Buying Advice A dealer looking for your input

[AHNC]

I'm in business. I'm a peddler. I agree that you have to review the whole sales/relationship history for your own benefit. When this guy comes in for service or parts I'd smile, be professional and charge the bejeepers out of him. The buyer was all about price and I agree that it was probalby a sales tax issue, unless you are in NH, which has none. At this point, you should be too!

I understand wanting the best price, but I've all ready had to draw on my local dealer for my tractor and they have been great. That is important to me.

If I was you, to protect my business, I'd drop a dime on the guy to the your states Dept of Revenue. Fairs fair!

 

[JOHNTHOMAS]

I'm in business. I'm a peddler. I agree that you have to review the whole sales/relationship history for your own benefit. When this guy comes in for service or parts I'd smile, be professional and charge the bejeepers out of him. The buyer was all about price and I agree that it was probalby a sales tax issue, unless you are in NH, which has none. At this point, you should be too!

I understand wanting the best price, but I've all ready had to draw on my local dealer for my tractor and they have been great. That is important to me.

If I was you, to protect my business, I'd drop a dime on the guy to the your states Dept of Revenue. Fairs fair!

I would ignore this advise.

You mentioned the relationship you established with this fellow- mayby it became too close and he was reluctant to approach you over the 600 dollars. You may have forgotten a cardinal rule of selling, "always be closing".
This customer went too long without being closed, you have to strike when the iron is hot and after one of you sessions with him you should have sealed the deal-not waited for him to close YOU. People WANT to be sold.
Slight disagreement here. People want to buy (not be sold) but with alot of choices I find that they are hunting a reason to not buy each one they see until some thing kicks them over on one. Maybe the closing or can't find a negative. You may have been to nice for this particular fellow or his wife may have told how handsome she thought you are.
Now, don't become a victim over this one loss and do not become hardened to customers over it. Learn from the incident and don't forget that your mission is to sell product, you became caught up in a personal relationship you assumed you had formed and it cost you money and confidence. Sure , you were treated poorly and many of those posting want to give you a shoulder to lean on because they would never do such a thing- but you need to examine the whole scenario again and use it as a learning experience. The easy way out is to blame the customer for the loss. Good luck!

I agree with TripleR and believe this one may be the best answer.
Hope this one is better on my part.

 

[keyman1808]

I agree with JT. You drop a dime on your customer they are more than likely going to know who did it and will bad mouth you till the day he dies. As far as overcharging for parts, Well I wouldn't do it but I also wouldn't give him prefered price either. Straight up retail. And if he needs service tell him right out that your machines, the ones you sold, come first and his goes at the end of the line because your also about service not just price.. Then again around here in New England you'll pay that anyway, tough to find a dealer around here who will give you a discount for being loyal.

 

[psj12]

If I was the buyer, I would have given you a second shot at the sale after getting a lower price elsewhere. I would have even considered your price at a few hundred more than the othere guys if you were closer and I thought your customer support was much better.

I do agree with the person who said to "always be closing". I just recently looked at a property in OK that I wanted and the wife was onboard (big house, 35 acres, barn, pool and large pond). I asked the realtor to give us a second un-hurried look at the property. After being on the sale property for less than 1/2 hour he started rushing us because some other agent wanted him to show us another property "right now" due to a scheduling error between the two of them. He took us to the other property that was out of the price range we quoted him and we left to go back to the travel trailer about lunch time. The agent knew we were in the area for only one week to look at property and were enthusiastic about the 35 acre property. After my wife was able to sleep on it she developed cold feet about the purchase because she felt something must be wrong with the property and we went home without buying. If the agent had given us time to look and had suggested at the end of that time we go back to the office and sign a contract he would have sold that property.

 

[Dargo]

You guys ( with the exception of maybe one ) are all extreamly insightful. Please dont think I am whining or trying to get you all to feel sorry. I am honestly looking for advice to see if people just dont care about service or if the lessons my father always taught me still apply.

Oh and it was a $600 difference on a $35,000 purchase. I have lost deals before, but this one just hit me hard after the relationship we built.

I haven't read the entire thread but, as a business owner, I've finally realized that there are some customers I'm better off just letting go. It's not very often, but sometimes I have to just say "no" and pass on a customer. I'm not in the business of selling tractors, but in my business, I've spent months putting together business proposals, flown in people, flown in their attorneys and accountants etc., just to have them tell me that Company X beat my deal.

