Loyalty to Local Dealership? ??

[JOHNTHOMAS]

You've got 3 Kubotas now or show them on your profile. How much dealer service have you needed on them? Dealers survive on the income from shop for service to machines off warranty, I still don't believe they always lose money on warranty work. If a customer comes in for service for off warranty work, you think a dealer will refuse to do the work? I don't think so. Will you be at the head of the line? Probably not unless you have more than one machine, which you do, that's going to need on going service and being an owner of more than one machine you may get to the head of the line. Your actually a desirable/wanted/needed customer that can help keep a dealer open for business if your treated properly. Don't under stand this attitude that customers are just lucky to be able to come to a dealer and pay for products and/or service. It should be a fair for you and fair for me relationship and over $500 more for the same product isn't a respectful relationship.
I've bought 17 Kubotas from Barlows, didn't buy my first one from him because I knew or liked him. Bought my first one because he was by far the best price. Checked prices with other dealers for awhile on later purchases then got to liking him and learned a bit about Kubota pricing and now know with confidence he's giving me a great price and he's been in business for years and believe his company will be for most of my life time. If he starts gouging me then I'll buy other places and feel confident he'll service my Kubotas expecting me to come back to give him a chance to sell me another one as well as getting money for service work to keep his shop open for business.
Who's doing who a favor or is it just a business relationship where the buyer and seller come to a meeting of the minds and pocketbook? And respect and appreciate each other with out acting like children.
The new Kubota tractor belongs to Kubota and the dealer has no money at risk, only his profit or potential profit. Both dealers pay the same price for a new tractor and they don't pay Kubota till it's sold so one has to question how much respect does your dealer have for you with the price they are asking and your current 3 Kubotas keep coming to my mind. Who'd you buy them from and have you ever had them serviced?
Anything over $500 is a lot of money to pay one dealer over another one when your comparing the exact same products.

 

[sixdogs]

JOHNTHOMAS---Wow, 18 Kubotas. I mean, I had respect before but this takes things to a whole new level. Congratulations on living the dream and fitting all of this into the plan of life. My hat is off to you.

 

[namesray]

I bought most everything I use in my small side business from my local dealer. 2 tractors, rtv, bush hog, 18ft trailer, used zero turn, bucket forks, chainsaws, wood splitter, 3ph winch, most all oils and filters, and various other accessories.

Both tractors back under warrenty, b7800 oil consumption and loader valve. B3200 smoke with cold start, which all b3200 tier 4i engines seem to do whenit is 40 degrees f or colder. B7800 and rtv have both been back for valve adj as per 800hrs and axle repairs.

It would seem with all that business I have given local dealer, they would be ok if they couldnt match out of state deal, and still treat me good, and maybe they will, but I am concerned with this new tractor purchase and all the newness of the tier 4final engine computer and electronics that something will need looked at that only kubota dealers can do and I am worried about getting the cold shoulder. I have seen it before.

Another close by dealer presented me a package price, very comparable, at $37,000.00 and that price was with trade in of my 2012 b3200 with mmm with 700hrs. I still owe about 9k on the b3200, but to be $3000.00 higher after I trade in my b3200??? When I mentioned (nicely and professionally) about what price I could get it for, I got nothing.... He didnt know what to say.

Is there a difference between dealers and regions that certain dealers/regions have more overhead or are they just being greedy because they price accordingly to what the dealers in the same area have run the prices up to? Although I guess that is just being a good business man, but thousands of dollars,,, come on.!!!

I guess my way of thinking would be that due to all the business I have done with my local dealer (and maybe thousands in $$ in inflated sales) that my local dealer would say ok. I cant exactly match that low price, but this is what I need to make to atleast make some profit, lower his price a few thousand plus, and we both go home happy. I buy local, and local dealer makes SOME money and he gets good advertisment from a happy customer.

I just dont know why my region prices are so high. Like I have said, no not apples to exact apples comparisons on non kubota package equipment, but from brochures and websites, I actually like the lower price out of state dealers equipment better and some of it specs better. What could be the difference?

 

[Gator6x4]

I buy where I get the best price. I do not try to get dealers in a bidding war with each other. I tell the dealer to give me his best price because there will not be any coming back to see if you will match the other dealers price. Keep in mind though, if you are one of those individuals that has to have his tractor back that afternoon after delivering it in the morning you might better stay with the dealer that has always stopped work on someone else's tractor to insure yours is ready and pay the higher premium price and move on.

I had a tractor set at a dealership partially disassembled one time for three weeks to do a less than two day repair. The dealer called me three times and asked if he could delay repairs because an individual was demanding his tractor be fixed now because he was losing money. When I got the tractor back, with a thank you note attached advising that a complete service engine, transaxle along with all new filters had been done as appreciation of letting him delay repairs. I wonder to this day who actually paid for all that, the dealer or the got to have it now customers.

