Case-Big Red Sales Event ???

[Spin]

I believe that the actual cost of the tractor (possibly just this model) is 75% the MSRP. Case allows dealers the other 25% as a profit to the dealer if they can sell it for that much. My understanding is that "volume-dealers" will only seek a 3-6% increase over that initial 75%. Remotely located dealers may need additional $$$, say 9-16% over the initial 75% figure. I guess this would cover additional costs of freight and other costs of being a more "mom & pop" business. Therefore, I'd have to assume... a cash sale = Case eats the $, and a financed sale that the dealer would be giving up that portion of "sales commission." I don't know what others have found out, but...there doesn't seem to be a lot of negotiation on price from "mom and pop" dealers in remote areas. That's just what I feel. However, I do think all dealers get factory incentives that outsiders would never hear about. I also think that tractor dealers don't actually buy the tractors from the manufacture like a car dealer....the manufacture holds paper and loans the tractor to the dealer until the sale is final. I'm up for an education...am I close to being right on this? Spin

 

[SWB]

The cost of most tractors does seem to be around 75% of MSRP according to my local dealers who are very open about this. Then every dealer need to make a certain % over cost. One local dealer was 10%, another 10.5%. However, if the dollar amount was low, they may need to get more than 10% (e.g. on an $8,000 subCUT they may need to get 12%, while more expensive tractors they only need 10%). On larger tractors they may need to get less than 10%. There are also some incentives they receive that you generally don't hear about and some of the dealers will give that back to the customer and others won't. For what it's worth, this is the info I have received. I don't have any reason to believe it is not correct, but then again I'm not in the business.