Volnavy
Bronze Member
Maka,
I appreciate your reply.
Wes
I appreciate your reply.
Wes
Dealer How do dealers set prices set on Kubota Tractors
- Thread starter WALOL
- Start date
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btolle
Platinum Member
</font><font color="blue" class="small">( AS long as it goes as set up now,, people here are going way out of district and when you add in, cost of machinery, the sales tax, and extra shipping to this area, and still beat the locals by thousands, someone, someday at Kubota may wake up and fix it. )</font>
It is not Kubota Corporation's problem. They sell the tractors to the dealers for X dollars and the dealer can add Y dollars to it and sell it. The amount of Y dollars is entirely up to the dealer. It is the dealers who charge list price or above and then cry when the customer goes elsewhere who need to wake up.
That's one of the things I like about America, we can spend our money wherever we want to.
If the yuppies are willing to pay list price why is it wrong for the dealer to accept their money? And why should the dealer sell me something for $20K when he can wait for a yuppie to show up next weekend and pay him $22K for it.
If the dealer is really smart he will buy 2 tractors, see that I am not a yuppie and sell me one of them for $20K and have the other left to sell the yuppie on Saturday for $22K.
While I'm on a rant, I will tell you I want the dealer to make a fair profit. I don't want to be robbed, but if he isn't making a profit he won't be around next year when I need service or parts.
We also need to look at the dealer's cost of doing business. In my area I can buy land for $3K an acre. If I buy 2 acres for my business I don't have to make as much "profit" in order to pay my overhead as a dealer near Boston who might have paid $30K per acre for his land. All that "profit" is not profit, a lot of goes to keep the doors open.
For instance, at 8% interest for 15 years my land ($6K) would cost $57.34 per month. The guy near Boston will pay $286.70 per month ($60K), exactly 5 times as much as I am paying. And the cost of the land is only one factor.
Bill Tolle
It is not Kubota Corporation's problem. They sell the tractors to the dealers for X dollars and the dealer can add Y dollars to it and sell it. The amount of Y dollars is entirely up to the dealer. It is the dealers who charge list price or above and then cry when the customer goes elsewhere who need to wake up.
That's one of the things I like about America, we can spend our money wherever we want to.
If the yuppies are willing to pay list price why is it wrong for the dealer to accept their money? And why should the dealer sell me something for $20K when he can wait for a yuppie to show up next weekend and pay him $22K for it.
If the dealer is really smart he will buy 2 tractors, see that I am not a yuppie and sell me one of them for $20K and have the other left to sell the yuppie on Saturday for $22K.
While I'm on a rant, I will tell you I want the dealer to make a fair profit. I don't want to be robbed, but if he isn't making a profit he won't be around next year when I need service or parts.
We also need to look at the dealer's cost of doing business. In my area I can buy land for $3K an acre. If I buy 2 acres for my business I don't have to make as much "profit" in order to pay my overhead as a dealer near Boston who might have paid $30K per acre for his land. All that "profit" is not profit, a lot of goes to keep the doors open.
For instance, at 8% interest for 15 years my land ($6K) would cost $57.34 per month. The guy near Boston will pay $286.70 per month ($60K), exactly 5 times as much as I am paying. And the cost of the land is only one factor.
Bill Tolle
Maka, I hear and understand completly what you are saying. I worked full time at a Honda dealer for 12 years and now work there part time, 19 years total. I understand how frustrating it can be when someone buy out of your area and expects snap of the fingers service, not gonna happen.
I also know that a dealer has to make a profit to keep the doors open, no problem with that. What is not acceptable is when a dealer knows there are the only game in town as is the case with this dealer. The next utility tractor dealer is in Fairbanks (650 road miles away.)
To charge a big mark-up just because they can is extortion. The internet has changed that for alot of folks but there are still some who wont shop around.
This dealer told me freight to My area was $1500.00 for one tractor or 10. I called freight companies and can get one shipped for $850.00. The dealer will not make $650.00 off of me just because he does from someone less informed. Fair is Fair.
I am well aware of the importance of buying local and the service involved. The dealer is there to make a profit and the customer is there to get a good deal. I do not feel paying $2500.00 extra is a Fair price to pay to have a dealer that will help me when i need it most. Keep in mind the dealers selling at a lower price elsewhere are not losing money on the transaction. They are just not acting like a car dealer and there "additional dealer mark-up"
I do understand my "risk" in buying from another dealer and needing service from a local. I am much more realistic about that than many others i am sure.
I also know that a dealer has to make a profit to keep the doors open, no problem with that. What is not acceptable is when a dealer knows there are the only game in town as is the case with this dealer. The next utility tractor dealer is in Fairbanks (650 road miles away.)
To charge a big mark-up just because they can is extortion. The internet has changed that for alot of folks but there are still some who wont shop around.
This dealer told me freight to My area was $1500.00 for one tractor or 10. I called freight companies and can get one shipped for $850.00. The dealer will not make $650.00 off of me just because he does from someone less informed. Fair is Fair.
I am well aware of the importance of buying local and the service involved. The dealer is there to make a profit and the customer is there to get a good deal. I do not feel paying $2500.00 extra is a Fair price to pay to have a dealer that will help me when i need it most. Keep in mind the dealers selling at a lower price elsewhere are not losing money on the transaction. They are just not acting like a car dealer and there "additional dealer mark-up"
I do understand my "risk" in buying from another dealer and needing service from a local. I am much more realistic about that than many others i am sure.
