“Buy the dealer, not the machine” is outdated

[Rdrcr]

I don’t understand that reaction. Why? The person doing warranty work still gets paid and makes a profit. Why turn down the work?

Car dealers don’t work that way.

Maybe it was posturing. Doesn’t the manufacturer require ALL dealers to do warranty work on their machines to be a dealer?

I assume it was the same brand.

MoKelly

I've been in the automotive business for over 19 years. Most of that experience has been at the dealer level, in parts and service. You are correct that the automotive parts and service don't care where the business comes from, I sure didn't! I wanted the business regardless of where the customer purchased their vehicle.

I've never heard of an automotive new-car dealership refusing warranty service (I'm sure some examples exist). However, I've heard numerous horror stories regarding customers needing work on motor homes and tractors that need work under warranty and dealerships have either refused service or delayed service because the customer bought their equipment from a competing store. I don't agree with that practice, but, apparently it happens.

Mike

 

[Industrial Toys]

Warranty work usually isn't paid well and diverts resources from potentially better money making work. Also some times involves a lot of hassle that doesn't get compensated. Any you might actually have to fight for your compenation!

Thirdly, sometimes the customer who is so penny pinching is simply one you often don't want as a customer. If that would be my first introduction to a customer that he bought elsewhere to save money, I would probably pass too. Regardless, that individual is never going to the front of the line for anything. That spot is reserved for people that hand over their money more willingly.

I remember some old "oh so charming" lady that I installed a security system for. She got the best price from me. Then switched to cheaper monitoring, but still wanted my cheaper service. I never darkened her doorway again.

 

[buck12]

Warranty work usually isn't paid well and diverts resources from potentially better money making work. Also some times involves a lot of hassle that doesn't get compensated. Any you might actually have to fight for your compenation!

Thirdly, sometimes the customer who is so penny pinching is simply one you often don't want as a customer. If that would be my first introduction to a customer that he bought elsewhere to save money, I would probably pass too. Regardless, that individual is never going to the front of the line for anything. That spot is reserved for people that hand over their money more willingly.

I remember some old "oh so charming" lady that I installed a security system for. She got the best price from me. Then switched to cheaper monitoring, but still wanted my cheaper service. I never darkened her doorway again.

Why would a business not want a customer that is “penny pinching”? I want value for my money. The Ford dealership I buy from knows I am cheap but has gladly sold me four vehicles in the last few years.

The first vehicle I bought at this dealership I rode around the lot located the truck I found online and a young man walked out to the truck. I said I want to drive this truck. He got the keys and we took a quick drive. When got back while sitting in the truck I told him what I would pay. He said that works. Then I explained that included any prep or other fees and that I did not need any extras. We went inside and a few minutes later he had a check and I had a truck.

He is now the sales manager and I have bought three more vehicles the same way. He knows not to try and up sell me and that I am cheap but I can pay and he does not spend half a day to make a sale.

I only buy from this dealership because of price. Why would a business not want a “penny pinching” customer?

The penny pinchers are usually the customers who can pay. They have a few dollars because they are cheap.

 

[Industrial Toys]

There is some truth to that. The penny pincher probably had his truck or tractor paid for before it left the lot. The real penny pinchers I know (myself included) don't have equipment that isn't paid for. Not that a dealer makes anything on that.

I have been in the security bus. 25 plus years. Penny pinching customers were never my favourite. You just dreaded even seeing their names come up on Caller ID. It was always a happy day when they downsized or moved away. Also, penny pinchers can tend to be penny wise and pound foolish. My father, worlds biggest penny pincher would never, ever spend money to save money. No such thing in hs book.

 

[stuckmotor]

I don’t understand that reaction. Why? The person doing warranty work still gets paid and makes a profit. Why turn down the work?

Car dealers don’t work that way.

Maybe it was posturing. Doesn’t the manufacturer require ALL dealers to do warranty work on their machines to be a dealer?

I assume it was the same brand.

MoKelly

My understanding is that manufacturers pay dealers noticeably less for warranty work than the dealers charge us customers for the same work.
The dealer I mentioned, then told the customer he was sorry but "we" have to make a living. That, as well as some things I've heard on youtube and other places seem to support that statement. I believe it's even been mentioned on this forum.

As for manufacturers requiring dealers to do warranty work, I've heard that too. What I ask myself is, how good of a repair I can expect from a dealer who wants nothing more than for me never to return.

 

[MoKelly]

My understanding is that manufacturers pay dealers noticeably less for warranty work than the dealers charge us customers for the same work.
The dealer I mentioned, then told the customer he was sorry but "we" have to make a living. That, as well as some things I've heard on youtube and other places seem to support that statement. I believe it's even been mentioned on this forum.

As for manufacturers requiring dealers to do warranty work, I've heard that too. What I ask myself is, how good of a repair I can expect from a dealer who wants nothing more than for me never to return.

True. Just seems to me to be poor business.

I guess since tractors can’t go 70mph on the interstate, manufacturers don’t care and assume folks will always buy local.

Probably true before the internet.

