Price Check Supply/Demand Doesn’t Seem Right

[robertm]

My whole line of thinking was a dealer has nothing to sell. Can’t make money. When you gotta eat, pay utilities, etc., somethings better than nothing. I understand retail used trade value to retail new sale value, or wholesale used trade value to wholesale new sale value. This dealer has nothing to sell. He could have had a bird in the hand and one sold in the bush waiting to become in. In Illinois, there are minimal to none used tractors. I called Messicks for their trade, and despite being out of their area, they said they don’t understand. They can’t get enough used BX’s and would be interested if it wasn’t out of their area.
I’ll wait. I’m in no hurry, and really, not even sure if I need to trade.

 

[Peter 315]

Re: Supply/Demand Doesn稚 Seem Right

You could sell it yourself in a week. I bet......

 

[Username Taken]

Re: Supply/Demand Doesn稚 Seem Right

My whole line of thinking was a dealer has nothing to sell. Can稚 make money. When you gotta eat, pay utilities, etc., somethings better than nothing. I understand retail used trade value to retail new sale value, or wholesale used trade value to wholesale new sale value. This dealer has nothing to sell. He could have had a bird in the hand and one sold in the bush waiting to become in. In Illinois, there are minimal to none used tractors. I called Messicks for their trade, and despite being out of their area, they said they don稚 understand. They can稚 get enough used BX痴 and would be interested if it wasn稚 out of their area.
I値l wait. I知 in no hurry, and really, not even sure if I need to trade.

Dealers don't make that much money on sales, IMO. They make it on service and parts from what I've seen.

Even during the depths of the 'great recession' when I took my truck into the dealership for an oil change or whatever, vehicles would be lined up 4 across and 500 yards long while the New Car Car salesmen were doing their best meerkat impersonations in the showrooms. Felt like a porkchop when you walked in.

IMHO, a lot of dealers only want to be able to have the Big Orange Kubota sign out front to attract warranty work and other better-paying, aftermarket, after-warranty work. Plus, a whole lot of parts sales.

Do they make some money selling new cars/tractors/trucks/zeppelins? Sure, but that's not the heart of their business..... Again, IMO.

But I do agree with the waiting. I think it's poor judgement to let them frighten you into buying right now at a premium price.

The Market rules. Always.

Might be 6 Months, might be a year, but things are going to go full circle. They'll be begging you to buy at some point in the (near, IMHO) future.

And, as always. If you listen to my advice....... I don't even listen to my advice.

 

[Industrial Toys]

I think some in the business just love taking advantage of that "Got to have it yesterday" mentality of so many. And the more some people can't have something right away, the more they want it.

I'm always amazed how many people settle for something not exactly what they wanted. I would never in a million years for instance buy a vehicle in a color that I didn't want. I would walk first.

 

[Bearsixty7]

I don't believe the notion that dealers don't make a good margin on sales, they get 15-25% typically. Shop around and you can see this with 2-5k differences in prices on the same 20-25K machine. The one with lower price isn't selling it at a loss, they just aren't making as huge a profit. After the sale service certainly brings in a good margin.

Back in the 80's, 90's and 2000's, The big three pickup brands invoice price could be figured by taking the MSRP from window shopping and then multiplying by .83 (17% off). You could see this as well by using NADA, KBB and Edmunds too. Then there was the additional 3% holdback so, 20% total.

 

[Username Taken]

I think some in the business just love taking advantage of that "Got to have it yesterday" mentality of so many. And the more some people can't have something right away, the more they want it.

I'm always amazed how many people settle for something not exactly what they wanted. I would never in a million years for instance buy a vehicle in a color that I didn't want. I would walk first.

It is the NUMBER ONE (#1) goal of all sales marketing, sales people and all companies to create 'Urgency' in a prospective buyer. Or simply a 'prospect'. As far as they're concerned, you walk out the door and you no longer exist. Which, truth be told, they probably won't ever see you again once you walk.

So, yeah. Urgency is their most important goal. Whether through price, lack of availability, features/benefits....... Whatever. It's all geared at making you want to buy NOW.

And you can use that to your advantage. Bigly. Especially if you have a relatively new salesperson or get one on the cusp of not making his/her quota.

You simply tell them, "I am ready to buy now. Right now. All I need is the price I want."

Then give them the price and be ready to follow through on your word if they come back with it. Common courtesy.

But salespeople get tired of being an unpaid tour guide all day, a dancing monkey, being nice to people they really don't like (me). They got bills to pay, a family to support.

Not sticking up for them because most of them will take you to the cleaners if they get the chance. But, yeah. You can use their own tactics against them.

Sorry for being so long winded. Bottom line is; don't buy the hype. Take charge and tell them what you're willing to pay. If you don't get it, be ready to walk out the door. If you do get the price you want, be courteous enough to make the deal.

 

[Industrial Toys]

We always try and kid ourselves one way or another. You miss a good deal and tell yourself there will be more come along. Well, not always.

I hate to say it, but I predict a financial bloodbath, SOON, and EVERYTHING will change overnight.


Aside from the fact, that forces seem intent on destroying this priviledged semi-rural lifestyle, which has fueled the demand for these little tractors.

 

[JethroB]

I picked up a strategy that works for me. I think it came from Consumers Reports decades ago concerning auto purchases.

Treat the purchase price, trade-in, and financing as three separate transactions. Negotiate the price first, only then mention a trade-in if there is one. That way you can get a clearer take on the trade-in allowance. Shop around for financing taking any cash discount offered into the calculation. Don't let the salesman mix these together as their apt to do. Often you'll find you are better off selling the old one yourself.

I'd throw a fourth item in, insurance. Shop around for that too.

:2cents:

 

[Industrial Toys]

And contrary to popular belief, don't announce you ar paying cash like some kind of BIGSHOT. lol You then put them on notice that they won't be making money on financing and will get it out of you some other way.

 

[RickB]

Don't expect the supply of Kubota whole goods to expand any time soon. It simply isn't going to happen in the second quarter of 2021.