markup on commercial ZTR mowers?

HenryN

LawnSite Member
Just how much markup is there on commercial ZTR mowers?


I ask this question in all seriousness, as I have no real idea. I do know a little about automotive sales, and how to get the best deal. (Hint: truecar.com) But I have no idea in the area of new commercial ZTR mowers. I have been reading through the last couple of years here in this forum, and I see some people talk about getting some really big discounts off of list price.


I have been looking at John Deere, and I find this. On their official web site, they show the list price of a Z920M at $10,499. https://www.deere.com/en/mowers/commercial-mowers/commercial-zero-turn-ztrak-mowers/z920m-mower/


But a quick look around on Craigslist, and I find this ad from a dealer down in south Texas, $7,899 for a new Z920M. https://victoriatx.craigslist.org/grq/d/kenedy-new-john-deere-z920m-54-zero/7115448744.html


We’re talking a 24.7 percent discount here. I guess I shouldn’t be too surprised. When I bought my 2018 Ford F150 new, I was at 23.8% below the window sticker. Is it possible to find those kinds of discounts on new Kubota, Scag, or Grasshopper ZTR mowers? Those 3, along with John Deere, would be the ones I would most be interested in. 54 inch deck, commercial, in the $7k to $9k range.
 

weeze

LawnSite Fanatic
the online prices of john deere are always way more than the price they are sold for at dealers. i'm not sure why. maybe it's to make people think they are getting a good deal at the dealers? LOL

It doesn't matter what you buy you are getting ripped off. it doesn't cost them $10k+ to make a lawnmower.
 

TPendagast

LawnSite Fanatic
Believe it or not
Dealers aren’t making a lot on sales
Distributors make more and manufacturers make the most.
When you see the big price discounts it’s not typically the dealer dropping his prices so much as it’s a manufacturer incentive or a distributor trying to reach the next tier to earn a bigger percent of sales.

sometimes flooring costs will come into play
If I have to sit on this mower all winter it will cost be $500 in finance payments
Only to have last years model in the spring and no one wants to pay retail for the “old model” so I have to discount it down $500 anyway , meaning I’ll loose $1000 in the spring or I can cut my losses and drop the price $800 right now.

also floor space costs money
If I’m making bank moving standers bit I’ve got this diesel big daddy rider taking up real estate and collecting dust , I might take a loss on it so I have more space on my floor (and loan amount) to make money on more standers.

by far dealers make most of their money on parts and service.
And those Knick knacks like weed whacker string and ear plugs.

typical dealer markup is around 8% on a mower
Which is peanuts
So on a $10,000 mower he makes $800.
Big volume dealers get better pricing from the distributor so there’s room for more profit per Machine, but they’re usually a big volume dealer because their prices are lower, so those volume discounts typically get passed on to the consumer.
So yea, they make around $800 per ztr
 
OP
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HenryN

LawnSite Member
Google Ad Services just threw up an ad on the side of the page, saying something like “10% off on 900 series John Deere for online orders”. Naturally, I clicked on the link and would up with this (see image).


That’s about $1,200 off sticker, so not a bad place to start. But being an “online only” deal, there’s probably no way to start there and then negotiate.


Interesting, though.

On Edit: not having any luck with images, so


Z915E ZTrak $9,099.00

10% online discount $909.90

Green Tag Savings $300

$7,889.10




 
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Bitches_Brew

LawnSite Silver Member
Location
earth
So on a $10,000 mower he makes $800.
Big volume dealers get better pricing from the distributor so there’s room for more profit per Machine, but they’re usually a big volume dealer because their prices are lower, so those volume discounts typically get passed on to the consumer.
So yea, they make around $800 per ztr
This^

My dealer is a friend (before he was my dealer) and mark-up is usually around $1000/8%-10% a mower.
 

Brucey

LawnSite Senior Member
Location
Upstate NY
When you negotiate with the dealer ask them to take the 10% online off their asking price in addition to other discounts etc.
 

gcbailey

LawnSite Gold Member
Location
WV
My dealer has 4 dedicated shop mechanics and their hourly rate is $215 for service with a current residential back log of 2 weeks. There's where the money is made.
 

b_eddy

LawnSite Member
My dealer has 4 dedicated shop mechanics and their hourly rate is $215 for service with a current residential back log of 2 weeks. There's where the money is made.
$215/hr?? That would seem crazy if it were in Mn. We farm with all jd, our dealership is part of a 13 store outfit. I believe their rate is 150ish maybe a bit more/less.
 
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HenryN

LawnSite Member
I just spent 10 minutes with Google, and it would seem the average hourly flat rate charge for ag equipment is in the range of $80 to $120. New car dealers are now running between $120 and $200 per. Which is why most people go to an independent automotive repair shop once their car is out of warranty.
 

douglee25

LawnSite Senior Member
Location
TX
I think 215 has to be a typo. 115 seems more likely.

I tried to buy a Ferris is3200 from my local dealer. I called 3x and went in twice. I was quoted a different price every time and I tried to tell them they were quoting me MSRP. Even when they quoted me the 'correct price' , I ended up buying it online and out of state. They delivered it to my house and I saved almost 2500. Score!
 

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