"Street price" in our industry

Discussion in 'Lawn Mowing' started by Doc Pete, Mar 2, 2003.

  1. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    This is a good time for us to enter the world of today. We all have other hobbies, and I know the pricing of things has changed to where you are hearing the "generic" term "STREET PRICE" , when checking out the cost of things. All the old talk about " Manufacture's retail price", is a joke and the "lawnmower equipment industry" should get with the program. I'm tired of seeing "suggested retail price is," and then attempt to get the best deal by making 1,000 phone calls.
    We all know that in today's world if the local "Hobby shop" doesn't compete with "Internet pricing" they are, or will be out of business. That's just a fact of life. Now, I don't expect to see everyone with the same pricing, but what would nice to see from all of us, is the "sharing of knowledge" about local area pricing. In the long run this would benefit all of us by allowing us to find out what dealers are "charging the limit" and those who are charging a fair price and want more business in return.
    Also, it would be nice to see from the manufactures a "suggested street price", rather than the ridiculous "retail price", which means nothing. Also, the manufacturer would be able to offer dealers names that would sell at "street price", when a local dealer wants $300/$500 more than the street pricing they suggest.
    Please don't think I'm trying to price fix. I'm just tired of seeing MSRP pricing on products, mowers in particular, and realizing that this price is totally a "fictitious number" used only to "suck in" those people that aren't up to speed with our industry. Furthermore, I see and hear guy's on this forum that look at MSRP pricing and then "drop their jaw", when they listen to some LCO talk about how he paid $4,500 for an Exmark, when the same product in the Scag line has a MSRP of $6,000.
    Now, this type of "Street pricing" has be going on for many years in almost every other retail market, so why not let this type of system begin in our industry. But, if we keep our mouth shut and not let each other know what dealers in their area are ready to deal, this system will never happen. However, if we share with each other those dealers that seem to offer cheaper pricing, "without twisting their arm", the 'high priced" dealers will have not choice but to lower their pricing, or go out of business..........
     
  2. PR0 TURF

    PR0 TURF LawnSite Bronze Member
    Posts: 1,089

    Sounds good to me...but where do we start?:jester:
     
  3. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    It is a very small mind that worries constantly about what they pay out. Unfortunately, that is the norm in the green industry. The wiser operator knows that it's all about how much you keep in the till, and that is a function of what comes in and what is paid out.

    Is it better to just have a good dealer, and buy your machines and supplies from them. If you are constantly looking for cheap, of course you can find cheaper. But next time you go to buy, that one is usually out of biz, because he was too cheap, LOL. So now you waste more time looking for another cheapo seller.

    My clients do not haggle with me on my prices, because I am giving them value. I do not haggle with my dealer about pricing - in fact, I have just told him what I need a machine for, and he picks the machine for me, and charges me. If I can tell him ahead of time, maybe he can make a few extra bucks by placing a bigger order. All I have to do is write a check - and I'm not afraid to pay him or anyone else for their expertise, if it is a value to me. If I succeed, the dealer keeps a client, and he can stay in business to service me some more.

    I see so much on this board about the dealers ripping off the lawn guys, and the customers thinking the lawn guys are just out to rip them off. Could it be that that is just the mentality of so many lawn guys, LOL?
     
  4. J&R

    J&R LawnSite Senior Member
    Posts: 835

    Will i was a dearler back in the early 80s. the mark up on most mowers was about 18% tops. Do you as a LCO. think you can make it on just 18% profit.
     
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Well Pete...

    ...you and I could start seeing that we're only bout 20 minutes max from one another.

    I'm game:D
     
  6. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    First, let me explain this is an offshoot from "What WB to buy". In particular it was my brand of machine a Hustler. My dealer offers a new machine (doesn't matter the type) for $4,300. Next, we here another dealer if offering the same machine for $300 more, and another dealer for about $800 more. FYI, this is the problem I'm talking about. Frankly, the problem is similar to the way "many LCO's" price certain jobs. If the LCO doesn't really care if they get the job or not, they price the job ridiculously high, and if they get it they laugh all the way to the bank.
    Getting back to your theory, IMO, only a poor business person is not worried about "pay out". Heck, that's all part of the bottomline. Futhermore, if a $2 phone call can save $400, than IMO again, it's the "small minded person" that doesn't make the call. To continue, I've found the dealer with the better service is actually the dealer that "goes the extra mile" to give the LCO a better deal. IOW, many times the better dealer is also the one with the more attractive pricing.
    Not withstanding I'm advocating weeding out the less agressive dealers, I'm suggesting pricing equipment with "realistic" pricing so we can compare "apples to apples" without all the hassle. It's such a bore, to see a $2,000 MSRP price for a motor and find out it's "internet" available for $1,000 and $100 shipping.
    Just look at all household "electronic" equipment, everyone has the same price within 50 cents.
    Pete
    Pete
     
  7. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    Rod, I have a belief that if we do this, we will actually find "all we are doing" is finding out what dealers are just the better dealers. I have no problem with wanting to make an honest dollar, but I really get tired of the stupid pricing from the manufacturers. We all know the MSRP is a gimmic. Darn, my "Radio control" hobby has done a lot of good things by not standing for this type of stupid pricing. As I've said "my hobby industry" now actually refers to item costs as "street price". Also, there was a big problem with items being bought "overseas" for 40% less than here. It became such a problem the industry tried to void the warrentte from overseas. We didn't care about the warrentte and "FINALLY" the importers over here were forced to stop gouging us and "lowered" the retail price to compete with overseas pricing. Yeah for us:D
    Pete
     
  8. Varying overhead cost.......Pretty simple to me.

    Volume of sales. Go to Wal-Mart............

    I heard Sams has these in stock for you.

    look at this dork1.jpg
     
  9. lawnboy

    lawnboy LawnSite Senior Member
    Posts: 321

    If you want the best deal, there is no question, Russos in Chicago is the cheapest place around. My dealer in my area cant even buy the stuff for what they are selling it for.
     
  10. Doc Pete

    Doc Pete LawnSite Gold Member
    Posts: 3,469

    So, "I'm" supposed to pay for his "overhead"?? As I said, make the $2 phone call to save $400... or, you can stay a poor businessman.......

    AND, the idea behind "varying ovehead" is the guy on the "highway" paying the big monthly rent "should", because of his added exposure, be selling "that much more" to cover his overhead......Or, he's another poor businessman......
    Pete
     

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