JD Parts - Do you pay list?

[Duffster]

I think you will find that there is less money in the new sales leaving the money to be made in the parts department. Much more of a captive audience and much more difficult to shop around.

 

[AKfish]

Deere dealer I am familiar with has three separate areas that need to support themselves .. Sales, Parts, and Service.
i.e. The cost of running the parts department must be covered by the money they collect for the parts. And so forth with Sales and with the Service department. The three inter-relate some, and all is for the survival of the dealership of course.

The Deere parts I buy with my money shouldn't support other customers who think they should be treated differently. IMO.

Wait a minute...! What "other" areas of a dealership are there?

And are there really elements of a dealership that don't "support" themselves?

That doesn't sound like a long-term formula for success... if that's the case.

AKfish

 

[sweettractors]

Wait a minute...! What "other" areas of a dealership are there?

And are there really elements of a dealership that don't "support" themselves?

That doesn't sound like a long-term formula for success... if that's the case.

AKfish

Many dealers make nothing to very little on the initial new tractor sale. Sometime, if they sell enough volume, they get a bonus from the Mfgr at the end of the year. Many dealers can live with a 2-5% bonus (profit) from the Mfgr on new tractors. The Shop and warranty work in the shop and parts makes up the other 2 areas of the business. Ken Sweet

 

[AKfish]

Thanks, Ken. That was my point... Sales, parts, service (repairs).

I'd guess that pretty well covers it -- maybe throw in rentals -- but the sales folk's handle those, too.

AKfish

 

[whitedogone]

I have always gotten a discount on parts at my dealer. Well They got bought and I noticed now that I am paying JD list for parts. I asked what the deal is and they told me that is the deal - everybody pays list.

A guy like me that has bought $250k++ worth of JD equipment from them and somebody that buys a used L100 off Craigslist gets the same discount on parts. That makes no sense.

It pisses me off to be quite honest. I am thinking I will be mail ordering my parts.

Screw these guys.

Comments?

D.

Don't mean to sound like a *ick......but.... $250 k ain't ***** to most dealers round here. 2.5 mil....now they might start listening.

 

[AKfish]

Don't mean to sound like a *ick......but.... $250 k ain't ***** to most dealers round here. 2.5 mil....now they might start listening.

Son-of-a-gun... now, I'm really feeling sorry for dealer's!! I'd be "nickle-and-dimein'" everybody below a mil...

AKfish

 

[Rob-D]

So do you go down to the local car lot and pay the sticker price?

Apples and oranges.

 

[om21braz]

Thus far, I've paid less than the prices on JD Parts online for items purchased at my local dealer - 10-15% less on average.

 

[turbo36]

Apples and oranges.

Why? They are both retail items and the price is negotiable if you ask.

 

[Rob-D]

Why? They are both retail items and the price is negotiable if you ask.

Maybe, but do you go into an auto parts store and say, "I need those break drums but I want them for 15% less."? Not around my neck of the woods, you don't anyway.

Here's an example, I needed some DOM (drawn over mandrel) to make fittings for my QA. I called the metal dealer in the nearest city whose prices are much higher than the net guy or the guy who owned his place before him, even with shipping. I figured if he had it and the price was reasonably close I'd get it. He said I can order it for you and I said, "thanks but I'll look around." I figure for his high prices I'll go elsewhere but I never asked what's the discount, cause he'd say, "None!". Fine, I think he should ask what he wants and I shoud decide to pay it or not.

The same with Deere parts, if the guy is just scalping you, go elsewhere but if he's about right than let him make his money. Either way it's your option to buy or not. Expecting a discount gets you nowhere. He wants what he wants and you pay what you're willing to pay. If he's 20% higher than everyone else and you get the same service, he'll be gone because people aren't stupid, well most people anyway.
Goes back to what I said earlier, "make your money but don't screw me." He's got to make a living and you have to exist too.
I don't expect anything, if you treat me right I'll keep buying if you screw me you'll be asking yourself, "whatever happened to that good customer?"

The customer is the guy with the power because if he decides to say goodbye your business shuts its doors. Smart dealers know this and know how to treat good customers.

Rob