MessickFarmEqu
Super Member
</font><font color="blue" class="small">( Do identical tractors start off with the same price to the dealer no matter where in the US the dealer is located? )</font>
Less freight, Yes.
</font><font color="blue" class="small">( Does Kubota have a discount for volume dealers in the form of rebates for number of units sold? )</font>
For total volume, No. However an educated dealership can offer lower prices by buying inventory during promotinal periods. Smart inventory managment also goes a long way as unsold units start collecting interest payments after some time, yet if you shoot too low building that inventory back up is more expensive.
You also have to figure in overhead costs of operating a dealership spread over the amount of units you move. We are a high volume dealership, so the cost of paying for our building is spread over many units as opposed so someone who may only sell a few dozen.
Setup times are also a huge factor. We have educated, well paid mechanics that setup and "predeliver" our equipment. As an example a B7610 TLB will cost me about $850 in labor, parts and fluids. Some shops employ high school kids to do the same work, certinaly not the same quality... but lower cost.
I understand when dealers price well above some of the numbers that can be found on the internet. I do turn my nose to those that stick to list price or above and refuse to be competitive. I don't feel thats a way to maintain business long term nor is it in the best interest of the vendor and customer.
Less freight, Yes.
</font><font color="blue" class="small">( Does Kubota have a discount for volume dealers in the form of rebates for number of units sold? )</font>
For total volume, No. However an educated dealership can offer lower prices by buying inventory during promotinal periods. Smart inventory managment also goes a long way as unsold units start collecting interest payments after some time, yet if you shoot too low building that inventory back up is more expensive.
You also have to figure in overhead costs of operating a dealership spread over the amount of units you move. We are a high volume dealership, so the cost of paying for our building is spread over many units as opposed so someone who may only sell a few dozen.
Setup times are also a huge factor. We have educated, well paid mechanics that setup and "predeliver" our equipment. As an example a B7610 TLB will cost me about $850 in labor, parts and fluids. Some shops employ high school kids to do the same work, certinaly not the same quality... but lower cost.
I understand when dealers price well above some of the numbers that can be found on the internet. I do turn my nose to those that stick to list price or above and refuse to be competitive. I don't feel thats a way to maintain business long term nor is it in the best interest of the vendor and customer.
