Dealership Demo Policies?

[RentalGuy]

Guys,

I have operated a rental business for some time and I have been interested in adding a small mini excavator to my fleet. I have been making calls to local dealers regarding demonstration of the models I am interested in and a bunch of the dealers have modified their demo policies. One dealer required me to get pre-approved for credit and agreed to apply the full rental rate of the machine to any purchase. The other dealer didn't require me to get pre-approved but they did the same rental applied to purchase set-up. Another dealer just had me fill out a credit app.

It never used to be this way before. I asked the sales guys about this and they said that they modified their policies because guys were taking advantage of the situation. Is this what you guys are experiencing? I do buy a good number of Bobcat's and I have a relationship with them so I didn't have to go through any of this with them but they only allow 3 hours on a demo. What is the story in your area and what do you guys think of these demo policies. Just curions I guess.

[AWJ Services]

It varies here as well.

If they will not send the machine out for a demo then I call someone else plain and simple.
You are an established buisness not some tire kicker.
The credit app crap stinks.
I refuse to fill one out just for a demo.

[RockSet N' Grade]

Rental Guy........I am smiling from ear to ear. I am an owner operator and have a good relationship with my chosen dealer. If my my machine breaks down, they give me one for free until mine is fixed. They do my repairs and I pay my bills promptly. That's me.......But, over the years I have seen guys abuse the demo policy to the max. They will "demo" a machine for an entire job with the intent of just getting a free machine and then give it back saying it wasn't what they were looking for. That philosophy has been rampant in the last several years and I have even watched a guy "demo" a machine for almost 2 months all the while laughing at the stupidity of the dealers because he had no intention of buying the machine. It is about time that policy is modified somehow to curb the abuse. On the other hand, I was interested in a Takehoochi excavator and they would only let me run it for 2-4 hours with the salesman on site the whole time......so, I passed and won't buy from them. This whole demo thing has gotten out of hand, especially with a high flying economy and personal ethics seemed to go out the window too. Abuse of the system. Now the economy is tight, policies are changing and somewhere there has got to be a happy medium. From the rabid abuse I saw, I gotta side with the dealers prequalifying and clamping down. The whole industry got screwed up where anyone with a pulse could get a piece of iron. I hope this is just the pendulum swinging from one far side back to the middle........

[JDSKIDSTEER]

Guys,

I have operated a rental business for some time and I have been interested in adding a small mini excavator to my fleet. I have been making calls to local dealers regarding demonstration of the models I am interested in and a bunch of the dealers have modified their demo policies. One dealer required me to get pre-approved for credit and agreed to apply the full rental rate of the machine to any purchase. The other dealer didn't require me to get pre-approved but they did the same rental applied to purchase set-up. Another dealer just had me fill out a credit app.

It never used to be this way before. I asked the sales guys about this and they said that they modified their policies because guys were taking advantage of the situation. Is this what you guys are experiencing? I do buy a good number of Bobcat's and I have a relationship with them so I didn't have to go through any of this with them but they only allow 3 hours on a demo. What is the story in your area and what do you guys think of these demo policies. Just curions I guess.

I think what you are seeing is that with a down economy that new machines are sitting on the lot longer and getting more demo hours on them which make them hard to sell as newer units. We often get used intead of demo'd and we are seeing more people with credit issues walking in the door. I am in one of the better economic areas of the country, but I have too many units with demo hours sitting on the yard. I still have not changed my demo policy at this time.

I have most of the rental companies in my area buying from me because we are the only name brand dealer that does not rent. I do not have to demo to them....I just send all people who call me about renting to them....My rental store owners love us and trust us. Why in the world would you buy equipment from someone in the same business that usualy has cut throat rental rates?

[Junior M]

It really does vary, Dad demo'd a 337 Bobcat in business and he didnt use it but a couple times but they didnt come and get it for 2 weeks after he'd called numerous times asking them to get it out of his shop he needed to put his equipment inside not theres.

[PROCUT1]

I had a company drop off a machine for a demo and then the salesman must have changed or something......

After calling them a couple months to get it, they still never showed.....And they were way too far away to take it to them...

They left the machine for so long, we started using it.

After a while I forgot that I didnt own the thing....haha

They finally picked it up 13 months later...

[Junior M]

I had a company drop off a machine for a demo and then the salesman must have changed or something......

After calling them a couple months to get it, they still never showed.....And they were way too far away to take it to them...

They left the machine for so long, we started using it.

After a while I forgot that I didnt own the thing....haha

They finally picked it up 13 months later...
hahahahaha, thats awesome!

[PROCUT1]

As far as demo policy.

If i were a dealer, a regular customer or someone I knew was established would get one no questions asked.

There is the risk of the guys who are just trying to get a free machine for a couple days, but I think there are less of those people than the number of sales you would lose by telling your regulars to stick it.

At the same time......there is no need to demo something for weeks....

I can tell within a few minutes usually If I like a machine or not......I cant imagine needing days and weeks..

[PROCUT1]

hahahahaha, thats awesome!

It was funny how it played out.

They sent me a bill for the hours on the machine....
I sent them a bill for storage...

They tried to pressure me to buy the machine at full new price...
I offered at used price (because of the hours)

They sent me to collections
I sent them to collections

[Junior M]

It was funny how it played out.

They sent me a bill for the hours on the machine....
I sent them a bill for storage...

They tried to pressure me to buy the machine at full new price...
I offered at used price (because of the hours)

They sent me to collections
I sent them to collections
hahahahaha, that makes this story even better...

[ksss]

It was funny how it played out.

They sent me a bill for the hours on the machine....
I sent them a bill for storage...

They tried to pressure me to buy the machine at full new price...
I offered at used price (because of the hours)

They sent me to collections
I sent them to collections



Man thats funny! What kind of dealer would leave a machine on demo for over a year?

I have seen guys around here try to take advantage of dealers by demoing a machine and then putting a bunch of hours on it and then give it back.

A guy here who I know and we are pretty good friends, demoed a 1150 CASE dozer and put 80 hours on it. Pushed in a large hole with concrete demo. Then he was pissed when the dealer billed him for the hours. He had a Deere 750 and put 10 hours on it on the same job. I would have billed him as well.

[PROCUT1]

I can understand only allowing a certain number of hours on a demo

[stuvecorp]

I have always been very up front with the salesman, I like to do a compensation of a rental/demo so I can get a longer time. It is hard to really get the feel of the machine in 2-3 hours.