Dealer Pricing Question

[CampyVA]

Hey all,

Question... are dealers willing to match each other's pricing?

About to pull the trigger on a new (first) tractor purchase. I've narrowed it down to the manufacturer and model I want, and I'm now just deciding what dealer to purchase from. I have two dealers that are both about an hour away from me, in opposite directions. Both are mid sized, active, and have been in business for many years.

Dealer A's salesman was OK, kinda disinterested, and not terribly helpful, and I got that same vibe from the dealership as a whole.

Dealer B's salesman was great. Easy to talk to for a novice like myself. Very informative and helpful, and an overall nice guy. I got the same positive impression from everyone else I interacted with at the dealership as well.

I really want to give dealer B my business, but dealer A's quote was about $1,650 less on a ~$22,000 machine. Can I ask dealer B to match dealer A's price, and if so, how do I go about it?

FYI: Both quotes are on dead stock machines, with the only dealer added options being a loader, filled R4 tires, and a factory 3rd function valve.

Thanks!

 

[texas42]

Here's my take for what it's worth.
Since you are buying new, first question is: ask each dealer how they handle warranty work.
Do they send a tech to your property or do they come and get the machine?
Then the question is: who pays for the transportation and/or tech's travel time.
Which dealer appears to have the better service department.
Get the answer to those questions first, and if you still like dealer b, then make them an offer in line with dealer A. $1,650 may not be so big after those questions are answered. Service after the sale is important.

 

[ruffdog]

The free flooring may be running out for one dealer so they are willing to deal. You never know the financial situation any dealer is in and how desperate they are willing to sell. Some dealers may get the product at different costs depending on the deals they get from the manufacturer (quantity and bundles).

Edit: It never hurts to ask about pricing because YOU are the boss.....you carry the checkbook.

 

[Diggin It]

You can always ask, but we've seen a lot of stories here about the differences between dealers within the same brand. Some seem to be more willing than others. Also it seems some brands give their dealers less wiggle room than others.

 

[Atchuuu]

IMO you absolutely should ask dealer B to match dealer A's price. Nothing wrong with that. Tractors and dealerships are not some mysterious commodity that defy the laws of normal business practice.

The dealer may accept your "counter offer". Or they could turn it down. If they do decline to price match A and they are as accommodating as you say, I am sure they will give you an explanation as to why they can't do that deal.

Look at it this way, if the dealer says yes, you get the best price and a dealer you are comfortable with. If not, then ask for an explanation. If the explanation makes sense then stick with dealer B. If not, you can always go back to dealer A.

 

[arlen4720]

I don’t ask dealers to do that. I think it’s unfair and unethical. I view a quote given by a dealer as a confidential document. I tell them up front that I’m getting quotes on identical equipment, and they have one chance on their price. The low bidder of identical brands isn’t always the best value in my opinion. My local JD dealer is who I absolutely prefer to do business with, and I would still go his way if he was say 5 or 6 hundred bucks higher on say a 20K piece of equipment. I look at the total package...service, parts, expirience of the mechanics and parts guys etc.
My most important rule is: I only do business with people I like...no exceptions. Sometimes that means I pay more.
It may take a couple transactions with a dealer to learn how each other prefers to do business.

 

[Atchuuu]

The low bidder of identical brands isn’t always the best value in my opinion. My local JD dealer is who I absolutely prefer to do business with, and I would still go his way if he was say 5 or 6 hundred bucks higher on say a 20K piece of equipment.

So you would pay $500-$600 more but doesn't sound like you would pay $1,600 more to do business with someone you "absolutely prefer".

Why not ask the dealer you prefer to work with if they are willing to match a price. They have a right to say no. I sure don't feel like a quote is confidential. If a dealer can sell it to me for X I bet they can sell it to others for that price too. If I tell two friends about the deal and they buy from that dealer I doubt he will be upset.

Would hate it if someone took their business somewhere else and I ran into them somewhere and they said "I really liked you and wanted to use you but you were X higher than someone else". I might have been able to do the deal or I might have been able to show them where the extra value comes in using my service.

 

[arlen4720]

So you would pay $500-$600 more but doesn't sound like you would pay $1,600 more to do business with someone you "absolutely prefer".

Why not ask the dealer you prefer to work with if they are willing to match a price. They have a right to say no. I sure don't feel like a quote is confidential. If a dealer can sell it to me for X I bet they can sell it to others for that price too. If I tell two friends about the deal and they buy from that dealer I doubt he will be upset.

Would hate it if someone took their business somewhere else and I ran into them somewhere and they said "I really liked you and wanted to use you but you were X higher than someone else". I might have been able to do the deal or I might have been able to show them where the extra value comes in using my service.

I tell them up front that there is only one chance. I feel it respects everyone’s time. I might pay $1600 to do business with the guy I like...but I wouldn’t buy from a guy that the OP describes at any price.
I think you would find that if you are upfront with the dealers of how you solicite pricing, that the price deltas will be smaller. I have never seen a price difference anywhere near 1600
Good service cost more than poor service.

 

[Tractor Seabee]

Tractors, implements, and commercial grade outdoor equipment are a different challenge than high volume cutthroat auto sales or residential grade equipment. When I bought my BX I had only one dealer closer than 40 miles. They are a high volume K dealer with prices no one else match as a matter of principle. I did not know that at the time. First warranty problem, a blown hydraulic cylinder, totally turned me off to their shop. Told them they lost my parts and service business. Went the 40 miles and now am totally satisfied. The new dealer has a large well kept and machined and 6 mechanics. Their core business is the AG industry but they still take care of the little guys the same way. Major sales they negotiate to a point. The give me 10% off on all sales and service as appreciation for my business. I have since heard this is pretty much the deal with premier Kubota dealers. Everybody greets me by my first name when I walk in even though it may be once a year. Since going there I have given them $15K in non-major business and service. I see no reason to spend a lot of time shopping around for the last nickle.

As an aside; on buying automobiles/trucks, I do my research, walk into a dealer, find something I like if they have one. I ask the sales person what their lowest price is for the item in question, it is always way to high. I go get a cup of coffee and get my thoughts together. Go back and state "I will give you $X for the unit and my trade, out the door including all misc and license; leaving some wiggle room for me to raise my price a little. The response is let me talk to the manager. Always back with a new too high price. I say, sorry see you later and head for the door. Hardly ever make it to the door without a call back to negotiate some more. I state firmly, I told you my price, now lets get real, say yes or no and not waste our time. I then say, I will sweeten it with $500 and I do not want to talk to anyone but you so go get the yes or no. I either get it or go out the door. It is amazing but I have made out most of the time. Then they want to screw around with the closer and finance and so forth. Give them by credit info, if financing, then tell them, I am busy have to leave, show them the check or maybe folding green and say call me when the papers are ready to sign and have the car/truck ready to go. Couple days later they call and we complete the deal. I have walked out on quite a few dealers, and have them back out as at this point there is no contract. End of the month and end of the year seem to be the best time to get my kind of deal. Been operating this way for over 50 years.

Ron

Ron

 

[fried1765]

I tell them up front that there is only one chance. I feel it respects everyone’s time. I might pay $1600 to do business with the guy I like...but I wouldn’t buy from a guy that the OP describes at any price.
I think you would find that if you are upfront with the dealers of how you solicite pricing, that the price deltas will be smaller. I have never seen a price difference anywhere near 1600
Good service cost more than poor service.

I do not believe that..... "good service cost more than poor service".

You may be willing to PAY more for "good service", but there is no logical reason to assume that that the actual cost is greater, to provide good service.