Dealer dealer reaction to quote

[nhman]

Had a funny experience today when getting a quote. Maybe someone can explain it to me.

I have a good quote on a b2910. I live in northern va. area and there are dealers in Md, west virginia, the district of columbia etc. All within 60 miles. The best qoute I have is from a dealer across the state line. I went to th closest dealer and asked them if they could match the quote. The salesman asked to see the quote. I showed him. He said he'd get back to me. He called me about 4 hours later and said he could not beat the quote and in fact his price was 1500 more. He said they called the other dealer as well. I'm confused as to why the local dealer called the other dealer?

This local dealer was also about 1500 higher when I bought my first tractor. I really want to so business with the closest dealer, but his price is to high. I am also now kind of wondering why he called the other dealer or if he even did so? He said he confirmed the price I showed him on the quote.

 

[Boondox]

NH -- Dealers operate under a bunch of variables including overhead costs, etc. Bottom line is some can afford to be more flexible than others.

Instead of making your decision solely on the basis of price, however, I'd urge you to consider some other factors. Do you have a better feeling about one over the other? You're entering into a LONG relationship with one of these guys. Wander thru the service and parts departments. Check with other tractor drivers and get their opinions on the dealers. See if either one can negotiate in other ways besides cost...like free pickup and delivery for service, free 50 hour service, discount on future implement purchases.

Based on past experience, I'd be perfectly willing to drive farther OR pay more for a decent dealer.

Pete

 

[r0GuE]

Good Golly (I edited that one myself) - Please!!!
I'm very sorry but I can't resist. $1500 difference is FAR too much a difference to consider paying. For crying out loud that’s a fortune (to me anyways). We’re not talking $90 or $140 here. And even then it would be a bitter pill (however at that cost I would agree with the possibility of paying to stay local).
The fact is that for $1500 you could buy a trailer to do transporting to whatever dealer you want to do your service.

I'd go to your local dealer and explain that you like to go local, but you simply cannot afford to do so in this circumstance. I'm certain he will understand if he is a thinking logical man. I would explain that if/when you might require warrantee service, you will give him the business (and he will be paid for it by Kubota corp.). And of course, if satisfied with the treatment you receive, you will continue to patronize his dealership for service as well as implements (when he is at least sort of in the ballpark). I agree that sticking local has its benefits, but for $1500, this guy either has set up an unworkable business model in which he cannot deliver product at reasonable cost, or he's playing for a chump to get the most profit per unit.

 

[rockyridgefarm]

Maybe he can match the deals in other ways, than just price. There are other ways to sweeten the deal.

 

[r0GuE]

Hey man.... i don't swing that way!
/w3tcompact/icons/shocked.gif

 

[Anonymous Poster]

I have to agree here. I had a similar experience when wheeling and dealing for my BX-22. The dealer I bought my previous BX-2200 from, whom I really like, was $2000 MORE than the dealer I ended up buying the BX-22 from after trade and even before tax considerations. That was way too much difference for me to walk away from. I happen to have three Kubota dealers within 10 miles of my house in SE PA. I ended up buying from the dealer just over the river in NJ and although I have some twitches about future service, $2K was worth the chance...

 

[Boondox]

<font color=blue>$1500 difference is FAR too much a difference to consider paying</font color=blue>

Depends on the dealers, I suppose. My closest dealer consistently beats the next closest dealer by 10% on tractors, but his service department is filthy and disorganized, his parts dept personnel are surly, and any problems after the sale are yours, not his. Contrast this with the only other dealer within a reasonable distance. You pay more, but the service dept and mechanics are immaculate and extremely helpful, going so far as to bring you into the shop to show you how to do something yourself next time. The parts department is fully stocked and very well organized. All his staff are not only competent, but extremely courteous as well. And if there's a problem after the sale caused by materials or workmanship they pick up and deliver for free.

Given the differences I have and will continue to pay the extra cost. Just goes to show you that initial purchase price is only part of the deal.

Pete

 

[rockyridgefarm]

I wasn't paying as much attention to the distance in your case (60 miles, neighbors around my state) as I was the stories I've heard of the guys who've bought from far off dealers, and then quickly forgot "all that money they saved" by lots of headaches. $1500.00 might be worth it, and the distance isn't that great.

