Pricing

[RanchMan]

Absolutely! And sometimes to their own detriment!

A while back when gas prices were so much higher, the nightly news had "gas busters" or some such thing where they would broadcast who in town had the lowest cost gas in town. It always cracked me up when they would interview folks in line and they would tell how they drove 30 miles across the metroplex to save a nickel per gallon.

I'd call them "penney wise and pound foolish" 'cause although they saved $.75 on 15 gallons to fill up their econo-car that got 30 mpg, they actually wound up spending $2.50+ in gas to drive the 60 miles back and forth to buy it! /w3tcompact/icons/laugh.gif

 

[blurrybill]

I will tip generously in a restaurant for excellent service (That doesn't mean having the server getting too close and asking what "we" are having tonight). I would also be inclined to do business with someone who is honest and doesn't assume for a single instant that I am an idiot (whether true or not). As I investigate dealers for my tractor purchase, I can guarantee that any salesperson/dealership that evidences a sense of entitlement in their tone will not get my business, even if they were next door and had a terrific service department-- I'd rather drive 500 miles. In my opinion businesses prosper through excellent customer service, providing value for the dollar and by NEVER assuming that the public owes them anything, including "some slack." Observationist made some good points about the costs of doing business -- all that being said, I'll bet an astute customer would pick up on that sense of entitlement. Although I'm not planning on buying Orange, I'd sure consider Carver because they appear to treat customers with the above concerns in mind. Note above how Steve was not threatened at all by someone choosing to buy locally -- he doesn't need to worry, he appears to run a customer-focused business. As a result, he probably does quite well. So, if you read this, Steve, how about adding Green to the lot?

Bill

 

[Anonymous Poster]

I do not have a sense of entitlement! The whole reason behind the thread was to inform the consumer that not all dealers can sell their tractors for the exact same price as other dealers. I have had to turn down offers from customers wanting me to price match. They will go to someone from the internet and then want you to match it. Not all dealers have the same buying power. I'm not trying to discount other dealers hard work, I admire these dealers, they are very good role models. There can be a good size difference between the discount that different dealers get. That is the only thing I'm trying to say, Don't get mad when a dealer cannot match a price you got off of the internet. I think alot of you have taken my post in a threatening manner. That's not how it was meant to be. If a dealer can't match your price from the internet understand he's not just doing it because he's greedy(or may be they are) but, it just may be he CAN'T match it. I don't think anyone should just run out and pay what the dealer asks for a product without doing research, but at the same time make sure that the tractors are the same (same standard equipment, tires, etc) before asking a dealer to price match. Be Aware and at the same time Beware!

PEACE

 

[blurrybill]

What you are saying is true and I'm not at all threatened. By virtue of the fact that I am a consumer who is attempting to be fully informed before I spend my hard-earned dollars, I feel no sense of threat from any seller of any product. I evaluate as carefully as possible and make a decision. However, if I get any sense that a dealer IS threatened by discussions about my purchase, then I'm gone. No offense either way.

Bill

 

[Anonymous Poster]

We're on the same page!! /w3tcompact/icons/smile.gif/w3tcompact/icons/smile.gif/w3tcompact/icons/smile.gif I always tell people when they come to my shop that even if they don't buy from me to give me a chance on implements or something another dealer doesn't want to mess with. I do get some calls from people that start out with "I know you probably can't find one BUT I need a *******" I love calling them back and saying "Guess what I found ya one" that's what makes being a dealer fun!

PEACE

 

[Golfgar4]

Ditto!

 

[Luckyme]

A rather interesting subject. As a first time tractor buyer, here is my experience: I decided on a Kubota 2710, w/ loader, 60" mid mower, & R4's filled. Pretty standard stuff.My local dealer which I had purchased over $18K worth of lawn equipment from in the past 3 years priced me $ 19,700. I called other dealers in the region (within 200 miles and got pricing from $17,500 to about $19,000. It was worth the 130 mile drive to pick up a $17,570 tractor over the local $ 19,700. I want to buy from local folks, but when they are substantially more $ for the same product, then I will look elsewhere. If the local guy was a few hundred $ higher, I likely would have purchased there. Based on what I observed, the local guy has higher overhead (big building, nice showroom, lots of stuff, in a bigger city) but he didn't have a 2710 and said it would take 3+ weeks before he had one. Everyone else either had the model I wanted or would get it in a few days. The $17,570 dealer was very helpful, had good inventory, but a smaller overhead. Personally, I felt good about crossing the state line to make this purchase.

