There is another thread here talking about Bobcat MSRP where there is talk about trying to get a good price on a new Bobcat when the factory restricts where a dealer can sell new ones. That thread is straying here and there and everywhere so I thought I'd put this info into a new thread.
I used to sell new skid steers [and other larger construction equipment] for a large name brand dealer. First let me say there is more to consider than just price. Service, parts, resale value, a relationship with a dealer and so on. But for the sake of this thread I am going to concentrate on price.
Lets say you really want a brand new S-160 Bobcat. 60 hp/1600lb. capacity.
You go to your local bobcat dealer and say, " I need a new skid steer and I really like the Bobcat S-160, what kind of price can you give me?"
Instantly the dealer knows you need a "new" skidsteer and you want Bobcat brand. He thinks he has you hooked. He does not have to compete against any other dealer. The other Bobcat dealers can't sell "new" in this territory,you have indicated you want only Bobcat brand and that you need one. He has the power in the negotiation and you are in a very weak bargaining position.
Now lets change the situation, you go in and say this. " I'm thinking of updating my skid steer if I can find one for the right price. I'm thinking of about a 60 hp 1600 lb machine. I might go a little bigger or smaller depending on what I find and I would be willing to look at a machine with a few hours on it. Something from a rental fleet or a repo or late model trade in. It doesn't have to be Bobcat, I'd consider some other brand."
POW! you have completely changed the balance of power to you. You may still intend to buy a new S-160 but in the dealers mind that new S-160 price now has to compete with dozens of other machines from new dealers, used dealers, rental houses, internet sales, auctions and private individuals. You are in the catbird seat.
Remember also the dealer exclusive territory only applies to new machines. Each factory has their own rules but typically the dealer can sell machines from their rental fleet with so many hours on them anywhere they want. This may also include special deals they can get from the factory on demo machines, factory test machines, aged but new inventory other dealers want to dump and so on. And of course a previously owned machine, no matter how new, they can sell anywhere.
Now... don't buy a machine that day. Even if you are convinced Bobcat brand is the best, go to other dealers and look at other brands. I can tell you from many years of selling new loaders, dozers, skidsteers, graders cranes and so on that NO brand is best in every size category and that EVERY brand has dogs in their line. And every brand changes through the years as they try to compete. That Case skid steer you looked at and didn't like 4 years ago may have been completely redesigned and you might love it now. The Cat that was too expensive then might be lower priced now because of some factory incentives. Things change, don't lock your self in with tunnel vision.
You want to keep that dealer thinking he is competing with everyone and if you want the best deal you owe it to yourself to shop.
Remember, knowlege is power.
Time for me to go shop, I'm now a contractor and i'm looking for a new trailer!
I'l answer questions later if I can.
I used to sell new skid steers [and other larger construction equipment] for a large name brand dealer. First let me say there is more to consider than just price. Service, parts, resale value, a relationship with a dealer and so on. But for the sake of this thread I am going to concentrate on price.
Lets say you really want a brand new S-160 Bobcat. 60 hp/1600lb. capacity.
You go to your local bobcat dealer and say, " I need a new skid steer and I really like the Bobcat S-160, what kind of price can you give me?"
Instantly the dealer knows you need a "new" skidsteer and you want Bobcat brand. He thinks he has you hooked. He does not have to compete against any other dealer. The other Bobcat dealers can't sell "new" in this territory,you have indicated you want only Bobcat brand and that you need one. He has the power in the negotiation and you are in a very weak bargaining position.
Now lets change the situation, you go in and say this. " I'm thinking of updating my skid steer if I can find one for the right price. I'm thinking of about a 60 hp 1600 lb machine. I might go a little bigger or smaller depending on what I find and I would be willing to look at a machine with a few hours on it. Something from a rental fleet or a repo or late model trade in. It doesn't have to be Bobcat, I'd consider some other brand."
POW! you have completely changed the balance of power to you. You may still intend to buy a new S-160 but in the dealers mind that new S-160 price now has to compete with dozens of other machines from new dealers, used dealers, rental houses, internet sales, auctions and private individuals. You are in the catbird seat.
Remember also the dealer exclusive territory only applies to new machines. Each factory has their own rules but typically the dealer can sell machines from their rental fleet with so many hours on them anywhere they want. This may also include special deals they can get from the factory on demo machines, factory test machines, aged but new inventory other dealers want to dump and so on. And of course a previously owned machine, no matter how new, they can sell anywhere.
Now... don't buy a machine that day. Even if you are convinced Bobcat brand is the best, go to other dealers and look at other brands. I can tell you from many years of selling new loaders, dozers, skidsteers, graders cranes and so on that NO brand is best in every size category and that EVERY brand has dogs in their line. And every brand changes through the years as they try to compete. That Case skid steer you looked at and didn't like 4 years ago may have been completely redesigned and you might love it now. The Cat that was too expensive then might be lower priced now because of some factory incentives. Things change, don't lock your self in with tunnel vision.
You want to keep that dealer thinking he is competing with everyone and if you want the best deal you owe it to yourself to shop.
Remember, knowlege is power.
Time for me to go shop, I'm now a contractor and i'm looking for a new trailer!
I'l answer questions later if I can.
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