Dealer invoices on mowers

Hello:<p>Why, would you want a dealer invoice? They don't make nothing. In most cases their mark up is 18% to 25%. Very seldom do they get it.<p>They buy a $6000 mower & mark it up $1000 to $1200 in most cases. What do you make when you invest $6000 in a piece of equipment? I bet it's a lot more than what they get.<p>I bet if you half way try you can make at least $30,000 t0 $50,000 with that mower. Do you park it in a building that cost $250,000 up to a couple of million?<p>I'm not trying to be rude but I've been on both sides of the fence & believe me dealers go through hell for what little they get. <p>To tell you the truth thats why a lot of them have a attitude. Every time they go to sell something (at least 75% of the time) they get jabbed about wanting a discount. What if that happened everytime you went to cut grass?<p>I'm a dealer now against my will, I have a $250,000 building that I hope & pray I sell one day. I have over half that much in inventory also . My wife & I made about as much as the above average guy does that cuts on the side. <p>I made as much 15 years ago cutting by my self as I made last year. This past year 32K not a penny more. I think it's a joke, but it's not very funny to my family.<p>Yes, I now know that I was very stupid for buying a Outdoor Power Equipment Dealership, but when I was cutting, I thought they were getting filthy rich. I was so scared they were going to make a profit off of me. Greed almost destroyed me. I wish I could do it over again. I would still be cutting grass & making VERY GOOD MONEY!<p>I put up a world class post about this I think back at this past Halloween & I can do it again. <p>Live & let live. I bet anything you will never hear a dealer ask &quot; Where can I find out how much money that guy makes cutting grass?&quot;<p>Like I say I wasn't trying to be rude, If you are unhappy with your dealer find another one.<p>----------<br>GrassMaster - Home:<br>My Start Up Page


Springfield, IL
Grassmaster-<p>I have to respectfully partially disagree with you. I know some dealers are fair. I have one locally who wouldn't move from $8500 or some ridiculously high price on a Toro 222. Same machine in Chicago $6300. Are they giving it away at $6300? Hell no. You know they are making some money off that at $6300. Why can't &quot;the biggest Toro Dealer in the state&quot; (hahahahahaha) do the same. I laugh because I KNOW they aren't moving anywhere near the machines that another dealership I know of is, yet they lie to my face. &lt;p&gt;There is finally a decent machine at a decent price in this town. Exmark is $7600 plus tax which is $1000 more than I can buy several other brands. At least $7600 is close, though. I may one day buy an Exmark if these people don't lose their minds between now and then.&lt;p&gt;I also think the Toro Dealership is finally going to have to lower their prices. Too late, if they sold them for $5400 I'd drive 200 miles to pay $1000 more since they treat like I just fell off the banana boat.&lt;p&gt;John&lt;p&gt;PS-Grassmaster, I'd probably buy mowers from you if you were in my area. You are honest, if nothing else. Also, the link page additions are great! Keep up the good work.<br>


LawnSite Bronze Member
I'm with John.<br>I sympathize with GrassMaster, I've got employees that make more than 32K.<p>But my dealer makes mega money. Lives in a huge home and his summer &quot;cottage&quot; is larger than my house. I'm not denying him his due, but I want to be treated fairly as well.<p>I know 1 mower I purchased for $5695.00 + tax cost him $4120.00 plus assembly. Now he sells 250 mowers per year. That's almost 400K with 1 guy. Plus they sell everything else. Parts and service are profitable, too.<p>Then the whole business got bought out by a national company and he's fat rich.<p>I want the vendors I buy from to make money: A.) I want them to be there next year. B.) I want service after the sale. But gimme a break somewhere!<p>I will Toro's from another dealer this year because they're almost $3,000 less per machine than an indentical ('cept deck and gas tanks) Exmark.<p>That $3,000 each would have lined somebody's pocket.


LawnSite Member
Grassmaster,<br> Sounds like you're not happy with what you're doing. I don't think a dealer is going to sell a machine at invoice nor do I expect him to. I just wanted a base to negotiate from. When I buy a mower and I'm shelling out $8000, I think the dealer should work with you. Unless you have money to burn, you should try to bring the price down. A couple hundred dollars can buy alot of gas, oil, etc. If a dealer (salesman) thinks that customers shouldn't negotiate, or won't negotiate he's in LaLa Land or dosn't care about what he's doing.<p>Still wondering about a site with prices.<br>


LawnSite Senior Member
The amount the dealer makes really doesn't matter. It is 1)the value of the machine to you 2) the service AFTER the sale. <br>Our local Toro dealer makes a point of getting the commercial cutters back on the street quick if there is a repair need. He gives preferred customers 10% off parts and $ of list on new equipment. If there is warranty work to be done and it will take too long he lends a machine. The only bad thing with this dealer...he doesn't sell Dixie Chopper.


