What gives with dealers on tractor house?

   / What gives with dealers on tractor house? #61  
Maybe it's just a Michigan thing... But that has been my experience at other tractor dealers, and car dealers as well. The Midwest does have a reputation for honesty ... Maybe that's where it comes from?

Do not imply that I'm dishonest. By the very nature of my explanation of the pricing process I'm being as honest as I can. In fact, I'm pointing out that your dealer could be the one being dishonest, which is why I've urged you to check on his "his cost" line.
 
   / What gives with dealers on tractor house? #62  
Read through my posts in this thread, I've explained it clearly several times. Every situation is different, and when you take all factors into account the customer gets the better experience and price. If you just agree to a price without knowing any outside factors, you arent getting the best price.

I have thoroughly read each of your posts. None of them seem legit, and I would never deal with you, or your dealership, if they condone such business. Have you answered any of my questions? No. Can you tell us which dealer you work for?

Chris
 
   / What gives with dealers on tractor house? #63  
Do not imply that I'm dishonest. By the very nature of my explanation of the pricing process I'm being as honest as I can. In fact, I'm pointing out that your dealer could be the one being dishonest, which is why I've urged you to check on his "his cost" line.
Who called you dishonest? I certainly didn't. I'm saying that maybe the buying models I'm accustomed to are native, maybe proprietary, to this region. It's a system where a seller gives an honest price, doesn't change it because of outside variables, and both sides understand the cost structure.

Simply... If I want to trade in Tractor A, and I tell the dealer I want $10k because that's what I think it's worth to sell.... The dealers I've dealt with here will usually respond with " yes but the expected sale amount I can get on the machine is $10k. I (dealer) am taking the risk, so I expect a fair profit. Therefore, I will give you $8k, I'll expect to put an unknown, but hopefully small, amount in it to get it ready to sell, then I'll have it sit on the lot for an unknown amount of time until it sells."

When both parties understand that, it is a smoother transaction.

That trade profit should have absolutely nothing to do with the new unit price.

I'm not calling you dishonest. I'm saying that this is the model that is common around these parts.
 
   / What gives with dealers on tractor house? #64  
I have thoroughly read each of your posts. None of them seem legit, and I would never deal with you, or your dealership, if they condone such business. Have you answered any of my questions? No. Can you tell us which dealer you work for?

Chris

Pretty convinient you live in Washington then and don't have to deal with me.
 
   / What gives with dealers on tractor house? #65  
Pretty convinient you live in Washington then and don't have to deal with me.

I'm happy to deal out of state if the deal is right. Prices range widely geographically. You still haven't answered my question about initial price of a unit. You have beat around it the entire time. Unit price is unit price. Total financed price is something completely different after factoring in variables. I'll ask again. Please explain why you won't post a unit price.

Chris
 
   / What gives with dealers on tractor house? #66  
From my experience working at a GM dealership, I know how the "call for price" works. Manipulating the asking price on the front end based off customer info, can greatly influence the price on the back end (trade in). If you get all the info upfront from the customer, you can calculate the max profit based off of both front and back end. You then give them a price, and negotiate from there to optimize profit.

Just say'n.

Chris
 
   / What gives with dealers on tractor house? #67  
I'm happy to deal out of state if the deal is right. Prices range widely geographically. You still haven't answered my question about initial price of a unit. You have beat around it the entire time. Unit price is unit price. Total financed price is something completely different after factoring in variables. I'll ask again. Please explain why you won't post a unit price.

Chris
I don't want this to sound insulting to Showroom, because it's not meant to be an insult....

Maybe his business model is such that he tries to squeeze every available penny of profit out of each sale, and so has different pricing schemes to attain that objective. Clearly that puts an uninformed buyer at a great disadvantage, and an informed, skilled buyer at an advantage.

Some salesman operate that way. Others operate more on being fair and consistent.

My local Kubota dealership operates on his level too. They come out with crazy high prices and you have to fight for the deal. If you are an inexperienced or uninformed buyer, you'll pay alot more than a seasoned buyer.

I was recently pricing an implement. They were the closest dealer that had it, and they had it priced at $2400. I knew that by driving around I could get it for $1865. So I negotiated it down to $1885 from the local Kubota guy. He still made a profit of course, but he would have made a better profit if I wasn't a seasoned buyer.

On the other hand, my Massey dealer that I rave about, quoted me a lower price than I had even negotiated from the Kubota guy, but unfortunately couldn't get any for 3-4 weeks, and I couldn't wait.

I'm not faulting the Kubota dealer, it's business and his model is a bit more.... greedy.... than my Massey guy..... But that's how he makes his money. Being a seasoned buyer, I at least can recognize that so I go into each deal knowing I have to work at it. Whereas I go to my Massey dealer knowing I'll get the best price practically right away.
 
   / What gives with dealers on tractor house? #68  
I don't want this to sound insulting to Showroom, because it's not meant to be an insult....

