Kubota fixed pricing?

[David_Kb7uns]

When we got the L3130 and BX2230 the local dealers were between 80- 85% of list prices. Actually saw them punch 80 into the calculator, not sure what it is now.


David

 

[JOHNTHOMAS]

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.

I don't think you know what your talking about and certain your not a Kubota dealer due to the info you've provided. Your talking about new car dealers and your pretty well spot on with your details for new car/truck dealers.
Kubota tractor Franchise dealers operate totally different. Many dealers on this forum and they've never disputed the info I've provided. Kubota decides what equipment to send to a dealer, mostly, to stock on their lot. Dealers can order a specific machine for a specific person which is considered sold when it's shipped or obtained from another dealer. They, all new ones, mostly, belong to Kubota and not the dealer. All dealers pay the same price. A dealer that sells 3 a year will not have a bunch of Kubotas tractors on their lot but Barlows who sells hundreds has a lot full since He has proven he sells them. He some times gets tractors he doesn't want but that's the advantage of a Kubota Franchise.

 

[Code54]

The dealer has some room to work on price and it would be a good idea to to check other dealers even if they are further away. The dealer sounds like he is trying to make some extra profit with the way he explains it to you.

 

[mikeharold]

So I just got off the phone with the next closest Kubota dealer who is about 65 miles south and his initial price over the phone is $19145 for the tractor which is just shy of $1300 less than the first dealer and with a box scraper is still about $800 less than the first for just the tractor. Think I will go back to the first dealer after I get the new quote and see if he is willing to come up with a better price.

 

[Code54]

That is a good idea - also check around on Bush hog prices as you can find a NICE small one for way under 1400
Good luck

 

[JMER817]

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.

What price are you quoted for the 1023r? My buddy was quoted $14500 plus tax for one with loader and Mmm.

 

[JMER817]

What price are you quoted for the 1023r? My buddy was quoted $14500 plus tax for one with loader and Mmm.

Correction 1023e

 

[mikeharold]

What price are you quoted for the 1023r? My buddy was quoted $14500 plus tax for one with loader and Mmm.

Sorry, yes, 1023e. Quoted $21740 for TLB. So not a couple grand more like I originally posted, didn't have the quotes in front of me. Big downside is that they want 20% down for financing and I was hoping to not have to come out of pocket with the cash right now. Will probably be paying it off in the near future but need the cash for other projects around the new place right now.

 

[Tractor Seabee]

We have a dealer up here advertising BX 25s for $15,999 if you buy 2 implements or more, finance all for 0 down 0 interest for 5 years. Have a nice vacation up here on the difference and haul it home. No sales tax if you have an out of state license, then you haggle with CA under their excise tax rules.

Ron

 

[MHarryE]

I've purchased 4 Kubotas. Over the past 4 years, from a G2120 to a M135GX. Discounts have ranged from 11% to 15% but my price includes transportation and I live 160 miles from the dealer (we live on the far edge of nowhere). All are financed, most zero for 60 except the G which was zero for 48. So there is no fixed rice except with my dealer there is no haggling - the first quoted price is the lowest he will go unless Kubota pops up a new incentive. Our Deere dealer was the same way although the discounts were larger but the transaction price would be higher since every time Deere started out from a much higher list. So fixed pricing - salesman talk.