My initial response is to be internally ticked off but tell the client that I'm really sorry to hear the news. I quoted him the lowest price I could and still provide him with the quality product and service I know they'd expect and wish them luck. What makes me actually mad is when that same client calls me back the next day and says that they'll do business with me and there was no other company and they were just trying to see if they could get a better price from me. That's where I opt to let that one go. If they're going to lie to me up front, I feel that they are going to be a constant PIA and I'll never know when they are going to lie to me in the future.

My biggest problem right now is getting my clients to pay. Oh, that is really getting me. What do I do with a customer who has been with me for 10 years but now I've caught them lying to me 4 of the last 6 months about paying their bill. It's a long and complicated legal story but, when these people don't pay me, it's actually a federal crime. I've warned this particular client over and over in the last year. Now after catching him lying again yesterday, which made it 4 of the last 6 months, I'm really having a hard time this morning. Sure it will trash my relationship with him, but it very likely will put him out of business if I turn him over to the authorities. What do I do? He's been warned over and over.

I'm not trying to hijack your thread, but I think I'm giving an extreme example of what generally happens when you do business with someone your gut tells you is a mistake. It's been a struggle this entire 10 years I've kept this guy company with us. I'm not sure if I'm better off now than if I would have been when he used that lying tactic to try to get a lower price from me 10 years ago. I clearly went ahead and did business with him after his lying game, but it's been trouble ever since. I really think the only right thing I can do is now turn him over to the authorities and let him sink or swim on his own. I've warned him all I possibly could.

 

[Morgan Kubota]

Man you guys are spot on. Im not angered by this guy nor am i loosing heart. I got books filled with great customers that I can only describe as perfect neighbors. And I will go to the ends of the earth for these guys. I even spent two days fighting through the court systems to get a judgement settled for a guy just so he could get a new tractor. These people make it worth opening my doors every morning. I cant lie guys I have the greatest job, I get paid to talk about tractors all day. What a gig right??

JT your post may have hit a nail i never considered. Although I did ask for the sale ( try and close ) and his wife told him to sign the paperwork he was reluctant. maybe there was another cause I cant see. ( heck she might have thought I was handsome ) haha

I will definitly still smile when he walks in the door. Just like I tell my employees we got to keep our dealership a fun and enjoyable place to come. I take kids for UV rides and everyone can drive a tractor and play in the dirt. I have seen to many places where the customer is treated like an inconvienience. I prefer to really make buying a tractor a fun experience for the whole family.

Great advice guys. Really what I needed to hear.

 

[Morgan Kubota]

Dargo you got a tough one there brother. That long of a spread of lies is tough especially with the history you have with the customer. Has he paid any part of it or has he stiffed you for that long?

 

[The Dougster]

<"My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?">

In these times where "everybody" is having to watch their dollars, price is extremely important. How does this customer know they are going to get "unbeatable service"... How will your service be better than the next fellows?

I am reminded of a time I was buying a new truck. I'd look and then ask the salesman to give me his absolute best price. I don't haggle. One fellow refused to give me a price. He said, "I don't like to do that because the next place you go will cut my price by $50." No lie! He watched me walk out the door without giving me a price! Geez Louise (sorry Louise)

I often smile when reading these threads where guys and gals talk endlessly about "dealer service"... Folks, this is a business deal. You aren't planning on marrying this dealer. Get the best initial price you can and cut the deal. It is what it is.

 

[TripleR]

<"My question to you guys ( the buying market ) : Is service no longer important to people? Is a cheap price more important than Unbeatable service?">

In these times where "everybody" is having to watch their dollars, price is extremely important. How does this customer know they are going to get "unbeatable service"... How will your service be better than the next fellows?

I am reminded of a time I was buying a new truck. I'd look and then ask the salesman to give me his absolute best price. I don't haggle. One fellow refused to give me a price. He said, "I don't like to do that because the next place you go will cut my price by $50." No lie! He watched me walk out the door without giving me a price! Geez Louise (sorry Louise)

I often smile when reading these threads where guys and gals talk endlessly about "dealer service"... Folks, this is a business deal. You aren't planning on marrying this dealer. Get the best initial price you can and cut the deal. It is what it is.

Hate to disagree with you on that one Dougster, but it can easily be a very good relationship over time. Based on my "relationship" with my dealer, I have gotten a full service on my tractor "after" the deal was completed and paid for including a valve adjustment and complete AC cleaning and service.

I recently got about a $200 upgrade, again after the deal and payment.

As mentioned, there are times when the price is the determining factor and others when it is not.

