Dealer philosophy..

[AKfish]

The myriad questions that tractor buyers work through oftentimes comes down to the dealer that you buy from. During the past 15 years or so of either renting a tractor ( or heavy equipment) and buying both new and used tractors as well as other farm equipment; I've had the opportunity to work with dealerships in WA, OR, MT, ND, MN, IA, SD, NE, GA, WI, and IN.

Granted, most of them have been JD dealerships. So, I don't have a big cross section of other manufacturers to compare with. Nonetheless, I found nearly all of them to be friendly, respectful and interested in understanding what I do on my place, what I'd like to do and how I might be able to better accomplish that work.

The distinction between the dealers that I, either purchased equipment from or did not, arose from my "gut-feeling" - sometimes proven, other times not - that they were willing to consider my economic position versus their own economic interests. And meet me halfway.

Understanding where "halfway" is... Is a matter of asking several dealers, visiting all these different websites and talking with neighbors and friends.

So, after careful scrutiny of these various sources of information, and having a reasonable sense of where "halfway" is in the marketplace; I ventured forth to discuss my purchase with a multitude of dealers.

If somebody was in a hurry or wouldn't return my calls - they're only interested in "whales" and don't really want to waste their time. (So, how much help are they gonna be with a warranty issue?) Next..

Somebody doesn't want to talk about their list/asking price? It's "firm" when I already know there's room to work... Not gonna look at your side of the equation - Next...

No... I wanna talk with the person (have bought from women @ JD) who is willing - wants to engage about their price and is willing to hear about your competing prices (because that's how business is supposed to work - competition). That's the person who wants your business and is willing to work for your business!

They're the people who will help you with a warranty problem. And, they're the folks who will lend their experience towards helping you to make good decision's when it comes to buying something that may/may not work out for your particular situation.

Those are the folk's that are not gonna twist the last dollar out of your pocket - even if it means they have a few less in their's!

 

[BigDog1956]

The myriad questions that tractor buyers work through oftentimes comes down to the dealer that you buy from. During the past 15 years or so of either renting a tractor ( or heavy equipment) and buying both new and used tractors as well as other farm equipment; I've had the opportunity to work with dealerships in WA, OR, MT, ND, MN, IA, SD, NE, GA, WI, and IN.

Granted, most of them have been JD dealerships. So, I don't have a big cross section of other manufacturers to compare with. Nonetheless, I found nearly all of them to be friendly, respectful and interested in understanding what I do on my place, what I'd like to do and how I might be able to better accomplish that work.

The distinction between the dealers that I, either purchased equipment from or did not, arose from my "gut-feeling" - sometimes proven, other times not - that they were willing to consider my economic position versus their own economic interests. And meet me halfway.

Understanding where "halfway" is... Is a matter of asking several dealers, visiting all these different websites and talking with neighbors and friends.

So, after careful scrutiny of these various sources of information, and having a reasonable sense of where "halfway" is in the marketplace; I ventured forth to discuss my purchase with a multitude of dealers.

If somebody was in a hurry or wouldn't return my calls - they're only interested in "whales" and don't really want to waste their time. (So, how much help are they gonna be with a warranty issue?) Next..

Somebody doesn't want to talk about their list/asking price? It's "firm" when I already know there's room to work... Not gonna look at your side of the equation - Next...

No... I wanna talk with the person (have bought from women @ JD) who is willing - wants to engage about their price and is willing to hear about your competing prices (because that's how business is supposed to work - competition). That's the person who wants your business and is willing to work for your business!

They're the people who will help you with a warranty problem. And, they're the folks who will lend their experience towards helping you to make good decision's when it comes to buying something that may/may not work out for your particular situation.

Those are the folk's that are not gonna twist the last dollar out of your pocket - even if it means they have a few less in their's!

AK what in the heck are you rambling about???????? can't believe I finished reading your post.....

 

[murph1]

AK what in the heck are you rambling about???????? can't believe I finished reading your post.....

I'm thinking some Grizzly Bear kidnapped him before he could finish.

 

[Wagtail]

AK what in the heck are you rambling about???????? can't believe I finished reading your post.....

I believe AK is "rambling about" the recent (annual? semi-annual? constant?) spate of threads regarding prospective tractor buyers asking about pricing and/or how to get the best deal. 'Playing one dealership off against another', 'Dealership won't budge from MSRP'... that sort of thing.

Good, solid musing.

[or, he's got cabin fever. ]

 

[ultrarunner]

Dealers vary and this is common... often within the same dealer the staff will vary too.

A large farmer here in California did business with the same Salesman for 40 years... almost like a handshake deal... a phone call was enough to have equipment delivered, picked up etc...

When the salesman retired things changed... no more handshake deals or ordering over the phone... everything had to be in writing/documented and paid for...

It did not set well with my Farmer friend and that 40 year relationship was never the same...

