Originally Posted by NJDLLC
I like competition. Helping the smaller guys to spite the larger guys who have done it better for longer, is a form of socialism. By giving the same discount to everyone, you are attracting dealers who dont want to work hard to build a business, only those that want the ultimate benefit for the least amount of work.
Further, if the smaller guy refuses to service a mower I (as a larger guy) sold, then he wont be in business for very long.
Competition is different, this is not competition I am talking about. Imagine this ok... this is exactly how this works, but when mowers, equipment, cars, expensive things its on a much higher scale, and in "supported product industry". I am not talking about differing areas or regions, I am talking in the same 100 mile radius. Yes a dealer has territory, but no one can say you cant sell to an area, just give so many miles that another dealer can be opened up in. Most brands do this, but it hurts the industry heavily, and could be avoided completely. Volume dealer of soda, and volume car, equipment, mower dealer is different. The brand represented should do everything in its power to lead its end users to the dealer that is closest to them because end user will have to have service and parts done to that equipment. Main reason none allow selling on ebay and any non localized internet or advertising.
Ok they are saying opposite of that when just because dealer A in Dallas (duh a bigger market with more traffic) sells more than dealer B say in Greenville, they get an extra 5% off. Ok on a Turf Tiger you are talking $500 less. Ok now dealer B has to price mower at say $11500 to retain a minimun 15% markup whatever to stay in business, pay advertising, floor interest, employees upkeep whatever... Dealer A only marks up 8% due to volume sales and internet biz traffic, but due to the added 5% discount upfront makes his price $10300. Price is not actual, just did $10000 cost to be easier to work with, a TT actually is higher...lol. So for dealer B to match price it would actually cost him money to sell it... unless it was bid assist. Dealer A is actually hurting Scags Biz as a company by doing things like this. If I had Scag I would say our machines need to atleast bring minumum promo no matter the discount to be fair to dealer b's everywhere and they will take care of end user better... If I can be a huge volume dealer with holding my price point across the board, then everyone else could do it too if they gave the difference back in favors in the shop, labor costs, and parts pricing. Heck I was a pretty big dealer every year even my first one out of my house basically, still moved like 130 units averaging $7500 or so a unit, so most of the smaller volume guys have been doing biz way longer than me, I am going into my 6th season for 13.. Makes sense that most dealers mark parts over retail and charge people outrageous prices for repairs cause they are giving away the big stuff they have all their money tied up in... Most dealers I talk to only sell like 30 mowers or less a year from each brand, unless they have cheaper homeowner stuff...
If scag simply just averaged say a 2.5% discount to everyone, had a great base price, had some more interest here (only 3 people I know of own one here, and the golf course was negative on his, but hearing all the chatter on here for them made me want to introduce them here), and they would've blown me away doing the demoing here with them last year, they would've had a great dealer here to work with and push the product for them...
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