“Buy the dealer, not the machine” is outdated

[RSR]

... as it turns out the $50 they cut their price was the $50 it takes to actually take care of their customers!

Are you sure about that?

Maybe they've simply evolved and learned how to run a lean, efficient business, on smaller profit margins, thereby stealing their competitors customers. Business is a competition, after all.

Lots of people/businesses complained about the influence of the internet on retail, and refused to accept the reality. Those companies aren't around any more.

The fact of the matter is most customers are going to competitively shop for prices and seek out the best deal. While a bit more behind in the pace at which it's changing, the tractor shopping experience will continue to evolve and move further in this direction.

There are already fewer and fewer dealers that take the stance "if you didn't buy it from me, you go to the back of the line." (See TexasDiggers recent post on his experience). Those that persist in this outdated business model do so at their own peril.

Like many businesses before them that refused to accept and respond to the reality of an ever changing retail marketplace, they will quietly slip away, never to be heard from again.

 

[TexasDigger]

I always lay the cards on the table and am totally honest. Explain to a local dealer exactly what my options and dilemas are. This usually works out well. No one is upset or feels offended. Sometimes it's just a matter of them asking the question, if I can do something for you, are you going to sign a deal "right now". You have to be prepared for that, otherwise it's just more game playing.

Agreed! You have to be up front with a dealer to let them know what HAS to happen within YOUR budget - don't be shy about it either & don't compromise unless it's for something WORTH the compromise (example - I ended up buying a 73hp when I was shopping for a 65 hp.. for only about $1000 more!) Only 2 outcomes: Either they will work a deal that works for you, or they won't. Going back to what FERLING said, If you're only talking a few hundred dollars difference from a non-local dealer Vs. your local dealer who has the tractor, or at least ONE of the contender tractors on your list you want - paying a few hundred more with your local dealer is a no brainer. The one single and BEST piece of advise I can give you (if this is your first tractor): Whatever size tractor you think you need - if you can, buy a bigger one! Don't make the mistake I did & buy "not enough" tractor - then get stuck on a negative trade-in before you even put 100 hours on it! I would highly recommend looking up the HP levels at least 2 "steps" above what you think you want & know what PTO HP you need, what lift capacity you need, etc for whatever you plan on doing - whatever you need depends on what you plan to do. For me, the foreseen need to be able to pull a small 4x4 baler was the deal-breaker that made me ultimately have to trade up to a bigger tractor - even though it did everything else I needed it to, my 35hp w 31 PTO hp simply wasn't enough for the baler.

When you're buying, keep an open mind though & know all the competition & other models/brands/trim levels & hp ranges, etc - including the pricing! Your local deal will work with you if they can but you have to be 100% up front and know what you want. My local dealer worked with me every way they could with what they had to work with (they had a New Holland Workmaster 70 in stock that fit my budget & basic needs). The only reason I didn't end up buying from my local dealer is that they simply didn't have the tractor I had landed on - but, if they did, they knew I was ready to buy it & don't hold it against me from getting it from where I could actually find one on the ground. However - IF push came to shove, my local dealer DID have a tractor that would have done what I needed to within my budget - it just wasn't the one I was "closed" on. They couldn't compete with a piece of inventory they simply didn't have, but they gave it a valiant effort & can't fault them for it at all. As long as you know your numbers (price, payment, trade value, etc) and what you actually want/NEED - the dealer closest to you will do everything they can to work with you. Working in sales myself, TRUST ME - THEY WANT TO SELL YOU A TRACTOR lol! But if they can't they'll still service it. Sales is only half of a dealerships revenue and if you have issues with service, there are lots of other dealers out there.

 

[Industrial Toys]

RSR. Well it works two ways. You say dealers that put, (not their customers) to the back of the line will do so at their peril. But this also means that those that don't obviously don't reward their "loyal" customers either. And really, the biggest reward you can get at a dealer is some (often covert) favouritism for your place in line and attention.

 

[LS Tractor Owner]

When I started negotiating with my current dealer, he was about $2000 higher than the "big internet dealer". He actually said he didn't know how that dealer was selling so low, being it was right at his 'cost' from LS.

