Buying Advice A dealer looking for your input

[Morgan Kubota]

I am a Kubota Dealer in the NE area. I have been at this for over 6 years now and absolutly loving the results. Great people that have filled my customer slots and a great product to equip them with. But I dont want to get comfortable with where I am. Like any good dealer I want to make sure I get better and giving people the buying experience they deserve.

Here is my scenario: I spent 6 WEEKS with a guy discussing a tractor. He was clueless and that is more than fine. I took at least 4 hours every week to get him on different machines driving around and using the attachments until we found the machine he was comfortable with and we both felt would do the jobs he had lined up. We then moved onto discussing attachment options and then getting his wife on board and excited. All in all it was going great, ( I even stayed 3 hours after close one night ). When the time came for him to buy he had me write up a formal quote and I gave him the best price I could, i did that right up front. Three days later I call him up to see if there were any more questions I could answer for him and I find out he bought the package from a dealer in PA because he butchered my price just to dump the tractor.

My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?

 

[MMagis]

That just depends on the individual’s integrity. Price is more important than ever, but I couldn’t do what he did. At the very least, you deserved one more shot. That being said, you don’t say what the price difference was. At some point a person has to do what is best for them and their situation.

 

[keyman1808]

It also depends on how much difference the price was. Knowing what I know now I might have bought outside the area but I would have given my local dealer a chance to come close. When your talking about a couple of hundred dollars no big deal I would stay local but if it were 1000.00 or more then I may be hard pressed to buy from my local dealer especially if I feel I am about to be raped. I know everyone needs to put food on the table but I dont want to put lobster on my dealers table everynight.

 

[brin]

I am a Commercial Real Estate Broker....Welcome to my world !

 

[TripleR]

I agree with MMagis to a certain extent, you should have been given the opportunity to go with a counter offer, but since you say you gave "him the best price you could" that would have been a moot point.

Sadly, I have found that in almost every case when it comes right down to it, the "best price you can do" is a moving target so to speak. When I am "negotiating", I tell the dealer right up front to give me the best possible price as I do not haggle, if the price is right I will buy it and if not I won't. I can think of no occasion in which after I left the lot I did not receive a call with a counter offer. I never go back.

That being said, I now make an exception with tractors/equipment as I have a dealer and salesman I trust with an excellent service department and when I ask him what his best price is, I take into account the quality of service as well as long term relationship and buy even if I believe I can get it a little cheaper elsewhere.

However, as MMagis points out if the disparity in price is great enough, then it does become the preeminent factor.

Most of us work very hard for our money and loyalty, customer service is only going to get you so far.

 

[magicheater]

My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?

A lot of times the cost IS the most important thing. I looked at tractors locally when I bought my second one and they were beat up and over priced. I as a consumer expanded my search and found a deal to my liking out of state. Not only did I save the sales tax but I got a tractor with fewer hours and in much better shape than what I could have purchased locally. I see that the local tractors are still for sale also. If the difference in price on your tractor versus what your potential customer got elsewhere was only a few hundred dollars I would have bought from you or if more, given you a chance to better your offer. Service is important, I still go to my local dealer for parts when I need them even though I may be able to do better online. I bought my first tractor from them. It does SEEM now a days that pricing IS everything.

 

[tractorshopper]

I am in the market for a new tractor and have been looking hard, test driving, and reading a lot. I am down to a decision between two tractors of different colors, one of which is a Kubota.

My local Kubota dealer has treated me much like you have treated your customer in this case. The other dealer is very honest and reputable and has been in this business a long time also, but has not given me the same treatment.

In all honestly, I like a few features on the other tractor enough to sway me in that direction and the price of the other color is considerably better too, but I'm fairly certain I'm buying the Kubota and mostly because of the dealer.

I believe he deserves my business and I look forward to excellent service after the sale. I checked his price against a reputable Internet dealer and he was not as low, but also not too far off. I'm sure he does less volume and I'm okay with the difference if I know he'll still be around for parts and service.

I will say say, however, that if his price on the same machine was a lot higher than the Internet dealer, I would have had to consider going with the long distance sale. On some level (probably different for all of us), initial purchase price is still important to a customer. I want to know I got a fair deal. You just have to find that balance between good deal/keeping your dealer in business and short-sightedness (purchase, but not thinking about future service needs) and long-term strategy (both).

 

[crazyal]

You win some you loose some. I'm sorry but price does matter to plenty of people. If it was me I wouldn't have spent much time with you before hand trying to decide what was right for me. That just seams wrong. I would just of asked your best price and then decided. Hopefully when they need service, parts, and oil they still come to you. Maybe when it comes time to replace it he'll think twice or maybe the extra costs will not seam as large.

The difference in price can easily mean a couple of attachments that you were going to hold off on. Or it could mean the difference between being able to afford the correct tractor or settling for less.

 

[tommu56]

A bearing supply business that I use has a sign shaped in a triangle are the words

price ,delivery, service

pick any 2


I feel if you go for the bottom dollar you will be sacrificing some thing.
Again that is my opinion.

tom

 

[KeithInSpace]

I am very sorry to hear this happen to you. No doubt, this same individual will come to you for service needs and beat you up when you put tractors that YOU sold in line in front of service items you DID'T sell, including his.

