Question on MSRP

[krackle]

I'm not sure if this is aloud, but I'm still going to ask without naming the brand...I was thinking about making an offer on a ZTR...I just wanted to see what people would have to say...If the MSRP price is 6,000 what would be a reasonable offer...I know the dealership needs to make money, but I need to save money.

 

[Rivets]

I understand what you are saying, but buying a ZTR is not like buying a car. I don't know the last time I accepted an offer like I think you are making. Most dealers will make a counter offer, but most times it is very close to the MSRP. Our margins are very close, as most are very small dealers with very little movement allowed, if they want to stay in business. I may be wrong with the dealers in your area, and the only thing I can say in conclusion is, the smaller the dealership, the less movement they have.

 

[krackle]

I understand what you are saying, but buying a ZTR is not like buying a car. I don't know the last time I accepted an offer like I think you are making. Most dealers will make a counter offer, but most times it is very close to the MSRP. Our margins are very close, as most are very small dealers with very little movement allowed, if they want to stay in business. I may be wrong with the dealers in your area, and the only thing I can say in conclusion is, the smaller the dealership, the less movement they have.

I was not going to ask, what you are probably thinking. The only reason I was asking is because the dealers price is already below MSRP. Do you think they still have wiggle room if so?

 

[Rivets]

I wouldn't, but I'm not that dealer. Also remember, you will be going back there for parts and service. Believe me, there are dealers who make it back from you when you need service. Have one in my region who sells lower, but kills you on parts and service. Labor rate, $80/hr, parts 15% over MSRP. We get new customers from him at least once a week.

 

[Mad Mackie]

Keep in mind that everything that any dealer has in stock cost $$$$$ to get it shipped to their location. Freight charges even for small dealers can amount to thousands of dollars every month!!!

 

[Ric]

I'm not sure if this is aloud, but I'm still going to ask without naming the brand...I was thinking about making an offer on a ZTR...I just wanted to see what people would have to say...If the MSRP price is 6,000 what would be a reasonable offer...I know the dealership needs to make money, but I need to save money.

You said I'm still going to ask without naming the brand, the thing is depending on brand his margins or wiggle room can be different which would allow him a little more to play with on one item vs another. The other thing that can make a difference is are you a first time customer or have you been buying all your equipment from this dealer right along. There are a lot of different factors involved in this dealer giving you discount or accepting an offer.

 

[SCMCG]

Here is an example, without giving specifics, there is a sponsoring dealer on this site, selling the exact mower i am working a deal on locally right now. They have it advertised, ON SALE, at I think $7495.00. I am buying the same unit at around $5700.00 and I am confident they are still making money. Lotta variables in this business.

 

[RatRacer]

Here is an example, without giving specifics, there is a sponsoring dealer on this site, selling the exact mower i am working a deal on locally right now. They have it advertised, ON SALE, at I think $7495.00. I am buying the same unit at around $5700.00 and I am confident they are still making money. Lotta variables in this business.

Nothing new in the sales industry. The MSRP of any item is a fictitious, made up inflated number, to be used as a starting point to make an item more appealing as you start discounting from it. It makes one feel like they're getting a better deal with the bigger discount off the "made up" retail price. Companies make more sales margin dollars this way, compared to selling by adding % dollars up from cost. Knowing the cost is the deal measure, since that number is fixed/fact, to really know.

 

[Ric]

Generally speaking if you are a long time customer your discounts can run 10 to 15% off the MSRP on most items. It depends on the dealer and the company Stihl, Echo, Toro etc they are dealing with as to how close there margins are as to what they can offer you.

 

[SCMCG]

Nothing new in the sales industry. The MSRP of any item is a fictitious, made up inflated number, to be used as a starting point to make an item more appealing as you start discounting from it. It makes one feel like they're getting a better deal with the bigger discount off the "made up" retail price. Companies make more sales margin dollars this way, compared to selling by adding % dollars up from cost. Knowing the cost is the deal measure, since that number is fixed/fact, to really know.

Yup! I know the business all too well being in the auto parts business. If it weren't for price matrix all us dealerships would be outta business LOL!