Dealer Dealer Needs Feedback

ktcmah · Feb 4, 2004

How about your opinions on the following?

What factors make up "the best deal" to you?

How do you like to see pricing - % off of MSRP, etc?

What is a fair profit margin for the dealer?

Your comments will be appreciated so I may better serve my customers. Thanks!

lamarbur · Feb 4, 2004

very generic question. it would be nice to know at least what general area you are in. I say this because in some areas, price is the only issue, in others, it may be what can be kept in stock. In others, it may be who delivers or picks up machines for warranty work, etc..

5030 · Feb 4, 2004

ktcmah:

Before you ask a question like that, I agree with lamarbur, you either nedd to fill in your bio (would be nice anyway) or state your area and product lines besides Kubota. (I presume). /forums/images/graemlins/confused.gif

fishdoc · Feb 4, 2004

For what it's worth..... I'll be spending around 15K somewhere in the next 3 months. I'm doing my research online..... I'll know what I want when I walk into a dealer. Chances are I will take up less than 2 hours of the dealers time...... how much profit does a dealer want?..... or demand?

Shopping for a truck or car is easy.... find out what you want... learn from the internet what the dealer paid..... offer 100 or 200 over that cost and nothing more..... walk away if they don't want to deal (or unless you are trying to get a vehicle that is in demand and getting marked up) Even then as we all know the dealer is making more than 100 or 200 dollars as there are all kinds of hidden money and incentives that make them tick..... at least it is a gauge. I bought my last 2002 GMC truck with a phone call..... no local dealer treated me the way I demanded. I knew from the internet the inventory of a dealer in Richmond.... he had the truck I wanted. I told him on the phone if he would sell it for XXX I would be there in the morning.... he said yes.... I took up about 15 minutes of his time... his people did the paperwork and he moved a unit. Looks like tractors aren't that easy yet.

MSRP means squat to me...... it is pie in the sky. I would assume that if a dealer has 2 units of product A for sale and that is all they are going to have and if they keep it there long enough they can make a couple K profit then they aren't likely to sell one of them to me today and only make 500. But if there is a steady supply and they can sell till the buyers stop comming then they will see me when I walk in the door as a very easy person to do business with.

Junkman · Feb 4, 2004

I like your way of doing business......... Wonder if I can negotiate a better price for your services as a ER doctor.... say..... $15 - $20 for the visit??? After all, all you have invested is a little time, that once passed, can never be regained, and it costs nothing to have you sitting there among all that equipment........ and I doubt that I will take that much of your time.... say 15 or 20 minutes.... /forums/images/graemlins/blush.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/wink.gif

r0GuE · Feb 4, 2004

I think with cars, it's a little bit different and yes, you can probably get it for $200 over invoice. The dealer has holdbacks, gets financing incentives, gets a better price on all units over x per month.

With tractors,... for me... I just checked a few local and semi local places and picked the one wit the best price. I'd pay a VERY small premium for the closest shop (though I shouldn't have to) and I'd pay a little WEEEE bit more if they seemed easy to work with and offered free pick up and delivery for warrantee service.

JerryG · Feb 4, 2004

I know that more than likely, it would be to much to ask, but how about a salesperson that actually knows something about their products.

BubbaJr · Feb 4, 2004

What factors make up "the best deal" to you? 

KNOWLEDGE - The salesman needs to know his product, the parts and service people need to know their jobs, and the owner needs to know how to pick the right people for the job. Once you have the right people (and enough capitol to make it work) things will fall in place and make the buying experience a lot less painful for the customer.

 How do you like to see pricing - % off of MSRP, etc?

I would like to see tractor pricing seperate and as a package ie. w/FEL & MMM, or tiller & seeder, or other combination of tractor and implements that could be bought and financed as a group. Something already put together so the salesman doesn't have to fumble around trying to make a deal on a package. And keep an eye out for special closeouts, discontinuations, cosmetic damaged equipment, and other deals you can pass on to the customer. Believe it or not, we like to brag how we scored a great deal on a bent boxblade or a rusty boom pole. At least I do !! /forums/images/graemlins/laugh.gif

 What is a fair profit margin for the dealer?

That is totally up to the dealer. You have to know how much you need to make expenses, and adjust your profit margin accordingly. If the dealer doesn't make enough profit, they aren't going to last very long. And I want a long relationship with my dealer. I don't think it makes any difference what part of the country you are in, if you treat the customer fairly and offer great service before and AFTER the sale , your'e going to have repeat business. Todays consumers are more educated than they were even 10 years ago. We can cruise the net and compare prices, brands, options, and even check inventories. But what we can't guage over the internet is the quality of the people you will have to deal with when it comes time to put the pen to the paper, or take your new tractor in for service. I would pay a few dollars more to a dealer I could trust without question to look out for my best interests. Notice I said a few dollars more, not a lot more. /forums/images/graemlins/grin.gif

Good Luck to you. /forums/images/graemlins/smile.gif

Casimir · Feb 4, 2004

If you cruise a few of the buying threads here, you will see that most folks on TBN recommend finding a good dealer over the lowest price:

A dealer that is knowledgeable of their products, takes an interest in helping the customer select the best machine for their needs, doesn't mind answering endless questions and will give good after sale service.

Most of us are willing to pay a little more (as BubbaJr said /forums/images/graemlins/smirk.gif) if we feel that we will get good service after the sale and help with any warranty issues that may arise.

boustany · Feb 4, 2004

Hate to say it, but I mostly buy on price, all in.
So, when I bought my 3010 I had a Case 580C trade in. I had decided I wanted either a 3010 with FEL, Hoe, and rear blower, or a similar Deere configuration.

The Kubota dealer checked out the 580 and gave me an all in cost of, something like $30K delivered to my door. The Deere guy priced out the new stuff very similarly, and lowballed me on the 580C, to the tune of like $3,000 (he offered $9,000 or about 25% lower than the Kubota dealer offered).

So I called him back and said, sorry, if you can't do better than that by tomorrow you lost the sale. The next day I signed the contract for the Kubota, and 5 minutes later my cellphone rang and I got a competitive offer for the Deere. I could have renegged on the purchase but, a deals a deal.

Ultimately, most dealers are happy to sell you parts or do service for you. I don't see the point of paying (for example $3,000) for the privaledge of buying a tractor from you so that you'll be somehow happier or nicer to me when I give you my service and parts business.

I work exactly the same thing on cars, and so on. The sale of a machine is a distinct thing from service: you may make the service but you don't make the car/tractor/table saw, so I want a good price on that.

And I always walk in knowing what I want. I learnt a long time ago that, for the most part, a knowledgeable sales person is most likely an indicator of an ignorant customer. Some guys are pros, some not. I will pay a couple hundred extra if a guy gives me a test drive, or whatever, but thats about the limit. On a dollars per hour basis, thats a pretty good payback.

I won't do business with anybody who I think is lying to me, or otherwise misleading me, irrespective of the savings.

And, at the end of the day, if I bring my tractor in for service, you'll do it and treat me the same whether I bought it there or not. Otherwise, I ain't coming back.