Internet Dealer vs. Local Dealer

[Eightpoint]

I recently stumbled across the thread below related to how two dealerships (Corriher and Tarheel Tractor) pursued an expansion of their business by virtue of selling their wares on the internet only to have a manufacturer purportedly discourage the practice to appease other dealers. This thread was back in the fall of 2007 and it caused me to ponder whether the various stakeholders in this debate (manufacturers, dealers and consumers) have changed their view over the last 16 months on how business via the internet should or should not be conducted in the tractor equipment industry given all that is going on in the economy and the continued build-out/acceptance of the internet as a place to shop.

My own point of view - I hope to be in the market for a new tractor in the coming months. I have a couple of ok dealers nearby but price is certainly a consideration and if a dealer I find on the internet can save me a couple thousand dollars then things would get interesting. I understand the argument to help the local guy not only from a the viewpoint of having someone local to service my tractor but also to help the local economy. On the flip side if the local guy is either not willing or unable to adapt to the ever changing world and is therefore no longer competitive in the larger marketplace then why should I subsidize their endeavor by paying a premium and taking away resources (in the form of $$) from my family?

I understand that there is no right answer for everyone but was curious on where others (manufacturers, dealers and consumers) were on this dilemma. So - anyone have any thoughts they wish to share on the subject?

Corriher/Tarheel Thread

 

[mattman]

I have bought alot of stuff out of town versus buying it local. You could say that I was hurting the local business, but let me tell you that I am not the only one to go out of town to get something. Alot and I mean alot of our business folks are trying to make a killing off of selling one item instead of trying to sell more volume. It is down right terrible how much difference in price things are in my town versus 35 miles away. The service after the sell is also nothing to be desired. My town has a bad rap for being overpriced and poor overall service so if does not bother me to mossey down the road and get what I need somewhere else. There is some places that treat you right, but the number that try to do you right are few and far between.

 

[chh]

Personally I have found equipment online, but I am very hesitant to make large purchases sight unseen, so the pieces I have purchased have all been in a reasonable driving distance. Before tha internet I shopped in farm magazines and over the phone. Many times I have taken those prices with me to local dealers, sometimes they get with it and deal and sometimes they don't. The local Chevy/Dodge dealer is the worst. He also now has Montana, McCormick, Case-IH, and Vermeer at a adjacent lot. You can literally save $2000+ by going anywhere else, but a lot of people buy from him because he is the local guy.

 

[medicshawn]

I'm not sure where you are in Virginia but when I was pricing dealers in the fall my local buy was 4500 dollars more than Barlow equipment so I bought from Barlows which was 400 miles away. I would have preferred to deal with the local guy but it wasn't worth that much to me. I know warranty stuf is a concern buy Barlows has handled some small stuff for me by mail.

I have driven down and purchased from Tarheal. The salesman and owener were both easy to deal with. I would buy from them again.

 

[JoelD]

This is a tough subject.

I am personally in search of the best deal, trying to take care of me and mine.

However, customer support is particularly critical when it comes to pieces of complex equipment, such as my tractor.

If it is a consumable type of purchase, welding sticks, oil, etc, I got for least expensive option possible.

When it comes to large purchases like a tractor, I'll pass up the absolute best price for improved customer support, this, in the end, can save you thousands.

Joel

 

[canoetrpr]

The problem with customer support is that you don't know what it will be like until you hit a real issue that needs a dealer to back you up on.

Just cause a dealer is local, does not mean his customer support will be any good.

I like to give money to the local guy as well but I have found that *in general* warranty service stinks pretty much everywhere for almost everything I buy. Maybe my expectations are too high. I don't really know.

I would do my best to buy from a dealer who I knew through personal experience or through others experiences that I deemed appropriate to be able to judge a good dealer, was great at customer service. I would pay up to an additionall $500 or so on a $20k tractor deal to keep the business with such a dealer. However that is the far end of what I would pay over and above the cheapest price for the luxury of buying from a dealer with a good customer service background.

You see, I think that the reality is that a dealer that is good at customer service will be happy to have you do business with them, even if it is the warranty kind initially, regardless of whether or not you bought from them. Many of those who say 'buy here or no warranty support' are the grumps that I'd rather not do business with anyway.

I never thought I would say this but the Kubota dealer I frequent now for parts and such has impressed me recently and if I were to buy a new one, he would get the first shot at my business. The parts guys are great. They have opened up the parts section after closing it down for the night to get me a little bolt. The sales situatoin seems to have improved substantially. I was standing around getting some parts ordered and the sales guy who sold me a 3 pt stabalizer kit ($200 or so), saw me so he came in to say hi and to see if there was anything he coud do.

Long story short - I never found a dealer of anything that I knew was good until AFTER I had already dealt with them.

 

[MessickFarmEqu]

"Internet Dealers" like Barlows, ourselves, and the few others that are out there don't see oursevles as stealing customers from good dealerships. Most of our customers are typically comming from underserved areas where there is no substantial dealership who can offer competitive pricing. I'd absolutly recomend checking out the waters locally and doing some limited shopping around to to make sure everyone is being honest.

