% of msrp dealers actually pay? How to get a fair deal from dealers "retail" or "regular" price..

rerod

LawnSite Member
I never thought I would tip my hand to a dealer, but I imagine dealers want to sell this years new inventory.. Was it a good year, or are dealers pretty motivated at this time? Are better deals to be had later in the year?

But most dealers state "retail, list, regular" price which is usually higher than msrp, making it even more confusing.. Retail price is what ever price the dealers dream up, or the "perception of what the market will bear" or in other words, THE MOST THEY DARE TO ASK!
Should I ask what msrp is? Is msrp price a better number to make a offer from?

As a home owner who doesn't know crap about mowers, but knows he wants a >48" commercial mower, can anyone give some insight or tips on buying a new or last years model with 0 hours?

Is there a data base which states msrp for most commercial mowers? Or better yet what dealers actually pay?

I guess I'm looking for guidelines just how low a cash offer I can make without to much risk of walking away with a black eye. Because I'm not very motivated considering my craftsman runs fine, but would be motivated if I was sure the deal was a good fair one.

Thanks!
 

Mumblingboutmowers

LawnSite Senior Member
To find the msrp you go to the manufacturer's website and look up the machine that you are interested in and it will most likely give the msrp.

Mower dealers don't negotiate as much as automobile dealers. You might state here what mower you are interested in buying and if anyone has bought one ask what they've paid.
 
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rerod

LawnSite Member
Thanks. But Ive found it difficult/impossible to find msrp's on consumer based websites. Sometimes they write "as low as" but its more difficult to find msrp's for mowers than cars imo. Some dealers like this local one has retail, what ever "retail" means.

This dealer has a few exmarks I'd consider. Anything over 48" would work out well.

Ive over paid for cars I wanted, but it feels like I'm more vulnerable to over paying for a mower since the only guideline I have is ebay's completed listings. And in my case the mower will cost more than the last used honda fit I bought.
 
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knox gsl

LawnSite Fanatic
Location
knoxville, tn
Figure out what you want and call around. You'll get it figured out pretty quickly and move forward. Best deals are November or December.
 

TPendagast

LawnSite Fanatic
I never thought I would tip my hand to a dealer, but I imagine dealers want to sell this years new inventory.. Was it a good year, or are dealers pretty motivated at this time? Are better deals to be had later in the year?

But most dealers state "retail, list, regular" price which is usually higher than msrp, making it even more confusing.. Retail price is what ever price the dealers dream up, or the "perception of what the market will bear" or in other words, THE MOST THEY DARE TO ASK!
Should I ask what msrp is? Is msrp price a better number to make a offer from?

As a home owner who doesn't know crap about mowers, but knows he wants a >48" commercial mower, can anyone give some insight or tips on buying a new or last years model with 0 hours?

Is there a data base which states msrp for most commercial mowers? Or better yet what dealers actually pay?

I guess I'm looking for guidelines just how low a cash offer I can make without to much risk of walking away with a black eye. Because I'm not very motivated considering my craftsman runs fine, but would be motivated if I was sure the deal was a good fair one.

Thanks!

How do you get your price?

Do you just dream it up?

The lowest cash offer you can make is the one the guy will accept.

Why should people ask you for a price lower than what your price would be normally?
Are they bringing you volume work?
Do they have five rental properties and you’re signing them all?
Maybe?

What do you say to someone who just wants to chew you down on their own lawn?
Do you accept lower than your asking price without any incentive to do so?

Why should the dealer be different?
 

TPendagast

LawnSite Fanatic
Thanks. But Ive found it difficult/impossible to find msrp's on consumer based websites. Sometimes they write "as low as" but its more difficult to find msrp's for mowers than cars imo. Some dealers like this local one has retail, what ever "retail" means.

This dealer has a few exmarks I'd consider. Anything over 48" would work out well.

Ive over paid for cars I wanted, but it feels like I'm more vulnerable to over paying for a mower since the only guideline I have is ebay's completed listings. And in my case the mower will cost more than the last used honda fit I bought.
That one dealer still has a 2028 diesel Lazer z left
He’s been paying flooring costs on that one forever and a day and is fixing on going into another winter where he will sit on it again.

If you’ve got the money, THATS the one to make a deal on.
 

TPendagast

LawnSite Fanatic
I've never understood the mentally of finding the absolute best deal.
If you need something, buy it.
Will a couple hundred bucks matter 2 yrs from now?
Or for that matter next month.
People are obsessing that they can get thousands or half off or some awesome deal

There are deals to be had but they are either rare or involve volume or repeat business.

If your business success depends on cheating everyone else out of their profit, what does that say about your profit margins?
 
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rerod

LawnSite Member
People are obsessing that they can get thousands or half off or some awesome deal

There are deals to be had but they are either rare or involve volume or repeat business.

If your business success depends on cheating everyone else out of their profit, what does that say about your profit margins?
Whoa Whoa TPendagast aint nobody cheating anyone, and DING DONG!! Latest breaking news is that buyers want it for the least, and sellers want it for the most.

Salesmen notoriously have lied and cheated more than any group of people. Every time I talk to a salesman, he lies... Its more about how long you can have a conversation with a salesman before he lies than if he will or not. And many times it's because the salesman doesn't have a clue what the answer to your question is and makes up a answer so he looks like he knows..

Your so offended, you and Mow-mommy must be dealers.. And like I said mow mommy.. I don't really need a new mower. And probably wont buy until my mower shells out or in other words, I'm bent over a barrel. Because that's what it feels like not having a clue what profit margin there is. I imagine its well over 25%
 

cwren2472

LawnSite Member
Location
North east
Whoa Whoa TPendagast aint nobody cheating anyone, and DING DONG!! Latest breaking news is that buyers want it for the least, and sellers want it for the most.

Salesmen notoriously have lied and cheated more than any group of people. Every time I talk to a salesman, he lies... Its more about how long you can have a conversation with a salesman before he lies than if he will or not. And many times it's because the salesman doesn't have a clue what the answer to your question is and makes up a answer so he looks like he knows..

Your so offended, you and Mow-mommy must be dealers.. And like I said mow mommy.. I don't really need a new mower. And probably wont buy until my mower shells out or in other words, I'm bent over a barrel. Because that's what it feels like not having a clue what profit margin there is. I imagine its well over 25%
I have no idea what % markup lawn equipment dealers have nor how much the machine you are interested in costs, but you seem hung up on MSRP and profit margins.

First, MSRP doesnt really mean much of anything because by definition it is set by the manufacturer and dealer discounts vary wildly. Some things at MSRP are outrageously priced and no dealer could ever actually sell at those because no one would buy it. Other items at MSRP have a dealer discount that makes the item virtually profitless to the dealer (since dealer discounts often dont factor in freight which has to be added to the true "cost") and the dealer cant sell it for anymore than MSRP because the MSRP is seen as a "maximum price"

Also, as to profit margins, let's use your hypothetical 25% and take a hypothetical $2000 piece of equipment. (My guess is that his markup is less than 25% but since you say 25% like that is borderline-robbery, let's work with it for arguments sake.)

I assume you would then think that the dealer is making a $500 profit, right? And that's huge! $500 in his pocket! And its also wrong.

He is making $500 over what he bought it for from which is subtracted salaries, mortgage, taxes, utilities, all the other expensives of running a business plus likely a massive loan with interest paying for all those expensive shiny machines you see sitting there. You would never send a crew to mow a lawn for $60 and tell yourself you made $59 in profit on it because you only paid out $1 for fuel (a 6000% profit margin!) - that dealer is no different.
 
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