Setup charges?

[newtattoobob]

Yesterday I got a quote from my dealer on a new B2650 with a loader, mmm, box blade, grapple and third function and 2 rear remotes. He is willing to take my B2710 and L3400 on trade and I feel he is giving me a good number on them. My issue is he wants me to pay msrp on all the new stuff plus pay $600 for labor to install the 3rd function and the two remotes. I think since this is the 4th new tractor I have purchased from him they should do all the setup included in the price. Am I out of line here? Do other dealers charge to setup new equipment? Thanks

 

[paulwestski]

In my opinion the new B2650 should be 10%-15% below MSRP and then the 3rd function and remotes at MSRP but no labor charge to install them.

I think ideally if the dealer left most of his tractors on the crate un-assembled until sold, adding optional valves and such would be much easier. He wouldn't have to remove wheels and fenders, plus the tractor would already be in the shop being assembled.

Of course the dealer wants to have the curbside appeal of inventory.

 

[JJZ 109]

They're going to get the $$ one way or the other on the deal. If they go lower than MSRP, they'll likely lower your trade in allowance. So you basically are laying out the same amount of money because they'll make it up on the back end of the deal.
As far as the extras, you'd think that a good customer like yourself would get a break from them on the labor and accessory equipment. If it were me I'd ask them if it's worth losing the deal over the accessory/installation price they're asking and continue shopping if you haven't signed the papers.

 

[JOHNTHOMAS]

You have the price from them. Now contact Barlows and see the difference between them delivered to your door. Barlows has always given me good prices for my trade ins plus discounted the price on the new equipment.

 

[art]

Set up charges are set-up charges! They are always there one way or another. Some manufactures say they are giving away free loaders! Yep, need any swamp land?

 

[newtattoobob]

Haven't signed any papers yet, maybe I will shop around. I just feel it is not right to quote me a price on a tractor and then the very last thing put on labor for putting the machine together. If I had bought the tractor and then 6 months later went back and got the remotes I could see why they would charge me but when purchasing a new machine I think it would be a courtesy to assemble it and not charge for it. My salesman said he would talk to his boss and see what they can do, hopefully they will work with me. If not I will definitely shop around.

 

[murphy1244]

Haven't signed any papers yet, maybe I will shop around. I just feel it is not right to quote me a price on a tractor and then the very last thing put on labor for putting the machine together. If I had bought the tractor and then 6 months later went back and got the remotes I could see why they would charge me but when purchasing a new machine I think it would be a courtesy to assemble it and not charge for it. My salesman said he would talk to his boss and see what they can do, hopefully they will work with me. If not I will definitely shop around.

AS Art said "some dealers show the costs and some don't"

 

[murphy1244]

Haven't signed any papers yet, maybe I will shop around. I just feel it is not right to quote me a price on a tractor and then the very last thing put on labor for putting the machine together. If I had bought the tractor and then 6 months later went back and got the remotes I could see why they would charge me but when purchasing a new machine I think it would be a courtesy to assemble it and not charge for it. My salesman said he would talk to his boss and see what they can do, hopefully they will work with me. If not I will definitely shop around.

AS Art said "some dealers show the costs and some don't"

 

[JOHNTHOMAS]

There is a cost for additional work.
Everyone understands that.
Who pays is the question. Dealer or customer. When one gets a price then starts asking for additional services, which the dealer has to pay his employees for doing at his/her hourly cost, then the bill/bottom line can go up. Customer hourly cost is different than dealers hourly cost if the same person owns the sales dept as owns the service dept.
Dealer sells a product, $25000 tractor and $5000 of implements. Cost to customer $30000.
Dealer has to pay for that tractor $22000 and those implements $3800 and the difference between what the dealer has to pay and what the dealer gets from the customer $25800 reflects a $4200 profit. How efficient or costly his operation is isn't the point. It's dollars difference between dealers cost and sell price. One dealer can operate more successfully than another as can de seen by who stays in business and who doesn't. That's the dealers side (Arts).
The customer works hard, makes good buying decisions and wants to buy a product for the best price without bankrupting the dealer and not paying the dealer so much that he/she goes bankrupt themselves. That the purpose for shopping around. Find a decent deal for a decent price.
Should the dealer go ahead and have his hourly wage employee install the additional items and say" I'll sell it to you and "eat" the additional $26 or..... no, you have to pay an additional ($85 per hour shop rate x 2=) $170 or you pay the additional $26 which would sound cheap after a $30000 transaction/sale.
Yes, we all know there is a cost for any additional service but the cost can be less for the dealer and the good warm fuzzy feeling it could give a customer can be well worth the additional cost. Every person in business needs good cheap advertising and the best advertising that can be obtained for ANY business is the satisfied customer, ANY business. Yes, it will cost the dealer a few dollars but is that additional cost worth turning a good customer into a former good customer? Now this good former customer is going to check some other dealers and when he finds a "smarter" dealer he is going to become their new good customer and will also tell every one he knows how his local dealer was trying to make about $2000 more on the deal than the dealer in Ky and wouldn't even pay to install the additional products that he was buying at full retail from his "good" local dealer.
I bet Art would have put them on for free or a reduced price because I bet he's a people smart dealer. I'm almost positive he would. Maybe he still will!:laughing: NY isn't that far from Ohio.

