Delivery and set up charges on new equipment?

[ajd187]

In the spring I bought a new X320 lawn tractor from the local JD dealership.

Now I am in the market for a snowblower set up for this machine.

I got a quote from the same dealer, with retail prices on the blower and related accessories (winter grill cover and rear weights).

However, they also quoted me setup and delivery charges. Combined this comes to almost $200.

I don't think I want to pay all or any of that since I'm buying new equipment from them, and I'm a repeat customer. Would it be reasonable to ask them to cut back on this somehow? I understand they pretty much have to charge retail on the smaller equipment, but it seems to me that these set up charges are just profit for them.

 

[smstonypoint]

I don't think I want to pay all or any of that since I'm buying new equipment from them, and I'm a repeat customer. Would it be reasonable to ask them to cut back on this somehow? I understand they pretty much have to charge retail on the smaller equipment, but it seems to me that these set up charges are just profit for them.

And as a bargaining chip in my experience. I was recently in the market for a ZTR and found that when negotiating price, dealers would sometimes say, "OK, we will waive the setup/destination fee of $xxx."

Steve

 

[sweettractors]

In the spring I bought a new X320 lawn tractor from the local JD dealership.

Now I am in the market for a snowblower set up for this machine.

I got a quote from the same dealer, with retail prices on the blower and related accessories (winter grill cover and rear weights).

However, they also quoted me setup and delivery charges. Combined this comes to almost $200.

I don't think I want to pay all or any of that since I'm buying new equipment from them, and I'm a repeat customer. Would it be reasonable to ask them to cut back on this somehow? I understand they pretty much have to charge retail on the smaller equipment, but it seems to me that these set up charges are just profit for them.

How far are you from the dealer? Ken Sweet

 

[CinderSchnauzer]

It"s just another way for the store to make money after the price is already set for the deal. In my mind, same as the "Documentation Charge" or various other names that car stores add on as a non-negotiable charge for the business office to fill out the paperwork.

I wonder how long it will be before the tractor stores get on the bandwagon of "etching" of the VIN number for which they charge a few hundred non-negotiable dollars.

Son just bought a new Traverse. As I understand, if he took the financing package there was going to be a $500 non-negotiable charge for the "walk away" insurance on the loan.

There were no PDI etc charges when I bought my TLB.

 

[radman1]

I bought a kawasaki atv several years ago. The dealer "setup fee" was $250 and he wasn't going to budge and the price he asking with setup fee was over MRSP. I went online and paid a fee to determine the dealer cost for that atv and other charges. At that time Kawasaki allowed $45 for set up of an atv. (There isn't much to set up.) I figure the rest was pure profit. Went to another store which waived the fee completely.
A new tractor also does not have a lot of setup time.

 

[brain55]

A new tractor also does not have a lot of setup time.

I'm going to argue this point. When a compact utility tractor comes to the dealer it is in a crate. To uncrate, assemble and pre-deliver a Kubota tractor on the average takes 4 hours. If that machine gets a loader that takes another 4 hours to be done properly. A Grand L or M series can take a bit longer. Implements depending on what it is can take a couple of hours. Snowblowers depend on how complex they are. Does it have a fixed chute, is it a hand crank cable driven chute, or is it a hydraulic chute? What state of disassemble is it shipped it? Even the most basic blower probably takes 2 hours.

I realize many people think the dealers are robbing them blind, I have news for you, in the 12 years I spent working at equipment dealers nobody was being robbed.

Brian

 

[sweettractors]

I'm going to argue this point. When a compact utility tractor comes to the dealer it is in a crate. To uncrate, assemble and pre-deliver a Kubota tractor on the average takes 4 hours. If that machine gets a loader that takes another 4 hours to be done properly. A Grand L or M series can take a bit longer. Implements depending on what it is can take a couple of hours. Snowblowers depend on how complex they are. Does it have a fixed chute, is it a hand crank cable driven chute, or is it a hydraulic chute? What state of disassemble is it shipped it? Even the most basic blower probably takes 2 hours.

I realize many people think the dealers are robbing them blind, I have news for you, in the 12 years I spent working at equipment dealers nobody was being robbed.

Brian

I stopped counting about 10 years ago whenI got to 75 dealers closed in central Ky. This included the 10 piece dealer selling out of his garage and the mega dealers with main lines and 3-4 locations. I sold many new 10-12K tractors and cleared $500. If you guys think the machiney business is a gold mine, think again. Ken Sweet

 

[radman1]

I'm going to argue this point. When a compact utility tractor comes to the dealer it is in a crate. To uncrate, assemble and pre-deliver a Kubota tractor on the average takes 4 hours. If that machine gets a loader that takes another 4 hours to be done properly. A Grand L or M series can take a bit longer. Implements depending on what it is can take a couple of hours. Snowblowers depend on how complex they are. Does it have a fixed chute, is it a hand crank cable driven chute, or is it a hydraulic chute? What state of disassemble is it shipped it? Even the most basic blower probably takes 2 hours.