 

[KeithInSpace]

...it was a $600 difference on a $35,000 purchase...

That is sick. Absolutely inexcusable on the part of the purchaser, in my opinion. Simply as a matter of fuel consumption making the trek to another dealership, this decision will bite him in the rear someday.

Some may disagree. Probably disagree. I'm no farmer that does this every season, but I belive the relationship in a purchase like this is almost as important as the purchase. I wander into my dealership for no particular reason every couple months. I shake hands, smile, and usually walk out with a hat or a shirt or something. Feels good.

If I shook my dealership down for $250 on my $15,000 purchase (the equivalent to your situation but in "my" dollars), I PROMISE I wouldn't have the same relationship with them. I've probably gotten that amount of money in FREE HATS since I made my purchase...

I actually envy more your position by sticking to your guns and losing the sale. I've done the same. It may not make sense at the time, but diminishing your costs to a bidding war when you get within $600 on a purchase like that is unnecessary. Ultimately, you'll win for it. I promise.

I'm sorry.

You, sir, are awesome.

 

[teg]

...I'd drop a dime on the guy to the your states Dept of Revenue. Fairs fair!

:thumbsup:

 

[drg1]

having been in the same boat as the dealer, this is what I have done in the past..Contact the buyer and congratulate him on his purchase.Then remind him that you will be readily available to service and take care of his new machine...Keep the contact open as to show him your willingness to take care of him as a customer..Guarantee that he will remember this when he comes to upgrade or purchase other equipment...

 

[Ductape]

Morgan Kubota, it sounds to me like this particular customer was one you just can't win. $600 on that large of a sale is really insignificant. Its a shame he went long distance to purchase when it was such a small difference. It sounds as though you run a dealership I'd prefer to do business with. Unfortunately, I haven't found a Kubota dealer (nor several other colored dealers) near me that makes me WANT to do business with them. Oh, sure, i DO spend money with the local dealer....... but is out of convenience, not because they try to do me right when I shop there. Just keep doing what you are doing, word will get around, and you'll continue to prosper.

I have to say something to the few of you who suggested turning the buyer in to the government because you feel this is how you will get future sales from people. Shame on you !! Really, you need a government agency to come down on consumers to sell your 'good' or 'service'?? You can't compete on the merits of the good or service you sell? I can only hope you go belly-up with that attitude. It amazes me how many people in this country (or any other country) feel that government is the solution. :confused2:

 

[MW66]

When it comes down to it, EVERYTHING has a price. $600 is nothing on a $35k investment. For me, I checked Barlow's to get a baseline price. My local price was right there so it was a no-brainer to stay local. That way I support my local business and I get good service from a place where I made my purchase.

 

[yeehaw]

To the Original poster -- long opinion -
you said you had been doing this for six years - maybe more retail sales experience than that... but everyone is different these days when someone says "gives them the best price I could.. upfront" then they determine that is the bottom dollar and no additional offers would be considered....something as simple as "we will not miss any deal because of price" i.e. lose $$ on the box blade to sell the tractor...or vice versa


my real life example - used to sell cars and our dealership was in a major city that was very price competitive with every dealer in the state. a small town dealer 3-4 hours away starting stealing business from everyone when they starting advertising vehicles $2k+under invoice (cars can already sell for $1k or so under invoice that is the way they are already advertised - and the dealer make money...long story)... yet add another 1000 or 1500 off with no special programs and no one could figure out how they were doing it. Our dealership literally sent someone with a casher's check and bought a SUV to see if they would stay true to their word...and they did -cash deal with no trade in is how they would lose money--- finance they make money -and on a trade in they would maybe give you less than another dealer----they just took the hits on the cash deals to rake in the other business--- and the comment below also helped


if the tractor business is anything like the car business some dealerships really can sell a vehicle cheaper as they may lose a boatload on the deal, but there are incentive bonuses (goal based) available to most that are so large that even I still cant comprehend which are upward of $1k/unit, but they get zero if the goal is not reached--- imagine missing a 100 unit goal by 2 cars and by reaching it what your payout would be---- that last car buyer would probably get a pretty sweet deal--- you just have to catch the "right dealer at the right time".

moral -- sometimes your bottom dollar doesn稚 have to be your bottom $$ if you really want to move units ( then again some people stick by their guns on how much they make on each sale)


YET
the "buyer" still should have come back to you and given you a shot at his business - at least another $500 off.... as you cant sell to someone who doesn't give you that opportunity.

unfortunately you sound too nice - yes a compliment ...although the talk of price maybe should have come up sooner before you spent so much time with them-maybe incrementally as they looked at everything---every situation is different...as your time definitely is worth something?