 

[Anonymous Poster]

That's a pretty big difference. I would have asked him for a reason. Or at least hinted around about it. 2K is too much to pay for convience.
Did you counter offer? What was his answer and attitude?

PEACE

 

[rancar]

Observationist,

What you say may be true. But, it goes both ways. Not all customers have altruistic tendencies for the purpose of helping their respective dealers stay in business. Dealers stay in business by having 'smart' business plans. They cut their overhead any way they can, sometimes to the bone in order to stay competitive. Yes, give them slack. This may hold true in areas where that dealer may be the only one around within 100 miles. But, where they have competition (and they should know whether or not they do), then they need to compete by offering the customer as fair of a deal as possible. This is what the buyer is looking for, a competitive deal. And in the tractor market, where we can easily spend $30K, competitive and prudent shopping could result in a couple extra K in your pocket, rather than in the dealer's. And this, my friend, isn't chump change. /w3tcompact/icons/wink.gif

 

[keeney]

It is helpful to also keep in mind that as the middle-man, the dealer isn't the only determiner of prices to the end customer. The distribution chain and the factory each set their own prices based on their costs and desired profit margins.

The distributors and manufacturer don't care so much which dealer you buy from (unless you cross a salesman's territory boundary), but will care if you choose a different color (brand). I don't know if it is true with tractors, but there are some businesses where the factory and/or the distributors even have formal programs where they can discount their price to the dealer a little on a case-by-case basis in order to be directly competitive with another brand.

I have seen this specifically in businesses as diverse as copiers, micro-chips, video equipment, computers, cars, liquor, and banking.

For a large enough purchase, it may be worth asking when the distributor or factory rep may be stopping around next and try and get some time with them to talk about how they could help make the price more competitive compared to the other brand.

I have seen this from the point of view of the manufacturer as well as the consumer. It actually carries significant weight when an end customer gives feedback on pricing. The factory and distribution / dealerships are always wrangling over the transfer prices and margins, and the factory expects the dealer to always be asking for lower prices to increase their own margin. However, if they can see actual evidence that a discount could convert a customer from brand K to J (or visa-versa), they are more likely to do something about it.

- Rick

 

[spencer200]

no its more like 100 miles for a nickle I have seen it happen many times

 

[Anonymous Poster]

A couple K in your pocket is a good sized difference. That's a litttle more than I was talking about! Reread some of my other replies. I'm talking around the $1000 mark. Most dealers should be able to come within $1000 of each other. I in no way expect someone to go out and pay $2000 more for a tractor than what you could get it for a 100 miles down the road.

PEACE

 

[dummy]

You don't think a $1,000.00 difference for an equally equipped anything is HUGE ? OK, justify to me (us) why I should give you $1,000.00 more than Joe for an identical product.

 

[blurrybill]

Dummy,

Guess you and I are similarly (dumb) or financially impaired -- I don't know how much you pay for gas, but I could force myself to drive 100 miles to save $1000. I stand on my previous response to Observationist.

Bill

 

[Anonymous Poster]

SHEESH has this ever gotten screwed up. I guess what I'm trying to say and what I mean are 2 different things. He was talking 2K I just took around a thousand as a vague, quick answer. I'm talking guys price matching and driving rediculous amounts of miles to save that 1K. For 1000 I'd drive 100 miles too. Get below that by much and I'd have to weigh the time/money/delivery/attitude/service issue. My time is worth more than that!! Maybe you all have more time than I do. Another thing to remember, dealers may have to service your tractor but that don't mean you'll be at the top of their list. Some knock money off(parts&implements) for people who buy from them everybody else pays more. It's happened to me!

