LAWALLSTRACTOR said:
I am curious to find out what you, the tractor consumer, would feel is a fair markup on a tractor. Cost + shipping + ? In other words, what is a fair profit for the dealer.
When I bought my 2615 HST, a little over 3 years ago, for some reason; it never entered my mind as to how much profit the dealer was making. Now had I been buying a new car, I may have thought differently.
I also looked at tractors as a different animal than a vehicle. I was investing in a piece of equipment I expected to last decades. And, it was kind of intimidating to think of what might go wrong, would I be able to handle being a tractor owner, etc.. I knew one thing - good dealer support was crucial.
Having been a business owner, I knew a lot about profit, and overhead. I realized my dealer had a great deal of overhead, and in order to stay in business, needed to make a profit to meet the monthly expenses when sales are slow.
In my opinion I paid a fair price for my tractor, $14,995.00 which was $200 less than the asking price, and I paid $150.00 for the calcium filled tires.
I know the salesman appreciated he not haggling over price, and he has shown his genuine friendliness over the years. It is a great family owned dealership with employees with families, and hungry mouths to feed.
Sometimes what is fair, is what each party to a sale is willing to accept. I think some dealers may have more overhead, and therefore try to charge a little extra when they feel the customer has a fatter wallet. That wasn't my experience though.