I have no clue how your price compared, nor is it particularly relevent. I'm a Land Development Engineer and have seen $80,000 contracts decided over less than $500 difference...staggering decisions, in my opinion, where relationships and capabilities are much more important considering they're spending $10 million and more on improvements as shown on those plans.

Taken to your level, the difference could have been $100 or $3,000. Only two people know...the purchaser and probably the other dealer considering he probably "played" based on your quote.

For my part, I got a package cost from my local dealer and checked around, as a matter of education, to make sure it was a decent price. It was a few hundred higher than the lowest prices I saw "out there", but that was money well spent to have the support of my local shop. If the difference started getting over $1,000 (on a $15k purchase), for example, for the "pleasure" of buying local, it may have been a smidge more difficult.

So on one hand, I want to say ABSOLUTELY I would always purchase from my local dealer. But at the same time, the price has to be in the ballpark.

For this to happen to you over a 12% swing in cost...dunno. Would have been a tough call for me, as the purchaser, to get past that. Hate to say it.

For this to happen to you over $180? An absolute travesty and I hope you never need to interact with that poor soul ever again.

Don't know if that helps other than knowing that at least one person (me) will pay a premium (not a BLIND premium, but a premium nonetheless) to work out of a local shop.

Wish all the best success to you.

 

[JOHNTHOMAS]

I am a Kubota Dealer in the NE area. I have been at this for over 6 years now and absolutly loving the results. Great people that have filled my customer slots and a great product to equip them with. But I dont want to get comfortable with where I am. Like any good dealer I want to make sure I get better and giving people the buying experience they deserve.

Here is my scenario: I spent 6 WEEKS with a guy discussing a tractor. He was clueless and that is more than fine. I took at least 4 hours every week to get him on different machines driving around and using the attachments until we found the machine he was comfortable with and we both felt would do the jobs he had lined up. We then moved onto discussing attachment options and then getting his wife on board and excited. All in all it was going great, ( I even stayed 3 hours after close one night ). When the time came for him to buy he had me write up a formal quote and I gave him the best price I could, i did that right up front. Three days later I call him up to see if there were any more questions I could answer for him and I find out he bought the package from a dealer in PA because he butchered my price just to dump the tractor.

My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?

As a business owner I set my price based on what I'm selling compared to others in my local market. At this time it's rental property. If someone rents from someone else, I know they are getting an oddball deal (family, someone that doesn't know how much to charge, etc) or a lot less residence than I am offering. I have an on site security guard, security cameras and an on site maintenance man as well as newer maintained units. I charge for all these extras. Your product is available everywhere and comes from one manufacturer so it's a true apples to apples comparison. You only provided to your customer what you should have when you opened your business. Should your customer be shamed into paying more because you did what you should have, I think not and apparently he didn't either. Unbeatable service, come on, everyone says that. Cheap price for the exact same item? Or seller willing to make less profit than you? You gave your best price but another dealer with the same product cost sells his for less than you, how come and then he wanted to dump his makes no sense since you obviously wanted to sell (dump) yours. I say grow up. I sold Real Estate and under stand the costs/time/effort involved and then I taught Real Estate at College and had to listen to the complainers that "lost" their sales. Get out of the pit if you can't fight. That's life in America and I love it.
Another question, I know other dealer "dumps" his and you sell your but how come the other dealer sells for cheaper than you when both of you pay the same price for the tractor? I think there is the real question us buyers want to know the answer to.
You do charge for service and charge enough for your service to keep your service department operating, don't you? Not sure why you want to associate you providing the service that you should as being a bonus any more than you doing your sales function as a favor.
Do you not feel that a customer gives you an opportunity to make a sale to them with their time and attention? Or your doing them a favor by taking your time and attention? I believe you need to give an honest evaluation to yourself of your attitude.

 

[oldnslo]

I am a Kubota Dealer in the NE area. I have been at this for over 6 years now and absolutly loving the results. Great people that have filled my customer slots and a great product to equip them with. But I dont want to get comfortable with where I am. Like any good dealer I want to make sure I get better and giving people the buying experience they deserve.

Here is my scenario: I spent 6 WEEKS with a guy discussing a tractor. He was clueless and that is more than fine. I took at least 4 hours every week to get him on different machines driving around and using the attachments until we found the machine he was comfortable with and we both felt would do the jobs he had lined up. We then moved onto discussing attachment options and then getting his wife on board and excited. All in all it was going great, ( I even stayed 3 hours after close one night ). When the time came for him to buy he had me write up a formal quote and I gave him the best price I could, i did that right up front. Three days later I call him up to see if there were any more questions I could answer for him and I find out he bought the package from a dealer in PA because he butchered my price just to dump the tractor.

My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?

Did he figure in delivery fees from PA to NE. I have to believe that would add up to more than a few dollars. Prior to the internet we usually had two dealers for the same brand so that was the limit of your shopping. Now with the internet you can shop world wide and then wonder why the shop next door is closed.