He asked if I would wait a day before I made a decision, so he could call his regional rep (the same rep that the other dealer has). He called me back within a couple hours and said he would match the other price. Doing the "right thing" to gain a customer made all the difference, even though I am still 500 miles away.

That just led me to purchase additional attachments, which he STILL discounted substantially! He earned my business.... he could have just said "no, can't do it".....

I was told that some of those "new" tractors from the internet dealer are not new off the assembly line, but rather "new returns". They are returned to the factory from dealers that went under and were not sold, or from dealers that changed their floor-plan stock based on local needs. The "internet dealer" buys them at a substantially reduced cost. I am not sure if this is true or not.

 

[UCFKnights]

for me, its been really hard to "buy the dealer" because I have no clue how the dealer is going to be with the service after I buy it. Around here, the sales and service departments at every major brand are pretty much seperate. They claim they communicate, but my experience is its very limited. And the sales people seem to change so often, unless you have the "giant account" sales rep who has been there forever. And its been entirely inconsistent: places with awful sales people have great service departments, and vice versa. So far, in the years I've been in business, I seem to buy $100k in equipment every 6 or 7 years.

Last year, I decided I wanted a new skid steer, along with a bunch of smaller equipment/attachments and went to all the major brands to test drive the machines and price them out. Once I decided which brand I wanted, I priced it out at the local dealer, and they wanted to sell it for MSRP, even though others were heavily discounting. I started shopping out of the area since I preferred this particular machine, and the discounts I got 3 hours away were a whopping $20k more on the total order, and the sales people were way more responsive as well, so I decided to go against the advice of others and buy from the next state over after telling my local dealer the price I was offered and was told "we don't do that, and if you don't buy from us, we won't offer pickup service, free rentals during warranty, etc" As luck should have it, the machine broke down on day 2. I called the dealer I bought it from. He said it'd probably be faster for my local dealer to handle the warranty for me, and said he'd give them a call. The dealer I didn't buy from had me a free rental and picked up the machine to do the warranty work without issue. Actually much more pleasant to deal with them for warranty then the sales department.

The way I looked at it is first off, with a new machine, I shouldn't need a ton of service (I do maintenance in house), and second off, $20k is a fair amount... even if they gave me 10-15% loyalty discount on service or parts, its never going to beat that $20k in discounts by not buying local.

 

[RSR]

RSR. Well it works two ways. You say dealers that put, (not their customers) to the back of the line will do so at their peril. But this also means that those that don't obviously don't reward their "loyal" customers either. And really, the biggest reward you can get at a dealer is some (often covert) favouritism for your place in line and attention.

You're right. At the end of the day, you have to somehow provide some "value" whether in price or service.

My point was that society in general has shifted from a service-oriented business model to a price-focused model that prioritizes convenience Think Amazon. While I recognize their contribution and importance to the market, and avail myself of their services, I also despise what they have done to the marketplace. But it's the reality, and there's not a lot I (or businesses) can do about it.

I actually prefer the service model. But the fact is that as society in general makes the shift further to focus on price and convenience, the companies that assume a service-oriented value-added model are going to find themselves with an ever-shrinking customer base and eventually have to close-up shop. Unless there is backlash at some point. Doubtful, but maybe.

As justification for this viewpoint, 20 years ago you almost HAD to physically go into a dealer to buy a tractor. The local dealers realized this, and played it to their advantage. As the internet, e commerce, and logistics has developed, that is no longer the case for residential use.

Look how many posters here (myself included) talk about using the internet to get multiple quotes from various dealers without setting foot inside. And, if the dealer doesn't respond within a day, forget them. After the purchase, there is rarely a need to go back to the dealer.

It's a clear affirmation that most buyers prioritize price and convenience above service. As much as I miss it, I think service-focused business models for residential tractor use are outdated and antiquated. To make it, you have to offer price and convenience.

I'm afraid charging high prices because "we take care of our customers" just doesn't appeal to most buyers these days

 

[UCFKnights]

You're right. At the end of the day, you have to somehow provide some "value" whether in price or service.

My point was that society in general has shifted from a service-oriented business model to a price-focused model that prioritizes convenience Think Amazon. While I recognize their contribution and importance to the market, and avail myself of their services, I also despise what they have done to the marketplace. But it's the reality, and there's not a lot I (or businesses) can do about it.

