Profit margin

[daTeacha]

Let's say you could purchase a tractor from a dealer you've worked with for several years at his cost or less, perhaps A-plan on a NH. What would you guys think is a fair profit for the salesman? I'm presuming the sales guy gets nothing for writing up the deal officially. What amount of money seems fair? Nothing at all seems unfair to the salesman even though you could buy it for that. Do you tend to think in percents, like a tip to a waitress, or in dollars regardless of price?

 

[Bob_Skurka]

As long as I get a "fair" deal and "good" treatment from the dealership, the profit the dealer makes and the way the salesman is compensated (salary, commission, etc) is really none of my business and none of my concern.

 

[beenthere]

Not sure what you are getting at, but can imagine.

Set with a salesman for awhile, and talk to one about the number of people who just come in to sit and chit-chat, waiting for a 'better' deal or just asking questions. Then think of what that person needs in the way of compensation for doing that 9-10 hours a day.
I think the salesman should start a clock or timer running and charge the customer for the time he takes, maybe $2-5 an hour, asking questions. I am not a salesman, but know some and have worked with some. I also know very well the guy that just spends his time going from salesman to salesman, being a real nuisance until finally to get rid of him, a quote is made and a deal struck.
I ask for the price, and ask for the best deal, and maybe offer a price if such and such is included (doesn't always work, but lets them know I'm after more for less). I then make up my mind whether I will pay that price. I don't beg for more knocked off nor am I interested in what the salesman and/or the dealer is making off the deal. They set the price, I make an offer, and if accepted, I decide if its right in my mind to spend my money that way.
Maybe I'm too easy on the salesman, but its the way I would want to be treated if I was selling.

 

[KubotaSteve]

I'm with you on this one Bob. The way I look at it, they could care less of where I am getting the money to pay for the machine (either up front or payments) as long as I pay. And I could care less how they divide up the amount I paid for the machine.

 

[3RRL]

</font><font color="blue" class="small">( I'm with you on this one Bob. The way I look at it, they could care less of where I am getting the money to pay for the machine (either up front or payments) as long as I pay. And I could care less how they divide up the amount I paid for the machine.)</font>

I agree, ditto for me. That's how I feel about it.
I'm sure they've got it figured out or the salesman would not work there.

 

[scott_vt]

Teacha,
Im not sure how your looking at this either /forums/images/graemlins/confused.gif
Are you talking about yourself getting a super deal on a tractor because your buddy works at the dealership? If thats the case, and I had helped this fellow out, I would give the guy a case of beer and ride the tractor home with a big smile on my face /forums/images/graemlins/grin.gif

scotty

 

[MessickFarmEqu]

If your talking about A-plan NH does have a kick back to the dealer.

 

[keeney]

There is a difference between wasting their time and negotiating aggressively. I have to agree that if they decide to sell the machine at a given price, well, there is probably something in it for them somehow.

If the guy did you a personal favor of some type, I find its rude to boil that down to cash. By definition, personal favors are not bought and paid for - they are things that money can't buy (otherwise its not a favor - its just business).

So, if he did a favor to you, you owe him something of equal "value" or magnitude.

Don't be so quick to think he is doing you a big favor, though. Dealers are typically compensated for special program sales. You might actually be doing him a favor by purchsing it through his dealership and not some other since they all have the same exact price set by the manufacturer.

A buddy of my dad's did me the favor of "helping" me to get a good deal on a new truck because he used to be in the car sales business and knew all the fleet sales managers in town. I got an OK deal (but I think it actually hampered my negotiating ability a bit having him there). However, when I found out he was getting a "bird-dog" fee for bringing me in, it went from being a favor in my mind to just business. I said thanks, but I don't feel like I owe him anything beyond that.

- Rick

 

[andrewj]

$350.00 bucks is fair under the scenario you described. As for the rest of you guys, I don't understand why you can't just answer the man's question! You sound like a bunch of lawyers for goodness sake!

</font><font color="blueclass=small">( Let's say you could purchase a tractor from a dealer you've worked with for several years at his cost or less, perhaps A-plan on a NH. What would you guys think is a fair profit for the salesman? I'm presuming the sales guy gets nothing for writing up the deal officially. What amount of money seems fair? Nothing at all seems unfair to the salesman even though you could buy it for that. Do you tend to think in percents, like a tip to a waitress, or in dollars regardless of price? )</font>

 

[riptides]

15-20 percent of your purchase price.

-Mike Z. /forums/images/graemlins/grin.gif

 

[depratt_equip]

That would be a great margin!! Then I wouldn't have to work so hard, and could afford a few days off a year. /forums/images/graemlins/grin.gif

 

[daTeacha]

Okay, Andrew and later poster's get the prize.

I can get A-plan pricing on Case or NH. I feel that the guy who writes the deal and the dealership deserve something in the way of compensation since NH gives them nothing for getting the tractor to me. I was wondering what to give them. This is a dealership I've worked with for quite a few years on other things and all the above consideration is part of my deciding what tractor to get, IF that time ever gets here. I know if I was the sales guy, I'd appreciate it if the customer had some consideration for my time figuring out what things to put on the tractor and writing up the order.

 

[KentT]

Can't say on tractors... but, I've bought several vehicles on Chrysler's E-plan for employees, since my father-in-law retired from Chrysler.

On the E-plan, the dealership gets $250 total, after all advertising holdbacks, rebates, etc.

 

[billfires]

This is what I did. After being fairly certain I was going to order a Kubota 3010 from Carver a 15 month old NH 1920 was offered to me at a great price from a private seller. I went to the local NH dealer to ask why the gentleman that had the tractor had bought the 1920 instead of a Boomer. The VP of the dealership spent an hour and one half with me even going so far as introducing me to the service and parts managers and technicians. He also said if I had any other questions to call or stop in. I gave him a "green" gift certificate with Grant's picture ($50.00 bill) on it. He really didn't want it but I convinced him to finally take it.

Bill C

 

[kubotaman68]

I think that when people go in a place to pick their brain and try out alot of stuff and talk for 2 hrs and then they use the knowledge and info to go to another dealer . knowing exactly what they want is a drag but thats the nature of the beast.

 

[AKfish]

Well now.... if I want to get an understanding; a feel for what kind of guys ( sales rep, mechanic, parts guys, dealer owner) before I buy a tractor (big-time committment) I'm gonna go in there and "waste" their time! /forums/images/graemlins/blush.gif Likely "waste" a fair amount of it!! I plan on using my equipment until I can't crawl up onto the seat anymore. So, I wanna know if those folk's are gonna treat me like a long-term "investment" or just a quick "profit"! It's always a bit difficult navigating in the "business vs friendship" arena whenever money can be either an insult or a genuine sign of appreciation... But we all know that not everyone is gonna like us; right from the get go. That's why it's not always just the best price that we're lookin' for but that right "fit" with the folk's that you're gonna buy parts from for the next 20 years. From the comments that were offered it sounds like .5%-1% of the purchase price for the package would be a fair return for the sales rep time and effort. $35K package - $175- $350. My 2 cents --- /forums/images/graemlins/grin.gif AKfish