haggling with the dealer

coonie minnie

Well-known Member
Here is one for you guys. I priced some new equipment over the past week or so... had two dealers out to talk about want I wanted, and they reviewed something I wanted to trade.

Today I got the second of the two quotes back.

Dealer A I do a lot of business with. Know a lot of their staff pretty well. Most of our motorized equipment is their color. Got his quote back first.

Dealer B we have utilized to a lesser degree. They are further away, (10 miles more) and the major line they sell is not what we usually buy. They do offer very good service and parts support. In this case they are offering the exact same product.

Dealer B came in just about 30% less than A. I was pretty shocked. Some of it was selling price, some of it trade in value.

With that big a difference, should one even bother going back to dealer A to ask if they'd like to refigure a few things? I like them... and they keep us going. On the other hand, I don't need to be fleeced by them either. And this feels like that. The spread between the two is a lot- much more than it should be. I like to be loyal, but it doesn't seem to be paying off right now!

Any thoughts here????
 
I would tell dealer A that I got other bids for the same item at a lower price.

Then ask if they would like to requote the items.

Gary
 
ANd that's what I'd thought intitially. The price spread on this just seemed especially out of whack. Enough I'm annoyed.
 
I had a similar case few years ago when I bought a new tractor. Local dealer asked what other guy quote? I told him and he said he could match it. I said you have to do better then just match it as it doesn't seam fair since I told you the price. He lowered his bid another $100 so I bought local.
 
That's what I would do also. Do not tell "A" what the other dealer quoted...not even a hint...just give him a second chance for your own peace of mind. You KNOW he isn't coming down that much. "B" may even treat you even better than "A" has. He has earned the chance in my opinion.
 
Buy dealer B's machine. They got serious the first time. If dealer A asks tell them they have one chance so get serious very quickly.
 
We had the same thing happen 10 years ago. Dealer a swore up and down they couldn't do any better so we bought from dealer b. I told dealer a what dealer b sold it to us for and dealer a said "oh well I could have matched it",I said you told me you couldn't do any better so I took your word for it. We stayed with dealer b for 7 years than the same thing happened again,dealer b said in no way could they lower the price so we are again back at dealer a. Almost a hundred per month less lease payment on one piece of equipment is a lot when you times it by 60.
 

ok,, I consider it WRONG to go back to dealer a.. You asked them fair and square to give a bid. Both dealers had an equal chance. Both dealers spent time and money..

Now you decide you dont like dealer b and ask dealer a to match it.

If a lots of worlds this could be illegal, assuming your a business as well and supposidlly doing fair trade, no bias, no religious, race, or origin involved.. No family, cousins brothers, buddies or friends. All very much illegal in some cases, especially if your a government, city, county, big business, doing gov contracts etc. It could get you in violation of serveral laws,, collusion, price fixing, and others.

Yes, your probably just an individual and may not be subject to the same rules as big business, and goverments.. And your bids did not come in the way you wanted.

But in business ethics, you should honor the low bid if it meets your requirements as bid. I cannot tell you what to do, but next time dont ask for bids if your not going to honor them. I have been on both sides and have had my bids, designs, and material lists handed off the competition to match and beat by a dollar when in fact I was low bid. However as the huge utility, we seldom pursued it as that large customer would be forever an enemy, and we looked at them as potential customers forever. However on a lot of the government/city/ school district bids, there were plenty of folks caught, and prosecuted due to bid rigging to a friend or ironically a relative. Business law and business ethics were unheard of in the smaller and rural communities and it repeated itself every couple of years in the same areas. We finally quit bidding any of the close border areas, as we were tired of doing the design and then having them give it away to a relative. Even had then try to get my subs to come on board with their "brother". Our subs always refused as they would or could lose a much bigger business with us if they violated any laws. Back to you.. if your asking what you should do, the answer is clear.
 