I have a little experience in the other side of this. I work with a new car dealership that is well known for their discount price AND great service. We have folks fly in from other areas and drive back a vehicle. We have had customers save $5000.00 on a vehicle, and get a fun trip in the bargain.

But there are TONS of problems with this, and we have found that it may not be worth the headaches. We are far more effective with our local customers (within 100 miles) - better for us AND them. It is a whole lot easier for us to resolve problems on vehicles we've sold than for someone else. Sure, the manufacturer pays warrenty claims, but there are grey ares, where they work with us, and areas where we outright foot the bill. That isn't likely to happen when you go back to the dealer who you didn't give the business to, and want your problem fixed. I saw another post where a tractor dealer relates how the dealers work together, this is also very true in the car business. We also have nearby dealers who regularly offer incredible deals, and they are. I pity the folks who unknowingly get hooked into shady finance/warrenty scenarios that are hardly worth the "low price" they paid. So we see customers with quotes that can't happen, except by back end money and shady financing. Bear in mind that WE already have a low price, because our business model aloows that - rhere are dealers who'd make similar CLAIMS about us - because they HAVE to sell higher to break even....

Your low price dealer may be the way to go, I would suggest that when considering a distant dealer, over a local one that the buyer figure on going back to the selling dealer for service, if its too much hassle, maybe the deal isn't that great. You may be able to get warranty service at a local dealer. But there are times when you'd be better off at the dealership where the sale went. (I am NOT suggesting you not go to another dealer, I am just saying that when buying, figure on AS IF you would not be able to go to a local dealer - worst case. If you CAN - all the better...)

New cars and tractors are similar but not the same - so I realize my experience isn't necessarily relevant.

 

[MikePA]

I agree with Pete on this one and by doing so I am not implying that $1,500 is a minor amount. However, most of us will probably keep our tractors for 10, 15, 20 years. $1,500 spread out over that lifespan is $6 to $12/month. There are examples of people here on TBN who went with the cheapest price from a poor dealer and regretted it. Granted, each person will have a different price delta, or driving distance, etc., they can tolerate. However, owning a tractor consists of a lot more than the initial purchase price.

 

[r0GuE]

Your dealer sounds better than my Doctor. /w3tcompact/icons/grin.gif
Enjoy.
For the rest of us,.. the reality is not so distinct.

 

[JohnMiller3]

No dealer wants any “good” customer to walk away empty handed… Everyone has different operating costs/overhead and this is split across the board for all customers to share… you just don’t want to be the sole customer to pay this months mortgage… that’s all… /w3tcompact/icons/smile.gif

It appears, you had good feelings at one time towards this dealer to buy your first tractor from… and obviously you somewhat feel the same by going back and trying for a second purchase… but sometimes the obvious is not so obvious… (in other words… tell him why you came back)

After getting all your real quotes from your dealer list… sit down, figure an average savings… hopefully this local dealer should be in the middle somewhere… just playing the odds game should give you that much…

When you’re absolutely ready to buy, go back to this local dealer one last time… With figures in hand, tell him you’re ready to sign the papers… ask him if he would like to sell you your “next” tractor as he sold you the first… /w3tcompact/icons/smile.gif Tell him you enjoyed doing business with him and you’d love to continue doing business and once again ask “what’s the best “we” can do on this unit?”…

You’ve already showed him the first quotes… I don’t see any need for him to disbelieve you at this point… see how close he can come in price and the other benefits others have mentioned… as a last resort tell him you’re willing to compromise if he would also… I’m sure you can come up with a package deal that’s equitable for all…

Only you know what your “comfort level” is…

If you can’t strike up a deal… shake his hand, smile and leave on good terms… don’t slam any doors behind ya…

Good luck… /w3tcompact/icons/smile.gif

 

[drcollie]

I too, live in No. VA and shopped all the local (and not so local) dealers before buying my BX22 from Byrd Tractor in Manassas, VA. I found swings in price from $ 200 to $ 1,000, but in the end decided that they were competitive enough with the second closest price AND they were my local dealer.

