Incredible Deal...We're Here For You!!!

Discussion in 'Lawn Mowing' started by OnMyOwn, Oct 12, 2006.

  1. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Posts: 372

    I'm just venting here. I have been approached by two different dealers offering incredible end-of-season close out deals on mowers. Unbelievable financing, pricing and service, right at the time of my season when it does not even matter!!!!!!!

    I want the manufacturers and dealers to realize that this is traditionally a low-margin business. As the end users of the equipment, we need the support of the mfg and dealers to make a living. Therefore, step-up and offer these items to us at a positive cash flow time, like Spring / Summer. Don't do it in the late fall when we are planning our most difficult cash flow projections.

    It is like going to my mowing clients in December and saying, "Now that your grass does not need cut, I will lower my price by 30% if you will let me make stripes in your lawn".

    Manufacturers and Dealers: Come On!!!!!! Work with us here!!
  2. Roger

    Roger LawnSite Fanatic
    Posts: 5,924

    How about giving your grass cutting customers a break in Spring and early Summer, say giving them a 15% discount, or giving them a free cut every four mowings? Just provide them with this deal for a few months, say April, May, and perhaps June. Their cash flow is running tight during those months, as they spend money on vacation plans, new cars, graduation expenses, etc. Wouldn't it be a good idea to "work with them" during their time of tight cash flow?

    Obviously, my comments are tongue in cheek. Mower dealers have a business to run and want some business to sustain them through the course of the year. They are no different than most other retail operations in that they provide incentives to keep product flowing out the door, albeit at a lower pace. There are many more businesses that have a low-margin than those with high margins. Many of want our suppliers to "support" us, as you state, by giving us great deals. But, many of us want a lot of things.
  3. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Posts: 372

    Agree...and Disagree!

    I do not offer special deals to my client at any point in the year. My service to my clients is a Luxury expense to them (in most cases). Most of my clients are able to cut their own grass, they choose not to because of wealth, time constraints, or other reasons.

    My pricing is static, based on desired GP and Net margins. I do not advertise, my work advertises for me. I try to never lower my prices to compete.

    Therefore, if the mfg's and dealers would take this end-of-season savings and spread it out over the rest of the year, we would all benefit.
  4. Thirdpete

    Thirdpete LawnSite Member
    from Chicago
    Posts: 236

    im no genius but should you be running out of money at the end of the year? i was under the impression that now was the best time to buy mowers because of the financing and offers available.
  5. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Posts: 372

    Not out of money....far from it. However, this is the time of year to sit tight on your retained earnings and not count on snow-fall as a source of income. At least in Indiana...

    Perhaps my post is not conveying the message I intended. How much margin are the mfg's and dealers pulling, if they can afford to take such drastic y/e cuts on pricing?
  6. stumpjumper

    stumpjumper LawnSite Member
    Posts: 183

    Heres something to consider, position yourself cash wise to take advantage of their year end deals. I recently bought a J.D. F725 54'' with 439 hrs. for $1700.00 at a local dealers year end trade in auction. The dealer doesn't want to carry them till spring so it's a no reserve auction. Bad weather the day of the auction, not many bidders, good for me bad for him.
  7. Thirdpete

    Thirdpete LawnSite Member
    from Chicago
    Posts: 236


    i was thinking that if your incorporated you could just pay yourself salary and make sure theres money in the bank all winter.... whatever profit the business is showing, you could either pay yourself or pop for equipment end of year to minimize tax bite.

    plus basic economics says, demand goes down so does price. who is cutting in decmber in indiana? take advantage of the deals if possible.
  8. LawnBrother

    LawnBrother LawnSite Senior Member
    from SW Ohio
    Posts: 867

    The deals are better in the fall/winter because they are trying to make room for the new stuff next year.
  9. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    I understand your frustation at the salesman's approaches as I do not generally appreciate these, either. However, I feel the reasoning is misdirected for the reasons pointed out already, mainly the fact they are giving a BIG (HUGE, 30% is a LOT of money OFF for a dealer) discount during the slow time is to get paid during the slowest of times, point which... ah well.

    As for luxuries, new equipment is a luxury as well, you could buy used and never approach dealers, then there is no more discount issue and since you never give a discount, well, nevermind this too lol...

    If there exists a business who's main source of income is derived from low profit margin customers (such as a dealer), it would stand to reason said dealers' profit margin would be equally low, roughly speaking.

    Other than that, the only thing I hate is blind advertising, aka cold calls... If my dealer suddenly had 30% off on something I wanted or could use, I think I would appreciate the call, although likely my answer would also be no if for no other reason than the money lol.

  10. WJW Lawn

    WJW Lawn LawnSite Bronze Member
    Posts: 1,330

    I agree...unless you live pay check to pay shouldnt matter the time of year. I try and budget correctly to take advantage of dealers offers during this time a year. Dont blame the dealer...they need to make a living too.

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