There is another possibility too. Dealer B could have inadvertently left something off the quote or simply figured something wrong. If you go with him and he finds his error you may not get any more extras from him. Good Luck!
 
coonie minnie It sounds like dealer "B" is selling you a different brand of equipment???? If that is the case you have no idea if your comparing apples to apples. I know that most companies have additional discounts for trading in competitive brands of equipment. Meaning Since I sold JD some times I would have an additional 10% off dealer net if I traded in a CIH tractor over a JD one.

Also right now it is a bad time to be trading in later model high value equipment. You did not say what your trading but some dealers are loaded up with high dollar trade-ins. An example is one dealer I know well will not allow his salesmen to trade-in a high dollar combine unless they have the trade-in presold. So if dealer "A" already has several of what your wanting to trade then he would not put as much in your trade as dealer "B" might if that dealer did not have that many of what your trading.

I will tell you this, believe it or not, but the margins in selling new farm equipment are not that good. 5-10% profits are hard to make. Selling high dollar trade-ins is hard to do and make a profit in a declining market.

So if the price difference is large then either the second dealer has different programs to use or he just messed up. I have been involved in 3-4 dealer deals where 2-3 of us where right at about the same price and one would blow us out of the water. The single one usually messed up and over valued the trade-in or figured the new item wrong.

I would go to dealer "A" and tell him he was beat by a pretty good margin and see if he could do any better. I would not tell him exact numbers. Also you say dealer "A" is closer and has kept you going when you where in a pinch. YOUR assuming dealer "B" will do the same. Do not bet on that without know it for sure. The after sales service will vary from store to store. Even deal to deal. I have sold stuff at lower margins and I told the buyer right up front he was getting a deal an I would NOT be giving the "free" after service stuff he would normally have gotten. Meaning if it broke down he would not get a "free" loaner or maybe free delivery/setup. Your see what I am meaning. There is more involved in these deals than just dollars. So just make sure your getting the best total deal and go with that one when your comfortable with the entire deal.

No need for hard feeling either. Every deal is different. Dealer "A" is not trying to prong you he just may not be able to match dealer "B" this time.
 
It wouldn't trouble me to go back to dealer A again. If you are in this for the long haul, which it sounds like then you want a relationship more than just cash for metal. I stick with one auto parts supplier and will tell him straight up if his prices are out of whack. Sometimes he can do a little, sometimes not.

It only costs you a little time to go back and let him give it a try. He's in the business of making a profit and profit isn't a four letter word. I just went and haggled with my LP supplier. I had to go to their office and spend a few minutes but they'll get my business as long as the prices is pretty close.

30% is pretty big. I wonder if it's apples to apples or if there's something missing in the deal from B?
 
My favorite saying that applies here is "I am loyal to my local dealer but I am not BLINDLY loyal". If it was me I might give the local a second shot and tell him where things are at as to price. He wouldn't have to beat dealer B but would have to get much closer than he is currently.

Distance is a much larger factor in my case. Green in town 4 miles, Silver/Orange/Red-Gray about 20 miles and 35 for all others.

jm2cw

jt
 
Going back to dealer A and giving him a chance to rework his bid tells him in the future he can be high the first time out and you will give him the opportunity to get in line before you commit to a deal.

On the other hand if you are going to give dealer A the chance to look at his quote again and tell him he was high, then would you also give dealer B the chance to review his quite and make sure he did not make a mistake somewhere?
 
As a builder I bid materials all the time, I prefer to bid once no second chances. I have one supplier who will convieniently forget to bid then ask the lowest bid and beat it without doing any work but is this fair to the other bidders? I also have to watch very closely, on window bids I have seen them not include screens to make their bid lower but then when you order you need screens right?
 

coonie minnie
If as you state dealer B is offering ""the exact same product"" then I'll suggest to buy from dealer B without giving dealer A a 2nd chance to match or beat dealers B price! Back when I sold new tractors & equipment I disliked it when customers told competitor salesman the price that I had offered to sell tractor or equipment to this customer
 
Both sell a common "short line" of equipment. It's not just an apples to apples comparison, it's Honeycrisp to honeycrisp. In the past, while A has been a good dealer, B has been too.
 
