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Weirdest reason for not discounting

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2.8K views 20 replies 14 participants last post by  Mark / Ohio  
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#1 ·
So i put the hard word on the John Deere dealer today to thier best price on an X300. The recommended retail price for said machine is $5,600.00 (Australian price obviously).
They replied "We cannot give you any discount because we do not stock that machine, we would have to order it in specially" WTF!!!!

That being said the JD dealer 80 Klm (50 miles) away quoted me a price of $5,300.00 (They have one in stock) and thier sister dealership 100kilometers away quoted me $5,280.00 and i have not even asked for a better deal than that yet from either of them!! lol.

You guys got any weird/strange stories like that???

Needless to say i shaln't be using my local JD dealer.
 
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#5 ·
It's very common for dealers to discount demos, floor models and leftovers from a year or two before. Some will discount existing stock. But I don't know any dealer (that expects to stay in business) that would discount a machine he would have to order. Existing year models are already in stock.

Sometimes a leftover will bring a premium, like when a popular Deere model's transaxle was changed to a lighter unit from one year to the next.

I kept waiting for Toro to discount the last of the 520H Wheel Horses. I think I did hear of one that went for less than list price. No dealer in SE Texas carried any. I really couldn't expect to get a discount on a special order. :(

Sometimes a dealer will pass on manufacturer incentives as discounts. Sometimes manufacturers will purge existing inventory with incentives. Sometimes, but not often and usually at the end of a model run.

These are often unpopular or odd run models. Those 'mystery' machines that aren't listed in Fitup Guides or Accessory Cross References. Sometimes with different decks than normal, etc.

My Cub Cadet 1420 is a prime example of a phantom. Most websites pretend it doesn't exist. I'm sure the original owner got a discount (or at least should have) when it was purchased.

But if you want to order a machine and get a discount then do it on line. It's the only way I know. And they don't come with a relationship with a dealer. Any discount will probably be offset with shipping charges. Sears (any there?) is an exception. You can have a special order shipped to a local store for pickup for free. :)

I see no reason to run from a dealer that will not discount a special order. Maybe on his terms, but not mine or yours.

Ted
 
#6 ·
"...I see no reason to run from a dealer that will not discount a special order..."

Ahhhh... but you see, you should "run". Because of 2 reasons:

1. You can't get the machine there (because he doesn't have one). Who wants to wait in our "instant gratification society" of today. I show up with 5-Large in hand, I want to walk out with the goods the same day. Special order?... waiting?.... set-up?... and pay more to boot?... FORGET IT.

2. No discount?... no sale.

Keep in mind that nothing in the X300 series is "special order". Especially the X300. It is probably the most common of the X3xx series. The JD warehouse somewhere else in the continent has probably got a 'stack' of these things. And the delivery truck from that dealer probably makes a run once a week (or quite periodically). So what's so special about loading another box onto the truck?... after all, if he was to actually "stock it", he would have to call the "jd warehouse", and ask them to "put a few onto the truck"... I see no difference..... If he had to order a special attachement from a manufacturer that he normally doesn't deal with, than I agree. But this is JD. The same company. The same one that delivers similar and other tractors to his lot every week!
 
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#11 ·
wally2q said:
Ahhhh... but you see, you should "run".
Click to expand...


Methinks we beat the same horse.

By "run", I assumed (yeah I know) it to mean to sever all ties . . . no future purchases. By no reason to run, I meant look elsewhere for a discount or expect to pay what everyone else pays for that tractor. That dealer may have an excellent service department and accessory procurement program.

At any rate, I'm not faced with that problem. No new equipment for me, unfortunately. :crybaby:

Ted
 
#7 ·
Ive had that happen at some auto dealerships and even at some stores- obviously they dont want your money- so just say " Okay my money is green at ANOTHER dealer that'll take it willingly and ill be telling people i know what a fine dealer you are...."
 
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#8 ·
some dealers are more willing to sell and make money on volume. others want to make money on each sale, as much as possible. if you find a better deal elsewhere, then go for it unless you just really like this dealer.

we are a commercial 2 way radio dealer. we have done sales both ways. and the boss has decided that he would rather sell 5 radios and make 1000 profit than sell 25 radios to make 1000 profit. in OUR line of work you don't see the repeat service that tractor dealers see. back when folks actually got radios fixed we would give a good discount, but now odds are you never see that radio again so why count on service work on it to get money. the internet has affected all sorts of dealers, from tractors to radios to cars. folks can get stuff cheap online and they are more prone to order their normal maintenance items online as well.
 
#12 · (Edited)
davidg said:
.....the internet has affected all sorts of dealers, from tractors to radios to cars. folks can get stuff cheap online and they are more prone to order their normal maintenance items online as well.
Click to expand...
(I work in a small private owned warranty authorized consumer electronics and appliance sales and service shop) Bad part is the ones that buy online, from a box store, or home shopping network are the first ones to make a total arse of themselves expecting priority service yesterday ahead of the customers that actually purchased from us. We let them wait anyway. No matter how fast you fix it, the next time they need something they will run right back to the cheapest place and start the routine over again. In the end they are not a profitable customer and consequentially not worth the bother as they only cause delays in service upsetting to our own customers with little to no return on the lost time. Add in the red tape and crappy warranty labor rates courtesy of the manufactures to collect a warranty claim and a bad situation can turn even worse quickly. It's to the point some (though we have not done it yet) are refusing to run more then one warranty call a day trying to stay profitable on the service side.

