Kubota pricing link doesn't works at Aldermans.com

leoniru · Jun 4, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

Boone;

I too found out about Carver's right here on TBN. It was a bit scary, but I ended up purchasing the most expensive item I've ever purchased sight unseen from them. I live in NE Pa., and the dealers closest to me were WAY higher----like $5,000 to start on the base machine - an L-48 TLB. With what I ended up saving on sales tax (had it shipped for $750.00), my total savings were around $7,000.00 compared to buying locally. That was in 2002, and of course we all know what Kubota did to internet sales. But let me tell ya, I ended up driving down to Carver's in 2003 to swap out my regular pin-on bocket for the ATI QuickTach setup. I was treated like a long lost relative. Met everyone there including Steve Carver.
Great people to be sure, and absolutely no regrets about my out-of-state purchase. I suppose it helps that I do all my own service, etc., and purchased ALL the various manuals. I planned to keep my machine for a long time right from the get go. I must say that distance is not much of a factor for me anymore when it comes to buying reputable equipment. Sure I would have preferred to buy locally, but not with that amount of savings.

Jim S.

Cowboyjg · Jun 5, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

I undestand that this might be somewhat of a personal decision but I sure would like to know what a few of you think about what your max distances are relating to your willingness to haul to the dealer for service and such.

In my search for price quotes, Carvers' is the only one who has expressed any interest in my business. Problem is they are about 5hrs away. Up here, nothing is around the corner and so it becomes a way of life to plan your day around the need to "travel to town" so to speak. There are some minor things I can do in the way of service but that part is my biggest handicap.

FL_Cracker · Jun 5, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

5 hours is a long way. I think I could take 2 hours at the most. You have to think that most trips will be to drop it off and then another trip to pick it up. That's two full days for a minor problem. I guess I spoiled because I use a dealer that is 15 minutes away and he picks up and delivers everything he does at no charge.

If the tractor is for TN try Mason Tractor in Blue Ridge, GA (North West section of GA) (706) 632-3777

Good Luck

froggy · Jun 16, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

Aldermans' pricing pages are gone again. Hope they are just being updated.

buckle97 · Jun 16, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

<font color="blue"> Aldermans' pricing pages are gone again. Hope they are just being updated. </font>

I noticed the page being down yesterday afternoon. I hope the same as you /forums/images/graemlins/crazy.gif.

Lawrence

TimP · Jul 12, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

I would like to add my name to the list of people thanking Mr. Alderman for his comments and viewpoints to the board. AND for having thick enough skin to keep coming back and answering posts.

WE have two main dealerships where I live, (Baltimore) one is VERY responsive and "Nice" but his prices are a little high... the Other dealer is Nasty, disorganized, uncaring, but has lower prices.

Guess which one I bought my B2150 from and all my implemetns? Ya... I'd rather pay a little more and be treated like I am important to their business.

Mr. Alderman strikes me like a caring, responsive dealer.

Tim

Dataway · Aug 10, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

I applaud the efforts of any dealership owner to take the time to address the concerns of his customers, potential customers or just fans. It shows a level of dedication to customer satisfaction sorely lacking in most businesses these days.

However, it’s naïve of any person to think that limiting, controlling or censoring pricing information in any form is beneficial to any prospective customer. Controlling pricing information is and always has been of benefit only to dealers and manufacturers. Controlling pricing information, and limiting a dealer’s exposure of his own discount pricing is an attempt to control overall price point and increase profit to dealers as a whole. Readily available pricing and discount pricing builds a competitive market where the consumer has access to the information he needs to make the best possible deal.

Look at what has happened in the automotive market. 30 years ago you would be hard pressed to find dealer cost, invoice or any discount pricing information for autos. The car salesman was vilified for decades as a shyster that got every penny he could from his unfortunate customer. Now….if you pay too much for your car it’s usually the customer that is ridiculed for not doing his homework. That last thing tractor manufactures want is to end up in the same situation as auto manufacturers. Having to lower corporate profits to keep dealers in business that are selling their products in a very competitive environment.