We need better reading comprehension! You clearly stated these were identical machines. I'll never figure it out. I recall pricing a Vicon fertilizer spreader, clean deal, from two dealers. I bought the cheaper one. Later, the other dealer called me. When I told him what I paid, he protested with exasperation that he "couldn't buy it for that"!
 
I was a buyer for a manufacturing company for 20 years and we never gave the high bidder an opportunity to re-quote unless there was miscommunication or an error in the quote guidelines. Then we would go back to all quoting parties.

Once the "deal" is done we would go back to the salesman/company that lost the bid using "general" terms why they lost this sale. Competition is good for buyers and I'm sure the salesman will get the message to his peers. If you made up your mind I'd still go back and bump winner for a little better price, payment terms, service/wear part discount, extended warranty, etc.

Dave
 
I am in business and our policy is, don't ask anyone for a bid unless you are ready to buy from them.

Using someone's time and energy to bid a job they have no chance at is not good business practice.

If I was Dealer B, I'd have to ask, what would have I needed to do to earn this sale? It goes without saying, that you need to compare equal product, of course. But I am assuming you have done this, if the question is being asked.
 

If it were within 10% I would go back to my primary dealer. At thirty % they did not earn the "right " to requote.
 
Well I wonder if the one dealer has had his in inventory longer and can sell it lower ? Plus he is offering more on trade in. What ever you are trading in he may have a buyer for it ?
Dealer B may know he has to work harder to get the prices down to get business away from Dealer A.
I'd go be the best deal and get it done. Sounds like they are both close to you.
 
There is a saying that I think fits here . Haggling with a dealer, is like mud wrestling with a pig . After a while you realize the pig likes it ! I too had a similar experience two years ago while buying a manure spreader. Two different dealers , selling the identical unit , and taking in the same trades. One my regular dealership, the other I had never bought from before. My regular dealer was out by 3 grand. I gave them the chance to beat the other guy, not match . Told me what he could do, and I thanked him for his time. And he said he would say In touch. As it turned out I didn't buy from my regular guy, his competitor needed both of my trades, and had them presold . Never even took my trades back to their yard, just dropped them off to the new owners straight from my place. So he could make his extra profit on the resale trades. My regular dealer was disappointed on missing a sale,but just said we will work harder next time. And I have purchased new equipment from them after. Getting good deals , and no hard feelings. Business is business,.
 
Connie, I was an Engineer/Program Manager for 37 years. What I found is bids are never the same. You have to "Qualify" the bids. That is, did they really bid what you wanted and were they apples and apples. They rarely are.

So, invite each salesman to your place to review (qualify) the bid. You don't have to tell them anything about the other bid. Just tell them you need to make sure the bid is what you want. Make sure you also talk about after the sale service, parts availability, etc. You might also talk to others who use Dealer B about after the sale service. You already know about Dealer A.

In our area we have a dealer that sells for less but when it is time for service there is little to none. The buyer has to use another local dealer. That just begets hard feeling all around.

Then decide. You don't have to feel bad for the other guy. Bidding is his job, some he wins, some he looses.

Have fun.

Paul
 
I did that with a green dealer once went back to the local one and said I would give 10% more than dealer B quote. He told me to go P up a rope.
 
I agree. I figure out how much loyalty I owe Dealer A (certainly not 30% on a big ticket item). It's not fair to Dealer B for me to go back and buy it from my guy at his price. I would let Dealer A know that I bought it from B, and why. They normally protest that they could have matched that price, but I make the point that they should have given me that price to start with (this loyalty thing has to work both ways).

There would be an exception if the I became aware that lower priced dealer had some big issue. Crappy personality, ethical issues, parts availability. Once I knew I didn't want to do business with him I wouldn't ask him for future bids, but if I found out after I got the bid but before I bought that might sway me back to the other dealer.
 
