Discount percentage from retail?

[Matt in Virginia]

Gentlemen,
I'm looking at an L6060 Cab Tractor and I am trying to get some type of handle on a reasonable discount percentage to expect from a dealer. I've been involved with big ag for a number of years and have good contacts with the lead provider in those markets, however, Kubota is proving a bit different. Just to get this to a percentage basis what difference, by percentage of retail cost to sales cost, would you expect to pay? I would very much appreciate your input... We do not have to name any dealers or highlight anything beyond pricing. Anyone who would prefer to keep the details confidential please PM, e-mail, or even give me a call. I will maintain your confidence and be most grateful. I am just looking for an IDEA of where to start to deal and what is fair on both ends...

Much obliged, Matt in Virginia.
mattgarrett@earthlink.net
757-581-6270

Btw, Some dealers will maintain this does not exist. If it does not it is a peculiarity to Kubota.

 

[MessickFarmEqu]

I do maintain it does not exist... with any equipment, including big Ag.

A percentage off list is a silly way to look at pricing. Its vastly more complex on our end, and we never calculate it. The best way to know if your getting a fair price is to simply check around with a few dealers.

 

[KennyG]

I kind of understand where Messick is coming from but every piece of equipment has a wholesale cost to the dealer and recommended retail cost. Except for some limited supply, hard to find items, everyone pays some number between those prices. That would be a % off.

Unfortunately, it then gets really complicated. Some dealers get a rebate at the end of the year if them make sales quotas. If a dealer needs to move a couple of more machines to make quota, he may sell "under cost". Specific items may be "on sale" with price reductions which may come from the manufacturer or the dealer. On some equipment, dealers may have to start paying interest at some point if the machine is on the lot too long, giving him more incentive to sell it. Some dealerships have much higher volume than others, some have high overheads.

No matter what you pay, you will always find someone who got a "better deal". There will also be people who paid more, but they won't tell you that. It seems like 10% off is a reasonable number but there are so many variables, you may have a different experience.

 

[s219]

Matt, I'm in VA and have shopped/bought from a couple Kubota dealers here (both great). If you want to PM me your location I can maybe give more insights. Typically, I have seen pricing in the range of 12-18% off retail, using Kubota's web price as the retail number. In that discount are rebates/etc. It would be impossible to know the exact dealer cost number hidden in the sale price from my standpoint, if such a number even exists or is the same from case to case. I just know I'm doing typical if I see in the ballpark of 15% off. Some machines have a healthier discount than others.

 

[rScotty]

Matt, I have also bought a fair amount of large machinery in my life. I think the bargaining is part of the fun - and part of that enjoyment is in finding a dealer we can work with. And I'm not shy about looking at their parts and service area and talking with their mechanics, too. A committed service department with long term employees and good equipment goes a long ways in my book.

I don't think of bargaining as being a matter of a set percentage discount, but I do see what you mean. We may just be calling the same process by a different name.
When I go in to buy something I do want to know the base price and I keep that in mind as a goal. We all know the base is the price that the dealer would like to get for the basic cab and tractor unit and naturally enough he would like to then be able to add on any additional features, extended warranty, lubricants, implements, chains, workshop manuals, required service fees, delivery and whatever. We both know those are expenses I'm going to have and the dealer would like to view those as things whose cost is to be added to the base price. As the buyer, I see it a little different. I mentally expect to end up paying his base price - but I am going to bargain hard to include as many of those additional features as I can within that base price. Every deal is different, but if I can include enough extras to make up 5 or 10 percent of the base price I find that we both come out OK.
Good luck with it,
rScotty

 

[ovrszd]

In general I agree with s219, 15% would be a fair starting place.

I also agree with Neal (Messicks). His actual markup on each piece of equipment is controlled by too many variables and changes too much for a consensus.

I don't think anyone can talk in more precise terms than "general".

 

[Fallon]

I got just under 10% off my L4060hstc & some extras like my WSM & first service materials tossed in. I might have been able to bargain harder, but I'm on good terms with my dealer & want to keep it that way.

 

[s219]

You know, I have never haggled on any of the three Kubotas I've bought. The prices were so fair -- both compared to the competition and the % discount from MSRP -- that I was happy as-is. One dealer near me moves a lot of tractors and the owner told me he prices competitive and has very few customers try to bargain him down (which doesn't happen).

The one time I was hemming and hawing about buying, they threw in a free annual state inspection for my trailer (which was overdue) and replaced a busted light on the trailer at no charge. That was a nice bonus. I think the sales guy knew I was fairly serious if I showed up with a trailer in tow, and knew how to grease the deal.

 

[gwdixon]

Start at 15% off of the Kubota website build. Settle for 10% to 12% off.

Then take the deal shopping to other Kubota dealers in the area for an evaluation.

Sometimes, if you have extras (like remotes, or other goodies) you can get them at a even better discount and installed free. Labor is a big mark-up for dealers so they can slice off a bit there.

Buying a tractor is a perfect time to get implements that you need/want. Dealers will generally discount them quite a bit if a new tractor is involved.

 

[Turbys_1700]

Some of the local dealers here list new units on Craigslist with financing and pricing options. A lot of times those are discounted from list price. You can use that as a starting point. Some list on Tractor House also. Neal is correct too many variables to consider with factory incentives plus financing and rebates. List price on line is a starting point. The L6060 Cab is a premium top of the line unit. Good luck.