I realize many people think the dealers are robbing them blind, I have news for you, in the 12 years I spent working at equipment dealers nobody was being robbed.

Brian

Kubota's do come in a crate and need to have the wheels put on. JD's will be delivered on a truck with wheels attached and basically ready to use. Dealer may have to wash the tractor, and change wheel setting (although most buyers never change wheel setting. If I order a JD CUT only, it will have a dealer setup charge (I think they call it a roll-off fee). A flat fee for just the tractor. I don't consider time to put on FEL, or an attachment as part of the setup charge. That charge should be in the price of the FEL, or whatever attachment. The setup for a JD seems to be check the fluids, tire pressure ect. There is not much that needs to be done.

Like I said earlier, Kawasaki allowed $45 to uncrate an ATV and setup. The dealer wanted $250. Who gets the other $205-the dealer.

I bought a used New Holland Wheel loader for $51k this summer in another state. We agreed on the price. The dealer then wanted a $100 documentation fee. For what? I paid with wire transfer, there is no title, loan or other paper work other than a bill of sale. Should I pay a fee anytime I buy something for them to deposit $$?

I bought 4 new tires a few years ago and kept the replaced tires for spares. They charged $3 disposal fee for each tire. I had to argue with them that I kept the old tires. Why the disposal fee?

 

[jenkinsph]

To stretch your dollar why not set it up yourself?

When I buy tractors I get the accessories and kits in the box and install them myself. This will usually save me a few more percent in addition to the shop time.

Just purchased a new X749 with pto, 3pt hitch and mulcher kit loose in the box for 15% off list. No added fees for rolloff, delivery or shipping, just the discounted prices and sales tax.

 

[jlsmith]

As a dealer i dont agree with the setup charges and do not charge for them, thats just part of being a dealer. Luckly MF's come fully set up, I just drive them off the trailer look them over real good a quick wash and they are put on the front line. As far as a deleavery fee it just depends on where the customer lives, if it is within 50 miles from me then there is now charge.

 

[brain55]

Dealers and manufacturers are in business to make money, it is not a charity. It all costs money. Sure you can order tractors set-up, but you get half as many of them on a truck so your freight charges just doubled. I'm not going to argue economics here. The same guy that squeezes his dealer for every penny is the same guy that will scratch his head down the road wondering why that dealer went out of business. As far as the tire disposal fee, you can thank the EPA for that, they impose that fee on every new tire sold whether the seller disposes of them or not.

Brian

 

[jlsmith]

:

Dealers and manufacturers are in business to make money, it is not a charity. It all costs money. Sure you can order tractors set-up, but you get half as many of them on a truck so your freight charges just doubled. I'm not going to argue economics here. The same guy that squeezes his dealer for every penny is the same guy that will scratch his head down the road wondering why that dealer went out of business. As far as the tire disposal fee, you can thank the EPA for that, they impose that fee on every new tire sold whether the seller disposes of them or not.

Brian

That is a good point. :thumbsup: Just like oil changes. Dealers have to pay to have it disposed of.

 

[radman1]

:

That is a good point. :thumbsup: Just like oil changes. Dealers have to pay to have it disposed of.

Recyclers pay for or will take away used oil. Your local Jiffy lube or whoever has no cost to dispose of the oil. They would have a cost to store the oil until picked up. I take my used oil to the local garage or Walmart. They take it for no charge because they will make $ on the other end.

 

[brain55]

Here in California nobody is buying used oil, so there is no money to be made on the other end. There is one company that will pick it up for free because they have a contract with Nevada DOT which has a law that a certain percent of the oil used in their trucks has to be rerefined. Other than this one company it cost $75 for pick-up, up to 400 gallons after that there is also a cost per gallon.

Brian

And then there is the filter disposal. They will pick up a 55 gallon drum of filters (as many as you can fit) for another $50-100 depending on the company. If you invest in a filter crusher you can fit a lot more filters, but I haven't seen a filter crusher for under $1000.

 

[CinderSchnauzer]

Dealers and manufacturers are in business to make money, it is not a charity. It all costs money.

Brian

I personally don't have a problem with the dealer making money. He has to in order to stay in business. I just think all these after charges should be built into the upfront price in the first place.

I think it is annoying and bordering on dishonesty to sit across the table and negotiate a price for some thing - have both parties agree and then when the paperwork gets written up to find non-negotiable "Documentation Fees" or PDI charges or If you want the 0% financing the price goes up $750. All that garbage.

By the same token do I as the buyer after agreeing on a price get to say "oh by the way - I'll be paying you $500 less as a convenience fee. Not likely.