I guess when and if he comes in for service you can try and either recoop your losses or treat him like a valued customer and see if he remembers that when he needs implements.

I still pay more for local service because I want the service to remain local. Next dealership is an hour farther away.

Roy

 

[bp fick]

Your extra attention paid to the potential buyer was an investment on your part. You invested an extraordinary amount of time. You went over, beyond and above. You educated the buyer as to what a tractor was, which were the best features and "helped get the wife on board". You did your job well.

Unfortunately, this newly educated buyer was still shopping and found a better price than yours. It must have been substantial. Your good will, engendered through the time spent with this fellow, was only go to go so far. It didn't go far enough. Maybe the other dealer did just "dump" a tractor, maybe the new buyer just walked into a great deal, whatever the reason.

Tough business. We, who have spent our lives in the public sector, whatever the specifics of that sector, have in some ways lived out what you have described many, many times. It comes with the territory. It just does. Most of the time, an investment in working with a potential client, customer, parishioner, volunteer, etc is "rewarded". Sometimes, one trains a new employee, invests lots of training and know how only to have that employee take a position that pays better than their present one.

Yes, indeed, this is life. Yes, service, quality and all the rest still have great meaning, but in this economy, a great price is always important. Always.

 

[attala cruiser]

I bought a tractor last month from the Kubota dealer that was 90 miles away over the local dealer that was 7 miles(from my actual residence). The local dealer was off by almost a thousand bucks and stated that was his best price and he couldn't do any better. (We even had mutual friends who advised me to call him) I chose not to buy from them. The dealer 90 miles away gave me a better price over the phone and delivered the tractor to my land (which is about 4o miles away from him) I pass that local Kubota dealer about twice a week and will never purchase anything from them. I had also checked at an out of state dealer about 150 miles away that beat the price I payed, but I chose to do business a little closer. I feel like the dealer I purchased from will do me right when servicing issues come up.

 

[JOHNTHOMAS]

Yes, indeed, this is life. Yes, service, quality and all the rest still have great meaning, but in this economy, a great price is always important. Always.

I believe and am convinced that good price, service and quality are all available and will make a prosperous business.

 

[ultrarunner]

Part of the problem is much of Service is a future benefit and I've been short changed a number of times...

I live in a region with 7.5 million people and the Kubota Dealers in my county and the neighboring county pulled up stakes... so I've got to drive a couple of counties to get to the nearest one... I've heard part of the reason is the high cost of doing business here.

My Father always did better on used equipment sales because for most purposes, used equipment is unique... he said it is much easy to be undercut on new equipment because there are many sources for the same product... just the way it is.

 

[bp fick]

I believe and am convinced that good price, service and quality are all available and will make a prosperous business.

I believe that unless that "other" tractor was truly "dumped", at an unrealistic, below cost price, (my definition of dumping) then our OP forgot the good price on his business formula. There shouldn't have been that big of a discrepancy in price to allow this loss of sale, especially considering the extra shipping costs.

 

[MMagis]

Johnthomas, I know very little about the business, but even I know that half of what you say is wrong. Running one type of business doesn’t make you an expert in all of them.

 

[subsonic]

Service and reputation count big time. The time you put into helping a buyer does credit to your reputation. I don't think most sales people would put in that much time. If you guys have a great service dept. even better. Sounds like you have a good shop. That being said, money talks. Small pecentage spread, no big deal. Big difference in price is another matter. If someone saves enough to be able to pick up an extra attachment, or a good used attachment with the difference, then that factors in real big.

Face it, we live in a connected world now. People are going to price shop hard nowadays.

Will this tractor end up at your shop for future work? I bet it will. The buyer is going to remember you spent that time with him. Do not look at this as a total loss. Even if you did not make anything off the sale, your shop is going to still make money on the backside for the next 5-10 years off this guy.

I have to think shops make there bread and butter off routine maint, repairs, parts and warranty work.

Keep up the good work.

 

[Bill in VA]

I find this thread very interesting since I am also in the process of purchasing a tractor. Many of the comments, especially TractorShopper's match very closely to what I am doing/experiencing.

The tractor I will probably purchase will be a TLB and will be the single most expensive equipment purchase I will have made in my life and probably ever will make. Price obviously is of prime importance but making sure I get honest/reliable service is a close second.

The only concrete advice (different than that given so far)I can give you is what one dealer did with me. He simply asked me in a very upfront, honest, and heartfelt (real word?) way the following:

" I'm gonna spend some time with you here on all of the details of this equipment and I'm willing to spend more time to help you decide what to buy and hopefully to help you decide to buy here. The one thing I ask is that you give me a chance to counter any offer you get from someone else. Just give me the opportunity to get you the best combined deal of service, advice, and price even if I've got some close competition."

He then stuck his hand out to shake mine and we did so. I really don't remember if what I put in quotes above was his exact words but hopefully it communicates the gist of what he was saying.

Afterwards I thought highly of him because he did/has given me substantial advice and he was upfront in letting me know what he wants for that. To be honest I may not buy the tractor from him but I will absolutely give him the last shot.