Henro
Elite Member
- Joined
- Jul 4, 2003
- Messages
- 4,982
- Location
- Few miles north of Pgh, PA
- Tractor
- Kubota B2910, BX2200, KX41-2V mini EX
<font color="blue"> To charge a big mark-up just because they can is extortion. </font>
GregP,
Maybe more correct just to call it capitalism... /forums/images/graemlins/grin.gif
Question though, aren't prices of everything in Alaska more expensive than points south? There may be more to the dealer's price than just shipping.
As you said, the internet has opened up things in ways that were not there just a few years ago.
I have to wonder: If as the result of the internet (or other factors) your local dealer closed and the only option was to buy from a remote source, and perhaps ship the tractor back to the remote source for warranty repairs, how would you feel?
Since shipping the tractor back for warranty repairs would not be practical, the net affect would be purchase of the tractor without out anything but a catastrophic warranty of sorts, where it would make sense to pay shipping both ways (engine blows up, or major powertrain issue, for example) if a really bad thing happens. (I'm not sure how simplistic this argument is, but I doubt it would be easy for an individual to file warranty claims with the manufacturer.)
I guess the point I am trying to make is that competition is competition, and price is just one of the factors involved.
None of us likes to pay more, but sometimes we are getting more when we pay more, even if we don't realize it directly.
In the end we do what we do though...that much is for sure... /forums/images/graemlins/grin.gif
GregP,
Maybe more correct just to call it capitalism... /forums/images/graemlins/grin.gif
Question though, aren't prices of everything in Alaska more expensive than points south? There may be more to the dealer's price than just shipping.
As you said, the internet has opened up things in ways that were not there just a few years ago.
I have to wonder: If as the result of the internet (or other factors) your local dealer closed and the only option was to buy from a remote source, and perhaps ship the tractor back to the remote source for warranty repairs, how would you feel?
Since shipping the tractor back for warranty repairs would not be practical, the net affect would be purchase of the tractor without out anything but a catastrophic warranty of sorts, where it would make sense to pay shipping both ways (engine blows up, or major powertrain issue, for example) if a really bad thing happens. (I'm not sure how simplistic this argument is, but I doubt it would be easy for an individual to file warranty claims with the manufacturer.)
I guess the point I am trying to make is that competition is competition, and price is just one of the factors involved.
None of us likes to pay more, but sometimes we are getting more when we pay more, even if we don't realize it directly.
In the end we do what we do though...that much is for sure... /forums/images/graemlins/grin.gif
Kiohio
Platinum Member
Well said Henro!
Alaska is also a bit different than most other price shopping scenerios.
KO
Alaska is also a bit different than most other price shopping scenerios.
KO
The Kubota dealer in my area is United Rentals. They are a huge nation wide rental company. Hardley a mom and pop operation.
As far as shipping back for warranty repair. This would be handled the same way we handled Honda repair, customers sold get taken care of first, all others to the back of the line but they are taken care of as per the dealer agreement.
I do realize the advantage of buying from a local dealer. I am not saying that wont happen, i just want to be fair to the dealer and myself.
As far as shipping back for warranty repair. This would be handled the same way we handled Honda repair, customers sold get taken care of first, all others to the back of the line but they are taken care of as per the dealer agreement.
I do realize the advantage of buying from a local dealer. I am not saying that wont happen, i just want to be fair to the dealer and myself.
L
LarryRB
Guest
I wholeheartedly agree with what you state... I said cost, plus shipping, plus the loader for tractor "A" cost you 26.. Are you saying you can't make it selling at 29, especially when you get shipping back? The dealers here would start at 31 and up.. My family was Chrysler/Dodge and Int truck almost 50 years and I base what I am saying when they had the dealership.. Like Deere, I believe in their list price posted on the web.. It stop all this crazy and wild pricing. I guess if 3 g's per sale isn't enough, probably will have to try and get volumes higher..
L
LarryRB
Guest
I agree dealers should make a good profit in order to stay in business,. I am saying Kubota should post some kind of list price, even if my example (cost at 26 and list at 29), if need be post 31 list, nationwide like Deere does.. If the dealer can get 31 good for him. If he wants to discount some and sell for 28500 or whatever..
btolle
Platinum Member
gregp, you did not fill out yur profile so I can't tell exactly where you are in Alaska.
According to the Kubota website there are 2 Kubota dealers in Anchorage, 1 in Palmer, 1 in Fairbanks. Are you close to any of those cities. The bad news is if you are in Nome you are S.O.L.
Bill Tolle
According to the Kubota website there are 2 Kubota dealers in Anchorage, 1 in Palmer, 1 in Fairbanks. Are you close to any of those cities. The bad news is if you are in Nome you are S.O.L.
Bill Tolle
I spoke with the dealer in Anchorage. They sell the large kubota equipment. They do not deal with utility tractors. They sent me to the Fairbanks dealer. I was not aware of a Palmer store. The Anchorage dealer must have forgot about them. I will get there number and call them right away. They are only 250 miles away.
I live on the Kenai Peninsula, about 175 miles south of Anchorage.
I live on the Kenai Peninsula, about 175 miles south of Anchorage.