Keep up the good work and I agree with what someone else said -try and continue a strong relationship with them so as they don't drive by you for parts, service, and their next purchase

 

[sxs191]

Morgan, You might get the last laugh when he comes to you for service or attachments in the future. :thumbsup:

 

[wvpolekat]

In a former life, I worked at a Yamaha dealer as a service manager. The service department exists to support the sales department. We were the ones that KEPT customers. We would perform service work for people who bought elsewhere, but we would try harder for the one that bought from us. We also remembered the ones that were what we called "chicken yankers", and bought elsewhere. We wouldn't gouge them or anything, but they would not get the same treatment that our sales customers got. That went for ANY of our customers, regardless of what they bought, a $500 PW50 or a $20,000 Royal Star.

I am going to pick my used Kubota up tomorrow from a dealer 4 hours away. The salesman was prompt and professional with me, gave me a good price right out of the gate. The local dealer tried to steer me away from used and into new and wouldn't budge on the price, which was better than 50% more than my budget.

I am not sure what I will do for service, but more than likely, I will do it myself and shop elsewhere for implements.

To the dealer posing the question, you did right. You spent the time to help the customer make a good choice. BUT, you have to remember, if low price is all that matters to him, is he a customer you want? I had several customers that were always beating me up on price to the point I asked them to not come back, they were not worth the trouble. Karma will pay off for you, don't worry.

 

[davatk]

Price is very important, especially if you are working with serveral dealers and one hasn't really stood out to be as helpful as it sounds like you were. I'm usually the one to really try to get the lowest price possible, but I would have at least given you a call to let you try to come close to the other dealer. Your time and effort are certainly commendable, and I think anyone with half a conscience would have done that. It's a shame, but unfortunately that's how things go sometimes.

 

[dcyrilc]

Morgan Kubota,

Sorry to hear that you didn't get the sale, but there may be other factors involved. If buying in PA saved him paying $21-2400 in taxes plus the $600 difference in price, he may have felt that you would not be capable of comming anywhere close after being told it was your best deal. He may also have felt that it would be insulting to you even to ask. Doesn't mean that he wasn't impressed by you or that he doesn't intend to come to you for service/parts.

I bought a used tractor from a person off CL. I my do my own service and get my parts from my local dealer. My dealer knows me by voice when I call and says "Hi" with my name before I even tell them who I am. Over time, I expect to spend many thousands of dollars to repair and upgrade the tractor I bought. I consider them to be business friends, however price can still make a difference. My tack and hour meter didn't work when I got the tractor and the only way to repair/replace it through the dealer was to buy an entire new instrument cluster for $1190. I found a company in North Carolina which repaired both with a one year warrenty and shipping both ways for $175. I chose to use the company in NC. This had nothing to do with how I feel about my dealer. I think they are fantastic! If I ever buy a new tractor or impliments, I will most likely buy from them if they have what I want.

My point is this...
...Just because he didn't buy the tractor from you doesn't mean that you didn't leave a lasting good impression with him or that you won't see him again. I don't have to buy from my dealer. He usually doesn't have the parts I need and ends up having to order them. I buy there because I like him! If I felt like he didn't want my patronage because I didn't buy my tractor from him, I would simply find another dealer or internet order my parts.

In the six months since I bought my tractor, I have opened a credit account with him and almost never buy on credit. I almost always have an overpaid balance on my account. When know I am going to be buying parts, I begin calling ahead and putting money onto my account until there is more than enough to cover the purchase. My next purchase should be a new canopy for the ROPS and will cost around a grand. I'll call each month and make a $2-300 payment on my account until there is a enough money to buy it outright. Then I'll call him and tell him to order it.

Anyway, don't feel that it was anything you did why he didn't buy from you. If he comes back in, treat him as you did before. Chances are that he doesn't even realize that you felt shorted because he bought elsewhere. He very well may feel loyalty toward you and plan to return for service because of the treatment he has already received. He could also refer others to you because of the time you spent on him.

Sorry for such a long post.

 

[spike23]

Morgan, You might get the last laugh when he comes to you for service or attachments in the future. :thumbsup:

True. But will he come to you now? What was one of the first things I did when I bought my tractor? Started looking at TBN for words of wisdom. Maybe he won't join, he'll just look... If he sees your post, he'll probably be a little upset, knowing it's about him.