What gives with dealers on tractor house?

[TSO]

I probably have a much larger salary than he does because we make more than $1000 on each machine.

You are obviously getting irritated at what I'm saying, but I feel like you just arent accepting of the truth. I am in the business, you arent. I do this for a living, you dont. I know how the equipment sales industry works, you clearly dont. What I'm saying is what actually happens, whether you like it or not. You'd do well to take in some of the truth I'm shedding light on, may help you get your next deal at only $200 over "his cost".

No sir, I'm not getting irritated at all, and I do appreciate you taking the time to explain your own business practices. I won't say though that I don't find it a bit amusing regarding some of the assumptions you make. You might be right on your assumptions, but you also might be wrong. I run a small business myself. Based on the low overhead costs that I have compared to some of the larger businesses around me, I am able to charge a considerably smaller amount for the same work. It is not necessarily that the larger companies are overcharging for their services, but I simply don't have to make as much profit on each job as they do. My business model has caused my business to dramatically increase in the last two years, and many new customers are coming my way based on that reputation I am building.

I would be surprised if that same principle didn't carry itself over to other industries as well.

It may be that my dealer doesn't need your high salary amount?

But if you're truly willing to put up a years salary, I'll take the bet. I'm in business, after all...

 

[CDennyRun]

Don't believe me, go ask him. Call him up and ask if once the deal is done, does he take any rebates or extra discounts. I'll bet my yearly salary he does. The "his cost" price he's showing you, IS NOT his actual cost.

He may not be "deceiving" you, but he sure as heck isn't making $750-$1000 on each sale.

I don't think there is anything wrong with a dealer getting a unit rebate/cost reduction from the manufacturer for selling a machine. I really don't see a problem with that. That incentive for the dealer to move units applies to ALL sales, from furniture to tractors. Lets face it, money has to be made to run a business.

On the original subject of initial price, why the heck won't you place the price of the unit? My credit, trade-in and down payment will come into play after we agree on a actual price of the unit it'self. Not posting a price on a tractor is a big waste of everyone's time, and no one like having to jump through the extra hoop. So if what you're saying is; you need my social security number (for credit score), all my trade-in info, and down payment amount prior to giving me a price, then forget it!!!

If you don't ask me for my social, trade-in info, and down payment prior to giving me a price, then everything you posted is null and void.

Chris

 

[TSO]

In fairness, I should say that my dealer is probably extremely rare. He almost absolutely has the cheapest price, on machines and implements, practically every time I check. He can even beat most internet pricing on the same implements.

He is also rare in that he will happily perform warranty work on any machine of a brand that he sells, regardless of whether you purchased it there or not. There are other Massey dealers, even one on this forum, that will state, loud and proud, that if you don't buy it at their dealership, they have the right to refuse the warranty work, and/or if they take it, they'll put you at the back of the line. Their reasoning, is that if you find a better deal somewhere else, go have them service it...

Sooooo, it could just be that my dealer runs a different style dealership than most other dealers out there... ?

 

[ShowroomShine]

I don't think there is anything wrong with a dealer getting a unit rebate/cost reduction from the manufacturer for selling a machine. I really don't see a problem with that. That incentive for the dealer to move units applies to ALL sales, from furniture to tractors. Lets face it, money has to be made to run a business.

On the original subject of initial price, why the heck won't you place the price of the unit? My credit, trade-in and down payment will come into play after we agree on a actual price of the unit it'self. Not posting a price on a tractor is a big waste of everyone's time, and no one like having to jump through the extra hoop. So if what you're saying is; you need my social security number (for credit score), all my trade-in info, and down payment amount prior to giving me a price, then forget it!!!

If you don't ask me for my social, trade-in info, and down payment prior to giving me a price, then everything you posted is null and void.

Chris

Dealers absolutely ask for your trade in info and down payment before giving you a hard price. We may give you a range, then put pencil to paper once we have some information. If you ask a dealer a price or see one posted, its normally inflated and isnt his best price. Give him some information and you'll get the best price.

As I've said several times in this thread, each situation is different. Maybe you want 0% financing, but you'd actually save money if you went with the rebate and standard financing. We wouldn't know that until you told us if you have a trade or if you plan on putting money down.

The trade thing is simply this, if you trade in a desirable tractor you'll get a great deal on your tractor and a fair deal on your trade. If you come in with some clapped out junker and insist on trading it, you probably wont get the best deal on the new tractor since we have to turn around and have your clapped out junker sit on the lot and spend time and effort for up to a year to get rid of it.

 

[ShowroomShine]

In fairness, I should say that my dealer is probably extremely rare. He almost absolutely has the cheapest price, on machines and implements, practically every time I check. He can even beat most internet pricing on the same implements.

He is also rare in that he will happily perform warranty work on any machine of a brand that he sells, regardless of whether you purchased it there or not. There are other Massey dealers, even one on this forum, that will state, loud and proud, that if you don't buy it at their dealership, they have the right to refuse the warranty work, and/or if they take it, they'll put you at the back of the line. Their reasoning, is that if you find a better deal somewhere else, go have them service it...

