tractor mark up price

[castiman]

Does anyone know how much of a mark up there is on the jd compacts. I see from some of the prices being mentioned here that somes guys here, from the quotes there mentioning or from what they said they paid are getting around 15 to 20% off list price. I'm about to purchase a 2011 2520,I've been to 4 different dealers in new york state the lowest I've been able to get is 8% off list price of the tractor and 10% off implements. Dealers to stay in business have to make a percentage of profit, I can't believe theres more than a 25% mark up. I would be happy with 10 -12%.

 

[MikeInEburg]

My take on this issue is that it doesn't really matter what the markup/discount percentage is. Does it matter when you purchase groceries, gasoline or most anything else? If you find a widget that you like and are happy with the price, you purchase it. If not happy, you don't purchase.
Mike.

 

[jenkinsph]

I agree that the markup figure isn't very relavent. The discount off the msrp is. I wouldn't suspect you can get the same discount structure in NY as in NM, but again business overhead, personal living costs and wages are higher in the Northeast. The dealers in your area have to pay higher salaries to his employees and therefore needs more to meet his costs.

 

[castiman]

I agree that the markup figure isn't very relavent. The discount off the msrp is. I wouldn't suspect you can get the same discount structure in NY as in NM, but again business overhead, personal living costs and wages are higher in the Northeast. The dealers in your area have to pay higher salaries to his employees and therefore needs more to meet his costs.

Ya, I agree,everything appears to be higher here in new york, I had one dealer mark up the msrp to over his cost to deere for the 0-60 financing,than made it sound that if he was giving me a good discount which in turn was only 3.5 percent off. What I don't agree with one them making more than 50% profit, as they have to cover all costs they have to stay in business,I believe 25% would do that and still make a profit,and if they sell locally there going get to make more money on servicing which I believe is where the real profit comes in. I also believe most dealers know that, and can affect their discount that there willing to give you. All I did was to shop around to keep my local dealer kinda in reality. As for another poster saying it doesn't matter what the mark up cost, discount cost is on groceries gas or anything else all I can about that statement is, wait and see if your opinion changes when gasoline is 5.00 or more a gallon or a gallon of milk is 5 or 6.00 a gallon and you have 3 kids to feed. Sure the cost of living is going to go up, how about most peoples wages, will it match that. I know my dads social security didn't go up this year and your set pension wage never goes up, just down to cover the higher cost for one thing or another. Sorry just had to vent a little.

 

[sweettractors]

Does anyone know how much of a mark up there is on the jd compacts. I see from some of the prices being mentioned here that somes guys here, from the quotes there mentioning or from what they said they paid are getting around 15 to 20% off list price. I'm about to purchase a 2011 2520,I've been to 4 different dealers in new york state the lowest I've been able to get is 8% off list price of the tractor and 10% off implements. Dealers to stay in business have to make a percentage of profit, I can't believe theres more than a 25% mark up. I would be happy with 10 -12%.

If the selling dealer makes $1000-$1500 profit on a CUT, He is doing pretty well. MSRP sales only happens in areas where there is no competition. Ken Sweet

 

[architect]

quote from about three weeks ago:
JD2520 list $15,886 price $14229 disc. 10.5%
62D mower list $2450 price $2263 disc. 7.7%
200CX FEL, 53" bucket price $3209 price $2980 disc. 7.3%
$19,474 plus new $1000 = $18474

no local taxes, that needs added
local dealer, but about same price as online dealer mentioned in forums.

 

[TNTractor1]

It's funny how the pricing plays out for different individuals in different parts of the country... here was my breakdown on the 2520 I just ordered. Looks like I am significantly under MSRP except for the 62D in which the price was more! Overall, though I am pleased with the price I got:

2011 2520 Tractor: $13,805.98
200CX Loader: $2,802.72
62D Mowing Deck: $ 2,491.30

 

[castiman]

here's my quote:2520- 14,000, 200cx loader 61'' bucket-2800.00,54'' snowblower, quick hitch with side cylinder for plow 3300.00,62d drive over deck with independent lift, diverter valve 3500.00, curtis hardsided cab with heater,wiper,fan, roof top lights 4000.00 total 27,600 minus 11,600 for my 2305 with same equipment, total out the door 17,328.00 tax included.

