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Old 12-07-2012, 01:05 PM
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retrodog retrodog is offline
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Join Date: Apr 2007
Location: Paris, Tx
Posts: 2,366
[QUOTE=NJDLLC;4603340]I have a few dealer friends and typically they are given a territory (per say). But volume discounts are always going to be in place, and they should be. If you don't want them, and would like all dealers to pay the same price, then what you are suggesting is similar to socialism.[/QUOTE
I think its better for mom and pop and smaller dealers. Not fair that someone can drive 20 miles to another dealer just because they sell more and get it less. Not socialism, same price point, less confusion and more fair in retail. I am the largest badboy dealer, and i pay the same as the guy 30 miles for me that only sold 20 this year. Only thing i get different is savings on shipping as i buy by the truckload (21 mowers) and i only pay what it costs to get the truck here as opposed to per unit. My price isnt better than his, i just saved around $50 a mower in shipping, that was my perk.
I would feel like a jerk if someone drove from his area and bought a mower from me just cause i could price lower cause i bought more. Bad for me cause hes mad, bad for customer cause he wouldnt want to service my mower i sold, and bad for the company cause i am gonna run their other dealer out of biz when everyone starts buying from me just cause i dont hold my price and just make a little more as my benefit. If the product i was selling made me hold the price and not discount then it would be fair to everyone like tracker boats for instance. Just cause bass pro is the dealer too, tracker has a policy that all dealers cant go below the promo set price. I like that policy, helps dealers hold profit margin, they are happier taken care of issues, and no low balling happening running people out of biz like that happens to our lcos... if all lcos got together and agreed to a minumum it would be more pleasant bidding, and no cut throat crap and more profitability... i will be honest, mower markup is not very good, its waay tighter than it used to be. But a set fair mark up set across the board helps out. If i am competing with a dealer selling for less i would be forced to match and then jack parts, shop rate, everything else up to make up the difference thus being labeled a bad dealer cause im too high on labor and parts, but blow out mowers for nothing.... i wouldnt stay in business with kinda competition forced on me by the products i sell. I know dealers that sell mowers less than cost when floor is due to keep from paying interest. I would drive out of state to get that deal, then the mower i bought gets bad name when my local dealer laughs in my face when i need warranty done....
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Last edited by retrodog; 12-07-2012 at 01:14 PM.
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