do a lot of business, JD is just down the street and is several thousand more for the 1023r and want 20% down for 0% financing, there really aren't many other close options other than those 2, and........Oh yeah.....it's California!

Don't have it right in front of me, but basically $20k and change for the machine and about $1400 for a 4' rotary mower. Thoughts and feelings? Was hoping to work down to closer to $17-18 for the tractor but doesn't feel like that's going to be the case.

 

[Lilguy]

Ive gotten the price down to 19800.00 Out the door with 60 in MMM and 3 point hitch hardware. Not done Yet.

 

[dragoneggs]

Price is negotiable but not so much if you are trying to take advantage of the 0 down, 0% financing. At least that was my experience on my BX and Z turn. Cash talks.

 

[Leejohn]

Ive gotten the price down to 19800.00 Out the door with 60 in MMM and 3 point hitch hardware. Not done Yet.

Does he keep the loader and backhoe?

 

[JOHNTHOMAS]

Kubota owns the new equipment. When a dealer sells the machine the dealer gets paid and all dealers get paid the same. The dealer knows what Kubota is charging them for the machine and the dealer decides how much profit they want to make. The dealer gets the same dollar amount whether financed or cash. Kubota some times gives a rebate of a certain amount for cash vs financed and it is a changing number, doesn't apply to every machine and is usually more for the bigger machines.
You may want to find different Kubota dealers in your surrounding areas and call them for a price with you picking up or them delivering. It's just a business transaction like any other one. You want best price and the dealer wants the most profit and two satidfied people should come out at the end. As many will tell you and if they don't I will, it's not always the best price that makes the happiest customer.
I live near Barlows and drive by their lot at least once or more a week. I like them after buying several Kubotas from them but if they raise their prices or become a bad place to shop and deal with there is a certain number that will make me look else where but I haven't for the last around 20 Kubota purchases in the past 12 years. I'd pay a bit more to stay local but more than a few hundred would make me wonder who wants who the most. Fair profit is acceptable with me and decent service is expected.:2cents: Warranty service isn't an issue with me because it has been so rarely needed that it's almost a non issue for me. I do expect decent service down the road when the machine starts aging and expect to pay shop rates while waiting my turn for service.

 

[Lilguy]

Nope. I'm in Illinois, 40 miles NW of Chicago, and I'm working 2 dealers. First quote was 24,235.50. Next dealer 20,959.39. Took this quote to first dealer and 19,892.66 was his 2nd number. He's been my parts supplier for 25 years so I'm going to work him down to around 19,000.00 if possible.
These are OTD cash deals, the zero rate is for those that can't do cash. The rebates are better with cash. I bought 2 Kubotas 30 years ago and want a BH now and a second mower.

 

[check]

Nope. I'm in Illinois, 40 miles NW of Chicago, and I'm working 2 dealers. First quote was 24,235.50. Next dealer 20,959.39. Took this quote to first dealer and 19,892.66 was his 2nd number. He's been my parts supplier for 25 years so I'm going to work him down to around 19,000.00 if possible. These are OTD cash deals, the zero rate is for those that can't do cash. The rebates are better with cash. I bought 2 Kubotas 30 years ago and want a BH now and a second mower.

If that is OTD, then it seems like a pretty good deal to me. How much of that total amount is tax in your area? (Here in Ontario the sales taxes total 13%)

 

[jcbGM]

Kubota owns the new equipment. When a dealer sells the machine the dealer gets paid and all dealers get paid the same. The dealer knows what Kubota is charging them for the machine and the dealer decides how much profit they want to make. The dealer gets the same dollar amount whether financed or cash. Kubota some times gives a rebate of a certain amount for cash vs financed and it is a changing number, doesn't apply to every machine and is usually more for the bigger machines.

This isn't entirely true. The manufacturer sets up the dealer with a line of credit (floorplan) to keep inventory on-hand. The inventory is invoiced to the dealer via the floorplan the day that it ships for the mfg. Floorplan terms vary by manufacturer, ranging from 0% for 90 days to as long as 12 months. After that period, interest is charged on each asset in inventory.

The dealer can sell at whatever price they like, but the manufacturer must be made whole shortly after the sale so as not to be "out-of-trust". When the mfg provides finance, they credit the floorplan first then issue the dealer a check for the balance of the transaction. Inventory audits are performed by a third party basis on a regular (monthly) basis to verify that inventory on floorplan is in the dealer's possession.

If the the mfg actually owned the inventory, every dealer in the country would be stocked to the gills because there would be no risk for them. The dealer owns the stock and feels pressure to get it sold to avoid paying interest on the floorplan (which reduces margin) and being stuck with stale inventory.

 

[s219]

You should be able to get 10-12% discount from MSRP on Kubotas at most dealers, maybe more.

 

[bx25jim]

Does he keep the loader and backhoe?

Really....I agree. I just got mine a little more than a month ago with a 54" MMM and 1 hour on the meter for 17,800. That included the delivery tax and set-up. Now they didn't ballast the rear tires. I also got mine with the deal they had going if you buy another implement, you got x-amount off. Still cannot see a 2000.00 dollar difference though. I also paid cash....still cannot see that kinda difference though.