Moderator, Friend, Angel
South East
My local Kubota/exmark/bunton ect dealer doesn't negotiate at all. Seems that he is 500$ to 1000$ higher on prices than some I have seen on here. No discounts on repairs either. But commercial repairs are put ahead of homeowners. But he has alot of commercial mowers to repair ahead of me usually. But he does throw a nice barbecue for contractors:)
Hello:<p>Hey, I was having a bad hair day! LOL<p>Lazer your dealer was just a hair over 25% but he deserves it. But he goes through hell for it & it sounds like a lot of money.<p>Think how big you have to be to purchase 250 mowers, don't think it will keep you up at night? Think about it we are talking about over a million involved. That's just one line of mowers! Think about the rest of his inventory & overhead.<p>They don't give you those mowers, yes you obligate yourself to purchasing them. What if he has a bad year. On that one line say he's stuck with 100 of them.<p>Maybe he gets 9 months free interest then at end of dating period, the people he got the dating through comes in every 2 weeks checking inventory. <p>Then the 1-1/2% a month interest comes in on unpaid balance. That's serious money, it's wasted a lot of dealers. The O.P.E. manufactures don't take it back, but they will take you babys bottle out of its mouth if you owe & can't pay up. There is no working with you, pay up or give it all up.<p>When you do this on any scale, you have to sign all kinds of stuff, they have you sign a personal guarenty that you will pay. Then you don't they can take everything you own & then some.<p>You look at his operating expenses, you would laugh at him & tell him how stupid he is, getting into this kind of business. <p>I know because I feel stupid because I'm in that trap now. I average 1 law suite a year min. because everybody thinks I'm rich. I've had them tell me what's a $100K to you. I want to knock them flat of their butts.<p>What a lot of dealers do is jack up the price a bit. Then they let you talk them down & if they know you are out of town, they will knock a lot off. I personaly think this is dishonest, but that's my thoughts.<p>I think a dealer should give you the best possible service. We do but nobody cares. If you are a commercial cutter & you have a brand I do not sell. You need a repair done on the spot, we jump on it, yes even if there is 5 homeowners standing there. Yes even if there is 200 repairs in shop & we are already a day or 2 late on the time we have the repair promised out. We still do it.<p>I do everything possible to make the commercial guy happy & it's not enough. I know what you guys go through & I'm not knocking that. I have a cutter right now that I did a repair on his mower Feb. a year ago & it came in needing same repair again except other side of trans. He thinks I should do it for free. He says he cut maybe 2000 lawns & still thinks it should be free.<p>We are told what quanities to buy & if we don't we don't get the discounts we need. I had the first ZTR in my showroom, sat there I think around 2 years, over $200 in damages from customers & over 500 hours talking about the damn thing. I sold it to my stepfather for $400 less than invoice, that's less than cost. Us stupid dealers have to do it all the time.<p>If a dealer is in a bind, having a bad year or whatever, yes he sells below what he pays for it & they do it quite often. It's what you call being in business.<p>I think from what I've been reading about most of you guys from north of here that you are a lot more professional & I mean a lot more professional than here where I am. It's hot here but the way some of you guys operate you could make some big bucks! QUICK!<p>I get so mad at these guys & I do everything I can to help them out. They still think the big bucks is riding that mower.<p>LOL this town is 250K in the city limits & it's impossible to find someone that does aeration. Three companys here do chemical applications. The guys that are in the business gripe & whine when they are asked to fertilize.<p>I'm thinking about getting some of this gravey. Maybe offering to do aeration & fertilization. This my friends could be the beginning of my road back to happiness! If nothing else my family deserves it. <p>7 years 11 months everything will be paid for, yes everything. If nothing else I will sell inventory for whatever I can get & lease or rent shop for about $2,500 a month.<p>LOL maybe some fool will buy it, I've only had it for sale for 5 years. Then I will have a life again!<p>----------<br>GrassMaster - Home:<br>My Start Up Page<p>

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