Are all dealers territorial?

[TurboSonic]

Hello everyone!

I went to an orange dealer today which is about 5 minutes from my work office and ask to get prices on a B7500 plus some implements. After waiting nearly an hour for the salesman, I was finaly able to talk prices. /forums/images/graemlins/crazy.gif At least I got some time to look over almost every inches of the B7500 and BX2200! /forums/images/graemlins/smirk.gif
We start talking and he asked me were is was from. I tell him and then he tells me he can't sell me a tractor cause I have a local orange dealer were I live /forums/images/graemlins/confused.gif He then tells me that both dealers do this so that they don't "steel" each other's customers. Gheeez talk about a racket (sp?) The main reason I went there in the first place was to make sure I was NOT getting sc&*#$%ed by my local dealer.
Is this how dealers really work or is this a "Canadian thing"?

Thanks!
Sylvain

 

[John_Mc]

That sure is NOT how it works in my area of Vermont. People are alway running around to different dealers to shop prices. (A favorite is to buy the tractor in New York state, and have it delivered to you in Vermont, avoinding sales taxes in both states).

John Mc

 

[Pacesetter300]

Sounds like your two dealers are in kahoots. Most dealers I've shopped are more than glad to sell a tractor in the other guys back yard! I'd expand my radius or change color /forums/images/graemlins/ooo.gif
Pacesetter

 

[thcri]

Pace,

Do you think they tend to set the prices along with that also? Would make me wonder. I do know Kubota has territories but I don't think they are limited to sell only to people in an area. They just can't go set up shop in another town and sell Kubota.

murph

 

[beenthere]

The Bobcat dealers are territorial, apparently controlled by the company. If one dealer makes a sale in another's territory, I think I heard that the credit goes to the other. Not sure what that entails.

I have heard tho that some buyers can opt away from a Bobcat dealer that they don't like, or can't do business with. But it has to be approved by the Bobcat company.

Maybe Kubota dealers have a pact with Kubota. I would think if someone wanders in from another's territory, they could still buy a tractor though. Who would want to set up a dealership, and then have the parent company allow another dealership to be set up right under their nose? Not conducive to a healthy business. Now, competition is good, but there are apparently some protective mechanisms built in.

 

[frank_f15]

never heard of such a thing. around here u got the cash, any dealer will sell to u.

 

[Woodbeef]

Hey TurboSonic,

Never heard that here in Ontario for walk in customers. Some companies frown on dealers going out of thier territory to make sales calls though. Might be different up here with Kubota Ca. but not in the States. I'd say in the States territory does not exist,by the way Kubota USA lets their dealers sell nationwide on the web. Kinda like what deere does with Home Depot!!

 

[Pacesetter300]

thcri,

Hard for me to say on that one. There are really no cut rate dealers in Maine, NH or Mass. Maybe one in Vermont and one in CT, both Kubota. If you have a few high margin dealers running things, the little guys only need to get under them by a small amount. Take gas, if the big boys are $1.60 for gas, no need to sell at $1.30, you'll get all the volume you can handle at $1.50. Our Kioti dealer gives a whopping 6% discount from list. He's really not much under Kubota pricing, but he doesn't have to be. I don't think there's any collusion, I just think the big guys set the tone and the rest follow.
Pacesetter

 

[sandalwood]

Sylvain,

Had a similar experience. I have 2 dealers close by, 1st 20 minutes and 2nd 40 minutes (but in a different province). Talked to both and they both were aware - no problem. Tried speaking to 3rd dealer ( about 90 minutes away, in same province) but he gave me the same story about he couldn't sell to someone outside his territory even though I had obtained his dealership name from the side of a new Kubota parked a block from my home!

Lyle

 

[TurboSonic]

Hello Sandalwood,

Yeah I'm starting to believe that this might be a New Brunswick thing! /forums/images/graemlins/mad.gif I'm from NB also! /forums/images/graemlins/smirk.gif

Thanks for the info!
Sylvain