 

[brain55]

I personally don't have a problem with the dealer making money. He has to in order to stay in business. I just think all these after charges should be built into the upfront price in the first place.

I think it is annoying and bordering on dishonesty to sit across the table and negotiate a price for some thing - have both parties agree and then when the paperwork gets written up to find non-negotiable "Documentation Fees" or PDI charges or If you want the 0% financing the price goes up $750. All that garbage.

By the same token do I as the buyer after agreeing on a price get to say "oh by the way - I'll be paying you $500 less as a convenience fee. Not likely.

I agree, but the o/p stated that in the quote from the dealer it included set-up and delivery charges. What difference does it make if they are in the price of the equipment or a separate line item? My guess is that the dealer has them as a separate line item so he can track them better. He, as most dealers figure out, giving away set-up and delivery charges is a money loser. Using a separate line item gives the customer a chance to see where he might be able to save some money, or what the dealer feels that service is worth. If you don't want to pay set-up and delivery charges, come pick it up and put it together yourself.

Brian

 

[abeal]

This is why when shopping for items like tractors, cars, motorcycles etc., that you ask for the OTD (Out The Door) price. At the end of the day that's the only way to get an apples to apples comparison.

 

[Chex]

When I was pricing a 500 and x728 I asked what the advantage of buying implements now as opposed to later.

He said we wave the setup charge, I wondered if all JD dealers do this?

Then I asked if the accessories came with directions, and they do. So I think I'll get the snowblower now and do the leaf collector myself next year.

Oh and nice folks in these forums... Newbie here... Just got my '91 toro/wheelhorse 520H back from it's valve job. Hopefully JD will give me something on it in trade in.

 

[Reverend Blair]

My John Deere dealership waved the set-up fee on my LA105 (I know, but it does what I need at the right price and I love the beer, er cupholder) but won't on the used 318 (of course it's used, it's a 318) I'm looking at. I don't have a problem with that...they had to go through the 318 and clean it and so on. ****, they made it look new. And they've been honest about being unsure of the engine, which is good. I'm just waiting on an answer about trading the mower deck and snowblower in on an FEL for it to see if we can make a deal.

They knocked the delivery off of both too, since I tend to just haul things around in my truck. I didn't have to tell them though, they offered.

That seems quite different than another dealership around here. I won't say who, but the tractor is blue. They slipped a delivery charge onto my friend's tractor even though he picked it up himself. When he brought it up with them, they said it was a "loading charge." Really? $150 bucks for helping somebody drive a tractor onto a trailer?

 

[ctlguy]

Kubota's do come in a crate and need to have the wheels put on. JD's will be delivered on a truck with wheels attached and basically ready to use. Dealer may have to wash the tractor, and change wheel setting (although most buyers never change wheel setting. If I order a JD CUT only, it will have a dealer setup charge (I think they call it a roll-off fee). A flat fee for just the tractor. I don't consider time to put on FEL, or an attachment as part of the setup charge. That charge should be in the price of the FEL, or whatever attachment. The setup for a JD seems to be check the fluids, tire pressure ect. There is not much that needs to be done.

Like I said earlier, Kawasaki allowed $45 to uncrate an ATV and setup. The dealer wanted $250. Who gets the other $205-the dealer.

I bought a used New Holland Wheel loader for $51k this summer in another state. We agreed on the price. The dealer then wanted a $100 documentation fee. For what? I paid with wire transfer, there is no title, loan or other paper work other than a bill of sale. Should I pay a fee anytime I buy something for them to deposit $$?

I bought 4 new tires a few years ago and kept the replaced tires for spares. They charged $3 disposal fee for each tire. I had to argue with them that I kept the old tires. Why the disposal fee?

roll on roll off fee's are seperate from dealer set up and pdi inspections. There is IMAO no such thing as a tractor that is ready to go but the inspection should only take an hour or so. Loaders do take time to install at bare min 2-3 hours depending on model (some like the 305 loader take even longer). Backhoes and the hyd to power them are full day projects. High end tech's that do quality work require high end paychecks. documentation fees (although uncommon for cash) are very real. There was a time when you faxed, email, called the customer info to the lending institution and they faxed, emailed, etc over a retail note for a signature some doc fees are built in by the lending instituion. More and more of this work is being done in house. As mentioned in some other posts does it really matter what there is shown inbetween youre name and the bottom figure? So long as the dealer is upfront in telling you that Final figure X and it is acceptable, you feel that the dealer is a quality dealer, etc. etc. then put your name on the dotted line (press hard, three copies !!). If not then ask (as pleasent as possible, there is a bigger trend to get that extra 10% of business from the customers you already have and are good to work with and to pass on the others) for the discount. It would be my guess that some dealers are worth the extra $205 and some are not, I will gladly pay more to the guy that has quality people, treats me w/ respect, and makes the buying experiance enjoyable other wise buy online or a catalog.