I actually prefer the service model. But the fact is that as society in general makes the shift further to focus on price and convenience, the companies that assume a service-oriented value-added model are going to find themselves with an ever-shrinking customer base and eventually have to close-up shop. Unless there is backlash at some point. Doubtful, but maybe.

As justification for this viewpoint, 20 years ago you almost HAD to physically go into a dealer to buy a tractor. The local dealers realized this, and played it to their advantage. As the internet, e commerce, and logistics has developed, that is no longer the case for residential use.

Look how many posters here (myself included) talk about using the internet to get multiple quotes from various dealers without setting foot inside. And, if the dealer doesn't respond within a day, forget them. After the purchase, there is rarely a need to go back to the dealer.

It's a clear affirmation that most buyers prioritize price and convenience above service. As much as I miss it, I think service-focused business models for residential tractor use are outdated and antiquated. To make it, you have to offer price and convenience.

I'm afraid charging high prices because "we take care of our customers" just doesn't appeal to most buyers these days

See part of the problem is on your Amazon example, Amazon often provides way better customer service then these local mom and pop places. I order something wrong, they'll send someone to my house to pick it up. It comes in damaged, they ship me a new one before I send it back, or if I give them a specific part that sell to fix the problem, they just send it to me. I want the price on some other product I don't usually buy, its right there, upfront, with all my discounts I negotiate if I'm using Amazon Business. Like literally everything is at my fingertips that I could want out of a retailer for the types of products Amazon sells.

When you try to get customer service out of the mom and pop shops, even the ones that are really good and try hard, the owner clearly isn't thrilled when you're doing things that are cutting into the profit, such as returning items or claiming warranty on something that the manufacturer isn't going to reimburse the store for. And I get it: I own a small business and I'm not thrilled when I'm doing warranty work for free with my customers, especially when I view some of the items as very minor and nitpicking, instead of doing things that make me money. But the automated systems and disconnect between the financial impact between the person you're dealing with makes it easier to provide better, less emotional customer service. As a stupid example, if someone buys an oil filter on Amazon and the box comes in damaged and they want a new one, you know Amazon will just ship them a new one and pick up the old one. You do that at a dealer, they're gonna look and be like "the oil filter is fine".

In other words, a big part of the reason of Amazon and the internet giants success is precisely because they typically provide better customer service at a lower price then the competition. Yes, there's specific situations where they are worse... but typically, my experience is they're way better, on average. Even product support, one of the entire purposes of this forum is to help people get support on the equipment they're buying. If these places really had great product support at a low price, there'd be no reason for this forum to exist, and realistically, this forum and others like it provide way better support for my equipment then any dealer I've dealt with. For free no less.

 

[slingha]

A car is way different from a farm tractor. Have you ever tried to push a tractor even 10 feet? Have you ever called AAA to get a tractor towed? Consider how many systems are involved with a tractor - hydraulics, PTO, engine, transmission, and all the modern controls and interlocks (not to mention computerized controls). Every time I need to service my 80 horse New Holland it involves getting a 6000+ pound beast moved to the dealer or picked up. Low hours and shed protection are the most important factor.

Cars are far more complicated than a tractor. It's not even debatable

 

[fried1765]

However - this is a free country. So... buy your new tractor at the cheapest dealer you can find. I just hope he has good service also. Let us know how it works out - if you ever need service, or parts or just good advice.

I will say good service is important but rare today. Also I try to support businesses in my small town but we have no tractor dealers and only a Dodge car dealer and we drive Fords. We do have a local Napa store that sells Stihl, Husqvarna, Ex Mark,etc. When it comes to anything he sells I buy from him regardless of price.

I get the same service if I am spending $1 or $1,000 and any money I spend stays in our town. When shopping local I support home town people. For everything else I shop price.

The UPS & FedEx drivers seem to "stock" all the same parts every dealer does.
Messick's gives WONDERFUL advice.....450 miles away, on the telephone.......no driving to dealer required!

 

[fried1765]

If the dealer nearest you is not performing quality service, you the tractor owner better have either a reliable tractor, good mechanical skills, or a trailer to haul your injured tractor to a dealer who can perform good service. There are always dealers willing to make the needed service repairs. But they may give you lower priority over existing established customers.

The words trailer & tractor really should belong together!