There is no excuse or explanation that justifies controlling pricing information or actual sale price figures. It is, has been, and always will be a mechanism to force the customer to pay more for a product. There is no possible way to explain it so that it creates and environment that saves the customer money. Regional costs have always varied with any large consumer items. A car cost more in NYC in most cases than it does in Smalltown USA. Most people still buy local, but those that don’t can usually be assured of adequate quality service in their local dealership…because that’s the mark of a quality company, they back up their product regardless of point of purchase. I’d never buy from a dealership that only gives me good service because of the profit they made from me on the purchase. I would hope that their professionalism would extend to my service dollars, or the warranty work they perform on behalf of the manufacturer, for which they are most certainly paid.
J.Branson

orangebluegreen · Aug 10, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

>>That last thing tractor manufactures want is to end up in the same situation as auto manufacturers.

Appears they are where the car dealers were 20-30 years ago IMO. I have yet to see a dealer cost or hear if there is a dealer holdback like the auto companies. I had read somewhere mention of 30%++ markup, but I do not know if that was total profit including the manufacturer (I would assume so) and I also do not remember what OEM it was. I always thought in a Utopian society OEM’s would sell to every dealer big or small at the same price therefore the determining factor of who to buy from would be dealers profit and quality of customer service. I have no idea if all tractor dealers buy at the same price, but recently I was told by a local Kubota dealer his cost on a Turf Special was over 10,300. If this is true how are others selling them for 9999-10,600. Either he pays more, or he is lying. One price I received from out of state from a dealer I was very comfortable with worked his price up from dealer cost then added $1000. profit. If this was true (and I had no reason to believe it wasn’t, they were a BIG dealer) then it would tend to disprove my local dealer. I read one post on TBN that indicated big volume dealers pay less, but this is hearsay as far as I’m concerned unless substantiated. I’m currently looking at Echo and Stihl string trimmers and note there are no discounts from anyone and the OEM appears to strictly forbid internet pricing and discounts. Yes they are priced higher (not good) but I will also be buying from my local mower shop rather than Home Depot, so I suppose in that view, it does work. But as you said, it forces consumers to pay more. I would love to buy a split boom trimmer and buy the hedge clipper and pole saw pruner attachments, but they have them priced so high $733-833. it’s too much for trimming devices for me, so looks like I’m forced to stay with the $199. string trimmer. Do they win in this case? I don’t think so. If those items added to say $400-500 I could justify it, even though needed, they’ll probably be done without.

Thought I would pull up the financial statements for Kubota and have a look. I was absolutely shocked to see Kubota corp. listed on the Pink Sheets. I didn’t find any significant numbers on their JP site either.
http://finance.yahoo.com/q?s=KUBTF.PK&d=t

Is this correct? Or is this not a representation of the parent company?

Why do I bother? This kind of thing fascinates me in shopping and when I see things that don’t make sense I seek to find the truth.

I’ve heard a lot of conspiracy theories but one of mine is kinda funny. I was at a dealer and was looking at a machine. He gets call in the back room and is talking to someone and is saying in a loud enough voice for me to hear “these machines are so reliable he isn’t making any money because no one ever needs another one”. I laughed to myself and wondered how many times he gets that same phone call when a customer comes in.

froggy · Aug 10, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

Thanks for getting your pricing pages back up.

MessickFarmEqu · Aug 10, 2005

Re: Kubota pricing link doesn\'t works at Aldermans.com

I can answer a few of your questions. For the most part, everyone pays the same cost for their inventory with the exception of freight rates. There are some models that are the exception and there are also certian times of the year that we can order tractors and get discounts below the normal prices. Smart inventory managment is very important.

We do have dealer sales allowances and salesmens incentives like car dealers do. However they are minimal amounts. The manufactuers use these to adjust pricing on inventory that we already have.

As for profit margins, it varys widly by model and brand. Overhead costs also make up a huge part of the cost of a machine. A Midsize TBL can cost us $700-800 in parts, fluid and labor just to setup. Depending on how competivie the market is margins vary widly. You have to be careful about looking at prices online. Old inventory can be much cheaper than new because of the steel price jump that happened just over a year ago. As for current prices, some of the best you see online can have margins as little as 2% after costs. Obviously you can't stay in business if thats the norm, but its not unusual for someone to pay more in sales tax that we manage to make from the sale of a tractor. Thats often why small dealers have to quote near list price just to say in business, its only companies that can get by on volume that are able to offer the super aggressive pricing.

Bottom line, with all the books, programs and quick reference expense sheets it takes me 5-10 minutes to really get down to the nickle and dime of what I am going to make on a sale. I assume cars are somewhat the same, no internet resource is really going to be able to point you to the true dealer cost.