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

[archerm3]

Messick you don't want to be badgered and most customers don't want to badger the dealer/salesperson so why don't dealers simply but a price tag on all items and sell the item for the price on the tag. It has been tried and it works at least for Walmart. There are few things I can think of that are more unpleasant than negotiating a price for a car, truck, tractor, ATV, etc.

I can think of one thing more unpleasant than negotiating for a car or other high dollar item: NOT being able to haggle for it.

Haggling is easy when you understand how to shop around and know the value of your own money. I don't get to haggle on my electric bill, that's what's unpleasant.

 

[kungfupanda1]

WHAT?

Right. That is true.

 

[Jerry/MT]

the whole process is way to complicated to boil it down to a simple service like this. Equipment pricing is not so simple to say that X tractor costs X dollars. You've got discounts based on serial numbers, where you live, what other equipment you may own, and innumerable other programs dreamed up by people who seem bent on making my job as complicated as possible. If you want to know your paying a fair price, just shop around. Of course, you can also ask the salesperson flat out. I tell people our margin all the time, because when I do they always stop badgering me further!

I wish all dealers were as direct as you!

 

[MessickFarmEqu]

Mr. Messick, with all due respect-your comment about msrp and not knowing it is poo. Your pricing on a new GR2110 was exactly the same as six other dealers in two States, exactly.

I am willing to drive a little to get one for alot less than you sell for-why will you take 100% of nothing instead of 85% of something

this is actually a great example! The difference between dealer cost on a GR series and the published MSRP is less than it is on a compact tractor. On a $7000 (or so) GR series tractor we're pocketing a very slim margin, there just is not much wiggle room... thus why you find basicly no difference in pricing. Under your 85 or 100% senerio we'd be taking a loss. I'd rather sell nothing than take a loss.

I go straight to Tractor House to see market pricing on models.

Careful... tractor house prices seem to be a wish list. We try using that site to do comps, but they tend to be way high.

 

[MikePA]

Under your 85 or 100% senerio we'd be taking a loss. I'd rather sell nothing than take a loss.

Some economic 'experts' think even though you'd take a loss on each sale, you can make it up in volume.

 

[MFRED]

You guys can't sell at a loss. I thought you could? Then put service parts in stock. Send your techs to training. Oh and I want that delivered as well. Then I'll send in the kid for a donation for the baseball team, shcool, Boy Scouts or whatever else needs a donation.
I had better not get charged for that service call when you came out & plugged in my loader hose.
Who cares is you have bills to pay?
I just paid thousands of dollars and all I got was a hat?

Good for Messick's. Support your local dealer before there isn't one to support.
I would rather give a couple percent to a dealership that has the facilities and capability to support my equipment when needed.

 

[pitt_md]

Messick you don't want to be badgered and most customers don't want to badger the dealer/salesperson so why don't dealers simply but a price tag on all items and sell the item for the price on the tag. It has been tried and it works at least for Walmart. There are few things I can think of that are more unpleasant than negotiating a price for a car, truck, tractor, ATV, etc.

BUCK, I have a Ford dealer close to where I work that sells all their cars/trucks like you say. They put their best price on it and thats it. i had bought 3 trucks from them over the years and when it came time to buy the F250 I looked at another dealer 20 miles up the road. Same truck, same color, same trim package etc. My original dealer discounted the MSRP of the truck close to $8K. The dealer 20 miles up the road almost just over $13K. Dealer loyalty only goes so far. I think its in the best intrest of the dealer to remain flexable.

 

[pitt_md]

If you are a member in the AQHA (or some other groups)you can get as much as 23% from John Deere. Here is the site: John Deere

WHAT!!!!! 23%!!!! SOB! Why didn't I know this???

Available for full-time horse operations, professionals, breeders and trainers.


Never mind...

 

[dave1949]

BUCK, I have a Ford dealer close to where I work that sells all their cars/trucks like you say. They put their best price on it and thats it. i had bought 3 trucks from them over the years and when it came time to buy the F250 I looked at another dealer 20 miles up the road. Same truck, same color, same trim package etc. My original dealer discounted the MSRP of the truck close to $8K. The dealer 20 miles up the road almost just over $13K. Dealer loyalty only goes so far. I think its in the best intrest of the dealer to remain flexable.

If I were in a similar situation and really wanted to support the dealer, there is nothing wrong with asking if that F250 could be priced wrong, just like you might question a price that looks out of whack at the hardware store. If that were the case, I think the dealer would be flexible eventhough he is using fixed prices. If he can't sell the same truck as cheap as the other dealer, it probably hurts to lose your business. You don't know what incentives or other marketeering is going on to make a $5K difference.

Fixed prices can and do change all the time. The point is, they are easy to publish, quick and easy for a buyer to find. In theory at least, one data entry clerk could easily replace the commissions paid to five sales people. I wouldn't mind seeing those savings reflected in the price of autos, etc.
Dave.

 

[dave1949]

I can think of one thing more unpleasant than negotiating for a car or other high dollar item: NOT being able to haggle for it.

Haggling is easy when you understand how to shop around and know the value of your own money. I don't get to haggle on my electric bill, that's what's unpleasant.

I hope you have considered that your fear of not being able to haggle has more to do with sales psychology than pricing.

You feel more comfortable not paying the first offer price becuase you are sure that's too much. The person selling realizes this and offers a high price to begin with; knowing you won't be happy unless they can lower it. I don't see how that accomplished much in the end - except kill time. Plus, you walked away with a warm fuzzy.

The only way a person could 'beat' the haggling game is to always be someone who pays one of the lowest prices. You may be convinced you are that person and perhaps you are. It could be difficult to know.
Dave.