How Much Extra $$$ To Go With Local Dealer?

[Gary Fowler]

I tried local when I bought my Kioti DK50. I knew the owner and met with him face-to-face. My wife and I really wanted to buy this tractor from him. We said - What is your absolute best deal? He gave us the numbers. A few days later, driving by a dealership 50 miles from home, we popped in to compare. They priced their tractor about $100 cheaper but beat the other interest rate by more than a point. We signed the papers on the spot.

When my local dealer called to see if we were going to buy, I told him about the competitors deal. He said - I could have matched that.

Well, too bad.

I have the same thoughts. If I say best deal, then I expect it to be "best". I wont even discuss with them later "to see if they can match a better price" because the already said this is their best price. I hate buying tractors, trucks, cars, motorcycles, boats, airplanes or anything new from a dealer just because you can always get a better deal later (after you have already bought).

For most things, especially high dollar luxury items, it is better to buy lightly used and let the original purchasers eat the early depreciation.

 

[todd92]

As it turned out, I got highly competitive offers from the closest dealers. Nothing like buying cars, where I've found it typical to drive 50+ miles to get the best deal.

 

[dragoneggs]

I have the same thoughts. If I say best deal, then I expect it to be "best". I wont even discuss with them later "to see if they can match a better price" because the already said this is their best price. I hate buying tractors, trucks, cars, motorcycles, boats, airplanes or anything new from a dealer just because you can always get a better deal later (after you have already bought).

For most things, especially high dollar luxury items, it is better to buy lightly used and let the original purchasers eat the early depreciation.

True! Sometimes I bite the bullet and buy new, but the last couple of cars (BMWs) I bought CPO (certified pre-owned) coming off a three year lease. These are always low miles and well cared for... and I pay half of sticker and get another 3yr 50K warranty. My tractor and mower though, I wanted a virgin.

 

[holeycow]

And yet some people feel they must negotiate. I saw an ad on craigslist once that said "$4500 firm, but if you must negotiate, then the price is $5200 and we will go back and forth and see how close you can get me down to $4500". That made me chuckle.

yes, some people do feel they must negotiate. Sometimes it is a cultural thing. But when you say to a man "I am shopping, I am buying with cash today, I want what you've got, what is your best price?" And then he replies with a number that is clearly not his best, or even a fair price (which happens more often than not) then what are you as a customer supposed to do? I don't like to deal with a "liar" (that would stumble and backpeddle and start dropping his "best" price), so if that initial price isn't even close to a fair price, then see ya later. I didn't even haggle with the dealer when he offered me a competitive price on my Kioti as his first shot at a sale. I said OK, sounds good, I'm in. The dealer thought he left money on the table, but not really, as I would have got him below that first price if he wasn't straight up to start with. It was easy for both of us. I might have paid him an extra five hundred or a thousand for his wanting to make the sale by offering a real price to start with, is how I see it. My "local" dealer is a 6hr drive away. For those of you who think that 50 miles is a long ways to a dealer, you don't know how good you have it, btw.

The local Kubota dealer gave me MSRP+ as his first attempt. See Ya. The local NH dealer did better, but was still way above a true selling price to start with (about 5 grand). If either one of them had have been as serious as me, they may have made a sale.

When I see a "firm" price that is reasonable, then I know it is the price. When I see a firm price that is unreasonable I either don't even inquire, or I inquire and gently ask why the item is priced above the market value. Sometimes there is good reason. In this day and age it's pretty easy to figure out what a fair price is on almost anything. I don't quibble over the last nickle. Some do.

I don't pay much extra, if anything at all, for a local dealer. I'd rather just deal with a good dealer wherever they might be.

 

[paulfun9]

From a dealers perspective, this is tough. There is the price you want, and then the price you will reluctantly take, then the price you might match if you must to keep a customer local. But if you sold every tractor for the "match" price your margins would not be adequate to keep the doors open for long.

From a dealers perspective, we set our prices at our sales price. We have little room to wiggle since we prefer to not waste our time or yours. Years ago we dropped our prices to our real price as we found that folks do not like the "used car sales" experience. Having said that, if a customer is local and says he can beat our price delivered and all else equal, we will ask him for the opportunity to match his best price. If he is a long distant customer and has a dealer nearby to where he lives, we will not price match, we would then suggest that he supports his local dealer.

To go out of town for $100 does not make sense to me. My threshold is higher than that, I would have paid the extra $100 or asked them to match. Just my opinion, we are all different.

I agree with not traveling for a hundred bucks and I probably wouldn't even bother asking for a price match at that. When I ask for the Best price you can do and its over a thousand more than the average of other prices I have gotten, you have in most cases effectively lost your local customer because I feel your best price should not be anymore than 5 or 6 hundred difference from the next guy. Most of the places I would do business with are within 1 to 2 hours and I have no problem going to pick something up so its actually more a matter of how much it costs for me to go get it - the difference.

 

[AxleHub]

I believe the local vs distant dealer issue too often is stated as "supporting the local economy). But that can be an unfortunate measurement to evaluate.

Lets say you purchase based on location and then a large franchiser buys them out. That happened to 2 JD dealers locally over 4 years. Now all the clients are paying higher labor rates and no discount parts and a different ownership viewpoint.

Recently I spent considerable time considering dealer choices and pricing . I ended up strongly considering one local choice 25 miles away and one 125 miles away both family owned operations but wildly different in size. But both win because I worked that possibility. One sells a tractor and one gets a new service customer.

But each also gains because I'm creating Massey Interest in an area with no sub compact notice of Massey. And because I liked Kubota too and each sells massey and kubota . . I can benefit both of them and secure my servicing benefits against bankruptcy or buyouts.

And me . . I've got 2 great service providers and the one 125 miles away is really a large family owned operation that is a showplace of Kubota and Massey product (all indoors and open evenings and weekends).