Profit margin

daTeacha · Feb 9, 2006

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 · Feb 9, 2006

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 · Feb 9, 2006

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 · Feb 9, 2006

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 · Feb 9, 2006

( 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.)

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 · Feb 9, 2006

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 · Feb 9, 2006

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

keeney · Feb 9, 2006

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 · Feb 9, 2006

$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!

( 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? )