 

[JOHNTHOMAS]

What could be the difference?
Business owners decision (which he/she has the right to make just like you have the right to buy where and from whom you want) to make a certain amount on each sale no matter who the buyer is. I know that is how Steve Barlow does business. He prices them on the phone and in person with whatever pre determined amount he has determined he wants for profit. Apparently it's enough to keep him in business and his business has grown every year since I've known about his dealership and he keeps expanding his property size and building size. He apparently makes some money. He lives about a mile down the road from his business in a nice but not extravagant home. He drives a utility Chevy truck that's 3 or 4 years old. Nothing extravagant about him, just a good ole boy making a decent living.

 

[oldballs]

Being just another Joe Schmuck, I bought an expensive tractor from a distant dealer due to the price difference. However, in the long run the local dealer, with whom I maintained rapport, probably made more money on parts and service over the past 35 years. I found that the long term counter people in service and parts are who I face on a routine basis. If they are decent folk, I appreciate them more than the owner(s) who is usually in an office some where.

 

[art]

When we find big differences in prices we normally find that it is because of different makes of attachments. Prices vary by quite a bit on short line equipment some being about half of oem providers. The other side is who might have some iron to pay for.

 

[sixdogs]

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Is there a difference between dealers and regions that certain dealers/regions have more overhead or are they just being greedy because they price accordingly to what the dealers in the same area have run the prices up to? Although I guess that is just being a good business man, but thousands of dollars,,, come on.!!!

I attend a lot auctions in the Ohio farm belt, where prices are pretty cheap and I see many dealers attend from along the Eastern seaboard looking to buy. You get to know who's who after a while. Now, I also search used prices a lot and have a petty good memory. So it's common for me to see something sell at auction and then later see that very same implement being advertised for sale at a dealer further East. Retail prices sometimes make me blink twice.

Now, I also used to live in New England and wondered, like you why prices are so high. I will say it's because of a higher markup and maybe I can explain why I think that.

Living standards are higher in the East and people want to make more money for starters. Buyers have more money to buy with and usually not too agriculturally savvy. It's largely NOT an agricultural based economy so there are fewer dealers and fewer buyers. A thin market like that usually means higher prices.

Toss in the fact many of the Eastern dealers are better business people and the fact that, collectively there is less cutthroat competition--because there doesn't have to be--than in the Midwest where supplies of equipment are in abundance. Dealers aren't as hungry for a trade and know the buyer will eventually have to come around. They price at what the market will bear.

There are deals to be had but I think they would have to be customer driven. Ask and ye shall maybe receive; don't ask and there's no chance of a deal.

 

[art]

I attend a lot auctions in the Ohio farm belt, where prices are pretty cheap and I see many dealers attend from along the Eastern seaboard looking to buy. You get to know who's who after a while. Now, I also search used prices a lot and have a petty good memory. So it's common for me to see something sell at auction and then later see that very same implement being advertised for sale at a dealer further East. Retail prices sometimes make me blink twice.

Now, I also used to live in New England and wondered, like you why prices are so high. I will say it's because of a higher markup and maybe I can explain why I think that.

Living standards are higher in the East and people want to make more money for starters. Buyers have more money to buy with and usually not too agriculturally savvy. It's largely NOT an agricultural based economy so there are fewer dealers and fewer buyers. A thin market like that usually means higher prices.

Toss in the fact many of the Eastern dealers are better business people and the fact that, collectively there is less cutthroat competition--because there doesn't have to be--than in the Midwest where supplies of equipment are in abundance. Dealers aren't as hungry for a trade and know the buyer will eventually have to come around. They price at what the market will bear.

There are deals to be had but I think they would have to be customer driven. Ask and ye shall maybe receive; don't ask and there's no chance of a deal.

Oh how I wish you were right! There is a much older dealer base here with many of us having third generation coming in. This also means that many of the dealerships are virtually on top each other with only twenty or less miles between like brands where todays standards are at 90 miles. Overhead, just think how many extra trusses you need to carry a 90lb snow load as well as heat. As far as being smarter, taxes, additional costs from the weather, I wonder.

 

[sixdogs]

Oh how I wish you were right! There is a much older dealer base here with many of us having third generation coming in. This also means that many of the dealerships are virtually on top each other with only twenty or less miles between like brands where todays standards are at 90 miles. Overhead, just think how many extra trusses you need to carry a 90lb snow load as well as heat. As far as being smarter, taxes, additional costs from the weather, I wonder.

Let's say you want a tractor. Take your advance anticipated savings, buy a trailer and make a deal over the phone with someone in central-west Ohio or IN. Get the kids or guys for a road trip, have Amish food along the way, buy some $1.75 gas and bring the camera. Twenty years from now you'll thank me as you look through your scrapbook of memories and reflect on your savings account balance. If you can't get the deal where you are, go to where the deal is.

In a broader sense, hook up the U-Haul and move to the farming area you want to live in anyway. It's a little scary but that too will pass.