Sorry, rambled a bit off topic there venting.. :rolleyes:
 
#9 ·
Davidg:
folks can get stuff cheap online and they are more prone to order their normal maintenance items online as well.
Click to expand...
Youre right on that- most stuff at dealers/parts places are so expensive ( not to mention driving there) - its easier to find it online and have it shipped to your door 'technically' cheeper.
Im lucky i have a parts place literally up the street ( can walk there)- some things are bit high, BUT- its a local business and its close.
 
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#10 ·
No need to get your knickers in a bunch at that dealer D&C. You make the offer to him on what you want to pay for a tractor and if he doesn't want to deal then go to another dealer. Just don't burn the bridge with him though, you might need him to buy parts, accessories or service later.

Buying things over the internet isn't always cheaper. The internet tax called shipping is a hit or miss proposition. Some places charge extra on the shipping to make up for the lower advertised price. They reel you in and then sock you with the shipping after you've already entered all your information and credit card number.

Also, I wanted to order some things from a store in Aussie land and I had to pay a import duty that I was unaware of until the importer quoted me the full price. They ended up sending me a box full of Tim Tams by mistake and when I called the toll free number they told me to keep them. Dazed and Confused can tell you what Tim Tams are, yummeeee!!!! :00000033:
 
#13 ·
The dealer isn't trying to rip you off. His freight cost would be likely higher on a special order. When he orders a truck load of tractors, he can spread out the freight costs among the whole bunch. When ordering just one, he has to pass that cost off on the sale of that single machine.
 
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#15 ·
The above is quite plausible if the dealer is a small-volume outlet and has to rely upon a cartage company to bring machines to his back door. Giving this dealer the benefit of the doubt, then I think it is fair to say that he is a very poor salesman for not explaining to the OP the reasons why he could not discount this non-stock model.

Look at the damage he has done to the potential relationship with a customer? The OP isn't a moron. No matter how you look at it, the dealer failed the OP and failed himself. Without reasonable justification for not discounting the product from MSRP, the OP is going to buy that machine from another dealer that will discount it and he will likely lose all future sales with the OP as well.

Maybe the smarter thing to have done here was to match the price of the other dealer and make the sale, even if it meant breaking even. Sometimes, the long-term goodwill generated by such a move, far outweighs the loss of a profit in the short-term, especially if the dealer discloses what he is doing to the customer. If you want to succeed in business, you have to make the customer feel like they are wanted so that you get repeat business via customer loyalty. In addition, that customer is often your best advertisement because when a customer finds a dealer willing to bend over backward, then they tell their friends about him. Word of mouth advertising is worth ten times any print ad.
 
#16 ·
Methinks we beat the same horse.

By "run", I assumed (yeah I know) it to mean to sever all ties . . . no future purchases. By no reason to run, I meant look elsewhere for a discount or expect to pay what everyone else pays for that tractor. That dealer may have an excellent service department and accessory procurement program.

100% correct. I mean "run" and buy your tractor somewhere else... next time you need something, you still want to go there... who knows - they may not have an X300, but they may have the cheapest maintenance parts around....

As for freight?... if he is a small JD PARTS dealer, then I agree. If he sells machines, and expects to make a living, and have 2-3 people on staff: in sales, parts counter, admin, and his own salary, "on-average" he has to move several 10's of $K's of equipment per week... that means his delivery truck is making rounds every week or every other week. Even if his truck comes once a month, or even once every 2 months (very unlikely, because that means he has to sit on a mountain of inventory), all he had to say is: "sure... I'd love to sell you the tractor, but you'll have to wait for 2 months to get the discounted price... if you want it in 3 days, I'll have to charge you special freight costs...." so he gives the buyer a choice, and is honest with them.... again, we're talking about an X300 - which is "far" from a "special purchase", because it's the most common mid-grade JD lawn-tractor out there....

cheers....
 
#17 ·
A stocking dealer may buy at a better price and have lower (bulk) shipping costs but then they also have the cost of carrying the inventory. Unless they are clearing out inventory, they need recoup their carrying cost and see a return on their investment.

A non-stocking dealer might not enjoy volume price breaks nor do they get bulk shipping rates unless grouping a large order but then they don't have carrying costs either. Since they don't have money tied up for any length of time, they could take a smaller margin although their margin might already be small for the reasons stated.
 
#18 ·
wally 2q: As for freight?... if he is a small JD PARTS dealer, then I agree. If he sells machines, and expects to make a living, and have 2-3 people on staff: in sales, parts counter, admin, and his own salary, "on-average" he has to move several 10's of $K's of equipment per week... that means his delivery truck is making rounds every week or every other week. Even if his truck comes once a month, or even once every 2 months (very unlikely, because that means he has to sit on a mountain of inventory), all he had to say is: "sure... I'd love to sell you the tractor, but you'll have to wait for 2 months to get the discounted price... if you want it in 3 days, I'll have to charge you special freight costs...." so he gives the buyer a choice, and is honest with them.... again, we're talking about an X300 - which is "far" from a "special purchase", because it's the most common mid-grade JD lawn-tractor out there....


Thats all well and good- but he had the cash in hand- the dealer wouldnt of lost anything on the deal- cash will get you alot of things......
 
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#20 ·
If were talking about a John Deere here the dealer should have taken the hit knowing full well that he would make his money back with servise and parts. I doubt most folk will go too far out of their way to get a broke mower fixed and yes I am talking miles but we have already talked about some Deere dealers that aren't very *bright* on this forum.
 
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