Best Negotiation Technique

[SLOBuds]

When you bought your new tractor, what technique/s did you use to negotiate your best price?

What seemed to be most effective? What didn't seem to work at all?

This process does not appear to be the same as new car negotiation.

Thanks.

 

[rdln]

I didn't do this but if you have enough available credit on a card, get the deal and price set and then ask for the cash discount if they dont have one charge it, they might suddenly have a 3% cash discount.

 

[rancar]

Martin...

First off, develop your shopping list with a line item breakdown of everything you are looking for in a tractor right down to tractor options, attachments, implements, etc.

Take that list and hand it to the dealer and ask for a line item breakdown in price. This will give you the chance to determine the options and attachments you really want if the total tractor price is higher than you originally anticipated. It won't take the dealer much time to provide this breakdown.

Then, visit as many different dealers you can and hand that shopping list to them letting them know you are seriously shopping.

You'll then have a few package prices to consider from and you'll also know which dealers are providing you with the best deals item by item. This way you'll get to choose from multiple dealers, get a sense as to how dealers treat you as a potential customer, and surprisingly you'll learn how much dealers really know about the equipment they sell. If you do your homework and develop that shopping list carefully, you may find you know more than some dealers.

If you don't hear from a dealer with a price on the package within a week, then bug them by e-mail or phone. If you still don't hear from them shortly thereafter, forget about them and do business with a dealer who'll promptly respond to your requests and needs.

Look for a dealer markdown of between 12-15% or more off MSRP in most markets. In less competitive markets where dealers are fewer and have greater leverage to price higher, markdowns may be less but you should still look for at least 10% off MSRP. I've heard of a few cases here at TBN of individuals paying full MSRP on tractors or implements. This is very unusual and likely happens only in tightly controlled dealer markets.

Just a few thoughts to consider....

...Bob

 

[Boondox]

Let it be known that your wife will let you buy an additional implement every year! /forums/images/graemlins/grin.gif

Pete

 

[BillyP]

</font><font color="blue" class="small">( If you don't hear from a dealer with a price on the package within a week )</font>

Forget him. If he's not that interested in selling, the service will be worse. My advice is to get as many price quotes, on the exact same package as you can, and go from there.

 

[SLOBuds]

I live in California ... where there are a total of 3 tractor dealers in the entire state. /forums/images/graemlins/frown.gif Just kidding, but not by much.

So at any rate, I'll be able to get one or two quotes on my exact list of requirements.

Any other ideas after that?

 

[markie61]

I put out a RFP - request for proposal.

I researched exhaustively (mostly this website) to know exactly what I wanted in a tractor. I then developed a spreadsheet and cover letter. I both emailed and snail-mailed it to every dealer in my area and some out of my area who did long-distance business. If I didn't get a response within a week or so, I followed up with a personal phone call to assure them I was serious.

I've attached my Kioti blank form, but made one for each specific brand (other orange, green, blue, and 3 reds).

Got some great responses and great prices.

Mark

<font color="red"> UPDATE </font> Tried to post the .xls file, but it is a restricted file type. Send me a PM with your email and I will send it to you.

 

[Rick Jay]

Hi,

I found it difficult to compare exact prices in our area because we don't have numerous dealers of any specific color within what I would call a close area. Also, different dealers handled different brand implements, so comparisons were tough there as well.

My first step was to visit the local dealers and just talk with them and look over their shop, to get a feel for the dealership and personalities. From that, I quickly ruled out the John Deere dealer (too bad, too, 'cause I think they have a nice product line), the NH dealer was O.K., but not overly talkative, and the Kubota dealer was very friendly and informative. That, and several other reasons led me to Kubota.

Now, after visiting the dealer several times to discuss options and look over various models, I was ready to deal. I had already received 3 quotes from "internet" sources. His original quote was quite a bit higher than all 3 distant dealers. However, when it became apparent that I was serious, ready to put money down and had already been approved by Kubota credit for the needed loan, he sharpened his pencil and arrived at a mutually agreeable number. It wasn't the cheapest, but I believe it was fair.

I think you really have to access your needs and find a method that will work for your situation. It might also depend upon which tractor your looking to purchase. I know the Kubota BX22 is in very short supply and I believe the Kubota B7800 is a bit tough to get as well.

I believe your best asset is to be well informed and don't hesitate to ask questions here on TBN.

~Rick

 

[DavesTractor]

Slobuds, I thought I was the only dealer in the state? There are others? /forums/images/graemlins/smile.gif

One thing to do with the dealer is be straightforward and not try to be "clever". You want the same from a dealer. Itemized breakdowns are a good thing, but remember the dealer is most interested in the bottom line and sometimes will sweeten a deal a little once he figures you have gone from the inquisitive shopper to an actual buyer. When you get close, tell him exactly what you want and have him give you a rock bottom price. Then it is yes or no.

 

[FamilyFarm]

I am specific about what I want a quote for down to specific model numbers of implements. I assume the dealer knows I am serious when I am taking the time to find out what specific implement brands & models the dealer carries, decide if I want those brands, asking for specific tractor model and specific brand implements, etc. I don't seek prices from dealers I am not interested in doing business with. Once I get their quotes, I look at those with the lower prices and choose one. Rather than asking them to meet another dealer's quote, I just offer a specific dollar figure and ask if that is doable. Unless there are extenuating circumstances, when the dealer counter offers (or accepts my offer), the deal is done.
I don't like going back and forth over and over again. To me, it doesn't impress me and I would think it impresses the dealer even less.
If the dealer availability was a problem, I might be quicker to try to deal with one that has a high initial price quote, but when I bought the BX, their were plenty of dealers. I just quickly ruled out those quoting 2-3k more than the others - not likely they really were going to come down even close.

Terry