Pricing

[Anonymous Poster]

<font color=blue>...It is just a little thing but it pays for itself many times over in info and advice...</font color=blue>

...Absolutely... I agree... /w3tcompact/icons/smile.gif

You can't imagine the "payback" when you express your appreciation for superior service, or outstanding value on pricing or advice received...

...a restaurant gift certificate for a lobster/steakhouse seems to work great as well...

 

[CSAW]

I used to work for a retail parts store. The man that owned it insisted on making 33% profit on everything we sold. Many items such as batterys did not sell because 33% made them much more than everyone else was selling them for. But he had his 33% gross profit margin on paper at the end of the year.

My thought is that I would rather have had 10% of something than 33% of nothing.

I have and will drive to save money If for nothing more than the principle. This is not to say I would drive a hundred miles to save $50.00 but several hundred and I'm on my way.

What makes one dealer's identical tractor worth more than another dealer's? Can't think of anything. (principle)

While I believe you should support your local businesses in return he should support his locals with equal pricing.

Why would anyone believe that if your local dealer charges you more for the tractor that he is going to treat you any better on the prices of implements?

I really do like to support locals but, I have a bigger obligation to support myself and my family.

 

[Anonymous Poster]

<font color=blue>...obligation to support myself and my family. ...</font color=blue>

Yes... and there are "two sides" to every coin...

Not just a tractor/implement dealer... but any small business also has a responsibility to his/her own family...

You're correct on taking less for that battery... and other items to match "the local market" and make it up on something else... service perhaps in the future...?

It's a fragile balancing act being in business... pricing is only "part" of the overall equation for success... most of it boils down to perception of "value for the consumer"... when you can walk away from a store with your purchase/repaired item and feel great and tell all your friends about it... based on "outstanding turn-around time for repair", "free cup of soda/coffee offered", "free calendar/pens/hat", "outstanding advise", "friendly out-of-your way service", "everyone had a big smile on their face in that business...!", etc. etc. etc.

In most cases, price played a small or insignificant part of the overall great experience...

So the next time you "beat someone over the head" for that last nickel of profit... when you return to your job... you should reciprocate with your boss, where you can work for your employer for less your normal wages... instead of $18. hr... take say $6. hr. for a day or week...

Remember a dealer/small business person has to feed their family just like you do...

Again... pricing is but a part of the "big picture"... /w3tcompact/icons/smile.gif

 

[JohnMiller3]

Re: Pricing - Something to Consider...

Something to Consider…

“It is unwise to pay too much, but it is worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do in the first place.

