Dealer Dealer Margins

[Larry The Tractor Guy]

Elaborating a bit on what the dealers have said, keep in mind that everything sold in the store does not have the same % profitability. If an item sits in the parts department without being sold for a long time, it's costing the dealer money in inventory interest. When you buy something else and he makes a few bucks on it, it enables him to keep those slow moving items in stock for when you need it "yesterday"....Work with a long established dealer near you. He didn't stay in business for all those years by overcharging his customers, nor did his customers drive him out of business by spending their money on the internet. He's there because he has a good working relationship with enough people -- in sales, parts, and service -- to support the size operation he runs.

Very well stated! That is what we hang our hat on here and it works for us!

 

[Ford850]

It's difficult to compare prices. Dealers, good dealers, have hidden extras included in their prices. Things like pick up and delivery for service, or standard upgrades like a HD bucket. They do these things everyday and don't think much of them. They do the best they can for their customers and don't necessarily point out the little extra's you receive. Sometimes you find out how good they are when you ask to upgrade or add something to an order and they tell you they already did and it's included in the price. They are used to dealing with return customers and don't need to compare themselves to their competition.
Price is important, but a "comfortable feeling" while doing business with a dealer is more important to me. Compare prices, ask questions, and pick a dealer where you get that comfortable feeling. There are more places to find value than the price alone.
Just my opinion.

 

[Larry-On-The-Hilltop]

That's very true that there is more in the value than price alone. Just don't let a low price leave you thinking that you're necessarily going to get shafted on service.

I detect a bit of whinging from the dealers about margins- take a page out of the car dealer's book and consider diversifying and carrying more than one line. If you don't diversify, diverse it will get for you in the long term.

BTW, when I bought my tractor from the dealer, it was $1000 over cost, no matter how little or how much I bought, so long as I bought a tractor to go with it. So, I loaded up on implements, too He'll definitely get my repeat business...

Hope this helps...