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If you've ever been shopping for a tractor (or for that matter, an implement or attachment), and you got a price from the local dealer, then later checked with someone else far away who handled that brand and found they were a lot cheaper, this video is for you. Is your local dealer trying to screw you, or are tractors or equipment really cheaper at other places? I was in the dealership world for 11 years, and trying to decide where to price your products is tough. You obviously want to make money, but you don't want your customers to think you're not giving them a great deal and they buy somewhere else. You need to have the price high enough that you have room to come down if the customer values negotiation, while not having the price so high it looks like you're dishonest if the customer shops around. It was not uncommon for a customer to tell me they'd been to another dealer and could get a cheaper product somewhere else. Then I had to decide if I wanted to meet the price to get their business, or call their bluff. Here are five reasons that the dealer some distance away could be offering you a better price. First, they could be in a different region, and their cost for the product is less. Most companies are separated by regions and sometimes they'll have a different discount structure. Where I live, in southwest Missouri, we're generally in the Kansas City, or Chicago district, or in the Midwest area. Dealers in Arkansas are usually in the southern district, maybe based in Dallas or Houston. If there's a glut of inventory in the South, there could be additional discounts that allow dealers there to buy the product cheaper from the company. So, the dealer could be making the same margin but selling cheaper than the local outlet. Second, some companies offer incentives for volume. The more the dealer sells, basically, the cheaper the product gets. That generally comes in the form of a rebate check at the end of the manufacturer's fiscal year and is not figured into pricing. Those programs usually don't apply to small tractors. But, if a company had too much inventory in stock, they might offer a large discount for a dealer ordering more units, and the dealer that jumped on that program could be cheaper than the local guy. Third, make sure you're comparing apples to apples and that the tractor at a distant dealership is equipped exactly the way the one locally is. A couple of options left off can make a huge difference in price. Also, make sure both dealers are quoting the price based on the same payment option. Low rate programs usually come with a cost, so if one salesman is quoting the cash price and another the financed price, there could be a significant difference. Fourth, every year the manufacturers roll out their new models and raise prices from 2-5%. Many times there won't be any difference in the two tractors. If your local dealer is sold out of 2020 inventory and the guy quoting you a price a distance away still has it, he's going to be cheaper, and it may be for an identical product. It is almost never worth the extra money to buy the current year model. If you trade the tractor in later, the difference in value between a 2020 and a 2021 model is either negligible or nothing. If you can locate older inventory, buy it and save some money. Finally, attitude makes a big difference in selling price. The faraway dealer may have caller ID and realize he won't sell you anything unless he's cheaper than your local dealer. So, he shoots you a low price figuring if he doesn't get the sale he doesn't make anything, so what does he have to lose? That causes raw feelings between dealers, but customers can benefit from trade wars. In the end, its always best to buy from your local dealer, but never hesitate to keep him honest by checking his prices with competing dealers. LINKS YOU NEED TO KNOW ABOUT... The Tractor Fun Store: https://asktractormike.com/products-f... Support the Tractor Mike Channel: / tractormike Visit the Tractor Mike website: http://asktractormike.com/ Visit Facebook Page: / ask-tractor-mike-312112962245304 Copyright 2020 Tractor Mike LLC