Posted by newfarmer9 on March 17, 2016 at 17:36:25 from (174.90.135.134):
In Reply to: JD Tractor buying posted by Spudm on March 17, 2016 at 11:03:31:
It's because success of a dealer is measured on market share, ie. what percentage of new tractors sold in that dealer's area is their brand vs the other brands. If a dealer sells a tractor out of area they do not get credit for that tractor in their market share. I can't speak for John Deere but I know other brands corporate entities will give better incentives and programs for sales in territory vs out of territory. So if you live out of area they can price it to you but they are wasting their time because they are going to look stupid when the local dealer comes in and beats them by say 5% to 10%
This is not illegal or "price fixing" because John Deere dealers all receive their retail contracts from John Deere. They can't be forced to compete with each other. If a John Deere dealer and say a Case dealer were colluding on price then that would be no good.
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