If, as you say, they quoted the exact same product then it's not right to use to lower priced company to check to higher priced company and help you lower their quote. If you didn't want to buy from the lower quote company you shouldn't have asked them to price. It's not right to ask them to waste their time and money when they had no chance of a sale.
 
I have been here many times myself. Now I tell them I want One Price - The Best. I would hand dealer B the check. That is just me.
 
As an employee of a small dealer I have seen such deals many times. Small dealers have a hard time competing. There are many things to take into consideration. Sometimes a dealer will try to "buy" the business from a farmer, the cheaper machine could be an older inventory and the unit has some extra discounts and so on.

If you have a good working relationship with your local dealer give them a chance to work with you. More than once I have been priced to high on a deal and the customer bought from the other dealer only to find that he deal wasn't as good as they thought. I have been told more than once that the customer should have bought the item from me as they would have been better off in the long run.

Also does the dealer take care of you? This is how we are, if Farmer A and Farmer B walk in the door at the same time with a broken baler and Farmer A bought the baler from us but Farmer B "got a better deal" from somewhere else, guess who gets their baler worked on first? I have been on the phone or at customer's farms on nearly every holiday of the year to keep them going. I also have been at the shop on Saturday and Sunday nights getting parts or doing small repairs because these are good customers and they buy from us. The term "You get what you pay for" came from these type of situations.

Jim
 
I get that. Dealer A has half a dozen stores, though. Hardly small. Dealer B has two locations, and is good sized as well- and been through an ownership change in the past 7-8 years. Your thinking is why I asked the question... I get what you are saying.
 
What's the problem? A wide margin makes the decision easy. That's the best case scenario you could hope for to make an easy decision. The tough decision is when it's close.

Dealer B obviously wants your business and worked for it so why question this? Why not reward them with the sale rather than use their good will against them by giving dealer A another chance.

If dealer A meets dealer Bs price, are you in fairness going to give dealer B another chance also?

You told them you wanted a "bid". Stick with the bid. They're big boys so let them stand on their bid. If you want an auction, then you should have told them up front that you weren't going to honor their bids and were going to try to chisel them further by pitting one against the other on a "discount after the bid" war.
 
What Strawboss said is a very good point as well. Sometimes salesman expect to haggle with people and put the price up high. I don't do that when pricing equipment. I give them the price I want to do the deal at and where I feel comfortable. Some people expect to work me down the price and don't like that I will not budge, others prefer it. We are all different.

Jim
 
I am in business and our policy is, don't ask anyone for a bid unless you are ready to buy from them.

Using someone's time and energy to bid a job they have no chance at is not good business practice.

but next time dont ask for bids if your not going to honor them.

What are you two talking about? Don't ask for a bid unless you are ready to buy? What if Dealer B is double the price? How would you know the price before you ask them for the price? How do you know they have no chance of getting the job unless you ask?

Clearly this is not some government entity placing a job out for bid to the lowest bidder. There is nothing illegal or even wrong in asking two places what their price is for the same item. The two prices are not the exact same specs, yes, the item is exactly the same, but there is stated differences in distance and familiarity of service.

I agree with 2510 Paul that there may well be a mistake in the process at one place or another or both. I would ask each of them to verify their numbers just to make sure they did not make an error, not specifically saying they were too high or much lower. Surely, the internet could be a source of another price point to validate their numbers, with understanding that that price is also not an exact match.

Then I would weigh the other issues like distance and ease/familiarity of service. Then I would likely buy the less expensive unit, if the numbers come back the same. If dealer A asks about it, tell them the truth, it's usually easiest to remember.
 
Unless I missed something, no one has asked or wondered what was being traded in and what kind of dollars we are looking at. I saw my boss offer twice as much for a trade in on some things as neighboring dealer because he needed that piece of equipment and other times, he was way over stocked with like trade ins and would offer less. Also, you might not want to buy used equipment from the dealer selling new to you for less.
 

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