Full figured 25hp Tractors

[paulsharvey]

How much is a dealer making off a new machine sale? Max 10%? Maybe 15%? I'm sure they make more like 25-50% off trailers and impliments, so that's why they do the package deals, I assume. I'm guessing they also are counting return customers (service mostly, but also future sales), in their business model?

Reason I ask, we are typically talking about new sales from even a good sized homeowner focused dealer being, maybe 3-4 per week? Hard to pay for a building, 2 salesmen, and have profit in that.

Service, I'm guessing if we say, $120/hr; that's probably 1/3rd overhead, 1/3 labor, and 1/3 profit?

 

[arrow]

One thing to keep in mind is that prices in the southeast are generally cheaper than the Rocky Mountains and west coast.

Both coasts are nuts.
People want to be near their creation point or closer to the sea.

 

[paulsharvey]

Both coasts are nuts.
People want to be near their creation point or closer to the sea.

We are close too both coasts; maybe 1h 15m to Atlantic, about 2h to Gulf

 

[arrow]

How much is a dealer making off a new machine sale? Max 10%? Maybe 15%? I'm sure they make more like 25-50% off trailers and impliments, so that's why they do the package deals, I assume. I'm guessing they also are counting return customers (service mostly, but also future sales), in their business model?

Reason I ask, we are typically talking about new sales from even a good sized homeowner focused dealer being, maybe 3-4 per week? Hard to pay for a building, 2 salesmen, and have profit in that.

Service, I'm guessing if we say, $120/hr; that's probably 1/3rd overhead, 1/3 labor, and 1/3 profit?

It used to be a 25% margin. No more these days.
Most dealers cannot survive on just tractor sales especially if a typically small dealership like ours.
It is why we sell chainsaws, generators, weed whackers, grass cutters, etc, etc.

 

[jyoutz]

Both coasts are nuts.
People want to be near their creation point or closer to the sea.

Rocky Mountains aren’t cheap and we’re not near the coast. SE and Midwest have the lowest costs on most everything.

 

[paulsharvey]

Rocky Mountains aren’t cheap and we’re not near the coast. SE and Midwest have the lowest costs on most everything.

Well, FLa is it's own animal. It pays like a southern state, costs like a northern state... But at the same time, a lot of shipping come through Jax/Tampa, and it's not far to the major "assembly" plants in GA/S.Car

 

[arrow]

Rocky Mountains aren’t cheap and we’re not near the coast. SE and Midwest have the lowest costs on most everything.

You near skiing?

How much is a dealer making off a new machine sale? Max 10%? Maybe 15%? I'm sure they make more like 25-50% off trailers and impliments, so that's why they do the package deals, I assume. I'm guessing they also are counting return customers (service mostly, but also future sales), in their business model?

Reason I ask, we are typically talking about new sales from even a good sized homeowner focused dealer being, maybe 3-4 per week? Hard to pay for a building, 2 salesmen, and have profit in that.

Service, I'm guessing if we say, $120/hr; that's probably 1/3rd overhead, 1/3 labor, and 1/3 profit?

Service allows breaking even some months and losing money other months. Service is $140 on diesel and 120 on gas stuff.
A good week is selling two tractors for a smaller dealership.
Out of 12 months, we had 2 months where service created a profit.
Margins on tractors range from 11% to 19% these days.

 

[paulsharvey]

Dang, sounds like a rough business to be in...

 

[arrow]

Dang, sounds like a rough business to be in...

It is no bed of roses for sure.
Me? I just try to do as much as l can for these super nice and straight up owners and try to have fun doing it.
They’ve been around since 1976 and started with Yanmar and Wheel Horse tractors.
Got the Mahindra dealership in 2003.
Parts sales are a large factor in profit modalities.

 

[jyoutz]

Well, FLa is it's own animal. It pays like a southern state, costs like a northern state... But at the same time, a lot of shipping come through Jax/Tampa, and it's not far to the major "assembly" plants in GA/S.Car

Yes. 7 or 8 good ski areas from 30 minutes to 3 hours from me.