Dealers

Discussion in 'Lawn Mowing' started by DFW Area Landscaper, May 25, 2006.

  1. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Anyone have any idea how much a dealer pays for a lawn mower that they retail for $1050? Specifically, the Honda HRC216HXA?

    Just curious. I have always wondered how much gross margin they get on this stuff.

    Later,
    DFW Area Landscaper
     
  2. saw man

    saw man LawnSite Bronze Member
    from utah
    Posts: 1,021

    Not enough. Not really information to give out to customers.
     
  3. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Sawman,

    Are you a dealer?

    Thanks,
    DFW Area Landscaper
     
  4. saw man

    saw man LawnSite Bronze Member
    from utah
    Posts: 1,021

    Yes I am. I have done LC as well.
     
  5. fulano

    fulano LawnSite Senior Member
    Posts: 319

    I saw that same mower at the local honda dealer/equipment rental place and was thinking about getting one. It was listed at $1049 as well. I'd guess they make at least 20%.
     
  6. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Posts: 2,419

    :dizzy: :dizzy: :dizzy: :dizzy: :dizzy:

    I'd guess you must have a Home Depot as your local honda dealer/equipment rental place.

    Most dealers don't even get 20% on parts (Honda). Now, I guess if a dealer ordered two or three hundred Honda mowers at a time and was going directly through AHM, then they might be able to eek out 20% after dealing with the freight costs of that many mowers. But going through a distributor (which is what you have to do if you cannot afford the $60 to $70K a year to do business directly with Honda) by the time the frieight is added in, a dealer's cost is pretty much the same as the price that Home Depot sells to the end consumer at. Which is usually the reason an independant dealer that has Honda mowers on the floor will be a little higher than Home Depot.
     
  7. saw man

    saw man LawnSite Bronze Member
    from utah
    Posts: 1,021

    Thats funny, cause I sell my Honda mowers for less than HD sells theres for. But thanks for helping us dealers out!
     
  8. fulano

    fulano LawnSite Senior Member
    Posts: 319

    Last time I went to home depot they didn't have that model Honda. I went to the only honda parts and equipment and rental place there is near my home, which wasn't home depot. They had one sitting on the floor and it was priced at $1049. I asked the salesman what the difference was between it and one of the $600 models with that little green mulch handle and the plastic deck. He said the wheels on the expensive one were made of the same material as the deck of the cheap ones, it had an aluminum deck and an 8hp engine. I knew he was full of crap with the 8hp engine story. So, I left and decided to just buy a 36" wb instead for my small mower.
    Anyway, the markup on the exmark I bought was 20% so I'd guess that hondas are about the same.
     
  9. saw man

    saw man LawnSite Bronze Member
    from utah
    Posts: 1,021

    The comm. mower does not have a cast alum. deck either.

    You are right HD does not sell the higher end Hondas, and the HRC216HXA retails at $1129.
     
  10. SWD

    SWD LawnSite Senior Member
    Posts: 989

    I cannot comment upon Honda dealers, however I do know the profit margin my primary dealer targets.
    Typically it is between 5-8%, some times as high as 10% provided a person or LCO has poorer credit.
    The manufacturers publish a suggested retail price and this price is subject to market forces, so it becomes more of a guideline.
    However, with me, due to the volume of purchases, both equipment and parts, I am at 3%. Essentially enough for the dealer to recover his costs when ordering the equipment plus the administrative overhead.
    I have the benefit of a long relationship with my dealer, he knows me as well as I know him, actually we have become firm friends throughout our dealings together.
     

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