Jim_Becker
Gold Member
- Joined
- Jul 11, 2003
- Messages
- 263
- Location
- Bucks County PA
- Tractor
- Kubota BX-22 (Formerly BX-2200 owner 130 hrs)
Generic questions, I agree. But my method is to ask for the best price first and in most cases, I'm not going to come back and dicker down unless it's to secure "more stuff" once I've determined who I'm going to do business with.
When I bought my BX-22 in late 2002, that's exactly how I handled things. I talked with the three local K dealers within 10 miles; two of them seriously based on their facilities, etc. One of them I had previously done business with for a BX2200. I asked for their price on the BX-23 with "yadda-yadda" and what they would give me in trade for the BX-2200. (sight-unseen, but in the excellent condition I represented it as) The "winning dealer" had a better price on the machine by a grand and a better trade-in offer, also by a grand over the dealer I had been doing business with. They also offered on-site service as "normal" rather than $50 transportation charges to the shop. At no time did I disclose what someone else had offered or that I was shopping. I also checked online prices as a sanity check, despite the shipping situation. While I felt a little bad for my original dealer--nice folks--they had the same opportunity to gain a repeat customer as the other dealers had to gain a new customer. I kept it fair and everyone had the machine I wanted "in stock". There was also a clean trade that could be sold easily and quickly for a nice profit. I have not been disappointed with my "new" dealer, either, as they have provided exemplary service and support.
As to MSRP...meaningless to me as a consumer. They are fine to compare different sized machines and the general cost differences, but when it comes down to the deal, the offered price, regardless of how it's calculated is what counts.
A fair profit margin should provide the dealer with enough income to pay the sales person, overhead and so forth and put some money in the till for business improvements and net profit for the future. As represented, it isn't a number that can be calculated from a formula, as products that sell in volume and consistantly (if supply is available) can be safely priced with lower margins than things that move slowly and incure higher carrying costs on inventory. I also believe that you should reward repeat customers a little, either by a slightly better price or by including something extra as an incentive, such as a free major service or accessory. Only you can determine what's best for your business and what's fair. Knowing your competition also counts...if you are not in line, you'll either hurt yourself by under performing in sales or underperforming in profits.
When I bought my BX-22 in late 2002, that's exactly how I handled things. I talked with the three local K dealers within 10 miles; two of them seriously based on their facilities, etc. One of them I had previously done business with for a BX2200. I asked for their price on the BX-23 with "yadda-yadda" and what they would give me in trade for the BX-2200. (sight-unseen, but in the excellent condition I represented it as) The "winning dealer" had a better price on the machine by a grand and a better trade-in offer, also by a grand over the dealer I had been doing business with. They also offered on-site service as "normal" rather than $50 transportation charges to the shop. At no time did I disclose what someone else had offered or that I was shopping. I also checked online prices as a sanity check, despite the shipping situation. While I felt a little bad for my original dealer--nice folks--they had the same opportunity to gain a repeat customer as the other dealers had to gain a new customer. I kept it fair and everyone had the machine I wanted "in stock". There was also a clean trade that could be sold easily and quickly for a nice profit. I have not been disappointed with my "new" dealer, either, as they have provided exemplary service and support.
As to MSRP...meaningless to me as a consumer. They are fine to compare different sized machines and the general cost differences, but when it comes down to the deal, the offered price, regardless of how it's calculated is what counts.
A fair profit margin should provide the dealer with enough income to pay the sales person, overhead and so forth and put some money in the till for business improvements and net profit for the future. As represented, it isn't a number that can be calculated from a formula, as products that sell in volume and consistantly (if supply is available) can be safely priced with lower margins than things that move slowly and incure higher carrying costs on inventory. I also believe that you should reward repeat customers a little, either by a slightly better price or by including something extra as an incentive, such as a free major service or accessory. Only you can determine what's best for your business and what's fair. Knowing your competition also counts...if you are not in line, you'll either hurt yourself by under performing in sales or underperforming in profits.