As with most things it is the people that make it happen... the philosophy transfers from the top down... I see it all the time as the local small dealers are gobbled up and added to faceless entities... the way of the world today.

My Grandfather was in the auto business almost 60 years and it really was done on a handshake and reputation was everything... his entire career he had his home phone and address on his business card...

 

[AKfish]

I believe AK is "rambling about" the recent (annual? semi-annual? constant?) spate of threads regarding prospective tractor buyers asking about pricing and/or how to get the best deal. 'Playing one dealership off against another', 'Dealership won't budge from MSRP'... that sort of thing.

Good, solid musing.

[or, he's got cabin fever. ]

Yur absolutely spot on! Cabin fever... It's still cold here and a butt load of snow! Nah, that play in' the dealer off each other business and the dealer sympathizers dissin' anybody with the audacity to ask for prices and what a waste of their time it is!

We all need good dealers... And they need us - customers!

So... That all got me thinkin' of my experiences and what was really a "bottom line" for me evaluating a good dealer versus a "less" good dealer.

 

[AKfish]

Dealers vary and this is common... often within the same dealer the staff will vary too.

A large farmer here in California did business with the same Salesman for 40 years... almost like a handshake deal... a phone call was enough to have equipment delivered, picked up etc...

When the salesman retired things changed... no more handshake deals or ordering over the phone... everything had to be in writing/documented and paid for...

It did not set well with my Farmer friend and that 40 year relationship was never the same...

As with most things it is the people that make it happen... the philosophy transfers from the top down... I see it all the time as the local small dealers are gobbled up and added to faceless entities... the way of the world today.

My Grandfather was in the auto business almost 60 years and it really was done on a handshake and reputation was everything... his entire career he had his home phone and address on his business card...

Yes... Society has changed. But, even tractor dealership employees (and owner's) have to buy stuff. I'll betcha they "ask" about car prices before they'll sign the check.

Bought a round baler in Minnesota last year. Asked the sales guy if he wanted me to send him a down payment to hold the baler. Nope. Pulled the ad and waited for 2 months for me to show up.

Dealers do vary.. You gotta "shop" them just like the price.

 

[kevin37b]

Been several threads on dealers , pricing , negotiating , etc . Machinery market is tight , lot of it out there . Deere and Cat are feeling the pinch as others . Others have merged to multiply sales . One must remember the manufacturer does not give this machinery to the dealer to sell . They will write a check upon delivery , called a floor plan . Now they hope there is something on the floor that you want ? A good dealer is confident with his or her decisions . If you want to order a machine specd out that can be where a good salesperson shines . I think there are more of these scut / cut sold than the big boys . But the dealer is everything as far as customer is concerned . The world has changed . You don't shake hands , you bump . Raining here just rambling . Kevin .

 

[ultrarunner]

^^^ There are exceptions...

Sometimes Dealers will benefit from promos for market share and/or volume.

The uncle of a friend deals in large harvester type equipment... some units costing hundreds of thousands of dollars...

The manufacturer introduced a new line and orders were not forthcoming so they shipping one to this Dealer just to "Have" on display... there was no check written and even an incentive was offered for doing demos...

It worked... once it was at the Dealer he sold it within a week... but he never would have ordered it cold...

 

[jenkinsph]

Been several threads on dealers , pricing , negotiating , etc . Machinery market is tight , lot of it out there . Deere and Cat are feeling the pinch as others . Others have merged to multiply sales . One must remember the manufacturer does not give this machinery to the dealer to sell . They will write a check upon delivery , called a floor plan . Now they hope there is something on the floor that you want ? A good dealer is confident with his or her decisions . If you want to order a machine specd out that can be where a good salesperson shines . I think there are more of these scut / cut sold than the big boys . But the dealer is everything as far as customer is concerned . The world has changed . You don't shake hands , you bump . Raining here just rambling . Kevin .

I suspect the small tractor buyer newbies expect to use up a lot of the dealers time compared to a farmer buying his 15th tractor or combine. If you know what you want when you show up it does make for a faster smoother transaction.

 

[AKfish]

I suspect the small tractor buyer newbies expect to use up a lot of the dealers time compared to a farmer buying his 15th tractor or combine. If you know what you want when you show up it does make for a faster smoother transaction.

Yep...

 

[brown40]

Once you've gotten to know the culture of the organizations available, your pick has been made for you. Some dealers want to make every sale, and less profit is worth getting the business for them... others seem to think every customer is a tire kicker looking to screw them out of maximizing their profitability. They're as different as people are--you'll enjoy and be drawn to some, and others you'll write off their first defining moment. The more options are available, the better the individual's emphasis on customer service--generally speaking. Some vendors seem to have the attitude they are the local Mr. Monopoly...

