Export thread

Question on MSRP

#1

K

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.


#2

R

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.


#3

K

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?


#4

R

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.


#5

M

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!!!


#6

Ric

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.


#7

S

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.


#8

RatRacer

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.


#9

Ric

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.


#10

S

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!


#11

K

krackle

This is the first time shopping at this location...usually I am a Cub Cadet guy, but they don't seem to have what I am looking for at the place I usually go to...Does this mean I probably won't have a chance at getting any discount...I guess they will always say no if I don't ask


#12

djdicetn

djdicetn

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?

I tend to believe that dealers of ZTR's really are very similar to car dealerships. I agree there are many variables that influence a potential deal as have been pointed out by other users, but my experience(even though it was my first) tended to tell me that buying a ZTR that a dealer has in stock between Septenber-November is just like a car dealership just before the new year models are introduced on in-stock inventory. My dealer had already discounted the ZTR I bought by about 10% off MSRP. That being said, I tested his "wiggle room" by making him an offer of about $300 less(and that was an out-the-door/cash price because I knew that the 0% financing for 48 months would cost the dealer a couple of hundred bucks). The dealer did not hesitate one minute to accept my counter-offer, and I'm sure if the profit margin was unacceptable to him he would have come back with yet another "meet me half way" offer. My best advice, which may be difficult for anyone looking to buy for this season, is to wait until the fall and you will be in more of a "buyer's market" instead of at the beginning of the mowing season when it's a "dealer's market" due to the "demand and supply". And, a side benefit(at least in my case) can be that if there is a new year model price increase for the upcoming new models that will only add to your savings when buying in the fall(my exact same model's MSRP went up $300 for 2013 and I see that as saving that much more).


Top