A neighbor of mine was messing around online pricing parts for his 920 discbine. He noticed big price differences in the dealers in the area. They ranged 29 percent in price difference. He confronted the higher priced dealer which is closest to us. They said there was a problem with their "parts matrix" and corrected the price. Seemed kind of fishy. He returned some of those parts today and they refunded him the higher original price. He made money. He noticed when he got home and checked the original receipt. What's the deal with this? Do different dealers have different mark ups? I never think to call different dealers in the area to check prices. Assumed they'd all be very similar or the same. I'm thinking they are taking advantage of that. Are there really these "parts matrix" issues or are they just ripping off the locals? 29 percent is quite a difference.
- Thread starter Nick m
- Start date
There's only two anyway isn't there? As far as in name anyway. I know the "local" one you're talking about. Their parts department is the reason there aren't any Deeres on my place anymore. I tried one of their other locations. Not any better. If somebody says they're ripping customers off,I wouldn't doubt it for a second. I know some of the guys around here have been going all the way to Big Rapids.
Tx Jim
Well-known Member
- Location
- Coyote Flats, Texas
As if parts aren't high enough some JD dealers sell parts @ MSRP and some add 5%,10%,15% or higher.
Our local family owned JD dealer with 3 stores with 50 miles was Sold 3 years ago to a 'conglomerate'.They immediately started work on a new 'mega'dealership and closed the 3 seperate faculitys.Then prices jumped 15-20%.Gotta pay for the new building somehow.....We are now seeing alot more different colored tractors in the area lately.The 'other guys' are more than happy to 'help'.
Donald Lehman
Well-known Member
Yup. temp gage and wire for a 420 $140. Set of three gages from Korves for Olivers, half that price the last time I checked.
jennifer408
Well-known Member
DH was searching for a senser for the car the other day. o'reilly's wanted $ 90. he found one for $ 6. on fleebay. pays to shop around.
He checked prices in Portland, Hastings, and williamston. That's also the price order high to low. The last two were very close in price. I try to buy local, but Hastings is a nice drive and not too far. The more I check into this the angrier I get. Guess that's what I get for trusting a local busines and not checking around.
john in la
Well-known Member
I have noticed the same thing in the past.
A few years ago we had a local mower shop that was a service dealer. They did not sell J.D. equipment but rather serviced residential mowers that were sold at one of the box stores.
They were listed on the J.D. parts web site right along side of the full service dealer and their prices were always lower than the big dealer.
Now that the big dealer has 7 locations I guess the little dealer was muscled out because they are no longer listed as a J.D. parts dealer.
A few years ago we had a local mower shop that was a service dealer. They did not sell J.D. equipment but rather serviced residential mowers that were sold at one of the box stores.
They were listed on the J.D. parts web site right along side of the full service dealer and their prices were always lower than the big dealer.
Now that the big dealer has 7 locations I guess the little dealer was muscled out because they are no longer listed as a J.D. parts dealer.
Nothing new but it is only going to get a lot worse the more the smaller dealers they close up.
Used to be they were all selling at suggested list price except the industrial dealers. They were always 10% or 15% higher on the exact same part which sometimes an AG dealer can get.
Any dealer can sell at whatever price mark up they want to.
Used to be they were all selling at suggested list price except the industrial dealers. They were always 10% or 15% higher on the exact same part which sometimes an AG dealer can get.
Any dealer can sell at whatever price mark up they want to.
37chief
Well-known Member
- Location
- California
I think it is like gas prices. They charge as much as they can get away with. Stan
It's not just Deere. CIHNHFIATCO dealers pull the same thing. One I remember from last year was a field cultivator tooth that was:
$7.79 at one CIH dealer with two locations,
$9 and change ($9.04, 9.08?) from a dealer CIH decided they didn't need anymore, but still they still buy parts from another dealer
and $10.86 from any of the local mega-chain's CIH locations.
AG
$7.79 at one CIH dealer with two locations,
$9 and change ($9.04, 9.08?) from a dealer CIH decided they didn't need anymore, but still they still buy parts from another dealer
and $10.86 from any of the local mega-chain's CIH locations.
AG
M-MAN
Well-known Member
- Location
- Bostic, NC
It"s no different than anything else you buy. The seller can put whatever price they want to on it.
Adirondack case guy
Well-known Member
Well, just a different perspective from a former independent machinery dealer.
There are many variables involved in dealership overhead, such as wages, property taxes, volume of sales, etc, that enter into what the profit msrgin for parts is at a particular dealership.
