Did I Pay too Much??

sweettractors · Apr 21, 2005

I just took in trade a Used Kubota B1550 with Turf Tires and Kubota 1640A FEL. The tractor has 415 hours on it. I allowed the customer $7900 for the outfit. I have put 10 hours on the tractor and everything works like new. Did I pay too much?--Ken Sweet

frank_f15 · Apr 21, 2005

I don't know much about that model, also don't know what he bought. But i do know that you being an experienced Dealer, i doubt that you over paid. /forums/images/graemlins/grin.gif

ByronBob · Apr 21, 2005

Ken, I respect your opinion on here and all the knowledge you bring to us.

But you asking us if you paid too much is strange. You would know better than we would right? Every dealer I've ever run across has some book they value things at. Do you have such a book for tractors?

MessickFarmEqu · Apr 21, 2005

We would be able to get $7900 out of it, I would not expect to make anything in resale.

Bob_Skurka · Apr 21, 2005

We would be able to get $7900 out of it, I would not expect to make anything in resale. 

OK call me the eternal skeptic here, but so what if he paid $7900 for the tractor as a "trade in allowance" we have no idea how much he marked up the tractor he just sold and the reality is the profit is in the difference. It is not uncommon for a used car's value to be inflaited on trade in when someone walks it to buy a new car. Something tells me that Ken isn't going out of business because he gave someone a good trade in price. Bear in mind, I do not begrudge anyone a fair profit, I expect to make a profit on the things I sell to my customers.

sweettractors · Apr 21, 2005

Do you have such a book for tractors?

Yea, we have a set of books, however they are not a reliable source of pricing. Mine gives MSRP when new and avg. auction prices across the nation. That does not help us much because we dont really care what it sold for new and dont know the condition of the used tractor that sold at auction?--Ken Sweet

sweettractors · Apr 21, 2005

We would be able to get $7900 out of it, I would not expect to make anything in resale. 

If I can sell this one for $7900, I will make a thousand on the 2 combined deals. I can live with that--Ken Sweet

frank_f15 · Apr 21, 2005

( If I can sell this one for $7900, I will make a thousand on the 2 combined deals. )

Beg to differ with you, you already made $1k the $7900 is a wash. resell that unit for over $7900 and you increase your profit. But seems like a good deal was made, evidently the buyer was happy and you were happy, or else the deal would not have been done. /forums/images/graemlins/grin.gif

ByronBob · Apr 22, 2005

Ken,

You must have had some baseline for making the trade. If the books available are not utilized then I guess just general knowledge in the industry was the base for offering this price.

Anyway you surely didn't lowball the guy and the sell was done. For most of us as consumers we'd be happy with your customer service. Like anything else in life supply and demand really drives the market and what people are willing to pay to make a transaction.

BRIGUY · Apr 22, 2005

I have no Idea why you are asking us but????

Working in dodge dealers in the late 80's and early 90' it went like this:

Wholesale-Wholesale
Retail-Retail

Referring to:

trade in allowance-price for new unit.

A common line is " I can show you what ever you want to see for a trade in"

The reality is that the bottom line doesn't change.

It is good to see Dealer input.

sweettractors · Apr 22, 2005

You must have had some baseline for making the trade. 

I used the known pricing and resale value of our Kioti tractors to make the decision. --Ken Sweet

ByronBob · Apr 22, 2005

So Kioti has a good trade book and Kubota doesn't?

Actually Ken, I'm not asking you to put all your trade secrets out for the general public, but to get back to the original situation I still don't understand how you wouldn't know what to pay in trade for this.

Unless you paid XXX less for it and you want to offer it up for $7900 to the public and wanted to know from us tractor owners if we were to walk onto your site and you had it up for $7900 if we would be interested. In that case I'd price a new one, check the difference, see your warranty stance and go from there knowing I would try to cut your price on a clean deal. Simple economics I guess.

6 of 1, half dozen of the other. Either way were all here to get the best deal we can, shake hands and work together in the future.

Have a good weekend. Regards Bob

sweettractors · Apr 22, 2005

I still don't understand how you wouldn't know what to pay in trade for this. 

Bob, I made a offhand guess and am looking to TBN'ers that have firsthand used Kubota pricing Knowledge to shoot me down or boost me up. I assume there are people reading this post that have purchased this or similiar product--Ken Sweet

Sweet Farm Equipment LLC *New First Choice Disc Mowers and Hay Tedders*

newcountry · Apr 22, 2005

I'll boost you up... I'd buy it for $7900... /forums/images/graemlins/grin.gif

Except I just bought a new Kubota, darn it.

Here's a couple listings in classifieds, looks like your price is pretty close, you may make a little, you may lose a little.

http://buyit.ohio.com/findit/search/results.jsp?catId=krd_akronbeaconjournal354dc&query=b1550&x=47&y=6

http://www.ironclassifieds.com/search.aspx?model=B1550&&equivTM=on&order_by=%5bYear%5d+DESC

sweettractors · Apr 22, 2005

Thanks a million Eric, That is just the type of links and info I was looking for--Ken Sweet

GaryE · Apr 22, 2005

Ken,

I think you paid way too much, you should feel ashamed of yourself. If I were you I would never want to look at that tractor again.

I'll tell you what, since I hate to see people suffer I will help you out. Why don't you just ship it up to me (at your expense of course) and I promise you you will never have to look at it again. PM for shipping instruction... and BTW make sure the fuel tank is full. /forums/images/graemlins/grin.gif

Gary

newcountry · Apr 23, 2005

No problem, Google is a wonderful thing.

I really don't need a million, though. How about free shipping of a brush hog to NE Kansas /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/wink.gif

Junkman · Apr 23, 2005

( Bob, I made a offhand guess and am looking to TBN'ers that have firsthand used Kubota pricing Knowledge to shoot me down or boost me up. I assume there are people reading this post that have purchased this or similar product--Ken Sweet )

I find this statement quite true since I looked at a very well used BX22 about a month ago at a Mahindra dealers lot. He was asking $13,500 for it and it had over 1500 hours on it and looked like it was beat to death. I said that a new one only went for $16000 and he told me that I was crazy..... they were closer to $20,000. He was either very good an actor, or he really didn't know the value of other brands from the expression on his face. It is difficult to know all the prices for the other brands, and the best that you can do is hope that your guess is close enough to make a profit at the end of the day.

sweettractors · Apr 23, 2005

How about free shipping of a brush hog to NE Kansas 

Would you consider "discounted" instead of "Free" shipping /forums/images/graemlins/smile.gif--Ken Sweet

newcountry · Apr 23, 2005

( Would you consider "discounted" instead of "Free" shipping /forums/images/graemlins/smile.gif--Ken Sweet )

Always, I'll talk to you in a month or so