Deere Dealers allowed to choose their own parts pricing matrix

[Kyle_in_Tex]

I had a sneaking suspicion that my dealers parts pricing had gone up.

I just did some checking on my local dealership (which got bought up by one of the large conglomerations), and their parts are about 12- 15% higher than the next closest "conglomeration". Parts were cheaper yet by almost 10% lower online. The parts I'm talking about were rebuild kits and seals/o-rings for hydraulic cylinders. It is their right to set their prices at what they want to, but I drive past the competitor dealer every work day.

So you have to compare if your dealer charges you any extra shipping or other fees to fully compare pricing, but I thought I'd just let you all know.

 

[tomplum]

Commonplace really. "List price" on anything is suggested. Parts and service $ keep the doors open on any dealership auto, ag or otherwise. Some parts pricing doesn't make sense from a dealer perspective when you look at the big picture. Their business systems allow them change prices on individual parts or by codes. IE 110% of list on a certain code or category of parts, 120% on another. ETC. Some items they may choose to be more competitive. Competition drives some pricing more than others.

 

[RickB]

Nothing new, and not limited to Deere. Dealers are independent businesses and set their parts pricing as they see fit.

 

[Kyle_in_Tex]

Commonplace really. "List price" on anything is suggested. Parts and service $ keep the doors open on any dealership auto, ag or otherwise. Some parts pricing doesn't make sense from a dealer perspective when you look at the big picture. Their business systems allow them change prices on individual parts or by codes. IE 110% of list on a certain code or category of parts, 120% on another. ETC. Some items they may choose to be more competitive. Competition drives some pricing more than others.

Nothing new, and not limited to Deere. Dealers are independent businesses and set their parts pricing as they see fit.

I know others did it. Just new to me for deere doing it.

 

[quicksandfarmer]

It's actually federal law. Manufacturers can set "suggested" prices -- the "S" in MSRP -- but they can't require dealers to sell for a certain price. That would be an antitrust violation. If you think about it for a moment, you'll realize that if the manufacturers could set prices, it's highly unlikely the consumers would end up paying less.

Manufacturers are allowed to set minimum advertised prices, which is why you'll see ads that say stuff like "Call -- price too low to advertise!" (which may or may not be true). It's gotten kind of ridiculous in the Internet age, where some sellers can't show a price on their website because it's too low, but if you add it to your shopping cart then you can see it, because now you're buying (even if then change your mind).

 

[Kyle_in_Tex]

I had a sneaking suspicion that my dealers parts pricing had gone up.

I just did some checking on my local dealership (which got bought up by one of the large conglomerations), and their parts are about 12- 15% higher than the next closest "conglomeration". Parts were cheaper yet by almost 10% lower online. The parts I'm talking about were rebuild kits and seals/o-rings for hydraulic cylinders. It is their right to set their prices at what they want to, but I drive past the competitor dealer every work day.

So you have to compare if your dealer charges you any extra shipping or other fees to fully compare pricing, but I thought I'd just let you all know.

It's actually federal law. Manufacturers can set "suggested" prices -- the "S" in MSRP -- but they can't require dealers to sell for a certain price. That would be an antitrust violation. If you think about it for a moment, you'll realize that if the manufacturers could set prices, it's highly unlikely the consumers would end up paying less.

Manufacturers are allowed to set minimum advertised prices, which is why you'll see ads that say stuff like "Call -- price too low to advertise!" (which may or may not be true). It's gotten kind of ridiculous in the Internet age, where some sellers can't show a price on their website because it's too low, but if you add it to your shopping cart then you can see it, because now you're buying (even if then change your mind).

As stated in the first post.

 

[Clint S]

The auto dealership that I use is 10 to 15% higher (sometimes a much as 25%) for parts than others in the area. I usually call them on it and sometimes they come down sometimes they don't. It's on they way home and the other one is 30 miles the other way. If they don't come down I make the drive or order on line. I needed a fuel pump and they quoted $1100 and said there is one 1 left in the country in California, asked and they came down to $950. Called the other dealer and they quoted $749 (which was msrp) and they also stated 1 left in country in California. Searched internet and found dealer in Massachusetts quoting $649 and when I called they too stated ''there is only one left in country in California''. So three prices for the same part and I literally would have gotten the SAME PHYSICAL PART from each dealer. Called on another part quoted $50 found out that said part had same part number but crossed brands called the other dealer (dodge ) and was quoted $20. Went to Dodge and picked the part up and it actually came in a Mitsubishi bag from the dodge dealer. Same part same part number different prices

 

[thepumpguysc]

You think that's bad.. try getting different pricing for the same part, depending on who you get on the phone AT THE SAME PLACE..
I know of 1 place where the parts counter guy will not sell anything at list price.. he cuts everybody "a break"..
Then theres the "other parts guy" who sells EVERYTHING at list price.. True story.!!