Believe me there is little profit in selling new equipment these days. The service dept. have to have thousands and thousands of bucks tied up in special service equipment, and tech training for their shop personell.
Then the companies come in every few years and demand that the dealer update the ficad of his buildings, because the company changed the shape of the letters in it's Logo.
My friends at the local CNH dealer have to put up a new sign this summer out front. The price;;; $29,000.oo bucks. The 5yro. sign they are required to replace says CASE-IH, not CNH-Agriculture. Something has to pay for this nonsence that the companies dictate.
All the companies are focused on a word called "IMMAGE". When I see all that new glitter, I see $$$$ signs and start driving buy or buying parts from other sources, that don't come in a box with a JD or CNH logo on it.
It is sad that independents can't compete with the mega dealers, and are driven out of business, not because they didn't do a good job as a dealer, but because company execs. look at market share in a given area and small and deticated, rather than big and flashey, carries no weight.
Loren, the Acg.
There are many variables involved in dealership overhead, such as wages, property taxes, volume of sales, etc, that enter into what the profit msrgin for parts is at a particular dealership.
Believe me there is little profit in selling new equipment these days. The service dept. have to have thousands and thousands of bucks tied up in special service equipment, and tech training for their shop personell.
Then the companies come in every few years and demand that the dealer update the ficad of his buildings, because the company changed the shape of the letters in it's Logo.
My friends at the local CNH dealer have to put up a new sign this summer out front. The price;;; $29,000.oo bucks. The 5yro. sign they are required to replace says CASE-IH, not CNH-Agriculture. Something has to pay for this nonsence that the companies dictate.
All the companies are focused on a word called "IMMAGE". When I see all that new glitter, I see $$$$ signs and start driving buy or buying parts from other sources, that don't come in a box with a JD or CNH logo on it.
It is sad that independents can't compete with the mega dealers, and are driven out of business, not because they didn't do a good job as a dealer, but because company execs. look at market share in a given area and small and deticated, rather than big and flashey, carries no weight.
Loren, the Acg.
colekicker
Member
So, here is the truth. Each manufacturer has a list price. No manufacturer can dictate to a dealer what price they HAVE to sell at. If they did, that would be collusion / price fixing.
Where I grew up, the two New Holland dealers varried by 10% So, if it was expensive, we'd travel to the dealer 30 min away vs the dealer 15 min away.
If I were any of you, I'd ask how to get it on a stock order, ask for free freight and tell the dealer if you found it cheaper somewhere else. Let them know.
Where I grew up, the two New Holland dealers varried by 10% So, if it was expensive, we'd travel to the dealer 30 min away vs the dealer 15 min away.
If I were any of you, I'd ask how to get it on a stock order, ask for free freight and tell the dealer if you found it cheaper somewhere else. Let them know.
Back in the 1960's it was common practice for my dealers to raise the list price of parts by 10%, which was easy to figure in their head when they wrote the ticket.
However, if it was someone that they didn't like or thought the customer wouldn't complain, they would add 20%.
The way they are running business these days, a 30% add-on wouldn't surprise me. That's why the manufacturers call it "SUGGESTED LIST PRICE". The dealers can charge whatever they want to for a part.
However, if it was someone that they didn't like or thought the customer wouldn't complain, they would add 20%.
The way they are running business these days, a 30% add-on wouldn't surprise me. That's why the manufacturers call it "SUGGESTED LIST PRICE". The dealers can charge whatever they want to for a part.
Anonymous-0
Well-known Member
It's been that way for year's. One local IH dealership was really proud of their parts, and had things marked up so high that I could drive 50 miles and save on just a $100 order.
huntingreen2day2
Member
So in a way to speak when he returned parts for more than he paid for them he stole money from the dealer.
blinwmiaol.com
Member
I see on Fillmores website last week that they are now called Greenmark and own 16 stores. I bet in a few years Deeded will some how force Voelkers to sell to them. That would leave D&G and Fillmore with to much market, not enough competition.
Anonymous-0
Well-known Member
Most manufacturers/parts have suggested retail prices. I know with motorcycles they do. The Honda shop I usually deal with goes by the book price and will usually give a 10% discount to a racer or loyal customer. They've let me look through the parts book and explained how the price codes work. Another Honda dealer, marks up the retail price by 10% and then claims they are giving you a deal by offering it at the list price. You can fool some of the customers sometimes but...
