1. Missed the live Ask the Expert event?
    Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community in the Franchising forum .

    Dismiss Notice

For th dealers

Discussion in 'Lawn Mowing' started by okie2, Apr 24, 2007.

  1. okie2

    okie2 LawnSite Member
    Posts: 97

    Whats the mark-up on a new mower. i.e. whats the difference in the invoice prices and the MSRP's? How can I get the best deal?
  2. tallimeca

    tallimeca LawnSite Bronze Member
    Posts: 1,229

    MSRP or Suggested Retail is the highest price. Some dealers start there and wait for you to beat them down.

    Then there is promo, or sale price. This is where the manufacturers encourage dealers to not sell any lower then....ie lowballing ( I know you LCO's hate that term, haha). That is a reasonable price for a buyer to pay and save over MSRP, and the dealer will make enough to make the sale.


    Say brand x ZTR.

    MSRP may be 8600. Promo or sale price might be 7899. Dealer invoice on this is probably about 6900. then they have to pay about 100 freight. A guy 1-1.5 hours to uncrate, assembly and prep. Floor plan interest for it to sit at their dealership. Time to sell you on the machine and do up paperwork or financing, who charge the dealer 2 percent on average (there another almost 200 bucks).

    So at Promo price, Dealer is probably making 5-600 bucks profit. That net's about 10% markup.

    In buisness terms, that sucks for dealers, good for consumer buying it. You need to sell alot of brand x ztr's to cover overhead at that markup. Start looking at brand x 200 dollar trimmers that the dealer makes 30 bucks off of... you have to sell a shitload more of those to cover your expenses!!!

    Again, some dealer will price it at 8600, you'll ask them to do better and they may get you down to 8k even, still 100 bucks over sale price. Other dealers put it right at sale price and that's what they need to get and the consumer should complain about paying.

    Had a guy come in and started playing let's make a deal on a Husky tractor, which I have for the same price Lowe's carries it for according to him. I asked him if he tried to beat Lowes down on price? He said you can't do that at a store like that!!!!! (real snippy) So I asked him why he felt he should do it at a small family owned and run dealership like myself who does not even a fart's worth of buisness a single chain store like Lowes does? He stared at me like a deer in the headlights.

    Hope this helps.
  3. tallimeca

    tallimeca LawnSite Bronze Member
    Posts: 1,229

    to get the best deal, continue to support your dealer. Loyalty and continued support are rewarded by price brakes and fast service. At least at a reputable dealer.

    The dealer hopping guys are always the first to ask for a deal and the last to get it, unless the dealer is trying to unload something and dealer hopper is a good target.
  4. Horsepower Lawns

    Horsepower Lawns LawnSite Member
    Posts: 213

    tallimeca, do you have a Ford Lightning?

Share This Page