MoKelly

 

[paulfun9]

I was at the parts counter of a small equipment dealer. The countermam, who was talking to a customer turned to the owner and seemed to relay the question of whether the dealership would do warranty work on a piece of machinery the customer had found at a much better price in the next county. The answer was "EXPLETIVE NO".

Deciding whether it's more cost affective to spend a few thousand more with a fantastic local dealer and risk him selling out to a jerk tomorrow, or to take the great deal one or two hundred miles away is difficult.

That would be the dealer to avoid!

Any dealership worth thier salt would at least attemp to work with the potential customer. Myself knowing that for most repair under warrantee would be a low risk compared with the potential of selling normal maintenance items, return buisness and the potential of good service winning over the customer for the next purchase!

Ever wonder why if there is competition close to the a holes like that they don’t stay in buisness long?

 

[LS Tractor Owner]

When I first started tractor shopping 4 years ago, I wanted to "keep it local", (local being 35-40 miles away). So, the first place I went was to a JD dealer.... they acted like they were really bothered when we went in only looking for a SCUT TLB. I couldn't even get someone to answer a few questions! We left....

Then we went to the Kubota dealer... it was basically the same "like it or leave it attitude! We left....

Then we drove a few more miles to the only other tractor dealer in the city area... Mahindra. A real hole in the wall, tractors packed in like sardines, office and parts area (no showroom) was like a tornado went through. At least the 'owner' (only guy to talk to) answered my questions and showed us the tractors. Only his prices were the same if not higher than JD or K! He actually told us, "well, you can buy from me or deal with those A-holes up the road"

Wow! We went home and started an online search.... I found a MF dealer about 3 hours away... called them the next morning. I told the guy what I was looking for, he said he was really busy and he would call me back right after lunch.... nothing... The following morning, I called back... asked for the same guy... when he got on the phone, I refreshed what I was looking for... his answer: "You know there are other tractor dealers around... maybe one of them could help you"... click...
Funny thing was an MF regional rep called me later that afternoon and I told him what had happened. He apologized and said he would have another different dealer call me to make a deal.... I am still waiting for that call!......

I called a Kioti dealer the opposite direction, but still about 3-4 hours away. When I called them, the one and only sales guy was out for the afternoon, the next day, he called out again... no one else could help.... They did call me back... 2 weeks later (1 1/2 weeks after I bought a tractor). They said "keep us in mind for your future needs"..... yeah right!

I was about to give up!.... nobody wanted to sell me a tractor! I almost gave up looking.

Then I stumbled across LS... I called an LS dealer that was 550 miles away. I spoke to a salesman and told him what I was looking for (SCUT TLB). Within 5 minutes, the owner called me back. Made a phenomenal deal, beating the local guys by $5-6000. He emailed me the paperwork while I was on the phone. Used docusign to sign, done deal within the hour. We made a road trip the next week to pick it up (Which was fun by itself).

We were shocked when we got there! An old closed up 1 bay gas station! I thought "oh no... what did I do". We got the best service ever! Within 2 years, they have a 10 bay service area, a big showroom, and big parts dept. They are now the largest LS dealer in Colorado. I got all my maintenance items from them, shipped to my door. I can see why they grew so fast! Excellent customer experience/ service!

When I was ready to upsize my tractor, they were the first dealer I called. Unfortunately, they did not have what I wanted in stock, and would cost more than what I was seeing online for prices. Well, I found another LS dealer, 500 miles in the other direction from me (in south Texas). They made me a great deal, beating out other dealers further away by $1000. We decided to have them ship the tractor, they split the cost with me (costing me $750)(but I am still ahead).

We spent a lot of time on the phone making the deal (multiple hours on multiple days). I didn't find out until afterwards that I was speaking with the owner! They are in farm / ranch country and sell a bunch of larger tractors. He treated me like I was buying the biggest most loaded tractor ever... not the smallest compact tractor.

When it was delivered, there were a couple minor issues... some scratched paint and a broken bolt. I was expecting "well it's a tractor...." Nope. He sent me the broken bolt, an extraction tool set, 2 cans of factory touch up paint, and a set of 50 hour filters and a set of Radiator Genie cleaning wands "just for my trouble". He made a satisfied customer!

When my neighbor heard about how I was treated, he took a road trip down to Texas and bought $26k worth of tractor and attachments, at a very good price! For that little bit of good will towards me, the dealer got another sale / customer.

I will NEVER step into one of the local dealers after the way we were treated. I will make that road trip to go see my LS dealer.....

Sorry for making such a long post.....

 

[AndyMA]

Even though I'm not a professional farmer, I have bought all of my tractors from the same dealer. They have treated me very well including getting New Holland to replace a lemon tractor. I pay attention to price but don't buy on price.

Andy

 

[Hay Dude]

Even though I'm not a professional farmer, I have bought all of my tractors from the same dealer. They have treated me very well including getting New Holland to replace a lemon tractor. I pay attention to price but don't buy on price.

Andy

Funny you mention New Holland dealers....
I have found NH and AGCO to be far and away the friendliest, most generous of the dealers. I always gravitate to them and might even buy a slightly inferior piece from one of those 2 brands because the dealer support, parts and service is so much better.