Pricing and marketing new equipment

Frantz

Member
I don't care if it's at the flea market, or looking online at new implements from local dealers. Are there any real studies that show a local company will make more by holding out in hopes I call them compared to an upfront MSRP or other pricing? I know in the car industry it's firmly believed that good pricing draws more business than hoping someone comes in and pays full sticker. Are ag companies just generally as outdated as my tractors? While I'm not a cheapskate, I am on a budget and it takes alot of time when couch shopping to make plans.
 
Well if your buying a new tractor or combine, even implements there are discount programs that make LIST price really meaningless. Those discounts can be in several forms: straight cash discount, lower interest rate, longer terms with a slightly higher interest rate. So what would you have the dealer advertise???? The lowest price possible and then have to tell the customer that he can NOT get that price PLUS low rate financing???? Very few new big purchase items are going to advertise price. It just varies too much based on what the customer needs/wants.

Even when you set down and show some people the actual numbers they still get stuck focusing on things. Had a customer buying a new mower conditioner. He had a high value trade-in. I ran the numbers. He was better off NOT taking the zero percent financing since he was financing a smaller amount. The cash discount and regular financing made his payment lower. HE blew up and got all kinds of mad, screaming at me that he want the zero percent financing. So that is want I got him. He gave up a 4% cash discount on the entire MDP just to finance 20 percent of the cost at zero percent. In this case he gave up $1200 of discounts. The interest he saved with the zero percent was under $200. Then to make it even worse he paid it off early. BY taking the zero percent and giving up the cash discount he really just front paid the interest, so paying it off early made the value of the zero percent even lower.
 
Farmers are not the general public who thrive on hype and sales gimmicks. Farmers have seasonal highs and lows in their income.
Farm machinery dealers receive volume ordering discounts when they order equipment. That puts small dealers at a disadvantage rite off the bat. The companies always offer special financing to all dealers including low interest, inlue of cash discounts, or seasonal crop plans where farmers don't have to make payments when cash flow is negative.
Agri-Finance is much different than the automotive business where qualified buyers have consistent monthly income.
Loren
 
Thank you for the responses, but I still disagree. List price would be helpful, at least on the manufacturers page. I need a benchmark. Instead I have to find the product I might want, find a local dealer that sells it, find it on tractor house to see the range of prices. If I could just see how much it won't be more I can simply be pleasantly surprised when my dealer gives me a better option or shows me a smarter way to buy with different finance options. If I'm looking at an implement and one company gives a price and the other doesnt, I'm much more likely to print out the info with the price and use that for my planning.
 

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