Discount on Zero Turn

I’m looking to buy a Toro Timecutter MyRide 50” zero turn. The place I'm looking to purchase from is a large local power equipment seller. I’m hoping to buy here mainly for the service afterwards. The msrp of the machine is $4,599. The seller is only willing to take $100 off. That doesn’t seem like much of a discount to me. Does the seller have much room to play with re giving a greater discount?

The short answer is no. The longer answer is over the last few years dealer profit margins on wholegoods have become very thin.. What at one time was a 15-20% markup on mowers is now closer to 5-8%. And floorplanning can defer payment for a period but if it sits too long they also have to start making payments with interest so it wouldn't take long for the small margin to go to 0.

ILENGINE said:

The short answer is no. The longer answer is over the last few years dealer profit margins on wholegoods have become very thin.. What at one time was a 15-20% markup on mowers is now closer to 5-8%. And floorplanning can defer payment for a period but if it sits too long they also have to start making payments with interest so it wouldn't take long for the small margin to go to 0.

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Thanks for the info.

ILENGINE said:

The short answer is no. The longer answer is over the last few years dealer profit margins on wholegoods have become very thin.. What at one time was a 15-20% markup on mowers is now closer to 5-8%. And floorplanning can defer payment for a period but if it sits too long they also have to start making payments with interest so it wouldn't take long for the small margin to go to 0.

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15%-20% is still slim wholesale margins typically. 5%-8% is giving it away. I have been wondering about gross profit margins on outdoor power equipment for a while now. Any other input from others would be much appreciated. If a dealer is only making 5%-8% on equipment, the parts and service become really crucial to make any real profit in the future.

So now you know why I can't even sale MTD parts at the suggested list prices due to such slim margins at they cost more than list if I need some below the minimum free ship level. That is if I can even get the parts lately.

So if we don't make a reasonable profit we can't stay in business.

And places like Gardner with salesman telling the part is in stock then it not actually in stock does help at all.On Tuff Torq transaxle is what happen. Ended up being schedule for the end Sept, Check on it Friday and was he emailed (which I never received) that it would ship on the 15th or 16th then he start crawfishing saying it should ship Friday. Well it didn't and checking online Saturday the scheduled ship date changed to 9/30/24. Once the customer was informed of this he canceled the repair job so I cancel all the back orders. And I am calling first thing this morning to make sure the orders are canceled as I got automated response Saturday from Gardener saying email was read.