Buying Advice Package Deals

[discmen]

I was searching the forum and could not find this answer so I apologize ahead of time if it was answered and I missed it. I have been looking at a number of different tractors. I'm not too sold on any one brand as I know there are a number of tradeoffs. I've called around to a number of local dealers. I live outside of Sacramento, CA so I have a number of dealers that sell all the major brands. I've spoken with dealers for Kioti, LS, Branson, Massey, and Kubota. I've been searching on Tractor House to see if the prices they are quoting are comparable to other places around the country.

What I'm finding is that dealers in the Midwest and the South are putting together packages with several implements that are sometimes less than the quoted price of just the tractor and FEL out here in California. Is it unreasonable to expect the same out here? Is there some reason why tractors would be cheaper in the Midwest than out here? I have read many posts on here that talk about buying from a local, trusted dealer and I'm on board with that. It's just hard to pass up such good bargains. Has anybody ever tried to get a dealer to match these prices or at least sweetened the pot?

 

[wwdiii]

I bought my Mahindra 3550 package deal. Dealer in Buna, Tx. Trailer, Box blade, straight blade and brushhog (all 6 ft). Tractor had been on the lot a while. I bought it package less than other quoted a tractor by itself. Just depends on the dealer and if they have inventory they need to move.

Thanks, Billy

 

[Monster5601]

Is it unreasonable to expect the same out here? Is there some reason why tractors would be cheaper in the Midwest than out here?

The cost of living and the cost of doing business is higher in your area than in the mid-west, I'm sure that has something to do with it.

 

[djefferis]

Location, Location, Location...it matters.

Think of it this way, a dealer in California has a completely different market than one in Iowa or Alabama. Each locale has a different client base, and each client base buys in different ways and volume. At the same time, fixed cost are a big factor in a profit margin required to keep the lights on - if cost of leasing a shop is $8 a sq foot in one location and $45 a sq ft in another - and makers require you to maintain x number of footage for display of their product - you either have to charge more or sell a MASSIVE volume to keep up in higher cost areas.

Of course manufacturers establish a MSRP to allow EVERY shop to operate profitably. Go onto their website, see the price - know you can walk into ANY dealer and buy at that price for cash. Some even go so far as establishing a MAP (Minimum Advertised Price) - this is the price YOU MUST CHARGE for said unit. Advertise for less, lose the franchise - it ensures a level playing field nationwide for everyone in theory.

Of course MAP cannot be applied to something not made by the manufacturer - i/e if my MAP is 19,999 for a unit and dealer decides to offer my product in a bundle with a 16' trailer for 20,000 - nothing a maker can do - your selling a trailer for a buck, but requiring a buyer to pay full price on a tractor to get it. Its a great work around for sales.

Further, the markup on implements is greater than tractors - just like selling new cars. A new car your dealer makes pennies per dollar, an extended warranty, accessories and service plan they make dimes. So that 3000 implement might be what turns the sale from a minimum commission sale into a profitable sale for the dealer. Further, like new cars - studies support buyers who purchase the add on's consistently return buying more value added services. Those buyers who shop by price alone are not highly profitable - and anyone in sales will tell you there are only so many prospects you can handle in any given time frame. Since the number of customers is limited, some dealers focus on the profitable customers and employ less people. Some want every lead they can get knowing they can add salespeople at a low cost if they get more prospects than their staff can handle. Hiring knowledgeable staff is cheaper in the midwest than say San Diego or Miami.

 

[Jchonline]

First, avoid package deals. They skimp on trailer and implement quality. Even if the implement is a brand name, it will be the lightest duty offering in the lineup..and you dont want it.

Always cheaper in the Midwest. I could get a Kubota L6060 $3k cheaper from a large Midwest dealer than here in CO. However with shipping costs it was a wash.

Don’t discount the dealer relationship, and possibly getting your local dealer to compete a bit. In the end I worked with my local on a reasonable price after getting quotes from a number of area dealers and Midwest dealers. I am happy with the outcome.

 

[ericm979]

The big Branson dealers in Texas or the midwest offering package deals sell a lot of tractors.

Daves in Red Bluff is an excellent dealer. I wish the car and motorcycle dealers I deal with were as good. The local Massey dealer was totally uninterested in my business- I think they prefer big ag customers. The local Kubota dealers were ambivalent, I had to beg for quotes. In my price and size range the Kubotas are bare bones tractors with premium prices. I got more features for less with the Branson.

I've found that implement costs are higher here than the midwest as well. It's mostly due to shipping as most implement makers are back there or in the south. For example I want a sub soiler. If you're in the south or midwest you can go to an Agri-Supply or Northern store and get a decent one. Here there's only TSC and theirs is lighter built and lacks a shear bolt. Shipping one of the Agri-Supply units will cost nearly as much as the $170 the implement costs in the store. This is an extreme example. For larger implements you can figure shipping adds $3-500.

 

[discmen]

Hello ericm,

I have known about Dave's for quite some time. Finally made it up there to visit him last month. We got a quote from Dave's from 11/17 when we first started shopping and the price of the tractor has increased $3k in that time. He had put together a package that, while not as generous as the Texas stores, had the stuff we needed and was still under $30k, tax and all. We're kicking ourselves for not pulling the trigger then.

A question for you, Dave's is probably 5 hours from you. Do you worry about not having the place you bought your tractor close or are you savvy enough to do all the work. When we were up there he advised us that, because of my busy travel schedule, it might make more sense to buy from a closer dealer since the cost to either take it up there for work or for them to come down and get it would be cost prohibitive.

 

[discmen]

Thank you all for the responses. I just called one of the Texas dealerships and shipping is $2 per mile to my house. So with shipping not saving anything. Guess I'll just call the local guys again and see who I can get a deal from.

 

[ericm979]

I've done a reasonable amount of work on other vehicles since I was a teenager, including a number of engine rebuilds. What I lack(ed) was tractor and hydraulics knowledge. I'd done some small repairs like changing hydraulic hoses and PTO seals on my previous Kubota. I've since read some about hydraulics and had some very good advice from people here and feel that I understand some now. Dave's will ship stuff (at my expense but a reasonable rate). So far all I have needed has been filters. Dave's does a lot of business with remote people so they're used to it. When i was visiting they were prepping a couple tractors to go to Hawaii.

So far all I've had to do on the Branson is routine maintenance. Other than needing a larger drain pan and a pump for the hydraulic oil, and additional filter wrenches, it's been pretty painless.
It is however a gamble. If I have serious problems that I or local independents can't handle, I'll have to rent a trailer and truck it up there (3 hours by car, probably 4 with a trailer). That's one of the reasons I went with the Branson with it's mechanical injection vs a Mahindra with EFI. If I need to I should be able to get a Bosch VE injection pump rebuilt locally but the Mahindra requires the tractor at the dealer to update the ECU.

BTW Dave's runs tractors on a PTO dyno before they ship them.

 

[LS Tractor Owner]

Thank you all for the responses. I just called one of the Texas dealerships and shipping is $2 per mile to my house. So with shipping not saving anything. Guess I'll just call the local guys again and see who I can get a deal from.

Check out Bruno's powersports in Arkansas. Google them, they show the prices on most of their tractors. The prices are definitely cheaper than most, including shipping to your door! They deal with MF and LS tractors.

Another dealer w/ decent pricing is TeamTractor in Pheonix AZ. They ship "free" and have good prices on Kioti and Yanmar.

Both are worth looking into.