Hi all. I am in the concrete industry and am looking at buying a new kubota svl 75-2 skidloader. My question to others that have purchased a new machine of any kind is..does Kubota set the price for new machines? I received a price from the dealer at $56,000.00 for the svl 75-2 and they are bringing a new machine to our jobsite tomorrow for us to demo. I have not tried negotiating price yet but before I do I would like to know whether or not if others have been able to negotiate their price on a brand new machine? For example, I bought a few new Chevy pick ups in the past and when doing so the price after rebates/incentives "is what it is". Say they're selling a truck for 45,000 and offering 2,000 on rebates and incentives, you buy the truck for 43,000 because GM sets the prices-not the dealership....so that is what you pay. Is Kubota the same way or can I knock them down on their price on a brand new machine? Thanks for any advice in advance!!
Does Kubota set the price for new machines?
- Thread starter concreter87
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Don't know for sure but I'll say this about 2 buys in KY:
RTV1100 and called Jacobi sales (Louisville, South Indiana) and there price was MSRP, no deviation. Called Glassgow and their price was around $1100 lower. Setup a meeting and on the day to meet the sales guys Dad had an issue. All good, understand, but since I had free time I went to Sumerset. Bought the same RTV for $3500 less
F3990 mower and went straight to Somerset, and the price on the web was about 5K higher then what I paid
Buddy wanted a JD tractor and he found that the JD dealer was several thousand cheaper then anywhere else. The JD dealer said the cost of tractors are so competitive in Somerset, he was allowed to lower the price further.
RTV1100 and called Jacobi sales (Louisville, South Indiana) and there price was MSRP, no deviation. Called Glassgow and their price was around $1100 lower. Setup a meeting and on the day to meet the sales guys Dad had an issue. All good, understand, but since I had free time I went to Sumerset. Bought the same RTV for $3500 less
F3990 mower and went straight to Somerset, and the price on the web was about 5K higher then what I paid
Buddy wanted a JD tractor and he found that the JD dealer was several thousand cheaper then anywhere else. The JD dealer said the cost of tractors are so competitive in Somerset, he was allowed to lower the price further.
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It gets better. Not only do prices vary from dealer to dealer but if a given dealership has several outlets the prices may vary from location to location. It's kind of a function of whatever the traffic will bear at the time.
Kubota establishes MSRP (suggested retail price) but it is illegal for a manufacturer to enforce such.
Dealers establish selling prices.
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Manufacturers today use a law that allows them to set the minimum advertised price, and if you violate that, they can shut you off from being able to purchase product from them in the future. The law doesn't allow a manufacturer to control the sale price after the first sale, which would be when the manufacturer sells it to the dealer. The dealer is free to sell it for whatever he cares to sell it for, without any repercussions from the manufacturer. Car dealers do this all the time.... they discount the price to make the sale, and many times, that discount is hidden in the value of the trade, but it doesn't have to be. The price that a dealer pays for a car, tractor, etc., is usually determined by their volume. The more that they sell, the less that they pay, or they get incentives that will in effect lower their costs. There is nothing that says a dealer can't sell a tractor below his cost, nor is there anything from keeping a dealer to sell it for way above his cost. The manufacturer has a "suggest retail price", and some dealers hold to that price, others try to get over that price, and a few are willing to take less. The only thing that they can't do, is to advertise a price below the "minimum advertised price" as established by the manufacturer. That is why many advertisements will say "call for price".
I believe Kubota tractors aren't sold to the dealer, they're owned by Kubota and sold on behalf. So that may be one way around the regulations. But as always, dealers find ways to do deals. Discount on servicing, inflate trade in value, discount on implements, free trailer etc. The market usually wins through.
Dealers do, indeed, own most (not necessarily all) of the tractors on their lot but Kubota does provide financing.
SDT