Robert Major
Well-known Member
Hi
it"s a good job you"re not a CaseIH or New Holland guy round here. they are on 50% or more on most stuff and probably more if you fix their older tractors, self employed in your own shop and want parts for what they aren"t fixing in their shops.
The big guys round here are trying to shut us guys down. There"s not much choice on who to go to one company from CaseIH with lots of dealers. and maybe only one independent NH from the 13 dealer big guy left in the whole province. Deere is pretty well 2 big dealers for about 2 hours driving each way here too!.
Deere at 29% is cheap but I wouldn"t farm with a Deere,CaseIH or anything newer than about late 90"s year in here thats NH blue at any price.
Those Reps know it to they don"t call here anymore!. A couple got real snotty when I got a valtra as my main chore tractor. Just told them straight, if I wanted a $50.000, 10.000 hr worn out junk loader tractor I"d a come seen them.
Regards Robert
it"s a good job you"re not a CaseIH or New Holland guy round here. they are on 50% or more on most stuff and probably more if you fix their older tractors, self employed in your own shop and want parts for what they aren"t fixing in their shops.
The big guys round here are trying to shut us guys down. There"s not much choice on who to go to one company from CaseIH with lots of dealers. and maybe only one independent NH from the 13 dealer big guy left in the whole province. Deere is pretty well 2 big dealers for about 2 hours driving each way here too!.
Deere at 29% is cheap but I wouldn"t farm with a Deere,CaseIH or anything newer than about late 90"s year in here thats NH blue at any price.
Those Reps know it to they don"t call here anymore!. A couple got real snotty when I got a valtra as my main chore tractor. Just told them straight, if I wanted a $50.000, 10.000 hr worn out junk loader tractor I"d a come seen them.
Regards Robert
like any business, they can charge whatever they want.
and like any business the price tag is just a starting point.
talk to them
be pleasant
do your part/price research beforehand and bring a printout with you.
Tell them you want to support your local dealer(any brand)
and you will if they can come 'close' to this 'other place' price(with your proof).
It works everywhere, even Wal-Mart.
(and just like buying an old tractor, be pleasant, but if the deal isn't where you want it to be, thank them politely...and walk)
And be flexible, mail-ordering a $5 gasket with $14 shipping
when the dealers over-priced $20 gasket is laying right there on the counter.....is silly
and like any business the price tag is just a starting point.
talk to them
be pleasant
do your part/price research beforehand and bring a printout with you.
Tell them you want to support your local dealer(any brand)
and you will if they can come 'close' to this 'other place' price(with your proof).
It works everywhere, even Wal-Mart.
(and just like buying an old tractor, be pleasant, but if the deal isn't where you want it to be, thank them politely...and walk)
And be flexible, mail-ordering a $5 gasket with $14 shipping
when the dealers over-priced $20 gasket is laying right there on the counter.....is silly
Back in my racing days I used to buy a lot of parts at the Ford dealer. They sold parts to me at 55% off list price.
Got a buddy that works at a Lincoln (actually at the time it was Lincoln-Mercury)dealer. He kept talking about the pricing matrix. He said the owner, the general manager, and the parts and service managers were all excited about this new thing they called price matrix. So I asked what price matrix was. He said basically the price matrix was the percentage OVER list price that they charged on parts. I said you mean percentage under list, right? He said no, they were charging anywhere from 25-35% OVER list for parts. I said that's why you'll never see me buy parts there.
The dealers aren't doing anything unethical or illegal by pricing parts higher than other dealers. That doesn't mean anyone is required to buy anything from them.
Got a buddy that works at a Lincoln (actually at the time it was Lincoln-Mercury)dealer. He kept talking about the pricing matrix. He said the owner, the general manager, and the parts and service managers were all excited about this new thing they called price matrix. So I asked what price matrix was. He said basically the price matrix was the percentage OVER list price that they charged on parts. I said you mean percentage under list, right? He said no, they were charging anywhere from 25-35% OVER list for parts. I said that's why you'll never see me buy parts there.
The dealers aren't doing anything unethical or illegal by pricing parts higher than other dealers. That doesn't mean anyone is required to buy anything from them.
Yes, it's entirely possible that there was an error in the parts system where the wrong price had been entered. I would also expect that every dealer has different pricing. The system probably suggests and MSRP but usually they discount below that MSRP... or so do and some don't.
Doesn't matter what brand dealer it is either...
Rod
Doesn't matter what brand dealer it is either...
Rod
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