 

[shane]

And another thing, any good reputable dealer can go to pot at any time. I've seen it too many times. Could be caused by burn-out, divorce, death of a love one, son taking the reigns, you name it. IF, there is a rather large savings to be had after comparing apples to apples, I'd take my chances and go with the savings cause in the end it's all a gamble anyway.

As far as warranty and service, Canoe spelled it out.

 

[buckeyefarmer]

Almost everything I do is on the Internet today, so if they are on the net, they are local to me
I once considered going to NC to buy a truck, because I could get it $4000 less than local. I ended up not getting it at all, but distance isn't a big factor, economics is. I think most consumers want things at a "fair" price, with "fair" being like what everyone else can get it for. Nobody wants to find out they paid a whole lot more than their neighbor for the same thing, only because they weren't aware of what they could have got it for. When I was shopping for my first tractor, I called a local dealer who quoted me a price over the phone. I went in to their dealership, ready to buy, and the sales guy gave me a higher price, said he didn't know anything about the phone price. Maybe I talked to someone different, but the guy didn't try to find out who had given me the other price, and could have cared less if i bought or not. Obviously I didn't, not going to buy from someone who doesn't seem to give a darn. My local NH dealer is the same way. I don't know how they stay in business.
I really appreciate guys like Messicks and others that are on TBN, that offer advice and try to give the customer what they want.
Someone on a Kioti thread talked about how the local dealer (near me) had went out of business, and they had just got their tractor that had mismatched tires, and they couldn't take it back to get the mistake fixed. Another dealer, maybe 100+ miles away saw their posts and offered and took care of the problem. Now that is service, and someone you want to deal with.

 

[IslandTractor]

I started local and then moved "internet". I bought my first Kioti tractor from the nearest dealer who actually was helpful and gave me an excellent price on a slightly used tractor. However, I was underwhelmed by service support and found myself relying more on TBN and some experienced dealers on line for most practical issues. When time came to upgrade I did not really consider going back to the original dealer as by then I realized they had a limited shop and limited commitment to the tractor line. So, I called a "TBN" dealer 300 miles away who I had learned to trust and within a few phone calls we had a deal. I bought a new model sight unseen based on review of specs, photos and mostly the trusted dealers advice. He gave me a fair trade on my first tractor sight unseen based on a few photos and answering a few questions. I got a used diverter valve kit off ebay which I sent to him for installation. Charged very reasonable fee for time and materials. Same with a new flail mower I bought over the internet and had delivered to his dealership as considerable savings in dollars and hassle to me rather than having the mower delivered directly. His crew prepped the mower at the same time that they assembled the new tractor and BH. The new tractor was delivered a week or two later with full review of functions etc (more detailed than the original dealer) as well as hints, tips and clear encouragement to call for advice anytime. He took the old tractor when he left along with an implement that I had bartered for a set of forks he had on his trailer. I've needed to call for a variety of questions and always found either the dealer or a patient mechanic who was happy to spend time explaining/diagnosing issues. Needed one warranty item (seat belt retractor) which was UPS'd. Needed one significant troubleshooting (brush had disconnected a wire critical to 4wd solenoid and I had to lie under the tractor with cellphone in one hand and multimeter in the other while we tracked it down). No problem that the internet dealer hasn't been able to handle via phone yet.

I wouldn't mind paying a little extra for a local excellent dealer but based on my own experience I'd focus on the excellent first and then give bonus points for local rather than the other way around.

Oh yea, the original local dealer dropped the line a few months after I bought the second tractor.

 

[MFRED]

Well this is tough. I guess if you don't have someone in your area that is decent, what difference does it make? I love to shop on line, however, I usually buy local. It's nice to do research at any time. I just haven't found a computer with a toolbox to do any major repairs yet. Though a good dealer will be a good dealer no matter where they are, some times it's nice when the guy that sold you something can come right out and check out your problem, place, equipment.

 

[Oldchuck]

As has been pointed out, different options can produce widely different results and experience is about the only reliable guide. So spread it around and buy from a diversity of sources, near and far away. Patronize the good ones and forget the bad ones. One must always factor in shipping costs too when ordering anything over the internet. Love that Amazon free shipping.

 

[radioman]

Internet Dealer vs. Local Dealer !!

When I walk in a dealer, I always make it clear what I am looking for in terms of service, not purchases. There is one little tidbit I prefer to keep to myself from TBN'er's (no offense please) that is very clear when I walk in locally and start up an conversation. I make it a point that if they don't want to serve me, then I'll go some where else. period!! I will defintely drive 100-200 miles out of my way to get my service if needed. Going to internet dealer online is definately a option for me as long they serve my needs, but for large purchases I'd always be wary. Scam is a biggest worry. Wouldn't you guys be worried too ? So that being said, going local first is my preferance, then if I get a crappy service before AND after I explain what I am looking for (I am for second chances you know?) then I am GOOONE!