 

[jenkinsph]

Often I see threads where people are asking if they can buy below msrp. Most dealers of cars, trucks and yes tractors try to be secretive about their margin. Some dealers will tell you that they don't have any room to work with and some will tell you they are selling at invoice.:laughing: So what does the dealer pay for a tractor and what is a reasonable expectation of discount when buying? Does anyone really think the dealer should pay a high franchise fee, keep the lights on and pay the employees without making a gross profit to defray these costs? I know in my own businesses that I have to make a profit in order to buy things for my home and keep the lights on.

The last three tractors I have purchased along with the implements included in the order have been discounted between 15 and 18%. I would expect the dealers are buying these tractors and implements around 35% to 45% below the msrp price. By the time the dealer pays the bills that does not leave much room for net profits but if the dealer is going to stay in business he does need to make a profit. I would also add that the same is true for the service shop and parts counter, both need to make a profit to keep the bills paid. The world is full of people who don't understand what it cost to run a business today. For most businesses the last few years have been a struggle. Net profit can be hard to come by.

 

[ultrarunner]

This is why reducing it to a simple yes/no decision would save time all around.

I really could care less about payments for my private use... a business that is buying to increase the bottom line could very well find payments beneficial...

Still remember when I bought my Suzuki Samurai from a private seller... drove past it everyday so decided to stop...

The old guy that had it for sale said he was not going to Dicker... the price is the price and I thanked him and started to leave saying I appreciated his being candid.

I said I just got my tax refund and it was less than what he was asking... showed him my check and wallet we ended up making the deal... he even gave me $10 to buy gas...

My thought is he saw I had the means to buy and was not wasting his time.

Growing up around the Car Business there would be no end to folks coming in on the weekends just for something to do... they had no intention of buying which is fine but wanted/needed a large amount of time from the sales floor.

 

[fried1765]

This is why reducing it to a simple yes/no decision would save time all around.

I really could care less about payments for my private use... a business that is buying to increase the bottom line could very well find payments beneficial...

Still remember when I bought my Suzuki Samurai from a private seller... drove past it everyday so decided to stop...

The old guy that had it for sale said he was not going to Dicker... the price is the price and I thanked him and started to leave saying I appreciated his being candid.

I said I just got my tax refund and it was less than what he was asking... showed him my check and wallet we ended up making the deal... he even gave me $10 to buy gas...

My thought is he saw I had the means to buy and was not wasting his time.

Growing up around the Car Business there would be no end to folks coming in on the weekends just for something to do... they had no intention of buying which is fine but wanted/needed a large amount of time from the sales floor.

Lookers too much of a nuisance?
Just keep the front door locked.

 

[jenkinsph]

There are a lot of people window shopping and kicking tires. Not much of a problem if they don't use up some one elses time to do it. Tying up the sales persons time with no regard or intention of buying is inconsiderate imo.

When I am ready to buy I show up with a small cashiers check for ordering (earnest money) and a larger cashiers check for a healthy down payment. The dealer knows I am serious and ready to buy and have the money to proceed. I think this helps with pricing and makes for a smoother swap of money for the tractor I want. Most of the sales persons job is taking the order in detail and fetching the price from the dealer/manager. Usually this involves ordering the specific tractor and add on in for delivery to me. I recognize we all have to eat.

 

[Oldoak]

I suspect the small tractor buyer newbies expect to use up a lot of the dealers time compared to a farmer buying his 15th tractor or combine. If you know what you want when you show up it does make for a faster smoother transaction.

I believe you nailed it!

Huge difference between a commercial farmer and a suburban home owner looking for a bargain. This whole site appears to be dominated by casual homesteaders and woodlot owners looking for killer deals on tractors and equipment for weekend ranchers. Nothing wrong with that, I guess, but there is no comparison between them and full time farmers/ranchers actually making a living off the land.

 

[ultrarunner]

Lookers too much of a nuisance?
Just keep the front door locked.

Lookers are great... no doors to lock as the dealership is wide open and prices clearly marked and it costs nothing to look.

When you live on commission having someone waste hours of your time "Kicking" tires is not going to put food on your table.

It comes down to how much of your work day are you willing to work for free.

Often takes less time to sell a 250k combine as a 12k SCUT...

I find it helpful to try to see things from the other's person's shoes...

 

[Industrial Toys]

I have found JD to be quite willing to deal, having bought two new tractors from them. But basically, corporate has already sharpened their pencils with regard to the marketplace, so a dealer can only go so far.

Besides, you don't go into a Mercedes dealership expecting them to beat the price of a Ugo!

 

[ultrarunner]

The neighbor bought a single cylinder gas Gator a few years back...

They were miles from home and stopped into a Deere AG dealer... his wife asked about he Gator and the sales person said it had been in the show room 2 years and the owner mentioned that morning he wanted it out... they don't have a market for this machine...

Got a great deal and loaded it up in their pickup... this is the only time I have heard anything like it...

By the way they love it and the wife uses it all the time on their flat landscaped acreage... it worked out to be 27% discount...