Sooooo, it could just be that my dealer runs a different style dealership than most other dealers out there... ?

Hey man, if you've found a dealer you like and trust, thats great. Thats what all dealers aspire to be, someone a customer can trust. All I'm telling you is that I know for a fact (not an assumption) that if a dealer shows you "his cost", he still has more in his pocket after that in various forms.

One of my best friends sold me my Kioti, he told me he'd give it to me "at his cost", but that afterwards the factory would give him a rebate he'd keep. I'm fine with that, as people cant run on something for nothing.

Look, sometimes for really good customers I have to cut machines down to a $1000 profit or else I wont sell a machine. If that happens, I go back to the factory reps and say " I need more money on this deal, this guy cut me down pretty hard". More often than not, we get some extra help. We normally operate on a 5-10% margin, sometimes more sometimes less.

 

[TSO]

Dealers absolutely ask for your trade in info and down payment before giving you a hard price. We may give you a range, then put pencil to paper once we have some information. As I've said several times in this thread, each situation is different. Maybe you want 0% financing, but you'd actually save money if you went with the rebate and standard financing. We wouldn't know that until you told us if you have a trade or if you plan on putting money down.

The trade thing is simply this, if you trade in a desirable tractor you'll get a great deal on your tractor and a fair deal on your trade. If you come in with some clapped out junker and insist on trading it, you probably wont get the best deal on the new tractor since we have to turn around and have your clapped out junker sit on the lot and spend time and effort for up to a year to get rid of it.

I'm not trying to disrespect you, but your trade model is completely different from any other trade I've been involved in, ever. The purchase price was always firmed up first, then we deal on the trade. The dealer expresses they have to make money on the risk of trading, they expect to sell it for X amount, they expect to spend X amount to get it ready, and they hope to profit X amount. They don't push the hopeful trade profit into the new sale... That profit margin should already be figured.

 

[ShowroomShine]

I'm not trying to disrespect you, but your trade model is completely different from any other trade I've been involved in, ever. The purchase price was always firmed up first, then we deal on the trade. The dealer expresses they have to make money on the risk of trading, they expect to sell it for X amount, they expect to spend X amount to get it ready, and they hope to profit X amount. They don't push the hopeful trade profit into the new sale... That profit margin should already be figured.

You obviously have an anomaly of a dealer then, because the trade model I just mentioned is how its normally done. You'll get a better price on your new machine if you dont trade, when you trade you dont get the best price on the trade or the new tractor. More has to be factored into the deal for the time and effort of paying a sales guy to sell the used machine, where with a straight up sale that isnt a factor.

 

[CDennyRun]

Dealers absolutely ask for your trade in info and down payment before giving you a hard price. We may give you a range, then put pencil to paper once we have some information. If you ask a dealer a price or see one posted, its normally inflated and isnt his best price. Give him some information and you'll get the best price.

As I've said several times in this thread, each situation is different. Maybe you want 0% financing, but you'd actually save money if you went with the rebate and standard financing. We wouldn't know that until you told us if you have a trade or if you plan on putting money down.

The trade thing is simply this, if you trade in a desirable tractor you'll get a great deal on your tractor and a fair deal on your trade. If you come in with some clapped out junker and insist on trading it, you probably wont get the best deal on the new tractor since we have to turn around and have your clapped out junker sit on the lot and spend time and effort for up to a year to get rid of it.

The initial price of the tractor should have nothing to do with any of this! The outcome of my payment will have everything to do with ALL of the variables. Why does the actual unit price fluctuate based on outside variables? That by definition is shady. The unit is, what the unit is. All the other variable are something completely separate, and should have no bearing on the actual unit price.

When someone looks at a tractor online, they don't need the FINANCED price, they look for unit price. How is this hard to understand?

Please explain this to me!

Chris

 

[TSO]

You obviously have an anomaly of a dealer then, because the trade model I just mentioned is how its normally done. You'll get a better price on your new machine if you dont trade, when you trade you dont get the best price on the trade or the new tractor. More has to be factored into the deal for the time and effort of paying a sales guy to sell the used machine, where with a straight up sale that isnt a factor.

Maybe it's just a Michigan thing... But that has been my experience at other tractor dealers, and car dealers as well. The Midwest does have a reputation for honesty ... Maybe that's where it comes from?

In truth, a dealer has an opportunity to make MORE money, not less, when a trade is involved. The dealer makes the initial commission on the new sale (Not related to the trade) and then can make money on the resale of the trade.

 

[ShowroomShine]

The price of the tractor should have nothing to do with any of this! The outcome of my payment will have everything to do with ALL of the variables. Why does the actual unit price fluctuate based on outside variables? That by definition is shady. The unit is, what the unit is. All the other variable are something completely separate, and should have no bearing on the actual unit price.

Please explain this to me!

Chris

Read through my posts in this thread, I've explained it clearly several times. Every situation is different, and when you take all factors into account the customer gets the better experience and price. If you just agree to a price without knowing any outside factors, you arent getting the best price.