Dealer dealer profits

[kbarrett]

I willingly pay for excellent service if it in fact is excellent service. In my field (technology services), how can I possibly expect my customers to pay a premium for excellent service if I'm not willing to do the same in return?

A good dealer needs to make a decent profit in order to maintain a quality experience for the customer. It's a fact of business. If you think otherwise, you're ignorant in this area.

Price is not an issue if the value is there. If I demand a premium price for mediocre service, the market will go elsewhere. If I lose money, or try to cut margins to the bone and try to provide you with the best sales and service experience, I will not be around very long.


Can I get Lexus service at a Daewoo price? If by chance it does happen, it can't be maintained for the long-term.

"Hey, I don't mind you make you making a living at this, but don't get rich on me!"

What's wrong with getting rich while serving your customers? If the dealer provides me with stellar customer service, and is able to deliver a valuable solution, I hope he does get rich! He'll be around tomorrow when I need him.

 

[Anonymous Poster]

Well Kevin I have to disagree with you. When dealers bait and switch and I have had my share of them do this to me, I get ticked, and no matter what price they are willing to sell for I don't want anything to do with them. I am on a fixed income and therefore do not have the funds to fatten a dealers checkbook on the initial sale. I do however agree with you on taking care of the dealer. If in fact you do get excellent service continue to purchase from him!! The tractor is only the foot in the door for the dealer and he should be willing to give a break when you purchase it. Then when you need a mower, BH, plow, PHD reach into the wallet and pay his price. When the tractor needs servicing belly up to the bar and take it to him. I owned my own business until health reasons forced me to quit and every time something went out the door I made money. Sometimes not a bunch but if I had the option of selling an item for a dollar more then I paid for it when I knew that person was going to the next town to price check, I felt like I got over. Not only did I make a buck but the customer left happy and hopefully told his friends and neighbors. You would be surprised when a customer feels like he got over how much the word is spread. With only a few exceptions I have not met many unpleasant salesmen. Just about every last one of them was peaches and cream until I needed them to go above and beyond. In short get the best price then evaluate your dealer of choice to see if he stands up to your expectations. If he does reward him if not move on. I think its the same in your field. The customer first goes for the price unless the "salesman" convinces him to do otherwise. For you to get repeat business the customer must be happy after the sale. If I found out the dealer made $2000.00 on my back, I personally would never again step in his place of business. The saying still holds true "Buyer Beware". Having said all this I think we are thinking alike except I feel you should not "reward" the dealer with a bonus up front, wait and see how you are treated after the sale.

 

[kbarrett]

As you mentioned, we're probably not that far apart in our opinions. However, you raised the issue of dealer "ethics" which is a differen't conversation than dealer profits.

Making a healthy profit while delivering value for that dollar is ethical. Trying to exact an excessive profit on merchandise without value, or doing the proverbial bait and switch is un-ethical in my opinion.

I would hope that we would shop dealers as much as we shop tractors. Do a little research and ask for a couple customer references in the process. Hopefully, this will minimize surprises after the sale.

Cheers!