Is this BS or what?

[ernieatv]

This dealer will deliver new tractors free. They will pick up and return your tractor, for warranty work - no charge.

Yes - there is definitely a difference in dealerships.

That's what a good dealership should be doing. No charges until the warranty is over

 

[NoTrespassing]

300.00 for transportation. I guess they have to get some money out of you one way or another.

I just got my invoice. Transportation for 70 mile round trip was $75. Total bill including tax was $2524.27.

This was for 800 hr. service plus almost all loader hoses.

engine oil/filter
fuel filter
engine belt
coolant
engine air filters
front axle oil
hydraulic oil/both filters
grease tractor and loader



Parts - 1183.30
Labor - 1093.84
Consumables - 65.63
PU/Del - 75.00
Tax - 106.50

 

[Big River]

Well, obviously the money to pay for it has to come from somewhere, but the increased customer satisfaction can drive future sales both of that customer and others via review/recommendation, and the net result can easily be that the dealer sells machines at the same price as a less acccomodating dealer with the same or greater net income.

The margins may be lower as a result, but with increased sales, the overall net can be higher.

The dealership is working on a carefully calculated business model to achieve certain growth and profit margin. Profit margin allows the dealership to provide support to customer base. By your logic, the dealership will increase sales which also increased their support cost, at a lower profit margin. This is not growth. Growth shows increase sales and increased profit margins that coincide with sales. Reducing the percentage of margin makes your business model stagant, if not regressing.

 

[rScotty]

When I buy a tractor I make sure to write right on the sales contract who is responsible for hauling during warranty. There are no rules; it's part of the negotiations. Write it in by hand and both you and the dealer initial it. That way there isn't any question about it.
rScotty

 

[ning]

The dealership is working on a carefully calculated business model to achieve certain growth and profit margin. Profit margin allows the dealership to provide support to customer base. By your logic, the dealership will increase sales which also increased their support cost, at a lower profit margin. This is not growth. Growth shows increase sales and increased profit margins that coincide with sales. Reducing the percentage of margin makes your business model stagant, if not regressing.

I bow to your wisdom - no doubt in every situation you're correct about this and it's impossible to reduce margin without becoming stagant [sic] or regressing.

I read it on the internet, must be true, despite what I learned in econ.

 

[Big River]

I bow to your wisdom - no doubt in every situation you're correct about this and it's impossible to reduce margin without becoming stagant [sic] or regressing.

I read it on the internet, must be true, despite what I learned in econ.

I learned mine in 32 years of equipments sales for a variety of dealerships that all essentially ran very similar business models.

 

[MichiganIron]

I learned mine in 32 years of equipments sales for a variety of dealerships that all essentially ran very similar business models.

It's actually pretty straightforward....having to increase overhead costs to service an increase in low margin business is an "slow" death sentence. Not adding the proper overhead to service the increase in low margin sales is a "quick" death sentence.

 

[ning]

It's simplistic to just blanket say you can't increase a business's health and profitability by reducing margins. It all depends.

If margins are already low enough, going lower is certainly a "race to the bottom", but many businesses find that they've priced themselves out of a market by having too high of margins and as a result don't have enough sales to maintain the business - in which case lowering margins can be useful long-term.

 

[LouNY]

I am amazed at all this fuss about being charged for a dealer hauling tractors for warranty work. As far as I can recall for over 50 years if it wasn't offered as free you paid for it.
Complaining because a $30,000 tractor wasn't covered for transportation for warranty work, do you think your fancy new $80,000 pickup is covered if you have to have it towed for warranty work?
If you don't have towing insurance it's sure not covered, and even with towing insurance it may be to the "closest" repair shop not necessarily a dealership. Most of our local ag dealers have a service truck which can and will handle warranty work, the compact tractor dealerships do not.

 

[rScotty]

It's good for new buyers to know that towing charges are traditionally a part of the price negotiations when buyers sit down with the tractor dealer to bargain over a sales contract. Other things on the table at that time are extras like implements, discounts on the cost of required service & parts during warranty - and any other extras like shop and parts manuals or extended warranties - basically anything you want to include, but those are the standard items.

Just write the final terms right onto the contract and both parties initial it & get copies. Some dealers will want ot make up a clean copy with the changes and others are happy with the marked-up original.

Bargaining is just part of the rural tractor-buying process.

rScotty