PEACE

 

[Woodbeef]

Yep,exactly!! Just because your local dealer is $500 or so more than the eDealer,you pass him buy on the purchase. But now I bet that when you need odds and ends,parts and service you look to him because he is close. What happens if he is gone next week,and you now have to drive to your eDealer,who has nothing in stock,but can get it for you within a week or so? It costs $$$ to stock parts!!

Now if your local guy is thousands higher than that is different. But if he is in the ballpark of say 4% or so on a $20,000 tractor why go elsewhere? In the long run you'll be glad you stayed home!!

 

[spencer200]

you cant explain that to these guys they just dont understand it. I have tried many times myself. Our dealership is never the most expensive, but we are also not always the least expensive in the area. We also quote the exact same price to everyone. We set our margin at 9% and if we can not create a good customer relationship on that we say sorry we cant help you, if someone counter offers we show them how much of a discount we are all ready giving them off list, then we say sorry this is what we have to have to do business with you and take care of you as a customer. We also let them know that if they can find it for less money they should buy it there and we will have no ill feelings. after all we are selling over 300 compact tractors a year plus everything else we do so if we miss one once in a while there is not much you can do. Some of it is also attributed to personality conflicts you just cant please everyone.

 

[rancar]

Bill,

I'm with you. I WILL BE driving an extra seventy miles to purchase from another competitively priced dealer a 4710 in next few days to save approx. $1,100 on a comparably equipped tractor package whose price my local dealer could not or will not match. And I say why not? Same machine, beautiful drive through rural NY farm country, maybe an extra $15 in gas. That $1,100 savings I'll use to buy another implement.

This, gentlemen, is what free market economics is all about. Assuming demand remains a constant, increased competition results in increased (or potentially so) supply translating into lower prices. Converse is also true. Reduced competition results in monopolistic or oligopolistic chicaneries resulting in higher prices (whether through intended collusion or not). All other things considered equal, market competition levels the playing field considerably with the strongest dealers surviving. And so I say, "What's wrong with this?"

Bob

 

[rancar]

Woodbeaf,

<font color=blue>"...if he is in the ballpark of say 4% or so on a $20,000 tractor why go elsewhere? In the long run you'll be glad you stayed home"</font color=blue>

That's because 4% of $20K still translates to $800 in savings. Again, this isn't chump change. It'll pay for an additional implement or hydraulic add on. And, no, in the long run, I'll be glad I was able to locate a more competitively priced dealer. And I don't care if he is 70 miles away. Still a beautiful ride through rural NY farm country that'll result in savings on those expensive JD parts in spite of the $15 or so extra in travel expenses.

Come on, everyone. What do ya'll think we have, deep pockets. Most of us are just plain old, middle income tractor owners or tractor owner wannabees. We're not Wall Street traders who make $1M bonuses who could afford to pluck down $30K, 40K, or more on a tractor in the blink of an eye without a second glance. Maybe you guys were brought up and live in this latter economic grouping and $500 or 1K is like pocket change to you that you wouldn't miss one moment from the next. Unfortunately, I'm in the former economic class, trained to save and then spend prudently. I scramble to save my dollars just to buy an implement or a tractor for that matter. I've been saving for my tractor for over two years. And I'm certainly going to make that $800 or 1K or 2K go as far as it will go.

Oh for Pete's sake, nuf-ced on this already. /w3tcompact/icons/sad.gif

 

[billfires]

I was pretty sure I was going to purchase a Kubota L3010 w/ FEL & BH and a 2000 NH 1920 fell into my lap. I saved over $10,000 buying a tractor that had 72 hours on it. I had looked at NH at a dealer 10 miles away but decided to go with the Kubota instead. I gave the salesman a $50.00 "green" gift certificate(cash) and a thank you card for his help on this tractor. I consider this the best money I have spent and will be doing the same with the service manager. It is just a little thing but it pays for itself many times over in info and advice.

Bill C