 

[Mike Costello]

I buy a lot via the internet from small items to big ones. We live in a global economy where customer loyalty to local purchases has blurred considerably for a variety of reasons. I pick my purchases based on price and customer service and do my research. I've worked too hard for my money to let it go on unsatifactory purchases. So. buying local or distant isn't the most important factor in my purchases. Customer service is, though.
I spent well over a year researching tractors. I had my heart set on a John Deere, but they are high priced tractors and the local boys just didn't seem up to dealing. The JD internet boys were just as bad--gave me the brush off. Then tried a local MF dealer who tossed some literature at me and said come back when he had some more tractors in stock. Went up the road to the local Kubota dealer who treated me like gold even though I told him up front I wouldn't be buying that day. He asked my needs and reccomended the right tractor for the jobs I would be doing. Three weeks later I returned and cut the deal. In short, he got my business because he acted like he wanted it and treated me honestly and fairly.
And that is whats going to separate the men from the boys. Honesty, fairness and customer service.

 

[NuBota]

I posted on a similar thread here - but as a noobie tractor owner I felt a local dealer was important - mine has been excellent thus far (17 months and 120 hrs), but the relationship hasn't been heavily tested yet either. They treat me like I have been a lifelong big customer and not just a piddly homeowner. Family business that has been around for like 50 years.

I give the dealer first crack on implements and parts, and again, so far, price has been in line so they get the business. They also are a Stihl dealer, so a bonus there.

Now that I am "experienced" and have TBN , I would feel comfortable dealing with Barlow, Messicks, etc. on future purchases - but would still give my dealer first crack.

 

[phyxer]

I normally TRY to buy local within reason. I am willing to pay a few extra dollars for a product to keep the money in the community I live and work in. With that said, I will not shoot myself in the foot to keep the money local. My tractor purchasing is like many others.....long and frustrating. I too thought it had to be green and yellow. I had my heart so set on John Deere that I refused to consider anything else.......in the beginning. After realizing that my $20K purchase of tractor package was "small potatoes" to ALL of the 4 Dealers I went to within 150 miles of me I started looking at the other brands.....Massey, New Holland, Case IH, and last but not least Kubota. I looked at the Masseys next and had one all picked out and thought the dealer was the cat's meow and then, then I decided I wanted a different model that wasn't on their lot. The games began then! The price he quoted for the tractor that would have to be ordered was more than $2k above what prices were on the internet. He told me it wold take up to 6 months to get it in. I just walked away beginning to think that nobody was going to treat me very well for my $20K. I then checked out the Case IH and New Hollands (same tractor just painted different colors) and realized they didn't trip my trigger. And then.....and then I checked out the Kubotas 2 different Kubota dealers ( first one forced me to try again with another due to the first ones dishonesty) and the second one got my money. Mind you there is a John Deere and Massey Ferguson dealership in my town. The closest Kubota dealership is 67 miles away in Cordell, and the one that I ended up doing the deal with is 88 miles away in Duncan, OK ( Great Plains Equipment Sales). Anthony at Great Plains was incredibly patient and laid back; No pressure at all, none, zip, nadda. I went to his place a total of 5 times before shaking on the deal. I have no idea what service after the sale will be like, but if it is anything close to the way I was treated pre-sale then I'll be as happy as a pig in you-know-what I was ready to pull the trigger with an internet dealer (Barlows) but Anthony's deal was within $500 of Barlows and I figured I'd give the extra to Anthony in good faith hoping for good service after the sale. That's my story. Long and bumpy, but it does have a VERY happy ending. I've yet to regret that my tractor is Orange instead of Green & Yellow

Troy

 

[CurlyDave]

If I had an internet dealer who was regularly on TBN anywhere near me, I would buy from them over anyone else. The reason is pretty simple--they get a reasonable number of sales through their presence here and they know we all talk to each other and they are part of the discussion.

Every day I get to read reviews of how good they are. Funny thing is any of the dealers on TBN, I have never head any bad reviews.

If something breaks under warranty and they are willing to ship a replacement to me so I can install it myself, I have just saved a lot of downtime. I would rather spend a couple of hours fixing my own tractor than a couple of hours taking it to the local dealer and another couple getting it back.

 

[archeryantny]

I just recently put a deposit on a kubota l48 in Virginia and I live in NJ.

 

[newbury]

<snip>

If something breaks under warranty and they are willing to ship a replacement to me so I can install it myself, I have just saved a lot of downtime. I would rather spend a couple of hours fixing my own tractor than a couple of hours taking it to the local dealer and another couple getting it back.

A lot depends on the value of your time - AND down time!

If your business depends on having a tractor a local dealer who can get it fixed pronto can be very important. However that depends on the dealer.
You know that if you need something replaced by "FedEx order" it will usually take at least two days.

There's a local hardware store that I buy from KNOWING their prices are higher than big box stores/internet but their overall value to me is higher.

You pays your money and takes your choice.

 

[medicshawn]

I just recently put a deposit on a kubota l48 in Virginia and I live in NJ.

Is that the one in Northern Va?