Maybe his business model is such that he tries to squeeze every available penny of profit out of each sale, and so has different pricing schemes to attain that objective. Clearly that puts an uninformed buyer at a great disadvantage, and an informed, skilled buyer at an advantage.

Some salesman operate that way. Others operate more on being fair and consistent.

My local Kubota dealership operates on his level too. They come out with crazy high prices and you have to fight for the deal. If you are an inexperienced or uninformed buyer, you'll pay alot more than a seasoned buyer.

I was recently pricing an implement. They were the closest dealer that had it, and they had it priced at $2400. I knew that by driving around I could get it for $1865. So I negotiated it down to $1885 from the local Kubota guy. He still made a profit of course, but he would have made a better profit if I wasn't a seasoned buyer.

On the other hand, my Massey dealer that I rave about, quoted me a lower price than I had even negotiated from the Kubota guy, but unfortunately couldn't get any for 3-4 weeks, and I couldn't wait.

I'm not faulting the Kubota dealer, it's business and his model is a bit more.... greedy.... than my Massey guy..... But that's how he makes his money. Being a seasoned buyer, I at least can recognize that so I go into each deal knowing I have to work at it. Whereas I go to my Massey dealer knowing I'll get the best price practically right away.

Yup! I understand that people have to make a solid profit to sustain business, and flourish. I want them to flourish, and prosper as a local business. There is no business model that does 80% charity work. Those are considered a 501C3! Using methods to make more bottom line profit are common practice in all business sales. Using the "call for price" method is (IMO) a great way to manipulate a persons individual circumstance to make maximum profit, and punches the customer in the gut all the while.

I'm glad you have a good dealer to work with. I do too, and I can say it's priceless. I know my dealer make a good profit off my purchases, and I hope he does. The guy has a mortgage and a family to feed!

Chris
 
   / What gives with dealers on tractor house? #69  
Do not imply that I'm dishonest. By the very nature of my explanation of the pricing process I'm being as honest as I can. In fact, I'm pointing out that your dealer could be the one being dishonest, which is why I've urged you to check on his "his cost" line.

At least his dealer gives him a price.

Chris

Edit: So do you work for Lawrence equipment in Cloverdale?
 
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   / What gives with dealers on tractor house? #70  
Plenty of dealers dont publish prices and dont go out of business. You can call it failed logic (or bs), but its the truth of sales. The ugly truth is, out of 100's of tractors we advertise on tractorhouse.com, we may sell 2-3% from the internet. Its just not worth putting much money or time into, if you are a serious buyer you'll walk in the door. Some dealers thrive on internet sales and do very well, but their margins are probably extremely slim.

Therefore, we dont just put a set price on a machine, we'd rather get the best price for the customer based on his circumstances. We could put a set price, but like another user said it would just be an inflated price...so why bother.

This is a non-answer, and attempt to change the topic. You said it wasn't reasonable to publish a fixed cash price. I said plenty of dealers are able to figure out a way to do that without raising their prices above what competitive dealers are charging. The fact that many dealers don't publish prices and survive is irrelevant.

The last time I was shopping (a year ago) I talked to a number of dealers who won't publish prices, and invariably their initial quote was thousands more than dealers who openly publish their cash price...interesting. I also called about a machine to get a price, only to learn "it's on the way" when I said I wanted to take a look at it....odd. Other times I called and they wouldn't even give me a number over the phone, even when I told them it was a cash deal and I wasn't going to waste their time if we weren't in the same ballpark...curious.

Further, the whole "we may sell 2-3% from the internet. Its just not worth putting much money or time into" line is absurd. If you take the time to put an ad on Tractorhouse, how much more money or time does it take to list a cash only price? None.

If you can't list a cash price available to anybody, it sure says something....and it's not exactly flattering.

The truth is, the goal of sales people, like yourself, is to get people into your dealership, for a number of reasons, but one is so you can try any number of sales techniques on them that simply don't work well if you publish a cash price. You might be able to get someone into a more expensive machine with the old "what do you want your payments to be" line, or get them to finance a bigger portion to pay for additional options, or a bigger machine, etc, etc, etc. You can't do any of that stuff to the guy who shows up with your ad off the internet with a listed price and pulls out his checkbook to write the check for that amount.

The problem is dealers and sales people don't want to admit reality. Your goal isn't to get the customer the best deal, it's to make a solid profit. That doesn't mean you squeeze the last penny out of every deal, but you're not giving away $100 bills because you think the customer is a nice person.

I had an interesting experience with a large, local dealer. I called, they never called back, I drove there a few days later and found the guy I talked to....he made a polite excuse for not calling me back, then we got down to business. I negotiated a price on a machine, and after a few minutes, he said "that's the best I can do." At that point I joked that I could also use a much smaller machine as well. The salesman perked up and said "well, in that case we can make you an even better deal if you buy both." I thought I already had his "best price" but I guess I didn't. I never went back.
 

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