Setup charges?

   / Setup charges? #1  

newtattoobob

Silver Member
Joined
Apr 10, 2004
Messages
118
Location
Northeast Ohio
Tractor
Kubota B2650, Kubota BX1850, RTV900XT Worksite, Kubota U17,1942 Farmall H, 1950 Ford 8N
Yesterday I got a quote from my dealer on a new B2650 with a loader, mmm, box blade, grapple and third function and 2 rear remotes. He is willing to take my B2710 and L3400 on trade and I feel he is giving me a good number on them. My issue is he wants me to pay msrp on all the new stuff plus pay $600 for labor to install the 3rd function and the two remotes. I think since this is the 4th new tractor I have purchased from him they should do all the setup included in the price. Am I out of line here? Do other dealers charge to setup new equipment? Thanks
 
   / Setup charges? #2  
In my opinion the new B2650 should be 10%-15% below MSRP and then the 3rd function and remotes at MSRP but no labor charge to install them.

I think ideally if the dealer left most of his tractors on the crate un-assembled until sold, adding optional valves and such would be much easier. He wouldn't have to remove wheels and fenders, plus the tractor would already be in the shop being assembled.

Of course the dealer wants to have the curbside appeal of inventory.
 
   / Setup charges? #3  
They're going to get the $$ one way or the other on the deal. If they go lower than MSRP, they'll likely lower your trade in allowance. So you basically are laying out the same amount of money because they'll make it up on the back end of the deal.
As far as the extras, you'd think that a good customer like yourself would get a break from them on the labor and accessory equipment. If it were me I'd ask them if it's worth losing the deal over the accessory/installation price they're asking and continue shopping if you haven't signed the papers.
 
   / Setup charges? #4  
You have the price from them. Now contact Barlows and see the difference between them delivered to your door. Barlows has always given me good prices for my trade ins plus discounted the price on the new equipment.
 
   / Setup charges? #5  
Set up charges are set-up charges! They are always there one way or another. Some manufactures say they are giving away free loaders! Yep, need any swamp land?
 
   / Setup charges?
  • Thread Starter
#6  
Haven't signed any papers yet, maybe I will shop around. I just feel it is not right to quote me a price on a tractor and then the very last thing put on labor for putting the machine together. If I had bought the tractor and then 6 months later went back and got the remotes I could see why they would charge me but when purchasing a new machine I think it would be a courtesy to assemble it and not charge for it. My salesman said he would talk to his boss and see what they can do, hopefully they will work with me. If not I will definitely shop around.
 
   / Setup charges? #7  
Haven't signed any papers yet, maybe I will shop around. I just feel it is not right to quote me a price on a tractor and then the very last thing put on labor for putting the machine together. If I had bought the tractor and then 6 months later went back and got the remotes I could see why they would charge me but when purchasing a new machine I think it would be a courtesy to assemble it and not charge for it. My salesman said he would talk to his boss and see what they can do, hopefully they will work with me. If not I will definitely shop around.

AS Art said "some dealers show the costs and some don't"
 
   / Setup charges? #8  
Haven't signed any papers yet, maybe I will shop around. I just feel it is not right to quote me a price on a tractor and then the very last thing put on labor for putting the machine together. If I had bought the tractor and then 6 months later went back and got the remotes I could see why they would charge me but when purchasing a new machine I think it would be a courtesy to assemble it and not charge for it. My salesman said he would talk to his boss and see what they can do, hopefully they will work with me. If not I will definitely shop around.

AS Art said "some dealers show the costs and some don't"
 
   / Setup charges? #9  
There is a cost for additional work.
Everyone understands that.
Who pays is the question. Dealer or customer. When one gets a price then starts asking for additional services, which the dealer has to pay his employees for doing at his/her hourly cost, then the bill/bottom line can go up. Customer hourly cost is different than dealers hourly cost if the same person owns the sales dept as owns the service dept.
Dealer sells a product, $25000 tractor and $5000 of implements. Cost to customer $30000.
Dealer has to pay for that tractor $22000 and those implements $3800 and the difference between what the dealer has to pay and what the dealer gets from the customer $25800 reflects a $4200 profit. How efficient or costly his operation is isn't the point. It's dollars difference between dealers cost and sell price. One dealer can operate more successfully than another as can de seen by who stays in business and who doesn't. That's the dealers side (Arts):).
The customer works hard, makes good buying decisions and wants to buy a product for the best price without bankrupting the dealer and not paying the dealer so much that he/she goes bankrupt themselves. That the purpose for shopping around. Find a decent deal for a decent price.
Should the dealer go ahead and have his hourly wage employee install the additional items and say" I'll sell it to you and "eat" the additional $26 or..... no, you have to pay an additional ($85 per hour shop rate x 2=) $170 or you pay the additional $26 which would sound cheap after a $30000 transaction/sale.
Yes, we all know there is a cost for any additional service but the cost can be less for the dealer and the good warm fuzzy feeling it could give a customer can be well worth the additional cost. Every person in business needs good cheap advertising and the best advertising that can be obtained for ANY business is the satisfied customer, ANY business. Yes, it will cost the dealer a few dollars but is that additional cost worth turning a good customer into a former good customer? Now this good former customer is going to check some other dealers and when he finds a "smarter" dealer he is going to become their new good customer and will also tell every one he knows how his local dealer was trying to make about $2000 more on the deal than the dealer in Ky and wouldn't even pay to install the additional products that he was buying at full retail from his "good" local dealer.
I bet Art would have put them on for free or a reduced price because I bet he's a people smart dealer. I'm almost positive he would. Maybe he still will!:laughing: NY isn't that far from Ohio.
 
   / Setup charges? #10  
John, it would be nice if we had the option to sell at retail as we are loaded with dealers so retail, is just a guide or a price to work from. Set-up charges are included in all pricing either up front or hidden they are there. I normally do not show them as it is my end of the deal although some people do buy some wholegoods in the box from us just like home depot and lowes or sears.
I can not stress enough that it is the bottom line on the bill that is the most important part to the purchaser! The allowance you get is just a number. Same as the asking price! In the big picture of what you are getting for your money and how much is the total on the bottom line.
 

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