The common law of business balance prohibits paying a little and getting a lot – it cannot be done! If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”

~~~ a small sign hanging in my shop window ~~~

 

[Bird]

Re: Pricing - Something to Consider...

John, the shop sign I liked said:

<font color=red>We do three kinds of work:

Good
Fast
Cheap

You can have any two!</font color=red>

 

[Anonymous Poster]

Re: Pricing - Something to Consider...

Bird...

Excellent...! /w3tcompact/icons/smile.gif

 

[Anonymous Poster]

It's funny the guys that understand are in business or have been in business/w3tcompact/icons/hmm.gif/w3tcompact/icons/hmm.gif. Before doing this I had never done a whole lot on the Sales side of the coin. I was always a buyer thinking some of the same things that some of you are saying. I figured all of these dealers were getting filthy rich selling tractors and implements, now I know the truth, it's far from filthy rich let me tell you. The next time you are in Wal-Mart think about how bad you are getting screwed! I know for a fact alot of their products(because of volume) they make 100% or more profit. When was the last time you went to Wal-Mart and dickered on the price of even a big-ticket item? I have seen people pass me because they have the PERCEPTION I can take more off than I do. They'll buy elsewhere(other brand) because they advertize list then come down. I price under list at all times. Because of this I can't move as much. It's all about PERCEPTION.

PEACE

 

[blurrybill]

It is an eroneous assumption that because someone disagrees with all or part of a person's position that they "don't understand" or "can't understand." I am willing to pay more to support local business and, in fact, believe that Wal Mart has done much to destroy small town life. Still, portions of the above arguments don't hold water in my opinion. It is a classically liberal view that those who disagree are incapable of understanding the big picture -- that's why those who hold those views tend to believe in centralized "omnipotent" government controls to encourage the "right" way of thinking and being. I respect the right of any businessman to establish price as he/she sees fit. Similarly, I maintain my right to chose... Again, those who run competitive businesses of any kind through supplying outstanding customer service at a reasonable price with survive and prosper. That is their responsibility, not mine as a consumer. Provide that and "they will come."

Bill

 

[Anonymous Poster]

WOW are you ever reading more into my posts than I do! It is, to me, verging right on the brink of putting words into my mouth! Understand(my meaning)=know where I'm coming from, been there done that, know what it's like, experienced it myself, been in your shoes. I've been in your shoes.....have you been in mine?

PEACE

 

[Anonymous Poster]

Take a break for a while Observationist!!

 

[JohnMiller3]

Observationist
(Unregistered)

If you get a chance... privately email me so I can tell ya something...

Thanks... /w3tcompact/icons/smile.gif

 

[Bird]

Observationist, I'm sorry you haven't registered and "officially" joined the group. I've just been reading this thread so far, and, yep, there's been a fair amount of disagreement; most of which I'd attribute to misunderstanding or misinterpretation. I don't find much to disagree with on any of the posts. I'm old enough, and been on both sides of the coin long enough, to have seen excellent, good, fair, poor, bad, and atrocious dealers and customers./w3tcompact/icons/laugh.gif I'm not sure you can change anyone's mind, but personally I think it's been a good discussion, and hope no one is mad at anyone else.

When I go shopping, sure, I look for the best deal (and that's usually the lowest price, but not always). And when I was on the other side of the coin, I told the customer what I could do, and if he/she thought he/she could find a better deal, no hard feelings; hoped they'd give me a chance next time. Of course, my experience on the dealer side was not with cars, tractors, or other big ticket items, so while some negotiation took place, it was perhaps less than a lot of people do. It's too bad that more people cannot simply be honest about their deals (on both sides of the coin). I've bought two used vehicles from different dealers who, when I made my best offer, said that was less than their cost on the vehicle. In each case, I told them then that I wouldn't expect them to take my offer because I know they need to make a profit and didn't blame them a bit. But in each case, when I started to walk off, they called me back to take my offer, and when I insisted that I didn't want to do that to them, they insisted that I should./w3tcompact/icons/laugh.gif

 

[spencer200]

well said John Miller and that has been my point all along!

 

[spencer200]

Well I would second that more people should be honest about there deals..If some of the prices I see on here are for real than the dealer that sold it is loosing several thousand dolars in some cases. We all know what will happen to that dealer if he keeps selling at that price eventually gone. What will mister I got a great deal do than for service and support. Example when people on here say they got a tc33d with loader for 16000.00 or under with a whole list of goodies thrown in I just shake my head. I know that as a New Holland dealer myself that this is less than cost with every discount New Holland offers including volume. which by the way New Holland compact tractors are not figured into a dealers yearly volume they don't count. it seems to be a game with some of the guys on here to see who can dream up the lowest price and one up the last guy. Well enough from me.

 

[RanchMan]

Hmmm, /w3tcompact/icons/hmm.gif That's interesting - I never considered that folks here might 'fib' regarding the price in some sort of "deal competition" on this board. If that is happening, it's a pretty sad statement on the integrity of some TBN members. /w3tcompact/icons/sad.gif

As for selling TC33's w/goodies (or whatever brand) below true cost - it seems to me that it is possible that some dealers that offer such packages might be following a "loss leader" model to bring customers in. I'm not commenting on whether this is a good or bad thing, just that it could be the reason for low prices at times. (Ford has done this for years with the 'Festivia')

 

[spencer200]

The actual cost of a New Holland TC33D with r4 tires and loader valve is
14487.00 the average shipping cost is 350.00 the 7308 loader with 60" hd bucket and replacable cutting edge is 2303.00 this does not include the price of the valve because that is figured with the tractor. the shipping charges on the loader are 79.00 so this totals up to $17219.00 this does not include a set up cost or tire filling charges or anything else this is just the cost of gettig this tractor into your dealers yard. when the dealer settles this tractor with New Holland there is a 300.00 settlement fee on the loader bring cost down to $16919.00 the tractor also carries a settlement deduction of $775.00 subtract this and you have a true dealer cost of $16144.00 Now for those of you who do not mind a tractor that has been on the dealers lot since before 6/1/01 New Holland has what is called an aged inventory discount of 5% to subtract from the base price of the tractor only. So that would would be $14487.00x.05 for a deduction of 724.00. so subtract this from the 16144.00 and you have 15420.00 for a total cost but this like I said is only on old inventory that has been sitting around the dealers lot since before 6/1/2001...There is usually not many of these types of tractors around so as you can see the true cost of $16144.00 is what they cost so if a dealer does give you a price of less than this he is most likely selling you an aged unit and telling you it is newer.

 

[Anonymous Poster]

<font color=blue>...this is less than cost with every discount New Holland offers including volume...</font color=blue>

I don't know dealer pricing... but is it possible some of these low ball prices are after units have been "rented" @ low hours where a dealer has made "rental" dollars...?

If you can rent a compact tractor for $300. per/day with an average of 4 clock hours... 15 times later is $4500. made on a "60" hour "demo" tractor... plus the rental $$$ made from the implements as well... {note hypothetical prices...}

Then you could afford to sell for $1. below cost on every unit...
{Disclaimer-Hypothetical example only...}

 

[Anonymous Poster]

Ya been mailed /w3tcompact/icons/grin.gif

PEACE

 

[ChuckinVA]

I have tried to not get involved in this thread but I just can't help myself. I am a salesman. There I said it. I work for a very successful global company that spends a great deal of money training its sales force on how to differentiate our selves from the competition. I sell products that my customers can buy from 10 other companies. Some buy only on price. Once I identify who they are, I spend as little time as possible servicing their account. Others appreciate good service, concern for their business, understand that my goal is help them grow their business and by doing this I will get a bigger share of their business and price is never the deciding issue. I will spend as much time as they need with this customer. When I price my products fairly, provide excellent service, and show genuine concern for the success of my customers business, I win day after day.

 

[MikePA]

A while back I started a list of tractor accessories that most people needed or should seriously consider. Perhaps we should have a list of topics that are guaranteed to enflame the passions /w3tcompact/icons/smile.gif. Let's see;

Politics
BX2200 - Is it a real tractor?
Tires - Do R4s really tear up your lawn? Are R4s really better than turfs?
JD Ag tractors - Are they really the best?
Filled tires - Anitfreeze, foam, windshield washer fluid or beet juice?
HST or Gear - What do 'real' men prefer?
Oil: Synthetic or Dino?
Plastic or Metal - not to be confused with the Plastic or Paper controversy.
Chain Saw Chaps - Your Protective Kilt?

Perhaps any time someone posts what they paid for a tractor, they should be required to attached a scan of their receipt. /w3tcompact/icons/laugh.gif