 

[art]

John, it would be nice if we had the option to sell at retail as we are loaded with dealers so retail, is just a guide or a price to work from. Set-up charges are included in all pricing either up front or hidden they are there. I normally do not show them as it is my end of the deal although some people do buy some wholegoods in the box from us just like home depot and lowes or sears.
I can not stress enough that it is the bottom line on the bill that is the most important part to the purchaser! The allowance you get is just a number. Same as the asking price! In the big picture of what you are getting for your money and how much is the total on the bottom line.

 

[Gator6x4]

If the poster thinks installing the accessories is such a easy task, why doesn't he do it himself. The dealer in building or assembling a tractor mostly just installs the wheels, checks the fluids, and makes sure everything works. Some fail at this. Now when it comes to installing remotes, loaders and backhoes someone has to pay the person who does the installation.

Most loaders, remotes and backhoes I have purchased have had two prices. One if I did the installation or two if the dealer did the installation. The only thing about doing your own installation is if you damage the unit, you own it or if you damage the part you are installing, you own it and last and most importantly you have to look at yourself when it comes to warranty on the installation and everyone knows what a can of worms that opens.

 

[nybirdman]

My thought process on this;I have purchased many new cars,trucks,couple of atv's and two tractors.
I ask final price period,all inclusive.If I like the price I will buy it,if not I don't ,as simple as that.

 

[newtattoobob]

My thought process on this;I have purchased many new cars,trucks,couple of atv's and two tractors.
I ask final price period,all inclusive.If I like the price I will buy it,if not I don't ,as simple as that.

This is how I feel, I don't think its right at the last minute to throw a setup charge on the bill especially when the salesman is just taking a guess at how long it will take to put together and when I asked how many hours he was figuring and what the labor rate was I got a run around about this price is including all the hoses and quick couplers and when I questioned him about the hoses being included in the kit from Kubota he said they are not. I don't know if this is true, maybe I will just put it together myself, at least I will know it was done right.

 

[murphy1244]

This is how I feel, I don't think its right at the last minute to throw a setup charge on the bill especially when the salesman is just taking a guess at how long it will take to put together and when I asked how many hours he was figuring and what the labor rate was I got a run around about this price is including all the hoses and quick couplers and when I questioned him about the hoses being included in the kit from Kubota he said they are not. I don't know if this is true, maybe I will just put it together myself, at least I will know it was done right.

What Dealer you working with? Sterling? Wellington?

 

[Coyote machine]

For the $600 in question are you going to bring both tractors to additional shopping around estimates of final price? Since you haven't bought from the other dealers previously how will you know if the final bottom line will end up being what you negotiate with them? Are they further from you, how long in business, what's their reputation? How much is your time worth shopping for the $600 deal breaker? Have you told your dealer you feel the $600 could be a deal breaker and what's his best offer on it? Split it? 2/3 you, 1 third him?

 

[Hdoilcan]

My dealer gave me the price of the tractor and then after talking ect said if I wanted front and rear remotes that he would sell them to me at cost and install them for free. Very happy with dealing with him!

 

[newtattoobob]

For the $600 in question are you going to bring both tractors to additional shopping around estimates of final price? Since you haven't bought from the other dealers previously how will you know if the final bottom line will end up being what you negotiate with them? Are they further from you, how long in business, what's their reputation? How much is your time worth shopping for the $600 deal breaker? Have you told your dealer you feel the $600 could be a deal breaker and what's his best offer on it? Split it? 2/3 you, 1 third him?

You're right its not worth trailering both tractors around to other dealers to see what I will get. I do have another dealer that I have dealt with in the past but it is about an hour and a half away. I did call them and without seeing my trades they were a lot lower than my current dealer. I did ask them about splitting the labor charge with me, they claim they are already. They are figuring it is going to be $900 in labor and they are only charging me the $600. I think I will just end up assembling it myself.

 

[JOHNTHOMAS]

I have never trailered a tractor to show a dealer to determine trade in price and I've traded in at least 12 with Barlows. He has never even driven the 6 miles to my house or the 2 miles to my rental property to look at my trade ins, he also has never charged me retail price on anything I've bought from him as well as giving me a more than fair price for my trade in. But it would be a lot of trouble to contact them from Ohio and get a price.

 

[newtattoobob]

I have never trailered a tractor to show a dealer to determine trade in price and I've traded in at least 12 with Barlows. He has never even driven the 6 miles to my house or the 2 miles to my rental property to look at my trade ins, he also has never charged me retail price on anything I've bought from him as well as giving me a more than fair price for my trade in. But it would be a lot of trouble to contact them from Ohio and get a price.

Sent Barlows an email, will see what he comes up with!

 

[s219]

When I traded my B2920 for an L3200 recently, the dealer gave me the L for about 15% off MSRP, and the trade for the B was very good. Barlows was a little better on both ends, but slow to respond. Nobody asked for setup fees, and I don't think they should -- it's part of their cost of being in business, and it should be built into whatever discount they think they can offer (10-15% seems typical for Kubotas, though Barlows clearly does even better).

The L I bought was already assembled, so I sure would have balked if they tried to pitch a setup fee in that case! When I originally bought the B a few years ago, it was in the crate and there was no difference in price just because they had to put it together for me. One way or another, they have to assemble the tractors, so any fees for that should be already in their business model and cost-basis.