 

[jlsmith]

I agree with Ken S. Most dealers try to make $1000 to $2000 on a tractor deal. The dealer isnt makeing a killing on a tractor sale once you finure in the time he has paid an employee to show the tractor a few times clean the tractor for display and for the new owner and the fuel he puts in it to let customers test drive it. Thats just a few of the over head the list keeps goin on.

 

[bigbull338]

dealer markup varies on tractors an makes of tractors.an they have to talk to the co to get the lowest price they can sell for,wich happened when i bought my tractor.

 

[damiang]

I posted this on another thread last night....


I am in the market for a new one as well, not sure 2320 or 2520. Leaning towards 2520. I am in PA and I am starting out by thinking Delaware is not far from me and they do not have sales tax so I should be able to save $1000 off the bat. So here is what the dealer gave me as the first quote on the 2...

2320 Tractor ..........................$11,672.00
200CX.....................................$3,054.0 0
62D Mower Deck........................$2,905.00 (with independant hydro lift)
54in Quick hitch snow blower ......$3,457.00
3-bag power flow......................$1,947.00

Total......................................$23,037 .00


2520 Tractor...........................$13,761.00
200CX....................................$3,054.00
62D Mower Deck.......................$3,069.00 (with independant hydro lift)
54in Quick hitch snow blower .....$3,442.00
3-bag power flow......................$1,947.00

Total......................................$25,275 .00


I really don't think this is too good of a deal but we will see.
Now, I notice that I already got a verbal price on the 2320 at a local dealershiip in PA and it was $12,900 (including the $250 delivery charge) so the DE dealer seems to be high on his base price ($13,473.00). I will be trying to strike a a better deal with him.. I also need to find out if the unit he has on the lot is a 2011 or 2010 left over and if it is a left over I will try and get a bigger discoun as it is an aging unit that he is paying on his floor plan. I think read that a good deal is a discount from 15% to 20% off MSRP.

After a final price is made I am think (not sure) i can take off the $1,000 rebate amount the manufacture is giving. The rebate does not affect the dealership bc i am pretty sure he gets the kick back from JD. It can be a smoke and mirror deal too. Where before the $1,000 savings you could have picked up the 2520 (alone) for $13,500 (15%) off and now with the saving that translate to being able to pick it up at $12,500. But that is where the smoke and mirrors comes in. Just sayin. It is kind of like buying a car.

Does anyone know about the "SET UP" cost that the dealer puts down for every attachment?????

 

[sweettractors]

10 % profit is about what a dealer can make on a new tractor sale. His overhead has to come out of that. If there was any quick, easy money to made in New Tractor Sales, I would still be selling them. Ken Sweet

 

[bigbull338]

the profit maker is when they sell the trade in equipment.when i buy equipment i do the trade in,but when i trade the equipment is wore out.thus worth junk prices to the dealer.

 

[revitupfaster]

10 % profit is about what a dealer can make on a new tractor sale. His overhead has to come out of that. If there was any quick, easy money to made in New Tractor Sales, I would still be selling them. Ken Sweet

Here Here Ken.........I was in the marine business, (probably very similar to the tractor biz) and I would have been very happy to have ended up with 10%.........wasn't gonna happen, that's why I'm out as well.

Never been happier I might add.

REV

 

[sweettractors]

Here Here Ken.........I was in the marine business, (probably very similar to the tractor biz) and I would have been very happy to have ended up with 10%.........wasn't gonna happen, that's why I'm out as well.

Never been happier I might add.

REV

Selling new tractors is more of a "prestige" kinda thing rather than a money making business. Most buyers, just don't realize this. Ken Sweet

 

[AKfish]

Selling new tractors is more of a "prestige" kinda thing rather than a money making business. Most buyers, just don't realize this. Ken Sweet

OK.... but when they keep coming back to buy oil, filters, widgets, gadgets, and a new mower, new disc, new tiller, etc, etc.

It's more than "prestige"! It's a relationship... And the sign on the door says "OPEN".

AKfish

 

[AKfish]

I think read that a good deal is a discount from 15% to 20% off MSRP.

That's a good range to shoot for... The "smoke and mirrors" of setup, dealer prep, freight, is just that!

Keep your eyes on the "pea" and not the shell!

If they want your business and you want to stay with them - you'll find a price that you're both satisfied with.

AKfish

 

[damiang]

My thoughts as well AKfish...thanks