What % off MSRP is comon in today's market?

[IslandTractor]

Sorry but I find that statement very hard to believe.

Tractors are not cars. There is no window sticker. I can imagine that dealers know perfectly well what THEY paid for the tractor from the manufacturer but that they operate on a cost plus profit basis in pricing rather than a MRSP minus discount like car dealers. The publishing of list prices by companies like JD on their website is actually relatively unique. I was never able to find a MSRP on my Kioti and don't recall seeing them on Kubota's website when shopping either. Maybe JD's marketing strategy (showing MSRP) will catch on but I don't have trouble believing Neil's (Kubota and NH dealer) statement.

 

[AKfish]

There is no window sticker. I was never able to find a MSRP on my Kioti and don't recall seeing them on Kubota's website when shopping either. Maybe JD's marketing strategy (showing MSRP) will catch on but I don't have trouble believing Neil's (Kubota and NH dealer) statement.

You haven't been back to the Kubota website lately, huh? They're giving out prices... er, pricing information, now.

Does that qualify as MSRP?

I've been on the NH website (at least a month or so ago) and they have a build-it-yourself feature as well. Don't recall if there's an MSRP for that feature, though.

AKfish

 

[arrow]

I was told by a John Deere rep that there is a 25% difference between invoice and msrp. If there are any other factory to dealer incentives such as there is with cars, this is what Messick may have meant in terms of final cost figuring. If the "skin" comes off the dealer for any rebates, then this is another final cost factor. How much you are willing to pay the dealer percentage wise is simply an offer at first. Some when times are tough, will work at 10%. Others at 15% or like a Kubota dealer up here, won't take a dime off his 25%. This is almost a life time purchase for most individuals. Weigh that factor out if you'd like to help contribute to longevity of the particular dealer you like. Instinct is another aid not to be overlooked. For instance, when I look at a Kubota L3400, it simply strikes me as a tractor that has a worth to me of around 17500 and not the almost 20 grand the dealer wants. If Kubota has a 19700 msrp on this tractor and works on 25% as well, then 17500 is around half way between invoice and msrp. At any given moment, that may be suitable to the dealer or not and means the difference to me as to whether I own a Kubota or not.

 

[rjkobbeman]

Before I ordered my tractor, I printed the "Build My Kubota" results from Kubota's website. This has MSRP (retail) prices. I included all of the options I wanted.

I brought the printout with me to the dealer in order to talk price and see where he was compared to retail.

He took my printout and went down the line, one-by-one, finding each piece (tractor, option, etc.) in his book.

He found everything exactly by part number. Part numbers were included on the "Build My Kubota" printout.

There were only two discrepancies: The current tractor being offered from Kubota was a "-1" but the website was not pricing the "-1". Also, one of the options I ordered had a "-1" part number and the website did not note that either. My dealer didn't notice the issue right away, but he knew something was amiss because the retail price I provided on the printout did not match his retail price listed in his book. All the other items matched price exactly. He eventually figured it out by looking up the retail price in his book for the standard (non "-1") version.

Anyway, to make a long story longer... my dealer had retail prices listed in his book... along with his invoice prices. When he gave me "his" price, he said almost immediately that his offer was almost 15% off of list price.

Rob was in happy town and we ordered up everything that day.

I don't know about other manufacturers' dealers, but Kubota's have retail (aka, list, MSRP, etc.) listed right in their books. They don't even have to go on the website... which they should know how to do anyway.

 

[DennisH]

I don't know about other manufacturers' dealers, but Kubota's have retail (aka, list, MSRP, etc.) listed right in their books. They don't even have to go on the website... which they should know how to do anyway.

And so does JD, NH, MF, Mahindra ect.

 

[MessickFarmEqu]

I don't know about other manufacturers' dealers, but Kubota's have retail (aka, list, MSRP, etc.) listed right in their books. They don't even have to go on the website... which they should know how to do anyway.

Oh yea, we've got it... but like I said, we don't care. None of our calculations in pricing a tractor use MSRP for anything.

Nor do I find that many people who seem to care, I could not tell you the last time I worked it up.

 

[rjkobbeman]

Oh yea, we've got it... but like I said, we don't care. None of our calculations in pricing a tractor use MSRP for anything.

Nor do I find that many people who seem to care, I could not tell you the last time I worked it up.

Well, unless you tell us your cost (or whatever number you start from) we the consumer cares. We work with what we have.

I don't see how you have to "work it up" (finding MSRP) when the number is in the next column over.

All the dealers I worked with were well aware of MSRP. Seems like something a salesman should know. Call me crazy!

 

[jenkinsph]

Oh yea, we've got it... but like I said, we don't care. None of our calculations in pricing a tractor use MSRP for anything.

Nor do I find that many people who seem to care, I could not tell you the last time I worked it up.

You should be aware that customers care and will often compare your price to the listed price. While you may work off your invoice price and calculate your overhead and setup costs the customer has to work with what is available to him or her.

 

[BleedGreen]

You should be aware that customers care and will often compare your price to the listed price. While you may work off your invoice price and calculate your overhead and setup costs the customer has to work with what is available to him or her.

Most of us work with cost, plus - like Neil does, but I agree that MSRP is the only reference point that the customers have. That being said, our quote system shows MSRP, the actual discount in dollars and the final price on each piece of equipment. The system allows us to show any and all additional fees (freight, set-up, etc.) but it also can be built into the tractor and/or implements - and will not show as separate line items. My preference is to show all fees, so as to be able to properly explain everything to my customer.

Sorry, but after re-reading this entire thread I had to make a couple more comments - any John Deere National Account Sale (AQHA, NTRA, USEF plus many others) are "delivered" by the dealer and "sold" by John Deere Company. The very deep discounts are usually below our cost and we get a small "set-up credit" to do the actual work - in most cases this ends up being a break even, slight loss or slight profit for the dealers. The idea behind the National Account program (Deere's idea, at least) is that these units will be out and "seen" by many people - which is why the program is so strict on who is allowed to use it. AQHA, for instance, if you look back in the post, is available for full-time horse operations, professionals, breeders and trainers - not for the family with 4 or 5 acres and a few horses... Last point, and I have posted on this before - John Deere margins shrunk a few years back and, unless there is a special program going on - 20% discounts off MSRP are a thing of the past. Without any special programs from Deere, 15% off MSRP is going to be about the best you can do. Of course factor in a unit that has been on the lot for a year, or a unit that has a redesign coming out soon - things like that always make a difference.

Anyway, just my two cents!

 

[TWD]

Kubota quote online was about 8,000 more than my local dealer quote right off the bat, no bargaining. They told me what the machine had, and said bring them back quotes and they`ll work with me.

MSRP appears it can be 10-20% higher than actual sell price @ Dealers.

Obviously depending on your tractor that dollar value will vary