I'm glad I went with them. They know I could have saved a few hundred by going to a dealer a bit further away, but they've more than made it up to be with superlative customer service. I'm talking FREE delivery on a flatbed, together with all the filters and hydro fluids I needed for the 50 hour change presented to me in a bag the day of delivery. And when I go down there like I did last week due to the well-known issues of melted mower deck wheels, they simply handed me two and said "don't worry about it" together with some extra hitch pins I needed.

If I want to try out an implement before I buy it.....no problem, borrow one and test it out to see if it works. If my tractor is down for service (it hasn't been), I can get a free loaner if I need one as well - all I have to do is ask.

The customer service thing goes a real long way after the purchase price has been taken care of , the check written, and the bill long forgotten.

If I were to go and buy another Kubota today, I wouldn't even shop another dealer - I'd go right back to them again without hesitation as long as I knew they were ballpark in the price.

That's the real secret of how you build your customer base by the way - not just on price alone.

-Duane C.

 

[DarrenP]

I read lots of posts about the wonderful relationships formed with dealers. That would be great, BUT if your local dealer won't even consider matching a deal - especially to the tune of $1500 - he doen't value your past relationship at all! If he's that inflexible on price, don't fool yourself into thinking great deals on equipment, etc. will be forthcoming. Kubotas generally have few problems and you can buy lots of $1.29 linch pins and plastic mower wheels for $1500. I shop price.

 

[drpepper]

DarrenP, I agree with you whole heartdly. Where I live, the dealers are few and very far between. The closest dealer is 70 miles away. I ended up purchasing 250 miles from here. I know of the horror stories of this kind of transaction. I have had no problems whatsoever. After all, it is a Kubota purchased new. I counted on doing all the maintainence where ever I purchased. I saved over $2000 by going this route. That is quite a bit of money for me that can best be put to other uses. In the end, do what gives you that warm fuzzy feeling inside. If the peace of mind is worth the extra expense, go for it!

 

[Anonymous Poster]

John,
What is your definition of a good customer ?
I assume someone that is not beligerant and obnoxious when they have a problem,or negotiating a deal?(which I agree with)

 

[k8ny]

Hello NH,
I also live in the No VA, tri state area and I think I know both dealers you are referring to. I went through the same drill when I was in the process of purchasing mine.
Chose your out-of-state dealer, he was much, much less expensive and has, so far, treated me more than fairly, coming to my home a few times on minor warranty work.

These big dealers in NO VA have gotten a bit independent and aloof since all the IT yuppies have moved in and are buying tractors.

Sometimes the little guy will go the extra mile for the sale, in my case it was saving 2800 dollars and a promise of good service that swung me. I have also referred 3 other folks to this dealer and they have purchased from him as well, the savings were just too big to pass up.

Bob

 

[bigpete]

Just adding to the original question/thought of a "good' customer. From a business perspective a "good" customer has brought, or will bring, monetary transactions to your business from either their own purchases or from personal references. The simple measurement of a good customer can come from future business transactions, all profit, personality and behavioral issues aside. Behavior as a component of being a good customer does have its limitation and guidelines, however.

 

[JohnMiller3]

Hi Scott,

Well simply put… “good” as in what “good” means… /w3tcompact/icons/smile.gif

In other words, certainly not bad… but being up and positive, honorable, sincere and genuine… and treating someone the way you would want to be treated…

Obviously, it goes hand-in-hand… a “good” dealer as well… /w3tcompact/icons/wink.gif

 

[Anonymous Poster]

John I agree totally.Thats what I thought you meant...

 

[theboman]

Lots of things can cause higher prices. Crossing state lines no matter how close or far a part can cause price swings from dealer to dealer.
Freight. They maybe 2 miles apart but they may have to get their tractors from different regions regardless which is closest. Taxes. Labor to assemble tractors. Volume pricing. The list goes on and on.
When I got my 'Bota I checked local, then 30 miles away. The 30 miles away quote was a lot lower and took that quote to the local dealer and he beat the first quote.
Both dealers had said the tractor for XXXXX and anything else at dealer cost. The local dealers MMM cost was $50-100 less than the other.
Lots of factors decide prices. Dollars are important to us all, however service, honest realtionships are important too.
I know I made the correct choice by buying local, and it my case it was the lower priced route.